The Naples real estate market for condos is starting to show signs of strengthening in many aspects and prospective buyers should be aware of the positive changes. The statistics presented and discussed below are global in nature for the Naples area and do not represent the more important micro-market views which can vary greatly from the global view.
Listings:
During the month of May a total of 536 condos were listed for sale. In May 2008, the number of condos listed for sale in the Naples area was 599. In addition the 536 condos listed for sale was less than the 757 condos in May 2007. The downward trend of new listings is continuing. The volume of listings in January were 990, February with 745, March with 771, and April with 657. Other than October 2008, the listings for May was the lowest number over the past 4 years.
The listed condos in May 2009 was the lowest number of homes listed since October 2005. The noteworthy item about this fact, is that in October 2005, was the start of the real estate erosion even though the median sold price of homes peaked in January 2007 with January 2006 as the next highest median sold price month.
Pending Sales:
During the month of May 2009, a total of 375 condos had offers accepted by sellers (pending). The figure for pending condo sales in May represents a substantial increase over both May 2008 and May 2007 were the pending sales were 217 and 207, respectively. The increase represents 73 percentage upwards change over May 2008 and a 81 percentage increase. The increase in pending sales for May can largely be attributable to the lower median sold prices of condos.
Over the past 9 months the number of pending sales in the Naples area have showing an upward trend from 118 condos pended in September 2008. In addition, the past 3 months have had the highest volume of pended condominiums over the past four years.
Closed Sales:
There were a total of 287 closed (sold) in May 2009. In a year over year analysis, the 287 sales is higher than May 2008 and May 2007, where 223 and 218 sales respectively took place. The sales in May represents a 22 percent increase and 32 percent over May 2007 and May 2008, respectively.
The closed sales in May, represents the highest number of homes sold since September 2005.
Since January 2009, the number of condos sold has been on a strong upward trend. This is the continuous of an upward trend starting in January 2009. The immediate past three months of closed sales is highest since September 2005.
The increase is largely due to the lower median sold price of condos in the Naples area.
Median Sold Price:
The median sold price (the sold price at which half the condos sold and half below) for May 2009 was $167000. This figure may not be good news for existing homeowners or sellers, but it is good news for prospective buyers. However, prospective buyers need to be aware that since January 2009, the median sold price for a condo in Naples has been ranging from $178000 to $167000. Over the past 2 months the median sold price has been showing a slight upward trend.
The median sold price in May represents a 36 percent decline from May 2008 when the median sold price was $262500 and a 45 percent decline from May 2007 when the sold price was $301500.
The lower median sold price has a direct affect on the increased volumes for pending sales and sold condos. The lower volume of new listings could have an eventual impact on the median sold prices, as the volume of new listings coming on the market for condos declines. Can the current statistics represent a stabilization of the Naples condo real estate market or has the bottom of the real estate been realized? Only the national economy and time will tell.
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