I’ve often said that the days of a traditional seasonal Naples real estate market are long gone. Naples isn’t “just” a resort community driven by a “snowbird” market. Our market is busy and vibrant year-round, and current market statistics confirm just that as we move into summer.
During the month of May, we saw over 1000 home sales in Naples. That’s over 30 homes a day….sold.
Especially strong is the luxury real estate market of homes priced at $2 million plus. A look at May 2014 shows the number of closed sales for single-family homes in the $2 million and above market soared 73 percent when compared to May 2013. Sales of condominiums in the $2 million and above market more than doubled compared to May 2013. Pricing of luxury condominiums continues to rise; the median closed price for condominiums in the $2 million and above market increased to $2,900,000 in the 12-months ending May 2014.
What about more moderately priced homes?
In short, we see the trend we’ve watched for a while continuing: Modestly priced homes in Naples are harder to come by, and prices continue to move upward.
Overall median closed prices (including both condominiums and single-family homes) rose 15 percent overall year-over-year from $220,000 to $253,000 in the 12-months ending May 2014. For homes priced $300,000 and under, prices jumped 13% to a median of $170,000. The inventory of properties under $300,000 dropped 18% from May 2013 numbers.
With that “price creep,” though, comes a net increase in the inventory of single family homes in the $300,000 - $500,000 price segment. This increase may be due to more homeowners listing their homes, but is also due to homes listing at higher price points. The home that may have sold for $250,000 in 2012 is now on the market at $300,000+.
This month, we see an interesting trend in home inventory. May’s inventory of homes on the market was the lowest it’s been since tracking began in 2007. But the decrease is mainly in the condominium market where inventory decreased 19 percent. Why so? As prices for single family homes rise, buyers may consider a condo as a more affordable option. International buyers often prefer condominiums due to ease of maintenance. And while new home construction is helping fuel the inventory of single-family homes, fewer new condos are under development.
Bottom line for buyers?
It’s been a tremendous winter season here in Naples. During the summer, we don’t anticipate a slowdown as our local buyers and international visitors will fuel a continued busy market. This steady growth contributes to the stability in our local real estate market.
If you’re looking - or thinking of looking - I’d recommend that you remember that first statistic above. During May, over 30 homes a day were sold in Naples. For Realtors and for our local economy, that’s great news. For buyers, it’s a statistic that sends an important message. Don’t delay. Let’s start the search and find the perfect Naples home for you!
