The Naples real estate market sits poised for solid performance in 2014. Recently, analysts at the Naples Area Board of Realtors recapped key indicators from 2013; homeowners and investors can rest assured that our market is stable and headed in a great direction for the future.
Let’s look at some common frequently asked questions related to the current Naples market trajectory.
How do these analysts look at the market?
Market stats compare performance over a twelve-month period. In other words, monthly reports look at today’s market compared to January, 2013. Annual summaries compare all of 2013 to 2012. This allows a long-term view rather than just a snapshot.
What are the main factors that point to a solid market at this time?
The primary variables in the market are the same for buyers, sellers, and market analysts: Pricing, number of closed and pending sales, and current inventory of homes on the market.
In a market that includes a broad span of price ranges, can we take a look at “our” specific price range to see what things look like?
Yes. It’s true that in the Naples area, prices run the gamut from moderately priced condominiums to multi-million dollar beachfront properties. Our market statistics break down all key indicators into categories by (1) price ranges, (2) locations, and (3) types of homes. It’s a great help to buyers to be able to look at the specific market you’re interested in - condominiums in North Naples between $300 - 500,000, for example, or waterfront homes over $2 million.
What market segments are moving fastest?
The $300-500,000 market segment is hot! We saw a 27% increase in closed sales in this segment during 2013. In general, the number of closed sales of homes over $300,000 increased by almost 23% for the year.
Are condos moving as fast as single family homes?
Luxury condominium properties were hot in 2013! Condos in the $2 million plus price category realized a whopping 62% increase in closed sales.
Isn’t there a lot on the market right now?
Quite the opposite! Monthly trends have shown decreasing inventory, with 2013 wrapping up showing a 18% decrease in the number of homes for sale. Inventory in the condo marked dropped 23%.
And….how do prices look?
Overall, pricing has moved upward or stayed stable over the past year. The largest increase in prices has been in the most affordable properties. Prices of homes under $300,000 increased 16% last year. In short, bargain properties are getting harder and harder to find.
What else should a buyer be aware of?
One related statistic, especially if you are comparing a potential purchase in Naples as compared to another community. Over the past year, only 17% of sales in Naples were “non-traditional” sales; meaning short sales or foreclosures. The number of short sales and foreclosures can negatively impact the value of homes in a neighborhood, so it’s certainly something to watch for. The low number of these “non-traditional” sales in Naples is one more indicator of a market that is ready for great things to come.
So….how do I find the right house at the right time?
Without a doubt, our little piece of Paradise will be in demand in 2014! A skilled, professional Realtor is the key to helping you locate the right house at the right price when you are ready to make your move. Give me a call - I am happy to help you navigate this exciting time in the Naples market!
