Naples Real Estate Market Watch April 2017 RealEstateInThe239

Naples Real Estate including Bonita Springs Homes for Sale and Estero Homes for Sale

Naples Real Estate Market

COMBINED INVENTORY – Naples, Bonita/Estero

Inventory drops, big time… – April 2017 inventory decreased by more than 13% from March 2017, but why? Closed sale volume peaked in March with very large month-over-month and year-over-year increases and April 2017 closed sales volume remained strong also with a modest pull back in sales volume albeit. Also, the number of new listings added to the market is down by ~20% in April. Combine these factors with a number of (unsold) properties coming off the market as some sellers view the upcoming months as “off season”. I don’t subscribe to this view, especially this year/season with lackluster December 2016 and January 2017 performance there is a lot of pent up demand. This is showing itself now in May as the rate of new pending sale contracts is strong month-to-date.

The total number of active listings on the market at the end of April 2017 was 7,265 down from 8,383 in March 2017.

This is all good news but, the inventory is still very high with about seven months worth of inventory using the average sales rate for the last six months – Buyer’s Market.

CLOSED SALES – Naples, Bonita/Estero

Holding its own… – Both the Naples and Bonita/Estero market saw decrease in closed sales volume month-over-month and year-over-year. However for the most part, the pull back was less than 10%. Total combined closed sales volume was 1,249 properties in April while March was 1,366.

Naples pulled back 9% month-over-month and 7% year-over-year.. Bonita-Estero pulled back 18% month over month but just 7% year-over-year.

NAPLES

AVERAGE PRICE PAID

Up year-over-year and flat month-over-month… – April 2017 – Naples showed a modest improvement year-over-year of 4% and flat month-over-month.

The average price paid for a single-family home was $778,000 up from $768,000 in the prior month  – a healthy increase –  and $472,000 for a condominium down from $494,000. The overall average price paid for all property types was $625,000 flat from $627,000.

Your mileage may vary… real estate is local and in southwest Florida it is very local where any given community can be dramatically affected by factors that may not follow the averages at all.

MEDIAN SALE PRICE
(The number where 50% of the homes sell above and below.)

Modest improvement continues… – The overall median price paid for a property was up 6% month-over-month and 9% year-over-year. The median price paid is a much better indicator than average price as it tells buyer’s appetite for spending. One large or small sale can skew the average where the median indicates the midpoint of buying activity.

The median price paid for a single-family home was $410,000 up from $405,000 the previous month, and the median price for a condominium was $285,000 up from $270,000. The overall median price paid was $355,000 up from $334,000 the previous month.

BONITA SPRINGS – ESTERO

AVERAGE PRICE PAID

Down … – The average price paid for a property in the Bonita/Estero market was down 10% month-over-month and down 8% year-over-year.

The average price paid for a single-family home was $515,000 flat from $516,000 and $297,000 for a condominium down substantially from $348,000. The overall average price paid for a property was $384,000 down from $425,000 the previous month about 10%.

Your mileage may vary… real estate is local and in southwest Florida it is very local where any given community can be dramatically affected by factors that may not follow the averages at all.

MEDIAN SALE PRICE
(The number where 50% of the homes sell above and below.)

Down… – The overall median price paid was down 7% month-over-month and down 12% on a year-over-year basis now at $290,000 from $312,000 the previous month. This represents a shift back toward lower priced properties.

The median price paid for a single-family home is now at $393,000 up from $391,000 and for a condominium $245,000 down from $247,000 the previous month.

The median price paid is a much better indicator than average price as it tells buyer’s appetite for spending. One large or small sale can skew the average where the median indicates the midpoint of buying activity.