August proved to be an outstanding month for the Naples area housing market with more pending and closed sales than last August. Sales of 685 homes was impressive for August, up 5 percent compared to August 2016. This was encouraging to broker analysts since inventory increased by only 20 properties compared to August's inventory last year.
This turned out to be a great summer for sales in Naples. Pending sales in August were up 13 percent, overall sales were up 5 percent, and there were some nice surprises in the report that weren’t expected.
These surprises included a 75 percent increase in pending sales and a 42 percent increase in closed sales for single-family homes located in South Naples. The August report also showed single-family homes in this geographic area had a 22 percent decrease in median closed price.
The condominium market performed just as well as the single-family home market in August, reporting a similar 13 percent increase in pending sales. The Pending Home Sales statistic is a forward-looking indicator that is based on contract signings.
We believe that summer's sales activity outpaced last years because of renewed consumer confidence. Buyer traffic continued to exceed expectations in August.
The overall median closed price for August was $328,000, a 2 percent increase over August 2016. Geographically, prices in the Naples Beach area continue to rise faster than all other areas tracked. In fact, median closed prices for single-family homes in the Naples Beach area increased 32 percent in August.
Median closed price for single-family homes jumped 10 percent in August to $422,000. This initially surprised broker analysts but, as reflected in the report, this figure was heavily influenced by 17 sales in the $2 million and above single-family home market, which saw a 54 percent increase in median closed price. All other price categories in the single-family home market reported median closed price increases of 5 percent or below.
However, when taking a long look at closed pricing trends (12-month ending), August's median closed price for single-family homes was $405,000, the same as August 2016. Median closed price actually dropped 5 percent for single-family homes over $300,000 to $510,000 for the 12-month ending August 2017 from $535,000 in the 12-months ending August 2016.
Overall inventory for August barely budged with a total of 4,807 homes compared to 4,787 in August 2016. Single-family home inventory decreased 4 percent, while the condominium market saw a 6 percent increase in inventory for August.
Inventory for condominiums priced below $300,000 in August increased by 133 units to 1,107 total units available. This was the highest increase (14 percent) of all property types and price categories reported in the month.
Statistically, major weather events impact housing market sales, and Hurricane Irma was no exception. There was virtually no activity for almost two weeks following the storm. We won't truly know the impact of Hurricane Irma on the area's housing market for a few months. The event presents a great opportunity for sellers to refresh their homes and make them more appealing to buyers before season starts.
If you are weighing the pros and cons of renovations to your home following Hurricane Irma before you decide to sell, give me a call for assistance. I can do a market comparison and determine a fair and reasonable listing price, both with and without renovations. I can also identify properties best suited for your needs and negotiate a purchase price that fits your budget. Discover more at www.NaplesPropertyPreview.com.