Metas
Naples Home Market Report December 07
In the Naples real estate market single family homes shows some positive trends as one reviews the statistics and analysis. 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 listings coming on the market in December were 629. In December 2006 the number was 743 or a reduction of 15% in volume. In December 2005, new listings totaled 737 homes or a reduction of about 14%. This represents a positive sign as fewer homes are coming on the market and should eventually be reflected in the gross number of available homes for sale.
Closed Sales:
The number of closed sales for single family homes in the Naples area in December were 143 versus 162 in December 2006 or a volume reduction of about 12%. 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 235. A reduction is closed sales volume of 39%. 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 146 homes in the Naples area were pending sale as of the end of December. In December 2005, 153 homes were pending sale as of month end. While in 2005 there were a total of 217. With pending sales we can see the trend or impact of the elimination of liberal underwriting requirements and sub-prime borrower programs.
Median Price Paid:
The median price paid for a single family home in the Naples for the month of December 2007 was $417,000. The price paid was $4,150 less than the median price paid in December 2006, which was $421,150. This equates to approximately a reduction of less than 1%. The median price paid in 2005 was $482,400. The reduction in whole dollars was $65,400 or roughly 14%.
For the year over year December analysis one can conclude that the real estate market is showing signs of stabilization. The number of months of inventory of existing resale properties in the Naples area is about 34 months.
Quarterly Analysis:
Listings:
During the 4th quarter ending December 31, 2007, the total number of new listings were 2,435 versus 2,604 in 2006 and 2,248 in 2005. The reduction in the new listings for the 4th quarter versus 2006, could be another sign of the market’s eventual strengthening. The increase over 2005, could be the result of short sales, pre-foreclosure and foreclosed properties coming on the market as a result of the sub-prime mortgage crash.
Closed Sales:
A total of 393 single family homes were sold in the 4th quarter of 2007 versus 468 in 2006 and 766 in 2005. The reduction of 75 homes between 2007 and 2006 equates to about 16%. The interesting item to note here is that the national average of sub-prime mortgages to total mortgages is about 16%. Real estate is local, so this may not be the entire reason for the reduction in closed sales volume, but is a major contributing factor.
Median Price:
The median price paid for a home in the Naples area during the 4th quarter of 2007 was $415,000. The median price paid in 2006 was $419,500 and $479,950 in 2005. The median price reductions between 2007 and 2006 was about 1%. However, the reduction between 2007 and 2005 was approximately 13.5%.
2007 Year Analysis:
Listings:
In 2007 there were a total of 10,615 new listings to come on the market for sale. In 2006, the total was 11,247 and 8,170 in 2005. The new listings in 2007 were less than 2006 and could represent a stabilization of new listings for homes coming on the market.
Closed Sales:
During 2007, 1,979 Naples homes were sold compared to 2,441 homes in 2006 and 4,436 in 2005.
Median Price:
The median price paid for a home in Naples in 2007 was $440,000 versus $468,000 in 2006 or a percentage reduction in value of less than 6%. The median price was $474,450 in 2005 (the peak). The reduction in value between 2007 and 2005 was about 7%. What is very interesting to note is that the median price paid for a home in Naples during 2004 was $345,000. The big question is are the prices going to continue to decline? Be sure to read my post on the 2008 real estate forecast from Florida economist, Hank Fishkind.
Florida real estate global perspective has been updated on a newer post.
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Really well done and informative.