Our headline this month is DWINDLING INVENTORY DRIVES HOME PRICES UP!
The Naples area real estate median closed price increased a remarkable 10 percent for the 12-month period ending August 2012.
“At the NABOR Economic Summit held this past April, Dr. Lawrence Yun, chief economist of the National Association of REALTORS® predicted that he ‘would not be surprised to see a 10 percent increase in home prices in southwest Florida by December.’ Well, the Naples area median home price just reached a 10 percent increase in less than four short months, just as Dr. Yun predicted.”
“We are beginning to see the results of the inventory decline coupled with the increased median closed price. Looking at the inventory statistics it is interesting to note that in less than eight months, we reached an overall inventory of 6,043 in August 2012 from 7,860 in January 2012. The last time we saw the inventory this low was in 2005.”
The overall median closed price increased 10 percent, from $176,000 to $194,000, for the 12-month period ending August 2012.
Overall pending sales increased 16 percent in the $500,000 to $1 million category and Overall pending sales increased 10 percent in the $1 million to $2 million category during this 12 month period.
“It is important to remember that the increase in prices can vary from zip code to zip code and neighborhood to neighborhood
“The strong numbers clearly reflect the economic model of Supply and Demand. As inventory decreases and demand for homes remains high, we are observing an increase in prices. The statistics from the last three months have capped off a strong summer. The Naples area is no longer as seasonal as it used to be.