"In this quarter last year, 44 percent of pending sales [homes under contract] were for homes in the price category over $300,000," said Brett Brown, a Broker/Salesperson for Premier Sotheby's International Realty. "The current report shows us that the number of pending sales has increased to 53 percent of the market."
Brown pointed out that from 2010 to 2012 80 percent of all pending sales were composed of homes under $300,000. But second quarter reports for 2014 and 2015 identify a shift took place in pending sales activity to homes at higher price points within the market. And while inventory in the under $300,000 price category decreased 24 percent in the 2Q of 2015 (the same rate as in the 1Q of 2015); this price segment no longer makes up the majority of the market's inventory.
Broker analysts contend that the market was quite different 10 years ago with a lot of flipping and loose financing going on. But the consumer and industry setting is different today. The 2Q 2015 Market Report revealed where the differences occurred like median closed price, where prices for homes between $300,000 and $2 million leveled out increasing or decreasing 0 to 2 percent. Other differences revealed in the 2Q Report are a gradual increase in financed homes to 38.3 percent of the market in June 2015, and a non-traditional market (short sales and foreclosures) that is dwindling at just 7 percent of the market.
"Prior to 2014, prices in all segments were going up," said Tom Bringardner, Jr., President/CEO of Premier Commercial. "But a side-by-side comparison of overall activity for the first six months of last year to this year signifies a different climate where the market has reached stabilization."
According to the 2Q 2015 Market Report, the Naples area experienced a 14 percent increase in overall median closed price from $255,000 in the 12-months ending 2Q of 2014 to $290,000 in the 12-months ending 2Q of 2015. Yet this increase was driven by increases at both ends of the market spectrum during this time period; i.e., an 11 percent increase in homes under $300,000, and a 15 percent increase in homes $2M and above. Incidentally, the median closed price for homes in price categories over $300,000 and under $2M decreased 1 percent.
Pockets of market highs and lows will continue to appear in the area, as demand and location continue to be major market influencers. For example, the report showed an 83 percent increase in inventory for condominiums in the $2M and above price category from 29 units in the 2Q of 2014 to 53 units in the 2Q of 2015, and a 23 percent decrease in condominium inventory in the Naples Beach area from 476 units in the 2Q of 2014 to 368 units in the 2Q of 2015.
Inventory for single-family homes continued to rise in the 2Q of 2015 with a 9 percent increase from 1,964 single-family homes in the 2Q of 2014 to 2,133 single-family homes in the 2Q of 2015. Whereas the condominium market saw an 11 percent decrease in inventory for 2Q 2015 from 1,759 condominiums in the 2Q 2014 to 1,565 condominiums in the 2Q of 2015.
The NABOR® 2Q 2015 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 2015 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:
- Overall pending sales decreased 4 percent from 2,949 in the 2Q of 2014 to 2,843 in the 2Q of 2015.
- Overall closed sales remained flat with no increase or decrease reported in the 2Q of 2015.
- Closed sales for condominiums in the $300,000 to $500,000 price category increased 38 percent from 682 in the 2Q of 2014 to 938 in the 2Q of 2015.
- Overall median closed price increased 14 percent from $255,000 in the 12-months ending 2Q of 2014 to $290,000 in the 12-months ending 2Q of 2015.
- Overall inventory decreased 1 percent from 3,723 homes in the 2Q of 2014 to 3,698 homes in the 2Q of 2015.
- Overall inventory for homes in the under $300,000 price category decreased 24 percent from 1,366 homes in the 2Q of 2014 to 1,036 homes in the 2Q of 2015.
- Inventory for single-family homes in the $500,000 to $1M price category increased 32 percent from 456 single-family homes in the 2Q of 2014 to 604 single-family homes in the 2Q of 2015.
- Average days on market decreased 20 percent from 94 days in the 2Q of 2014 to 75 days in the 2Q of 2015.
- Overall pending sales increased 5 percent from 840 homes in June 2014 to 882 homes in June 2015.
- Overall closed sales remained flat with no increase or decrease reported in the 12-months ending June 2015.
- Overall median closed price increased 14 percent from $255,000 in the 12-months ending June 2014 to $290,000 in the 12-months ending June 2015.
- Overall inventory decreased 1 percent from 3,723 homes in June 2014 to 3,698 homes in June 2015.
- Average Days on market decreased 22 percent from 94 days in June 2014 to 73 days in June 2015.
"I saw a lot more locals selling and buying homes in the second quarter of 2015," said Steve Barker, Advising Broker for Equity Realty, who added that market conditions are right for this type of transition. "People are no longer underwater in their homes and are confident it's a good time to sell and move into a new community."
To ensure your next sale or purchase in the Naples area is a success, contact a REALTOR® on Naplesrea.com.