Posted by Benjamin Dona on Monday, October 20th, 2014 at 11:07am.
Limited inventory continues to be the story of the Naples area real estate market as we head into season in SW Florida. Demand is definitely outweighing supply. Statistics* released Friday by the Naples Area Board of Realtors (NABOR) for the 3rd Quarter of 2014 showed an 11 percent decrease in closed sales year-over-year and 12 percent drop from August's sales numbers. Pending sales were down 10 percent year-over-year and dropped 4 percent from last month. Overall home prices continued to rise though jumping 13.5 percent to $265,000 year-over-year. For September, the closed sales price was up 1 percent to $262,000 from August's $260,000. Inventory fell 9% and average days on the market (DOM) shrank 45 percent year over year.
Here's the recap of the 3rd Quarter's numbers:
While the overall Naples real estate market was great in the 2014 winter season, the on-going shortage of inventory in many price range categories continued to take its toll in the 3rd quarter. Prices are rising at an uncomfortable pace in many of the ranges and buyers are often times finding themselves in bidding wars for the most desirable properties currently available on the re-sale market. The one saving grace is all the new construction that is going on through-out the SW Florida area, especially in the Bonita Springs and Estero real estate markets. Without its availability, pricing pressures could easily get out of hand in no time at all. It will be interesting to see how things go in the 4th quarter as season begins in earnest. Hopefully, we'll see more of the "on the fence" sellers finally listing their properties for sale and things will stabilize a bit more.
As we always find is the case here in SW Florida, only time will tell the tale.
*Sales Data Statistics from NABOR.
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