Let me be clear. I've looked at the data for single family homes sold in Naples, FL month-by-month, for the past twelve months and the dollar amount that homes are selling for, on average, are going up. Here's the summary:
- $821,965 was the average selling price for a home in July of 2006.
- The lowest average selling price occurred the following month in August and it was $661,669 - big drop, 19.5%!
- In July of 2007, however, the average selling price for a home was $1,215,408.
- A straight trend line on the data indicates, approximately, a whopping 50%+ increase!
But how many units sold, you ask? July, August, and September were pretty consistent with about 165 units per month; October through February of 2007 represented about 130 per month; and with the exception of a spike in April with 312 units sold, the rest of the 12 month period is running about 180 units per month.
The days-on-market through the period climbed steadily from the 150 mark to over 200 and has settled back to the 180-190 range. However, because of the way DOM is tracked the likely actual DOM I suspect is higher still.
The rest of the story has to do with expectations... The expectation of many who came in as quick turn investors was realized by the few who were able to get in and get out at the right time. Market timing is always risky. Real estate, notwithstanding the aforementioned, is a smart long-term investment.
Bob Pisa
www.BobPisa.com
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