Metas
Naples Condo Market Conditions March 08
Market conditions and trends are important for both condominium buyers and sellers in determining their actions in the Naples real estate market, as well as, cyclical variations. The market conditions for Naples condominiums cover both the month of March 2008 and the first calendar quarter of 2008, ending March 31, 2008. The monthly analysis reflects activity during March with comparative data for the previous years of 2007 and 2006. The quarterly analysis covers the first three calendar months of 2008, therefore, giving a more comprehensive picture of the current market conditions and trends.
MARCH ANALYSIS
NEW LISTINGS:
New listings during the month of March 2008 totaled 664 condo units. In 2007 the total number of units is 856 and in 2006 the total number was 1067. The number of new listings for condos is lower than in the previous March’s shows a positive sign in the real estate market conditions. The affect of less condo listings enter the market will eventually cause the available inventory of condominiums to start to shrink. This can be seen by looking at the absorption rate based upon the current closed sales versus new listings, which equates to 3.2 months.
PENDING SALES:
The pending sales in March were 292 units, which exceeded the March 2007 number of 287 units and the March 2006 figure of 251 units. The March pending sales of 292 units is the highest monthly number since August 2005, where the pending sales were 325.
CLOSED SALES:
During March 207 condo units were closed. Lower than March 2007’s 217 and 2006’s 214 the decrease in volume is not significant. The number of closed sales is being affected by lenders using stricter guidelines in addition to the time to respond to possible short sale sales contracts. Looking back at the months of January and February the number of pending sales totaled 358 condominiums. Most real estate transactions from date the property goes under contract or pending, the transaction closes between 30 and 60 days with an average of 45 days, so the number of closed sales appears to be fairly good.
MEDIAN SOLD PRICE:
The median price of a Naples condo sold in March was $279500 versus $310000 in March 2007 and $366500 in March 2006. The price reduction between 2008 and 2007 is 9.8%, while it is 23.7% between 2008 and 2006.
INVENTORY:
Currently there are about 5586 condominium units on the market for sale; a slight increase over February’s 5582 units. The months of inventory for sale are about 36 months versus 37 months in February. This is another positive sign of the condominium real estate market changing.
QUARTERLY ANALYSIS
NEW LISTINGS:
During the first quarter of 2008 a total of 2401 condos were listed for sale. This compares very favorably to the 3087 condominiums placed on the market during the first quarter of 2007 and extremely favorably to the 3565 units in 2006. In addition the first quarter of 2008 had less new listings than the second and fourth quarters of 2006. Based upon the quarterly closed sales and new listings the absorption rate is 4.8 months.
CLOSED SALES:
During the first quarter of 2008 a total of 505 condominiums were sold, while 482 condos sold in 2007 and 595 in 2006. Other than the second quarter of 2007 the volume of closed has been the highest since the second quarter of 2006.
MEDIAN SOLD PRICE:
During the first quarter of 2008 the median price paid for a Naples condominium was $300000 versus $325000 in the first quarter of 2007 and $377500 in the first quarter of 2006. The price decline as a percentage is 7.7% between 2008 and 2007, while between 2008 and 2006 the percentage is 20.5%. The median price for the most current three quarters has been increasing from $275000 in the 2007 third quarter and $290000 in the fourth quarter. Three straight quarters of the median price increasing maybe a sign that the prices are bottoming out or have bottomed out and should be watched especially by buyers as well as sellers.
If you have any questions please do not hesitate to either post them as a comment or e-mail me.
Naples Condo Market Update February 08
The February Naples condo market update reflects signs of the market strengthening as less condos are coming on the market, and pending sales increased over 2007 and 2006. These are subtle signs of changes taking place in the market and does bear watching by those thinking about purchasing a condominium residence.
New Listings: During February 2008 a total of 689 Naples condos came on the market. This was a decrease from of 163 (19.1%) from the same period of last year where 852 condos were listed for sale. February listings reflected a decrease of 445 (39.2%) units from February 2006 listings of 1,134. The reduction of the number of new listings coming on the market represents a strengthening of the Naples condominium market, as fewer units are coming on the market, which will eventually reflect an overall reduction in condominiums for sale. The absorption rate for new listings in February equates to 5.5 months. The 5.5 months represents a reduction from 5.8 months in 2007 and 7.0 months in 2006. For those considering purchasing a condominium, they should step-up their search to focus on the neighborhoods or communities they desire to purchase in.
Pending Sales: During the month of February 257 condominiums in Naples had accepted offers to purchase. The volume of pending sales is greater than the 232 in 2007 and 236 in 2006. This does represent a greater buyer interest in the Naples condo market, as values are being seen in the market and buyer confidence returning. Pending sales over a period of 30 to 60 days become closed sales – expect to see an increase of closed sales in future months.
Median Sold Price: The median price paid for a condo in Naples was $312,000 which is a decrease of 10.9% in February 2007 and cumulative decrease of 17.9% since 2006. The decrease in the median price reflects the higher number of pending sales as more buyers are finding values in the Naples market.
