Naples & Southwest Florida Real Estate
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Naples Real Estate Market Watch January 2018

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Naples Bonita Springs Estero

Real Estate Market Watch January 2018

COMBINED INVENTORY – Naples, Bonita/Estero

1801InventoryTNup, Up, UP!  – The combined inventory for Naples, Bonita Springs, and Estero has ballooned to more than 8,000 active for-sale listings. The most recent inventory peak was just more than 10,000 properties in January of 2011 and higher in years before that. The increase in January 2018 was quite high at some 9% over December. I expect to see another inventory increase coming for February but a much smaller one maybe one to three points.


The Naples market and the Bonita-Estero market posted increases of 10% and 6% respectively.


What’s going on? First, a record 2,677 new listings were added to the market. Second, while sales volume increased about 10% year-over-year, the sales volume dropped by 2% month-over-month. All this points to a shift further towards a buyer’s market.


The combined markets inventory absorption rate ticked up again from 7.3 months to 7.9 months of inventory using sales trends for the previous six month period. Generally higher numbers are bad as well as low numbers. Each would point to extremes in favor of the seller or the buyer respectively and would point to a generally unbalanced market. The trend now continues to move more and more in the buyer’s favor.


CLOSED SALES – Naples, Bonita/Estero


Sales volume retreats… –The overall sales volume for Naples and Bonita-Estero pulled back a couple of percent month-over-month but was up some 10% year-over-year. Bonita-Estero fared better with increases of 4% and 18% month-over-month and year-over-year. Naples fell back 4% month-over-month but improved some 10% year-over-year.



NAPLES REAL ESTATE

 1801NaplesReportTN-HOR


AVERAGE PRICE PAID

up, Up and UP! – Naples overall average price paid was up month-over-month with ~28% increase and up year-over-year with ~25% increase. WOW! Those are whopping numbers. Read on.


The average price paid for a single-family home was $680,000 compared to $646,000 in the prior month and $744,000 for a condominium compared to $452,000 in the prior month. The overall average price paid for all property types was $708,000 compared to $555,000 in the prior month.


WHAT?! January was a special month for condos in Naples. Three hundred and eighty-five condos were listed as closed sales and 115 (nearly 30%) of those closed over $1M. More…the new Kalea Bay tower closed 79 sales or representing 68% of the units over $1M with sales ranging from $1.3M to $2.6M. Even more… a single penthouse condo in Le Rivage tower in Park Shore closed for $7.875M and it was on the market for just 26 days.

MEDIAN SALE PRICE

(The number where 50% of the homes sell above and below.)
up, Up and UP! – For the same reasons described above, the median numbers are skewed as well. The overall median price paid for a property was up month-over-month ~14% and up year-over-year ~16%.


The median price paid for a single-family home was $410,000 from $393,000 the previous month, and the median price for a condominium was $325,000 from $234,000. The overall median price paid for all property types was $365,000 compared to $339,000 the previous month.


BONITA SPRINGS REAL ESTATE and ESTERO REAL ESTATE

1801BonitaReportTN-HOR

AVERAGE PRICE PAID

Up and Up… – The overall average price paid for a property in the Bonita/Estero market was up month-over-month ~5% and up ~3% year-over-year.


The average price paid for a single-family home was $545,000 compared to $452,000 and $268,000 for a condominium from $327,000. The overall average price paid for a property was $393,000 from $375,000 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.)
Down… – The overall median price paid for a property in the Bonita/Estero market was down month-over-month ~9% and down ~8% year-over-year.


The median price paid for a single-family home was at $364,000 compared to $388,000 and for a condominium $235,000 compared to $245,000. The overall median price paid for a property was $285,000 compared to $313,000.


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.

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