Naples Real Estate Market Watch September 2017

 Tidbits

Twenty-three new contracts in the first three days post Irma.

Irma necessarily dampened the the closings for much of September but,
it really amounts to a delay in closings with a small number being terminated.

COMBINED INVENTORY – Naples, Bonita/Estero

Steady… – The combined inventory for Naples, Bonita Springs, and Estero otherwise primed for a seasonal uptick in September, was dampened by the impact and aftermath of hurricane Irma. The result, however, not catastrophic for the real estate market in general.

The total number of active listings on the market at the end of the month was 6,185 (prox) compared to the prior month at 6,110 (prox) and compared to one year ago at 6,461 (prox).

The big hit due to Irma relative to the inventory of homes for sale is seen in two places, new inventory added and sales volume, more on sales volume later. The total new added inventory of homes was 575 compared to the same period one year ago when the number was 1,523. With the storm hitting mid month and preparations beginning well before that, about two-thirds of the expected new inventory didn’t make it to the market.

The combined markets inventory absorption rate ticked up from 5.0 months worth to 5.6 months worth using sales trends for the previous six month period.
CLOSED SALES – Naples, Bonita/Estero

Sales volume down, and Down… – No doubt, chalk this result to hurricane Irma. The combined closed sale activity was just about 2/3 what it was the previous month and same for the year-over-year numbers.

So what happened when we are talking about closed sales which are contracts typically written 30-60 days prior? Plain and simple, a force majeure event occurred which triggers automatic extensions to closing dates until services – banking, court house, insurance…etc – are restored assuming no severe property damage. Also, homes scheduled for closing post Irma underwent additional inspections and additional time was needed for that. This is exactly what happened related to one of my contracts and all that was needed was a one week delay for the successful closing.

NAPLES REAL ESTATE

AVERAGE PRICE PAID
Up and Down… – Naples overall average price paid was off ~6% month-over-month but up  10% year-over-year.  This follows the previous month where the average price paid was up 21% year-over-year! Single-family homes fell back a bit while condominiums remained steady.

The average price paid for a single-family home was $690,000 compared to $705,000 in the prior month and $364,000 for a condominium compared to $368,000 in the prior month. The overall average price paid for all property types was $527,000 compared to $563,000.

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 and trends at all.

MEDIAN SALE PRICE
(The number where 50% of the homes sell above and below.)
Steady, pretty much… – The overall median price paid for a property was down month-over-month ~5% and steady 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 $400,000 from $409,000 the previous month, and the median price for a condominium was $234,000 from $245,000. The overall median price paid for all property types was $310,000 compared to $325,000 the previous month.

BONITA SPRINGS REAL ESTATE and ESTERO REAL ESTATE

AVERAGE PRICE PAID
Up and Down… – The overall average price paid for a property in the Bonita/Estero market was down ~4% month-over-month and up ~7% year-over-year. Condominiums led the way with higher prices paid while single-family homes suffered.

The average price paid for a single-family home was $483,000 compared to $520,000 and $271,000 for a condominium from $241,000. The overall average price paid for a property was $374,000 from $389,000 the previous month.

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.)
Steady, pretty much… – The overall median price paid for a property in the Bonita/Estero market was down month-over-month and up year-over-year by about 2% each.

The median price paid for a single-family home is now at $384,000 compared to $370,000 and for a condominium $227,000 compared to $207,000. The overall median price paid for a property was $284,000 compared to $291,000.

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.