NABOR released 2015 second quarter listing and sales statistics in Collier, excluding Marco Island and new construction. The report also revealed several key statistics indicating stabilization of the market.
- Overall pending sales decreased 4 percent from 2,949 in the second quarter of 2014 to 2,843 in this year’s second quarter.
- Overall closed sales remained flat with no increase or decrease reported.
But, 60 percent of the market experienced inventory growth, and overall sales activity remained on pace with the second quarter of 2014. The report also indicated a 9 percent increase in pending sales quarter over quarter for homes priced above $300,000. These factors and other statistics have led broker analysts to conclude another great year is very likely.
The $300,000 to $500,000 market segment has been especially white hot. Pending transactions showed an increase of 23 percent year-to-year and 17 percent, quarter-to-quarter. In the closed transactions segment, the report noted a 26 percent increase year-to-year and a 28 percent increase, quarter-to-quarter.
NABOR President Mike Hughes, general manager and vice president of Downing-Frye Realty, encouraged people to keep an eye on that market segment. “ They are all doing well but that is the one to watch,” said Hughes.
Overall market stats showed an increase in all categories except the $0 to $300,000 segment which decreased in closed sales by 10 percent from year-over-year. Historically from 2010 to 2012, 80 percent of all pending sales were of homes priced below $300,000, contributing to the current 24 percent inventory decrease in the segment from 1,366 homes in the second quarter of 2014 to 1,036 homes in the same period in 2015.
The lack of inventory in the under $300,000 price range shouldn’t be a huge cause for concern, Hughes said.
“I don’t think we see a lot of storm clouds. Overall inventory is almost the same number as it was this time last year. That is amazing when you consider the fact we have had 9,850 closings over the last 12 months,” said Hughes.”
Inventory has risen and demand has risen, with many properties being sold as quickly as they are listed. Average days on the market decreased 20 percent from 94 days in the second quarter of 2014 to 75 days in the second quarter of 2015. Single-family home inventory continued to rise with a 9 percent increase by quarter.
In contrast, the condominium market saw a quarterly decrease in inventory by 11 percent.
According to panelist Cindy Caroll of the appraisal and consultant firm Caroll & Caroll, the single family market and condominiums are doing different things. Condominium absorption rates remain unchanged while prices increased and inventory levels went down.
“I think it’s possible that this coming season, we may see characterized as a condo market,” she said.
The associates weighed in on the statistics unveiled as well. Janine Rendano, an associate with Amerivest, said she feels lucky and continues to see activity moving into the third quarter.
“It’s been a very active summer. The market has continued to climb and jumped up quite a bit from last year. We cannot predict the future but due to lack of inventory in some areas, it will be interesting to see what will happen with prices,” said Rendano.
Overall median closed price increased 14 percent from $255,000 in the 12 months ending in the second quarter of 2014 to $290,000 in the 12 months ending in the same quarter of 2015. The most robust change is evident by area. It points toward significant change in the Immokalee/Ava Maria area where median closed prices rose 65 percent and the closed sales increased by 89 percent by quarter comparison.
South Naples showed the second largest quarterly increase in median closed prices with a 25 percent increase from $183,000 in the second quarter of 2014 to $229,000 in the same period ending in 2015. South Naples also recorded the largest 12-month hike, ending with a 22 percent increase in median prices from $172,000 to $210,000.