Naples High End Luxury Market Up Substantially
Posted by Benjamin Dona on Monday, March 17th, 2014 at 3:14pm.
The Naples luxury home market prices were up substantially in February, rising 24% year over year. The lower tiered markets are not doing too badly either. Overall, prices were up 23% across the board for all home sales versus this time last year.
The high end luxury market here in SW Florida is considered homes above the $2 million range. For February's 24% rise, the median price now stands at $3 million. Wealthy buyers are back in the market and many homes are actually experiencing bidding wars during their sales process. Buyer confidence is being driven by the fact that Naples continues to get national attention for its overall appreciation rates.
In other categories, home prices between $500,000 and $1 million were up 13%, while those costing less than $300,000 were up 12%. The rise in these ranges was partly due to drops in inventory of 15% and 20%, respectively.
Home prices fell in two categories. In the $300,000 to $500,000 range, prices fell 3.5%, and in the $1 million to $2 million range, they were down 9%. Both of these price ranges had milder inventory declines of 11%.
When it came to home sales, luxury properties were again the leaders of the pack. Closed sales rose an unbelievable 173% and pending sales rose 94%. It’s the reason why beach area properties saw an increase in both closed and pending sales, at 12% and 24%, respectively. By comparison, overall closed sales fell 9% and pending sales were up a measly 2%.
Our biggest concern is that overall inventory levels are down 15%. The one saving grace is that we have more than a couple of dozen new home communities currently under construction in the area, and more are getting ready to break ground soon. With a little luck, the tight inventory we're seeing may ease as this new home building process continues into the future.
Days on the market also dropped dramatically (down 44%) in all price ranges, as homes continue to fly off the market. We lost 5 out of 12 showings we had scheduled over the last two days to sales prior to our clients even being able to see them.
The bottom line is "buyers need to make quick decisions to avoid losing the homes they might want to purchase." Procrastination is now a thing of the past!
But, the good thing for high end buyer's is there are still plenty of luxury homes for sale as compared to the other price ranges. Inventory in this price range fell only 2%. So, if you have the bucks, you can still easily find a fabulous home to meet your wants and desires.
And so, the "beat goes on here again in Southwest Florida." The question is "how loud will the warning drums sound."
*Sales Data Statistics from SWFL MLS.
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