Closed sales: The number of closed Naples condos in February were 125, versus 147 and 161 in the same month of 2007 and 2006, respectively. The reduction of liberal loan programs starting in August 2007, could be reflected by the lower closed sales for this February.
The number of months of Naples condos currently for sale numbers approximately 5,582 units or about 37 months of inventory.
Blog Makes Top 100 Real Estate Blogs
Today, I was very surprised to find this blog to ranked in the Top 100 Real Estate Blogs as per Top 100 Real Estate Blogs.
The ranking is determined by Google Page Rank, Technorati Rank, and Alexa rankings.
The blog is entitled Bonita Springs Real Estate News and Market Updates and does cover the communities of Estero and Naples as well.
Thank you - Top 100 Real Estate Blogs.
Naples Condo Market Report December 07
In the Naples real estate market condominiums show some positive trends in new listings coming on the market, closed sales, and pending sales as one reviews the statistics and analysis, with exception of median price paid. The market report covers not only the month of December, but also for the quarter ended December 31, 2007 and 2007 in totality.
Monthly Analysis:
Listings:
The number of new condo listings coming on the market in December was 535. In December 2006 the number was 683 or a reduction of 22% in volume. In December 2005, new listings were 720 condos or a reduction of about 26%. This represents a positive sign as fewer condos are coming on the market and should eventually be reflected in the gross number of available condos for sale.
The number of months of condo resale inventory is 34 months.
Closed Sales:
The number of closed sales for condominiums in the Naples area in December was 118 versus 140 in December 2006 or a volume reduction of about 16%. Considering the tighter requirements for mortgages and the elimination of sub-prime borrower programs, this is positive for the market. When looking at December 2005, the closed sales totaled 186, a reduction in closed sales volume of 37%. December 2005 many of the sub-prime and liberal loans were available. As many of us are aware the market started to change in the fourth quarter of 2005.
Pending Sales:
A total of 125 condos in the Naples area were pending sale as of the end of December. In December 2006, 120 condos were pending sale as of month end. While in 2005 there were a total of 193. With pending sales we can see the trend or impact of the elimination of liberal underwriting requirements and sub-prime borrower programs, when comparing pending sales between 2005 and 2007. It is interesting to notice that 2007 pending sales for condos are slightly over 2006.
Median Price Paid:
The median price paid for a condo in the Naples for the month of December 2007 was $285,250. The median price paid was $326,000 in December 2006, which represents approximately 12.5% reduction in the median price. The median price paid in 2005 was $406,425. The reduction in whole dollars was $121,175 or roughly 30%.
For the year over year December analysis one can conclude that the real estate market for condominium median prices are declining, while other aspects reflect buyer optimism.
Quarterly Analysis:
Listings:
During the 4th quarter ending December 31, 2007, the total number of new listings was 2,068 versus 2,630 in 2006 and 2,084 in 2005. The reduction in the new listings for the 4th quarter versus 2006 and 2005 could be a sign of the market’s eventual strengthening. With less condominiums coming on the market, the median price paid could in the future could stabilize or trend upwards slightly.
Closed Sales:
A total of 339 condos were sold in the 4th quarter of 2007 versus 354 in 2006 and 583 in 2005. The reduction of 15 condos between 2007 and 2006 equates to about 4%. While between 2007 and 2005 the reduction of 244 or 42% is substantial.
Median Price:
The median price paid for a condo in the Naples area during the 4th quarter of 2007 was $285,500. The median price paid in 2006 was $317,500 and $382,000 in 2005. The median price reduction between 2007 and 2006 was about 10%. However, the reduction between 2007 and 2005 was approximately 25%.
2007 Year Analysis:
Listings:
In 2007 there were a total of 8,836 new listings to come on the market for sale. In 2006, the total was 10,630 and 7,150 in 2005. The new listings in 2007 were less than 2006 and could represent a stabilization or reduction of new listings for condos coming on the market in the future.
Closed Sales:
During 2007, 1,820 Naples condos were sold compared to 1,967 homes in 2006 and 4,293 in 2005. The reduction in the total number of condos sold in 2007 compared to 2006 was 147 condos. This could suggest that the mortgage crisis did not affect the condo market as much as the single family home market as well as buyer confidence in the condo market due to the reduction in median prices paid for a condo.
Median Price:
The median price paid for a condo in Naples in 2007 was $305,000 versus $355,000 in 2006 or a percentage reduction in value of 14%. The median price was $360,000 in 2005. The reduction in value between 2007 and 2005 was about 15%.
What is very interesting to note is that the median price paid for a condo in Naples during 2004 was $241,000. The big question is the prices going to continue to decline? Be sure to read my post on the 2008 real estate forecast from Florida economist, Hank Fishkind.
This post has been enhanced with comparative global information for the Florida real estate market.
Naples Condo Market Report for November 07
Big drop in median price paid for Naples condos - good news for condo buyers, but not very good for sellers of condominiums.
