Posted on Sunday, February 19, 2012
So what’s going on in the local Naples real estate market? Looks like the recovery is continuing along nicely.
Over the last few months we have seen declines in inventory as sales outpaced supply. Last year prices jumped 15%+. But in recent months we reported a slow down in volume. The news this morning? – after some price concessions the market is back a bit continuing the recovery from last year. Let’s take a look at the numbers.
January prices were down slightly – maybe we needed some price concessions to move the rest of our stubborn inventory. The standoff between picky buyers and reluctant sellers reported last month here in the Blog seems to show some capitulation from the sellers chasing the market down a bit. Buyers are still driving a hard bargain.
Sales in the last thirty days picked up 11.2% as a result of the price concessions. In addition according to a pick up in a leading indicator, pending sales, the next few weeks should show continued strength. Low rates, more favorable equity markets, the “safe haven” effect for Europeans, a possible Canadian tourist visa extension to nine months – all may have had positive impacts on the local market. My own personal view is price continues to drive the market, and the January price decreases moved the last few weeks along.
What I find particularly interesting is the inventory figure. Now with only 6,533 Naples real estate properties remaining for sale we are down to 9.6 months of inventory (8,198 properties sold in the last twelve months). Some neighborhoods are under six months. We have been eyeballing the so called “shadow inventory” risk related to banks holding distressed properties but so far demand is exceeding supply.
Future trends are a little hard to predict from here due to the “end of season” mentality. As the last few months of season roll through many sellers seem to think this may be their last chance to sell before late next fall and may accept lower offers. The buyers know this as well and may be waiting for April or so to enter in to the market. The problem with this strategy is inventory. If a buyer waits too long their particular property may be sold ahead of them. This risk is particularly true in our lower inventory market – something we have not seen for a while. So our advice is be careful with the waiting game – if you find a property you like – start negotiating.
Have a great rest of the weekend. We are so thankful the local market continues to improve – creating jobs and livelihoods for families right here in Naples.
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No legal, investment, or tax advice is being given in this Blog. Consult with legal, financial and tax professionals before acting on any real estate transaction. Actual real estate price and sales results are subject to market forces and are not completely predictable. The writings of this Blog are intended for the sole use of our clients.
Mark Goebel, PA is a REALTOR with Coldwell Banker on 5th avenue in Naples, Florida with 35+ years of visiting and living in Naples. After 25 years at Accenture, Mark retired as a managing director and spends his time helping non profits and building a Naples real estate team with his wife Nan. Talk to Mark and Nan about life in Naples and why they chose this place to live full-time over all others and enjoy Naples real estate.
Mark Goebel, PA
REALTOR Coldwell Banker 5th Avenue South
Mobile: 239.595.3921
Email: mark.c.goebel@gmail.com
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