We are having a tremendous month for closed sales volume,” said Mike Hughes, Vice President/General Manager of Downing-Frye Realty.
“Last June, we had 157 million in closed sales volume. This June we have already closed $188 million, with a good chance of topping $200 million for the month.
Our year to date closed sales volume is up 6% to date over the previous year.
“Overall inventory in our market is not going down as much as it once did. The inventory of properties below $300,000 has been reduced quite a bit from several years ago. This market is under tremendous pressure from multiple groups including first time home buyers, retirees and boomerang buyers.
“The dynamics of the Naples market in 2015 are quite different than they were in 2005. We are not seeing the rampant flipping of properties that occurred in 2005. Many of our recent buyers are end users. The financing market today is a lot tougher now than it was in 2005.
Roughly 60 to 70 percent of our buyers these days are cash buyers. Also, many of the developers are requiring a larger down payment than they did back in 2005. Certainly property values have climbed in the area. With respect to the low-end part of the market, we still have many properties within Naples and there are plenty of these properties on the outskirts of the Naples area too. The bottom line is that the consumer looking for properties below $300,000 still has a wide selection of choices in Southwest Florida.
NAPLES: RECORD BREAKING SALES
Activity for May in the $300,000 to $500,000 price category of the housing market was on fire with a 30 percent increase (month over month) in overall closed sales from 181 homes in May 2014 to 236 homes in May 2015. During the same time, closed sales for single family homes in the $1M to $2M price category experienced the highest increase – 38 percent – from 32 to 44 single family homes.
NAPLES: MAY 2015 vs 2014:
– Overall median closed price increased 15 percent from $252,000 in the 12-months ending May 2014 to $289,000 in the 12-months ending May 2015.
– Overall inventory decreased 3 percent from 3,919 homes to 3,800 homes.
– Average days on market decreased 21 percent from 95 days to 75 days.
BONITA /ESTERO: FEWER LISTINGS, HIGHER PRICES
– Active number of listings has decreased to 768 in May 2015 from 866 in May 2014.
– Average listing price: May 2015 = $559,000
– Average listing price: May 2014 = $457,000
– The sales volume (sum of prices) for all residential properties closed during May 2015 was $104.5 million, compared to $94.9 million during May 2014.
FLORIDA: PRICES UP, TIGHT INVENTORY
Inventory continues to tighten, with a 4.7-months’ supply in May for single-family homes and a 5.8-months’ supply for townhouse-condo properties.
The statewide median sales price for single-family existing homes in May was $200,000, up 11.1 percent from the previous year. The statewide median price for townhouse-condo properties in May was $159,000, up 9.7 percent over the year-ago figure.
NATIONWIDE: SALES ON SOLID PACE
Fueled partly by an increase in the share of sales to first-time buyers, existing-home sales increased in May to their highest pace in nearly six years.
Lawrence Yun, National Association of Realtors chief economist, says May home sales rebounded strongly following April’s decline and are now at their highest pace since November 2009 (5.44 million). “Solid sales gains were seen throughout the country in May as more homeowners listed their home for sale and therefore provided greater choices for buyers,” he said. “However, overall supply still remains
tight, homes are selling fast and price growth in many markets continues to teeter at or near double-digit appreciation. Without solid gains in new home construction, prices will likely stay elevated — even with higher mortgage rates above 4 percent.”