The Naples real estate market has shown no real change in the recent month. The statistics show key indicators of a stable real estate market, with no real significant gains or losses overall in the second quarter, 2014 compared to the second quarter of 2013. Our statistics comparing the second quarter 2013 to the second quarter 2014 show that:
- Overall pending sales are down 8%
- Overall closed sales are down 4%
- Overall median closed sale prices are up 10%
- Overall inventory is down 9%
Nationally, confidence among US consumers soared in July to the highest level in almost 7 years as Americans grew more upbeat about the labor market and the outlook for the economy. A report released earlier this week showed home prices rose at the slowest pace in more than a year during the 12 months ending in May as a lull in the nationwide housing market limited appreciation. The S&P/Case –Schiller Index of property prices in 20 US cities increased 9.3% from May 2003 after a 10.8% gain in the year-ended in April. Compared with the prior month, home prices fell for the first time in two years. Lawrence Yun, National Assn of Realtors Chief Economist remarked that, “Housing fundamentals are moving in the right direction, and new home construction needs to rise by at least 50% for a complete return to a balanced market because supply shortages are putting upward pressure on prices.”
Although nationally, new home construction is still off 50%, those of us living in the Estero-Naples corridor are witnessing a strong resurgence of new home construction. We have been watching the new developments coming out of Estero to North Naples on Corkscrew Rd, Bonita National on Bonita Beach Rd, Toll Brothers in Spanish Wells and Stock Development’s 90 new, multi-million dollar homes in Quail West.
If you are contemplating the sale of your home, there could be no better time than right now to list your home. Many of our clients believe that they should wait until season rolls around to list and that may be a costly mistake. If inventories of active listings and new homes should spike or if mortgage interest rates should spike, then prices will be negatively impacted. On the other hand, if you are a buyer, prices will continue to push higher so long as inventories remain tight. Now is an excellent time to shop for your dream home!