Naples Real Estate Market Watch March 2018

Real Estate Market Watch March 2018 – Naples, Bonita Springs, and Estero

COMBINED INVENTORY – Naples, Bonita/Estero

Retreating… – The combined inventory for Naples, Bonita Springs, and Estero has begun the seasonal retreat. Strong closed sale volume overall – 144% of previous month and 103% of March 2017 – combined with other listings now off the market (expired, withdrawn, or terminated) offset the healthy number of new listings (2,087) resulting in an overall inventory reduction.

Both Naples and Bonita-Estero markets saw an inventory reduction of 3% – 4%.

The combined markets absorption rate index has begun to drop a bit based on the strong March closed sale performance and inventory reduction. Given a six month rolling average sales per month, there is now just over 8 months of inventory on the market compared to just under 10 months noted last month.

CLOSED SALES – Naples, Bonita/Estero

Sales volume jumps… –The overall sales volume for Naples and Bonita-Estero markets combined jumped 44%. Naples market was up 41% while the Bonita-Estero market was up a whopping 55% for March compared to the previous month.

NAPLES REAL ESTATE

AVERAGE PRICE PAID

Up… – Naples overall average price paid was up year-over-year 7% – quite a healthy increase. The month-over-month month number was down some 5% but this is due to extreme average sold prices noted in January and February.

Smoothing out the data over four or five months we see: i) prior to 1/1/2018 average sale prices were around $533,000, and ii) the average sale price in March is now $670,000. This represents about a 26% increase from 4Q2017.

The overall average price paid for all property types was $670,000 compared to $705,000 in the prior month. The average price paid for a single-family home was $820,000 compared to $886,000 in the prior month and $494,000 for a condominium compared to $534,000 in the prior month.

Of all closing in the Naples market 14% (137) in March were $1M and above.

MEDIAN SALE PRICE

(The number where 50% of the homes sell above and below.)
Steady increase – The overall median price returned to the breakneck numbers posted in January. Year-over-year increase was 9% and month-over-month increase was 4%. For March, single-family homes declined a bit while a modest increase for condominiums was noted.

The overall median price paid for all property types was $365,000 compared to $350,000 the previous month and compared to $365,000 in January also. The median price paid for a single-family home was $418,000 from $430,000 the previous month, and the median price for a condominium was $270,000 from $260,000.

The median price paid in 1Q2018  ($360,000) was nearly 10% above 4Q2017 ($328,000).

BONITA SPRINGS REAL ESTATE and ESTERO REAL ESTATE

AVERAGE PRICE PAID

Strong and steady… – The overall average price paid for a property in the Bonita/Estero market continues a strong and steady month-over-month increase of 8% per month on average over the last four months! For the most part, it is the increasing price paid for single-family homes that is driving the overall average performance upward while the condominium segment remains flat.

The overall average price paid for a property was $407,000 from $399,000 the previous month. The average price paid for a single-family home was $528,000 compared to $544,000 and $301,000 for a condominium from $286,000.

MEDIAN SALE PRICE

(The number where 50% of the homes sell above and below.)
Strong and steady… – The overall median price paid for a property in the Bonita/Estero market also is strong and steady on a month-over-month basis for the first three months of 2018. Mathematically, however, there is no strong change up or down when comparing 4Q2017 to 1Q2018 on average.

The overall median price paid for a property was $298,000 compared to $290,000. The median price paid for a single-family home was at $389,000 compared to $392,000 and for a condominium $250,000 compared to $227,000.

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.