Naples Homes Inventory
The actual number of Naples homes for sale remained level from September to October, with fewer homes for sale by 3. The total available homes was 5247 in September versus 5244 in October. However, due to the level of closed sales the months of inventory for Naples homes for sale has decreased one month from the beginning of September (29 months) compared to October (28 months). Since the beginning of February 2008 with 38 months of inventory, the months have dropped 10 months to its present level. The reader should review the graph as not only does it measure the absorption rate based upon a 12 month moving average, but reflects the 3, 6, and 9 month moving average.
The real estate market for Naples single family homes still remains a strong buyers market. A neutral market is generally around 6 months of inventory.
Below the presentation is a discussion of the meaning for the various absorption rates and how they may influence your decision for selling or buying real estate.
- Graph for the months to absorb the current number
of Naples single family home listings.
The 3, 6, or 9 month moving average reflects the relationship of closed sales over the immediate past three, six or nine months and the number of homes on the market for sale.
When the trend line for these moving averages decline it is the result of an increase in closed sales with a constant level of homes available for sale or a constant number of closed sales with a declining number of homes for sale. A decreasing trend line represents movement towards a sellers market.
An increasing trend line reflects a lower volume in closed sales with a constant level of homes available for sale or a constant number of closed sales with an increasing number of homes for sale. An increasing trend line represents a movement toward a buyers market.
In the above graph the only trend line moving upwards is the 3 month moving average, due to closed sales over the immediate 3 months being lower than it is was in earlier months, while the number of homes for sale remained fairly constant or only slightly declining.
The remaining trend lines do reflect a downward trend due to the volume of closed sales in the months being higher than in the immediate 3 months.
Trends over a short period of time can be misleading due to seasonal fluctuations for new listings, which become available for sale, or closed sales.
The months of October and January generally are the highest months for new listings.
Shortly, the Naples real estate market update report for Naples homes covering both the month and quarter ended September 30, 2008 will be posted within this blog.
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