NAPLES FIRST QUARTER MARKET REPORT 2017
As analysts predicted, sellers are starting to adjust prices downward. As a result, buyers are seeing more reasonable list prices and therefore are making more solid offers. Overall, statistics show increases in pending and closed sales, making the first quarter of 2017 as solid as expected.
Although the beginning of the year started slower than anticipated, the first quarter of 2017 showed more activity than last year due to a strong March. Additionally, buyers are scheduling return trips to Naples during May, June and July to take advantage of the lower priced properties.
Quarter Over Quarter
Overall, the report showed median closed prices increased only 2 percent. The increase was primarily due to a 3 percent increase in the $300,000 and below price category. Most price categories showed slight decreases or no change at all.
However, one exception was single family homes priced between $300,000 to $500,000 which jumped 14 percent. Thus, the median closed price for single family homes increased from $339,000 in the first quarter of last year up to $387,000 in the 1st quarter of 2017.
First Quarter Highlights
The Naples FL real estate activity in the condo market during the first quarter of 2017 was impressive. In fact, both condominium closed sales and pending sales increased 19 percent. Additionally, the medial sales price rose 3 percent from $260,000 to $270,000 when comparing Q1 of 2017 versus 2016. Finally, inventory of condos continued to increase as it has the past several months. In all, we have an 8.89 months worth of inventory on the market.
Geographically, the market had some hot areas of action during the first quarter of 2017. Of note was Central Naples (34104, 34105, 34116), which saw a 74 percent increase in single-family home inventory to 634 single-family homes in the 1st quarter of 2017 from 364 single-family homes in the 1st quarter of 2016. And the median closed prices for single-family homes in South Naples (34112, 34113) increased 22 percent in the 1st quarter of 2017 to $386,000 from $317,000 in the 1st quarter of 2016.
So if you are considering buying a home in Naples, now is the time. We’ve seen a decrease in prices and an increase in inventory giving buyers more to chose from.
First Quarter 2017 Market Report
|CATEGORIES||1Q 2016||1Q 2017||CHANGE|
|Total homes under contract (pending sales)||2,786||3,097||11%|
|Total closed sales||518||613||14%|
|Median closed price||$323,000||$333,000||2%|
|Median closed price >$300K||$545,000||$510,000||-6|
|Total active listings (inventory)||5,577||6,466||13%|
|Average days on market||79||99||23%|
|Single-family closed sales||261||294||8%|
|Single-family median closed price||$425,000||$402,000||-1%|
|Condominium closed sales||257||319||19%|
|Condominium median closed price||$260,000||$270,000||3%|
Is Cash Still King?
The March Market Report also indicated a trend in how buyers are purchasing homes in Southwest Florida. Although a majority of buyers are still paying cash for their home purchases in our area, it’s not quite as high as it’s been in the past few years.
- In March 2014, cash sales comprised 74 percent of all sales for the month.
- In March 2015 cash sales represented 73 percent of all sales for the month
- In March 2016 cash sales fell to 67 percent of all sales for the month.
- In March 2017 cash sales accounted for 64 percent of all sales made in the month
Ultimately, more buyers are using financing to purchase homes in our area.
Buying a Home?
Finally, when you are ready to buy a condo or home in Naples, you will find it is more complex than a typical home purchase. Many communities have various fees and assessments that are not always obvious when you begin your property search. Also, if you have pets, there often restrictions on what type of pets and how big your pet can be. Lastly, demographics vary significantly in each community.
So when you are looking for information about a specific community in Bonita Springs, Estero or Naples, contact me and I will prepare a custom market report for you. I can help provide the market information and more importantly, provide insights to help ensure you select the best community to match your needs.
Most importantly, I will manage all of your contract negotiations to ensure your real estate transaction is effortless from the first offer to closing!