Naples, Fla. (June 16, 2017) – Record-breaking rain fall in June did not dampen buyer interest in the Naples housing market as evidenced in the Second Quarter and June 2017 Market Reports released by the Naples Area Board of REALTORS® (NABOR®), which track home listings and sales within Collier County (excluding Marco Island). The 2Q report showed strong and steady sales activity leading into summer with a 7 percent increase in overall closed sales to 2,880 closed sales in 2Q 2017 from 2,704 closed sales in 2Q 2016, and a 9 percent increase in overall closed sales for the month of June to 907 closed sales from 832 closed sales in June 2016.
There were many remarkable areas of activity in the 2Q Market Report. For example, condominiums in the $2 million and above price category saw an 86 percent increase in closed sales and a 38 percent decrease in median closed price in 2Q 2017 from 2Q 2016. Similarly, pending sales (homes under contract) in the North Naples market increased 20 percent during 2Q 2017 from 2Q 2016, and was the only geographic area that reported a decrease in median closed price (-1 percent).
“The North Naples area is making a big turnaround,” said Coco Amar, a managing broker at John R. Wood Properties, “Especially in the condominium market which had the highest pending and closed sales reported.”
As reflected in the 2Q Market Report, pending sales of condominiums in North Naples increased 30 percent to 428 condominiums in 2Q 2017 from 329 condominiums in 2Q 2016. Closed sales of condominiums in North Naples increased 29 percent to 463 condominiums in 2Q 2017 from 358 condominiums in 2Q 2016. Condominium sales moving into summer look very good for North Naples too as June’s Market Report showed a 30 percent increase in pending sales.
Overall inventory during the 2Q of 2017 rose a respectable 4 percent to 5,189 homes in 2Q 2017 from 4,983 homes in 2Q 2016. According to Bill Coffey, Broker Manager of Amerivest Realty Naples, inventory during the 2Q was “getting eaten up by sales.” This is very evident in the Report for homes in the $2 million and above price category, which only saw a 1 percent increase in inventory, yet a 43 percent increase in closed sales.
Despite a 12 percent increase in inventory for the $300,000 and below price category, there was a 4 percent decline in overall closed sales in this low-end price category. Interestingly, while inventory for condominiums in the $300,000 and below price category saw the highest increase (17 percent) in the 2Q of 2017, the number of closed sales for condominiums in this category did not change quarter over quarter.
“Buyers struggling to find homes under $300,000 in the single family market are turning to condominiums or coach homes as an alternative,” said Steve Barker, Advising Broker for Equity Realty. “Even so, as it stands today, there is only 2.4 months worth of inventory available in the under $300,000 single-family home market, and 4.2 months worth of inventory available in the under $300,000 condominium market.” In response, many broker analysts remarked that slack sales in the low end of the market might be due to the imminent burden of additional costs beyond the sale price such as high condominium association and/or club membership fees.
The NABOR® Second Quarter 2017 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® 2Q 2017 sales statistics are presented in chart format, including these overall (single-family and condominium) findings: