The Naples Area Board of Realtors recently released their January 2017 numbers. Based off of these numbers, the consensus of the local real estate industry leaders is that we are off to a good start.
OVERALL PENDING SALES
The January 2017 pending sales are UP 9% over the number of pending sales that took place in January 2016. This was not a surprise because last January, we had a very tough stock market. This January, we had a vastly improved stock market. NABOR ( Naples Area Board of Realtors ) reported that there were 924 pending sales transactions in January of 2017 compared to last January where we had 847 pending sales.
OVERALL CLOSED SALES
There were 603 January 2017 closed sales transactions. This was a 6% increase compared to the January 2016 closed sales of 571. Digging inside that 6% increase, we find that single family closings were off 2% but condo closings more than made up for this as condo closings were UP 14% compared to last January.
MEDIAN CLOSED PRICE
The overall median closed price for January 2017 was down 8% compared to last January. However, for the twelve months ended January 31, 2017, median closed price was up 3% overall.
The inventory of listings is an emerging story. At the end of January 2017. NABOR reported that there were 6,393 properties listed for sale. The previous January had 5,091 listed properties for sale. This is a 26% increase in listings. To give this some historical perspective, in March 2017 NABOR had 12,440 listed properties for sale. Many of the local realtors are glad that we have more properties to sell as it was not too long ago ( 2015 ) that we had less than 4,000 properties to sell. The increase in listings gives buyers a greater selection to choose from. It should be pointed out that this increase in listings has been somewhat gradual over the last nineteen months. However, it is noteworthy that the total listings of 6,288 at the end of January 2017 was the first time we have had over 6,000 listings since April 2013. There are a number of factors for this increase in inventory including jitters over the Presidential election as well as a great stock market. Some consumers are hesitant to pull their funds out of the stock market to buy real estate when the market is producing great results. The majority of our buyers in this area are cash buyers. Many of our buyers get their funds to close from their investments.
AVERAGE DAYS ON MARKET
The average days on market for a listed property has gone UP 21% in the last year. In January 2016 we had an average days on market of 75 days overall. At the end of January 2017 the overall average days on market was sitting at 91 days.
I think the overall mood of local realtors is that we are cautiously optimistic about the real estate market of 2017. The cold weather up north will send a number of buyers our way. The improved stock market will cause some to diversify and put some of their gains in real estate. The improved selection of properties will help some buyers to “jump off of the fence “and purchase a property in paradise.
In the old days, once we got past Easter, sales dropped off quite a bit. Not anymore. Summer has emerged into a pretty good season for us with real estate transactions. Even the fall is not bad with respect to sales. In the fall, the winter visitors are gone and many of the summer visitors are gone because the kids are back in school. Locals say that the buyers in the fall, while fewer, are more serious buyers.
In closing, my sense is that we are heading in the right direction. There are a lot of people that want to live in paradise. Southwest Florida is special. With a growing national population, and finite choice properties, I like the future of Southwest Florida. As I write this article, I am looking out my office window at a blue sky with palm trees gently moving from a coastal breeze. Does it get any better than this?
Mike Hughes, Vice President
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