Naples Condo Market Update
June Activity:
Listings:
During the month of June 490 Naples condos were listed for sale. For the same month in 2007, 654 condos were listed for sale; this represents a decrease of 25.1 percent. The decrease from 2006 was 38.4 percent from the 795 new listings. In May 2008 there were a total of 556 condos listed for sale. The lower number of new listings has an impact on the reduction of the number of month’s supply of available condos in the Naples, along with the activity of closed sales and pending sales.
Closed Sales:
A total of 173 condos were sold during June 2008. Comparing the same month in 2007 there were a total of 204 condos sold, the reduction of 31 condos represents a decrease of 15.2 percent. In June 2006 a total of 191 condos were sold or decrease of 9.4 percent (or 18 fewer condos). In May 2008 a total of 216 condos closed or 43 fewer condos. During June in the state of Florida a total of 3,628 condos sold compared to the previous year’s total of 3851 condos or reduction of about 5.8 percent. Therefore, the Naples condo market might be slower than the overall state’s condo market, without considering the median price paid for condos.
Condos priced below $300,000 represents about 56.2 percent of the total 173 condos closed in the month of June.
Pending Sales:
In June 2008 171 condos were placed under contract or pending for closing, pending sales are where a buyer and seller have agreed on the price and terms of a purchase and the condominium is no longer available for sale. The 171 condos is an increase over both the 123 condos in 2007 and 153 condos in 2006. June 2008 was below the 230 condos in May 2008 and 258 condos in April 2008.
Median Price Paid:
During the month of June the median price paid for a condominium was $285,000. In the previous year, 2007, the median price paid was $310,500 or a reduction of 8.2 percent. In 2006 the median price was $369,900 or reduction of 22.3 percent compared to June 2008. The national median sales price in June was $224,200, which is down 2.2 percent from a year ago. The Florida median sales price was $183,700 down approximately 13.5 percent from last year’s $212,400.
The median sales price paid for a condominium has declined less than the overall state’s median price meaning that condominiums are holding their value better than other parts of the State of Florida.
Quarterly Analysis:
Listings:
During the second quarter of 2008 a total of 1727 condos were listed for sale.
During the second quarter of 2007 2147 condos were listed. A reduction of 420 units or about 19.6 percent and a reduction of 758 condos listed from the 2485 units in the same quarter of 2006 - about 30.5 percent reduction.
Closed Sales:
The volume of sold condos for the second quarter of calendar 2008 was 638 condos. Compared on a quarterly basis for the previous year, where 673 condos closed which represents a reduction of about 5.2 percent. However, when looking at the second quarter in 2006, 622 units were closed for an increase of about 2.6%.
Pending Sales:
For the past three months a total of 657 condos have been placed in a pending sale status. Under normal situations (fewer possible short sales) the average time frame for closing after a condominium is a pending sale - 30 to 60 days later, many of the pending sales would already closed and had a positive impact on closed sales in June. Possible short sale transactions are extending the time frame for closings due to the backlog of contracts without any action by the lenders for about 45 to 75 days from the day the short sale package is received by the lenders.
During the second quarter in 2007 a total of 517 condos were placed under contract or pended. The increase in pending sales for 2008 was 140 condos or an increase in 2008 of roughly 27.1 percent. In 2006 pending sales totaled 594 condos or increased 10.6 percent in 2008.
Median Sold Price:
The median sold price for a condominium in Naples during the second quarter of 2008 was $260,000 versus $320,000 in 2006 or price reduction of about 18.8 percent. The median price paid for a condominium in June 2006 was $380,000. Compared to 2008 the price reduction from 2006 is about 31.6 percent. For informational purposes calendar year 2005 had the highest median sold price of $360,000.
Summary:
The number of new listings for condominiums is showing a reduction in the volume from the previous two years. Closed sales are running slightly behind 2007 and 2006 - could be due to the timeframe needed for lender(s) approval of the sales price for a short sale. Pending sales are up substantially over both 2007 and 2006. The median sold price is down from the previous two years.
For someone looking to sell their condominium attention needs to be paid to its condition and establishing a price as close to its market value to facilitate its sale.
Comments
2 Responses to “Naples Condo Market Update”
Got something to say?
The real estate is still 50% over priced. What a getto!
Kevin,
Thank you for stopping by and expressing your personal thoughts about the condo real estate market in Naples.
It would be most helpful if you were post how you are formulating that the real estate market is still 50% over priced.
Look forward to your reply.