Naples, Florida 2013 End of Year Sales Analysis and Inventory Shortage
Posted by Benjamin Dona on Saturday, January 18th, 2014 at 11:15am.
Today everyone in real estate on the Southwest Gulf coast will be writing about the improving sales numbers in the Naples, Florida area. The Naples Area Board of Realtors held a press conference reporting the statistics for both the 2013 end of year and the December 2013 monthly report.
All the news is good for sellers and becoming bleaker for buyers. As reported here for awhile now, inventory has been falling steadily, new construction is rising in base price, and truly real "steals" haven’t been available for the last two years.
Median home prices increased in 2013 from 2012 by 18% and 22%. The median price for 2013 was $240K and for December is $260K. The most expensive homes rose by 5% and the least expensive by 15.6%. In December the numbers were 2.2% and 16.4%, respectively.
Inventory dropped below a four month supply and a six month supply is the norm. Pending sales were up by 4% and closed sales by 5%. These numbers do include short sales and foreclosures, referred to commonly as "distressed" properties.
A more telling statistic was the falling inventory, as December's numbers showed that available homes for sale were down by 18% and many are selling within less than 100 days.
At Gulf Coast Associates, we’ve been experiencing this trend for a little over two years. If you were thinking of purchasing a home in 2011, there were probably 15-20 homes in the range that our buyers were seeking. During 2012 and 2013, we would be "lucky" to find 4-6 homes in that same price range. Our office is selling more new construction because the resale market has little to offer without substantial upgrades, second home owners are not keen on improving a property they are now selling, and the new construction until mid-2013 offered all the bells and whistles for the exact same price range. Now new construction is steadily increasing in base price, many of the upgrades and options are no longer included in the base price, and communities are selling out in record time.
If you are thinking of purchasing in Florida, as we have been recommending for several years now, you should be seriously reviewing the market and your budget for a home. In our opinion, the prices are more than "settled;" they are steadily increasing and your choices are more limited.
Our advice to sellers – make a few improvements to your home so that you can compete with the new construction. And, to our buyers, if a purchase is in your view over the next few years, you might consider purchasing now and potentially renting until you are ready for a more involved time period spent here on the Southwest Gulf coast.
*Sales Data Statistics from Naples and Ft. Myers MLS
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About the Author
Benjamin Dona is the Broker and Owner of Gulf Coast Associates, Realtors in Bonita Springs, Florida. He holds two advanced degrees, an MBA and an MA, and has an extensive background in both business and marketing. In 1998, he founded Gulf Coast Associates, and formed a group of like-minded Realtor® associates dedicated to offering professional Southwest Florida real estate services by concentrating on information, education and the use of leading edge technologies. He also is a recognized expert on the "Net," a much-quoted and read blog author, and a contributor to both national and international news outlets. Benjamin is a member of the National Association of Realtors, the Florida Association of Realtors, and numerous local real estate boards throughout Southwest Florida.
Contact Benjamin Dona at 239-948-3955
Southwest Florida Real Estate Blog
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