Dear Friends, Customers and Neighbors,
As the 2017 “season” winds down, we’ll take a look at the first four months as compared to this time last year. On a very micro level, The Brown Realty Group currently has six pending contracts, 5 of which are scheduled to close in May with another 16 active listings on the market. Considering already closed sales, our start to 2017 has doubled that of 2016.
According to Mike Hughes, Vice President and General Manager for Downing-Frye Realty, “The first quarter was a bit of a bumpy ride, but the trend line for sales moved upward throughout the quarter with March coming in as a strong month for sales activity. Overall, we ended the first quarter better than last year and I think the local brokers are optimistic that we will have a good summer for sales.” As predicted earlier in the year by Rick Brown, of The Brown Realty Group, “Once sellers began to heed the advice of their agents and reset to more reasonable list prices, buyers would react with more solid offers. The statistics reflected this prognosis precisely, and resulted in an increase in overall pending and closed sales, making the first quarter of 2017 as solid as expected.”
Brittany Skotak, with The Brown Realty Group, reviewed the Naples area market report and agreed with the analysis. Skotak added “I’m finding that many buyers who didn’t make a purchase during the first four months of the year have plans to return to the area during the summer as they anticipate home prices may decrease slightly.”
The Naples area market report shows that quarter over quarter, overall median closed prices increased only 2%, driven by a narrow 3% increase in the $300k and below price category. Yet, all other price categories tracked by the NABOR market report showed decreases or no change at all. One exception was single family homes in the $300k-$500k price category, which jumped 14% in the first quarter of 2017 as compared to the first quarter of 2016. “Inventory is up and prices have come down,” said Brenda Brown of The Brown Realty Group. “This is an indication that some fundamental economic principles are taking effect in the Naples market.”
Let’s take a deeper dive into the NABOR market report and the following statistics compare the first quarter of 2016 to Q1 of 2017: Pending sales +11%, total closed sales +14%, median closed price +2%, median closed price of homes >$300k -6%, total active listings (inventory) +3%, average days on the market +23%, single family median closed price -1%, condo closed sales +19%, condo inventory +19%.
Brittany Skotak attended this weeks’ 6th Annual Naples Area Board of Realtors Economic Summit. A summary of Skotak’s take-aways from the presentation are as follows:
Where is housing inventory growing? At the higher end. Over the past year, the largest increase in listings in the single family market has been in the $1MM to $2MM price range which rose 18%; inventory of condos in the >$300k market has increased 25% in the past year; Collier County development is on fire with new towns near Ave Maria, 2016 saw 32 new residential developments introduced, producing 4,182 lots; last year, 76 commercial developments were approved in Collier County. The county has 56 senior living centers with more than 7,500 units and 13 more centers planned. There are 10 more self-storage projects planned and a number of other big developments that are coming soon, including car dealerships, new retail centers, big-box stores and a 122ft tower for medical device manufacturer Arthrex.
This is a lot of data to digest. The Brown Realty Group works on a daily basis to understand this data in an effort to help their buyers and sellers. If any of our readers have a desire to discuss this data or their residential real estate needs, please feel free to contact one of us at The Brown Realty Group. We’re here to help!