Summer home sales are off to a great start, according to a report released by the Naples Area Board of REALTORS® (NABOR), which tracks home listings and sales within Collier County (excluding Marco Island).
Not only are the numbers impressive for post-season sales, but also more significantly, this is the fourth consecutive month of increased market activity. The single-family home market is off-the-charts with an 85 percent increase in pending sales and an 18 percent increase in homes sold during May.
The statistics compiled by NABOR shows that home prices are stabilizing and inventory is diminishing in Collier County, which are key factors in a market rebound. The dramatic increase in overall pending sales is a positive sign that the “buy now” message is being heard.
The flippers and speculators who were looking to make a lot of money in a short period of time fueled the price spike we saw back in 2005. The pricing pushed a lot of legitimate buyers out of the market. Some were also tired of competing with multiple buyers for the same home only to lose and own nothing. This created a lot of pent up buyers who have returned to own.
The numbers a sign that the prices and inventory currently available will not be here next season. Even though we get a lot of snowbirds in Naples every season, none of them buy while they are here. They often decide to buy a day or two before they return up north. However, they will return during the summer and end up owning a place of their own for next season. We also get a lot of European visitors during the summer who also own end up buying a home of their own. The buyers who stay on the fence will regret the decision to wait.
The report provides annual comparisons of single-family home and condo sales (through the Sunshine Multiple Listing Service), price ranges and geographic segmentation. It also includes an overall market summary. The statistics are presented in chart format, along with the following analysis:
Overall pending home sales in the greater Naples Area, which includes Naples Beach, North Naples, Central Naples, South Naples, East Naples, Immokalee and Ave Maria, increased 37 percent, with 578 in May 2008 compared to 421 in May 2007.
Overall pending home sales for properties priced between $300,000 – $500,000 increased 97 percent year-to-date, and properties priced more than $2 million saw a 52 percent increase with 35 in May 2008 versus 23 the same month in 2007.
Overall homes sales were 476 in May 2008 compared to 451 in May 2007, a six percent increase; overall homes sales of less than $300,000 increased 39 percent with 231 in May2008 compared to 166 in the same month 2007.
Single-family home sales increased 18 percent overall, with 233 in May 2008 compared to 197 in May 2007; single-family home sales in the less than $300,000 category saw a110 percent increase with 84 in May 2008 compared to 40 in May 2007.
Pending sales of single-family properties of less than $300,000 were 156 in May 2008 compared to 30 in April 2007, a 420 percent increase.
Overall condo sales decreased four percent, with 243 sales in May 2008 versus 254 sales in May 2007; however, pending condo sales increased two percent with 244 in May 2008 compared to 240 in May 2007.
You can click here to view the May report.
I understand that all buyers are not able to move forward right now. Some of you have another home to sell before you can move forward on a purchase down here and that’s okay. I wish you lots of success with a quick sale.
For those of you who are able to move forward right now, some of you are still thinking “I’ll wait”. Maybe you’ve been listening to that depressing propaganda from the drive by media called “news”. The media doesn’t know anything about real estate. If you cooperate with the drive by media, you live a defeated life. Maybe you’ve been listening to your friends who don’t know anything about real estate either. One of the lines you’ve probably heard is “prices are still going to drop”. If that were true, we wouldn’t have the amount of sales we saw in May.
Interest rates are still low and there’s no sign that there will be additional cuts. Prices are very affordable and the present inventory allows you to get the home you want. It’s a matter of best choice today versus what’s left tomorrow. Wouldn’t you rather be a day early than a day late?
- Michael Kikkert
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