According to the most recent report of the Naples Area Board of Realtors, in the second quarter of 2014 the transactions made in the real estate domain of Naples have led to maintaining the market stability in the area. Sales and residence listings are monitored for Collier County (except Marco Island) by NABOR. As statistics clearly show, there were no important ups or downs in the Naples real estate market in the second quarter of 2014, in comparison to the second quarter of the previous year.
Overall closed sales have decreased from 3,165 to 3,054, which means four percent. Overall pending sales have decreased from 3,197 to 2,949, which means eight percent. Overall media enclosed price has increased from 249,000 dollars to 273,000 dollars, which means ten percent. Overall inventory has decreased from 4,086 to 3,723, which means nine percent. In the second quarter, the improvement for the luxury segment was of more than two million dollars, made with 156 closed sales. This means an increase of forty-two percent compared to the same period of the last year.
The increase for single family homes worth two million dollars or more was of forty-four percent. The closed sales rose from sixty-eight to ninety eight. The rise for condos of two million and more was of thirty-eight percent, with forty-two to fifty-eight closed sales. The President of NABOR, who is also corporate trainer at Dawning Frye Realty, Pet Pitocchi has declared that the number of high-end buyers became higher due to an appealing inventory mixed with a high confidence in the market.
The stability of the housing market can be seen in the fact that there is a recovery related to conventional financing. The report states that conventional mortgages have financed 37.5 percent of residence sales in the month of June 2014. In comparison to the month of January 2013, the rise is of ten percent, as back then it was twenty-seven percent. The general manager and vice-president of Dawning Realty, Mike Hughes, declared that the landing environment seems to be more agreeable.
Consumers who had short sales and foreclosures (the so called boomerang buyers) can now comeback to the market, as they are eligible again for financing. An investor can see a constant increase for investing in real estate in comparison to the investment increase in the stock market, because analysts can predict a major correction in the mid-term election.
Mike Hughes says that the overall trust of people in real estate investing is increasing and they can think of reinvesting and maintaining their investing longer, as the rates are continuing to be low. The report made by NABOR for the second quarter of 2014 contains a comparison between condominium sales through the South West Florida MLS and single family homes, geographic segmentation and ranges of prices. The report can also provide an overall view of the market summary.
In the second quarter of 2014, overall pending sales were at 3,197, while in the second quarter of 2014, they were at 2,949. This means a decrease of eight percent. The underprice category and the one of 300,000 dollars went down fourteen percent. The category of one million to two million dollars has decreased six percent. For condominiums, the pending sales went down seven percent. This means that in the second quarter of 2013, they were at 1,626 and in the second quarter of 2014, they were at 1,510. A decrease was reported in each category of price.
In the case of residences that worth over 500,000 dollars, overall closed sales went up to eleven percent. For residences of the two million dollar market and more, overall closed sales went up forty-two percent. This means that in the second quarter of 2013, they were at 110 and in the same quarter of 2014, they were at 156. For the category of single family homes priced at 300,000 dollars and bellow, the decrease of closed sales was of twenty-three percent. A decrease from 677 in 2013 (second quarter) to 521 on 2014 (also the second quarter) was seen.
An increase of ten percent was seen for the overall median closed price. This price went from 249,000 dollars in the second quarter of 2013 to 273,000 dollars in the second quarter of 2014. The overall median closed price of residences worth one million to two million was four percent lower in the second quarter of 2014 compared to the same period of 2013. It went down from 1,387,000 dollars to 1,325,000. When it comes to single family residences in the category of two million dollars or more, the median closed price was decreasing fifteen percent in the second quarter of this year compared to last year’s second quarter.
It means that the price has fallen from 3,225,000 dollars to 2,750,000. In the same periods of time, the overall inventory became nine percent lower, from 4,086 to 3,723 residences. In the same manner there was a decrease for the inventory of condominium of twenty percent, from 2,190 to 1,759. The inventory in the single family residence market rose in the same period four percent, from 1,896 to 1,964. Ninety-four is the overall average day number on market for the second quarter of 2014.
The managing broker of Berkshire Hathway HomeServices Florida Realty by the name of Brenda Fioretti declared that new buildings are added to the inventory. She also says that the Southwest Florida MLS has not reported any activity in the construction market of new residences. NABOR analysts say that, according to the final report, the stabilization of the market is obvious, as just nine percent of the closed sales made in the month of June 2014 were forclosed or short sale (non-traditional). At the time NABOR gathered the information (July 2009), the percentage of non-traditional sales was forty-nine.