The condominiums for sale in Naples continue to show signs of improvement. While still a buyer’s market, the number of condos available for sale increased slightly while the months declined from the previous month.
The month of March started with 4155 condos available for sale in the Naples area. Last March 5207 condos were for sale in a year over year comparison it is a decline of 1052 condos available for sale. This represents a decline of about 20 percent. The month of February started with 4114 condos for sale 41 fewer condos than March.
The graph below shows the number of condos for sale in Naples between the years of 2008 thru 2010.
The months of inventory, measures the current demand for condos, in addition, if it is a buyer’s or seller’s market. When the months of inventory ranges between 5 and 7 months, it is considered a neutral market – neither buyers nor sellers have control over pricing. When months of inventory are excess of 7 months the buyers control the market as far as pricing. The reverse is true for when the inventory is 5 or fewer months.
The months of inventory at the start of March was 15.8 months compared to start of last March where there were 30.3 months of inventory. The decline in the months of inventory is about 48 percent representing another sign of the real estate market for condos in Naples is continuing to improve. In addition, the March months of inventory slightly declined from February’s 16.0 months.
The graph below shows the movement in the months of inventory for 2008 thru 2010.
The composition of the condos for sale in Naples (traditional, foreclosures, and potential short sales) is another aspect of evaluating the real estate market. The greater the percentage of traditional sales the more strength within the market place. The percentage of the various types of listings, as noted above, should be reflected throughout the real estate cycle. The real estate cycle is listing, pending sale, and closed sale. When the percentages are inconsistent during the real estate cycle signals issues within a particular type of listing group can be noted and effective decisions made.
Below is a graph reflecting the composition of condominium listings at the start of March.