Naples Real Estate Market Watch October 2017

Tidbits

2017 vying for #3 spot sales volume in eleven years

COMBINED INVENTORY – Naples, Bonita/Estero

UP!… – The combined inventory for Naples, Bonita Springs, and Estero showed the seasonal bounce upward by nearly 7% which is very much typical this time of year and for October, however one month delayed albeit due to the impact of hurricane Irma in September. September did post slightly more than 1% increase which is well below the expected 6%-7% increase expected.

The total number of active listings on the market was 6,608 (prox) compared to the prior month at 6,185 (prox) and compared to one year ago at 6,949 (prox).

The total new added inventory of homes was 1,567 compared to the same period one year ago when the number was 1,797. This is pretty much in line with expectations but given that September was well below the norm and October didn’t bump up enough to compensate I can only surmise that hurricane Irma clean up and repair is delaying some properties from coming to market.

The combined markets inventory absorption rate ticked up again from 5.6 months worth to 6.5 months worth using sales trends for the previous six month period favoring buyers.

CLOSED SALES – Naples, Bonita/Estero

Sales volume bounces back… – The month following hurricane Irma we see sales volume bouncing back. Naples jumped up some 35% month-over-month while it remained behind year-over-year by about 4%. All in all, it’s not too bad. The Bonita/Estero market jumped up some 21% month-over-month but was behind about 9% year-over-year.

Expectations…based on increased showing activity and new pending sale contracts I believe 2017 will finish out on a strong note and post more sales than 2016. The only question that remains is whether 2017 will be in the #3 or #4 spot for sales volume over the past ten year period.

NAPLES REAL ESTATE

AVERAGE PRICE PAID

Up… – Naples overall average price paid was even month-over-month but up 10% year-over-year – three months in a row of 10%-20% year-over-year price paid increases.  The largest year-over-year increase was in single-family homes with condominiums about even.

The average price paid for a single-family home was $631,000 compared to $689,000 in the prior month and $384,000 for a condominium compared to $372,000 in the prior month. The overall average price paid for all property types was $533,000 compared to $531,000 in the prior 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 and trends at all.

MEDIAN SALE PRICE

(The number where 50% of the homes sell above and below.)
Up… – The overall median price paid for a property was up month-over-month ~9% and up year-over-year ~13%. 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 $405,000 from $403,000 the previous month, and the median price for a condominium was $230,000 from $235,000. The overall median price paid for all property types was $340,000 compared to $311,000 the previous month.

BONITA SPRINGS REAL ESTATE and ESTERO REAL ESTATE

AVERAGE PRICE PAID

About even… – The overall average price paid for a property in the Bonita/Estero market was about even  month-over-month and down ~3% year-over-year. Condominiums led the way with higher prices paid while single-family homes suffered, two months in a row now.

The average price paid for a single-family home was $463,000 compared to $482,000 and $300,000 for a condominium from $271,000. The overall average price paid for a property was $374,000 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.)
Steady, pretty much… – The overall median price paid for a property in the Bonita/Estero market was even month-over-month and up year-over-year by about 2%.

The median price paid for a single-family home was at $385,000 compared to $387,000 and for a condominium $224,000 compared to $229,000. The overall median price paid for a property was $285,000 compared to $285,000.

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.