Naples Bonita Springs Estero Florida

The data below is from the Naples area multiple listing service for single-family homes and detached villas for the calendar year 2008.

Would you like to know the quanity, and the average, minimum, and maximum prices for homes in these areas? The data is available. Visit www.BobPisa.com and drop me a note to let me know what you are interested. I'm happy to provide this data and any further information to help you with your real estate research.

Report Shows Inventory Declines 8 Percent

So says the headline from the newly released (April 17, 2009) press release from NABOR - Naples Area Board of Realtors(R).

Prices are down, sales are up. Makes sense, I've stated this many times. Now, we are finally seeing the affect of increased sales on the inventory. So the saying will go - prices are down, sales are up, inventory declines. Over the next year if this trend continues to hold true we will add "prices are up" to the saying. We can only hope...as this will be one clear indicator for a key aspect in our economy - the housing/finance market - to begin a recovery.

The desireable Naples and surrounding area is now the most affordable it has been in some time and buyers are taking notice. Highlights from the press release:

• Realistic price adjustments by home sellers are getting the buyers off the fence
• Realtors are reporting significant increase in traffic and activity
• Overall sales volume for properties under $300,000 saw a 113% increase in the first quarter
• Single-family homes under $300,000 increase 242%
• The median sales price for the 12  months ending March 2009 compared to the same period in 2008 end March 2008 dropped to $237,000 from $370,000. This is the "prices are down" piece.
• Home sales have increased 30% for the 12 month period ending March 2009. This is the "sales are up" piece.
• Pending sales in the under $300,000 category are up 194%
• The average days on market decreased 14%

An online listing service provided by HGTV listed Naples as the 'number 2 bagain home buyer market'.

The March 2009 statistics and additional market date may be found here.

I didn't expect to be writing a post such as this for sometime to come but, here it is...

In southwest Florida Naples is leading the recovery with improved sales statistics month-after-month ahead of Bonita Springs and Estero. Many people want Naples property for seasonal or permanent homes and for good reason.

Deals to be had. Without question, the foreclosed property market is scoured daily for the best properties and when these hit so do the offers. Many clients can't believe it when I tell them there are multiple offers and we need to go back with best and final offer. It's so unbelieveable that many will not raise the offer and low and behold, the next phone call is that someone else bought the property...disappointment.

Deals waiting and waiting to be had. Such is the case with short sales as is well known. I have three contracts "in process" for the newly coined "long sale". Those who hang in there will ultimately get a good deal. Although, many lose interest too soon and don't wait it out.

Here today gone tomorrow. I just now received an email inquiry from a customer who waited 12 days after the price was reduced way below the competition in the area for a property they were in interested in. It was not REO or short sale. Sadly, today the property went pending and it's no longer available.

If you would like the receive updates on property listings (new and changed prices) for a general area or a specific property type in a specific area just go to www.BobPisa.com. You may peruse the listings by Community or create your own search as you like and receive daily updates in your email all under your control.

I just love looking at an analyzing the data. You can't argue with it, it is what it is and in this case ending March 31, 2009 there are continued positive trends.

The first graph, below, are the pending homes at the end of each month for the past 24 months. THe end of this curve looks like it's rocketship propelled. It's not unusual to see an increase during the winter season in southwest Florida. In fact, you can see the positive ramp up in the middle the curve for last winter season. However, the steepness of the curve 12 months ago is nothing like this winter season. Why? Simple. Prices are down, volume is up.

The second curve are the actual closed sales for the past 24 months. It's plain to see that the lever the previous months represents is clearly different, and much better, than the 12 months preceeding. The past 12 months show a monthly average improvement in closed sales by 43%! That's pretty good!

24 month pending home sales

24 month closed sales

Now, a fair question to ask is, why doesn't the closed sales trend track the pending homes sales trend? The simple answer is that far fewer contracts written actually close. The primary reason are short sales. Only about 10% of short contract close. Why? Buyer's perceptions are incorrect with the motivation for "the bank" to sell the property. In fact, the bank doesn't own the property until it is foreclosed. Once foreclosed, the close rate is much better. Enough on short sales, I don't intend this to be a tutorial on short sales.

The bottom line is that Naples real estate has always been in demand and it always will be. During 2005-2007 many buyers were priced out of the market. We're now selling property at 2003-2004 prices so for those in the right position this is the time.

For more about the real estate market in Naples or Bonita Springs / Estero, you can read my report and download the data on my website.