Market Review – 3rd Quarter 2014 for Naples, Bonita, Estero Market Area
NEW LISTINGS AND PENDED SALES
The number of sales pended in Q3 2014 slowed to just over a 4% increase, following 19% increases for the period in 2012 and 2013. This is likely driven by decreasing inventory in the first and second quarters rather than a drop in demand. Inventory of single family homes and condominiums in the Naples, Bonita and Estero market decreased 10% overall from October 1, 2013. The greatest decrease occurred in the segment priced between $2 million and $5 million, down 35%. Properties priced between $500,000 and $750,000 had the greatest gain in supply, up 7% when compared to October 1, 2013.
CLOSINGS AND AVERAGE SALES PRICE
The number of closed sales during the third quarter decreased for the period for the first time since 2010 (-3%). The market as a whole had an increase in average sales price of 3% over the same quarter in 2013. The average price for the quarter is approximately the same as the Q3 2008.
MONTHS OF SUPPLY
Inventory for the quarter continued to decrease, as it has for this period since Q3 2007. The number of closings on a 12-month basis has steadily increased. The result is that the months of supply have declined from 31.7 months in Q3 2007 to its current level of 4.3 months.
Although new listings are up 8% over Q3 2013, pended sales continued to out-pace new inventory. Third quarter 2014 marks the second consecutive quarter in which sales have exceeded the number of new listings. Overall, the market is in a healthy state at this time, despite inventory shortages in some areas. Prices are increasing at a reasonable pace but not at the levels seen earlier in the recovery cycle. This situations bodes well for buyers and sellers, as prices have rebounded but remain well below their peaks. Shortages of inventory in some segments are likely to drive prices higher as seasonal buyers return to the market.
This report is intended to give the reader a macro-view of the market in the combined Naples, Bonita Springs, Estero areas. Contact Dustin Beard at 230-289-2650 for additional information or to learn more about the area.