Naples Home Market Update
June Analysis:
Listings:
During the month of June 696 Naples homes were listed for sale. For the same month in 2007, 779 homes were listed for sale; this represents a decrease of 10.6 percent. The decrease from 2006 was 15.7 percent from the 826 new listings. In May 2008 there were a total of 771 homes listed for sale. The lower number of new listings is reflected in the reduction of the number of month’s supply of available homes in the Naples.
Closed Sales:
A total of 236 homes were sold during June 2008. Comparing the same month in 2007 there were a total of 218 homes sold, the increase of 18 homes represents an increase of 8.3 percent. In June 2006 a total of 243 homes were sold or decrease of 3.9 percent (or 7 less homes). In May 2008 a total of 256 homes closed or reduction of 20 homes. In the state of Florida a total of 11700 homes sold compared to the previous year’s total of 12276 homes or reduction of about 5 percent.
The increase in closed sales are in those homes priced $300000 or less, which represents about 43 percent of all sales.
Pending Sales:
In June 2008 313 homes 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 home is longer available for sale. The 313 homes is a very substantial increase over the 175 homes in 2007 and 226 homes in 2006. June 2008 was below the 343 homes in May 2007 and 350 homes in April 2007.
Median Price Paid:
During the month of June the median price paid for a single family was $370,000. In the previous year, 2007, the median price paid was $475,000 or a reduction of 22.1 percent. In 2006 the median price was $479,000 or reduction of 22.8 percent compared to June 2008. The national median sales price in June was $213,800, which is down 6.7 percent from a year ago. The Florida median sales price was $205,500 down approximately 16 percent from last year’s $244,400.
Quarterly Analysis:
Listings:
During the second quarter of 2008 a total of 2290 homes were listed for sale. This represents a reduction of 213 homes listed (2503) during the second quarter of 2007 and a reduction of 357 homes listed (2647) in the same quarter of 2006.
Closed Sales:
The volume of sold homes for the second quarter of calendar 2008 was 724 homes. Compared on a quarterly basis for the previous year, this represents an increase of 102 homes (622) or increase in volume of 16.4 percent. However, when looking at second quarter in 2006, there is a reduction of 10 homes (734) or about 1.3%.
Pending Sales:
For the past three months a total of 1006 homes have gone to a pending sale status. Under normal situations (fewer possible short sales) the average time frame for closing after a home 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 619 homes were placed under contract or pended. The increase in pending sales for 2008 was 387 homes or increase in 2008 of roughly 62.5 percent. In 2006 pending sales totaled 752 homes or increased 33.8 percent in 2008.
Median Sold Price:
The median sold price for a home in Naples during the second quarter of 2008 was $375000 versus $461000 in 2006 or price reduction of about 18.6 percent. The median price paid for a home in June 2006 was $508250. Compared to 2008 the price reduction from 2006 is about 26.2 percent. For informational purposes calendar 2005 had the highest median sold price of $474250.
Summary:
For someone looking to purchase a home in the Naples area, it is worthwhile to consider putting your game plan together for making a purchase as the prices are down significantly from 2005 and 2006 and there are still many properties available, but the better opportunities are selling faster than previously.
For someone looking to sell their home attention needs to be paid to setting your price as close to its market value to facilitate its sale.
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