New Listings:
A total of 767 Naples condominiums were listed in November. When compared to last November, the number of condos listed was 1,003 – a reduction of about 23%. In November 2005, 815 condos were listed – reduction of about 6%. Hence, the rate of new listings is slowing, at least looking at November. Could a trend be developing? The reduction in condominiums coming on the market will eventually have an impact on the number of months of condominium inventories available for sale.
Median Price Paid:
In the month of November the median price paid for a condo in the Naples area was $250,000. In November 2006, the median price paid a condo in Naples was $321,250 or reduction in the median price of about 22%. Looking at November 2005, the median price paid was $379,000 – the reduction in the median price is about 34%. The reduction in median price is most likely due to condos being sold in communities that were heavily investor owned and apartment to condominium conversions.
Closed Sales:
The closed sales for condos in Naples during November were 100. In November 2006, the number of closed was 108 and 247 in November 2005; the respective reductions are about 7% and 60%. The reduction in the volume of closed sales appears to be bad news; however, considering the reduction in “liberal” loan programs and more restrictive underwriting criteria, this could be somewhat positive, when comparing 2006 and 2007 volumes.
Pending Sales:
The volume of pending sales came in at 131 contracts. The 131, is a reduction of about 5% from 2006’s 138, but a 36% below 2005’s 206 pending sales. Although the drop from 2005 levels is large, the drop from 2006 can be considered positive due to the elimination of “liberal” loan program and stricter underwriting guidelines.
Currently, there are about 5,300 condominiums available for sale in the Naples area, representing about 35 months of inventory – this is provides buyers with an excellent selection in a very strong buyers market.
Naples Real Estate Market Update - Condos - 3rd Qtr 07
The Naples real estate market for condominiums remains lack luster but there are some bright spots appearing. The question remains will the bright spots continue to glow and thereby cause strengthening within the market. Below are graphical presentations with commentary on each of the graphs comparing the quarter ended September 30, 2007 to the quarter ended September 30, 2006 with quarterly data for the quarters between the two dates. Read more
Aqua Naples Luxury Condo
Aqua a new luxury high-rise condominium at Pelican Isle Yacht Club had a topping off ceremony yesterday. Aqua will have only 80 residences and boat slips available for sale.
Currently the condominium homes are being offered from $2,100,000.
For more information on Aqua or other Naples luxury high-rise condominiums, use the contact form to the right.
Naples FL Condo Market
The graph below shows the how the Naples FL condo real estate market performed during the month of March 2007.
Based upon the activity in March, the Naples condo real estate market is getting stronger. This based upon 50% less condominium units coming on the market in March 2007 versus March 2006.
Pending sales also saw a slight increase in the number of condos which pended sale versus last year.
Expired listings - those that failed to sell with the listing contract period - also increased from the previous year.
The three aforementioned factors caused the inventory of available Naples condos for sale to drop, which favors sellers - but the condo market remains largely a buyers market still.
Naples Real Estate Condos Sold
The graph below represents the median sold price by month for Naples condos during the period March 1, 2006 to February 28, 2007.
The average median price paid during the year was $338,958. During this period the median price of a condo decreased $20,500 or about 5.6%. The lowest median price for the year was $284,000 during October 2006. During the months of November and December the median price was stable, but the month of January 2007, the median price dipped, but rose again in February.
The sold price trend line reflects a downward trend, but there is sold price stability during the past 4 months.
Naples Real Estate Market - 02/07
How is the Naples real estate doing? What does the trends show for homes and condos? Is it a buyers’ market, is it neutral or has it returned to sellers’ market? By looking at the first graph below for single family homes and the second graph below for condos one can gauge the market. For a fully explanation, please the narrative below the condo graph.
Bonita Springs Single Family Homes
Naples Condos
A quick explanation of the above graphs - the heavy horizontal line represents a neutral market which favors neither the buyer nor seller.  Above the horizontal line represents the strength of the market for buyers, while below the line represents the strength for sellers.
The index on the left side represents the degree of strength so that a viewer can easily determine how strong the market has been or is currently.
Both the single family home and condominium markets are still greatly favoring the buyers. The current year ‘07, is reflecting a weaker market for a buyer than last year for both homes and condos.
Single family homes had few listings entered than February ‘06 and a greater number of expired listings causing the index to fall from ‘06. The volume of pending sales and closed sales for February were less than ‘06.
Condos had far fewer listings come on the market in than February ‘06 and a slightly higher number of expired listings. Pending sales were about the same as the previous year while the closed sales were below the ‘06 level.
The graph can also be used by both sellers and buyers to determine when it is most advantageous for them to list or buy.
Data used to compile is from the SunshineMLS, used by the Naples Area Board of REALTORS and the Estero - Naples Board of REALTORS. The information was obtained as of midnight on March 1st for listings, pending sales, closed sales and expired listings posted by members during the month of February. Not all transactions with a date of February may not have been entered into the system as of the end of the day on February 28th and therefore, may not reflect all transactions. The actual numbers are entered prior to the analysis of the next month.