Solid, stable growth continues to drive the local housing market.
After a torrid first quarter sales in the second quarter slowed to a more normal pace. Closed sales in the second quarter were down 4% versus the second quarter of 2013. Pending sales were also down about 8% when compared to the second quarter 2013. Demand is not down, but inventory is greatly diminished. The second quarter alone, inventory fell another 9% versus second quarter 2013. The month of May was particularly active for condo sales. Condo inventory fell in May by 20% (2,294 to 1,850 in 2014)
On the heels of a year (2012 vs 2013) which saw the median price jump 18%, the first quarter saw single family home prices escalate 26.6% in the Naples-Marco Island metro area, far outpacing the rest of the state. Ft Myers– Cape Coral was also in the money with an 18% increase. That red hot pace was unsustainable, and at the years midpoint, homes are up about 13%. The median price is driven by lack of inventory and high end sales.
Luxury market sales are jaw dropping. The sale of single family homes listed for $2 Million or more jumped 83% in the first
quarter (61 sales 1st quarter 2013 vs 110 sales in 2014) During the second quarter overall luxury sales were up 42% with 156 sales of listings
over $2 Million. (98 homes sold over $2 Million up 44%, and 58 condos over $2 Million up 38% from 2013)
Many factors are driving this ongoing market: particularly high end sales. Continued stock market gains plus low mortgage interest rates are boosting consumer confidence. 28 consecutive months for a year over year price increases is tops in the Nation. Activity for the 12 months ending June 30th reflects considerable consumer confidence in the Naples area Real Estate market.
The influx of new construction will help fill the void where demand is outpacing inventory. Even with 30 new communities being developed locally, the average days on market is under 100. So the seller’s market grows, and sellers looking to sell are gaining the advantage. Here at the Grant Group, sales will exceed 2013, and 2013 exceeded our best prior year 2005, at the height of the buying frenzy.
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