Well, once again it appears that vacation time is over and we'll have to get back to work starting NOW. It seems that our 2nd home market in Naples is nearing it's natural equilibrium. The chart below shows the inventory at just under half of it's peak in the first quarter of '06. The seasonal trend is easily visible here. What cycles play a role in your market?
Now we're moving! Very close to half of this quarters listed properties are also sold within 90 days. The details are all starting to fall into place. There remain a few caveats to consider.
Everything is looking nice and rosy now, don't you think? Here's where the breakdown begins. It's merely the reality which we all are experiencing. The trend may be an indicator of good things to come. We all are seeking some stability in an uncertain market. Do you see what's going on here?
Our average sale price is seeing a form of stability with about 10% devaluation over the last year and a miserly 3.1% in the past six months. Wait, it can get better!
When using the median sold price you can see the slight upward trend. This information is by no means indicating a time to rejoice or declare for the 26,583rd time that the recovery is now upon us. The indices are representative of the Naples, Florida real estate market and encompasses residential property only. The general consensus would be to observe this trend for at least another quarter to determine it's value, if any.
FINAL THOUGHT:
Nicholas Chamfort (1741 - 1794)
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