30 Mar Southwest Florida Market Update
NAVIGATING A BUYERS MARKET
Months of supply continued to grow in February as the overall market reached a level of 8.3 months of supply, compared to 6.4 months on March 1, 2016. While this number is not nearly as alarming as the levels posted in 2008, the fact that it continues to increase does give us pause.
The largest increases for single family homes occurred in properties priced from $250,000 to $500,000, which is up 38% over 2016, and those priced above $5 million, showed an increase of 21%. The condominium segments posting the largest gains were those priced from $1 – $2 million, an increase of 40%, and those priced above $5 million, which were up 100%. Also notable is a 30% increase in the number of condominiums and single family homes priced under $250,000, which are up 17%.
As always, it is important to look at supply by specific neighborhood, which can differ substantially from the overall market numbers. The Neighborhood Snapshot Report shows that some areas continue to experience a reasonably balanced market, while others are well above the one year level and approaching, or already exceeding, two year levels.
The good news is that there is no shortage of buyers interested in purchasing Southwest Florida real estate, but only if they feel the price is justified. Today’s buyers are well-informed, which means sellers must be as well.
NAPLES, BONITA SPRINGS/ESTERO
During the 12 months ending February 28, 2017, the Naples, Bonita Springs and Estero market had a total of 11,689 closings, which is 9% lower than the prior 12-month period. Meanwhile, the number of closed sales year-to-date increased 7% over last year with 1,653 closings vs. the 1,546 in 2016. During the first two months of 2017, closings for properties priced above $2 million were down 10% from the same period a year ago, and during the past 12 months, the number of closings in this price category showed a decline of 22%.
The available inventory on March 1, 2017 for the combined Naples, Bonita Springs and Estero market consisted of 8,099 units, an increase of 18% over the prior year. During the 12 months ending February 28, 2017, there were a total of 20,173 new listings added to the market, representing a 4% increase over the same period in 2016.
Average and Median Sales Price
The average price of closed sales during February 2017 was 3% lower year-over-year, while the median price was relatively stable, posting a 1% decline. The average sales price year-to-date is $538,275, which is a decrease of 8% from the same period in 2016. Median sales price remained stable with less than a 2% increase ($319,000 vs. $325,000).
During the 12 months ending February 28, 2017, the Marco Island area had 857 closings, down 9% from the prior year. Meanwhile, year-to-date closings are up 12% from 2016 with 133 closed sales vs. 119 for the same period in 2016.
The available inventory on March 1, 2017 increased by 25 units over February’s supply (808 units vs. 783). During the 12 months ending February 28, 2017 there were a total of 1,428 new listings added to the Marco Island market. The supply of new listings is unchanged from the same period last year when there were 1,452 new listings added.
Average and Median Sales Price
The average sales price of February 2017 closings increased 3% over February 2016, and median price was up almost 4% for the period. Average sales price year-to-date through February increased slightly to $842,000 up from $750,500 in 2016.
*Marco Island statistics are obtained from the Marco Island MLS system and include only those sales and current listings on Marco Island and Key Marco.