Naples Real Estate Market Watch June 2018

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

Tidbits

Great Start to Summer Activity Continues!

Downing-Frye

June new pending sale contracts up 3% Year-over-year

June Closed Sales up 15% Year-over-year

Contracts over $1M nearly doubled  

COMBINED INVENTORY – Naples, Bonita/Estero

Retreating, still… – The combined inventory for Naples, Bonita Springs, and Estero is continuing the seasonal retreat. Good sales activity in June, comparing a year-over-year basis, combined with yet fewer new listings coming to the market again both lead to the overall reduction in available for sale inventory. The combined inventory is now less than 6,700 listings, the lowest point, again, in 2018. Inventory dropped about 6% and it is slightly lower than just one year ago.

Both Naples and Bonita-Estero markets saw an inventory reduction of 7% and 3% respectively month-over-month.

The combined markets’ absorption rate index continues to drive toward better numbers. Given the six month rolling average of sales per month, there is now just under 6 months of inventory on the market compared to 6 months noted last month. This is nearly a balanced market which we see usually every summer compared to the over saturated inventory situation during the Fall, Winter, and Spring season.

CLOSED SALES – Naples, Bonita/Estero

Sales volume pulls back, again… –The combined overall sales volume for the Naples and Bonita-Estero markets pulled back about 13% month-over-month and 6% year-over-year. The Naples and the Bonita/Estero market were both down with the Bonita/Estero markets down substantially more, about 2X the Naples market.

NAPLES REAL ESTATE

AVERAGE PRICE PAID

Up, a bit… – Naples overall average price paid was up year-over-year ~22%! The month-over-month number was down ~6%. The year-over-year average price paid has increased 14 of the last 19 months with several months posting greater than 20% increases. The condominium market is up and down month-over-month and not holding well year-over-year either while single-family homes were up 36% year-over-year, even month-over-month.

The overall average price paid for all property types was $643,000 compared to $682,000 in the prior month. The average price paid for a single-family home was $846,000 compared to $848,000 in the prior month and $398,000 for a condominium compared to $500,000 in the prior month.

For 2017 the overall average monthly closed sale price was $568,000 and now 2018 through June the overall average closed sale price is $678,000. So far, 2018 is still looking pretty good!

MEDIAN SALE PRICE

(The number where 50% of the homes sell above and below.)
Steady…– The overall median price was up 5% year-over-year and even month-over-month. Single-family homes remained steady while condominiums fell back just a bit.

The overall median price paid for all property types was $335,000 compared to $335,000 the previous month. The median price paid for a single-family home was $420,000 from $400,000 the previous month, and the median price for a condominium was $252,000 from $262,000.

BONITA SPRINGS REAL ESTATE and ESTERO REAL ESTATE

AVERAGE PRICE PAID

Down… – The overall average price paid for a property in the Bonita/Estero market decreased 5% month-over-month and decreased 13% year-over-year. Both single-family homes and condominiums suffered.

The overall average price paid for a property was $364,000 from $384,000 the previous month. The average price paid for a single-family home was $460,000 compared to $479,000 and $272,000 for a condominium from $395,000.

For 2017 the overall average monthly closed sale price was $388,000 and now 2018 through June the overall average closed sale price is $394,000. So far, 2018 is improving!

MEDIAN SALE PRICE

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

Dropped… – The overall median price paid for a property in the Bonita/Estero market dropped month-over-month and year-over-year. The month-over-month number was down ~4% and on a year-over-year basis it was down ~3%.

The overall median price paid for a property was $289,000 compared to $300,000. The median price paid for a single-family home was at $380,000 compared to $370,000 and for a condominium $245,000 compared to $249,000.

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.