The Naples Area Board of Realtors held their second quarter market conference Friday, July 13, but, despite the date, the results were better than anticipated.
A Panel of real estate experts revealed second quarter statistics dealing with total pending sales, closed sale prices, median sales prices and inventory.
“It’s shocking to see how fast our market returned back to normal after being hit directly by a hurricane,” Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc, said.
The Second Quarter of 2018 remained steady in comparison to activity during the Second Quarter of 2017. According to the 2Q 2018 Market Report released by NABOR, overall closed sales increased 2 percent to 2,926 properties in the 2Q of 2018 from 2,880 in the 2Q of 2017.
What was shocking was, despite the past hurricane activity, the $2 million and above single-family home market, closed sales rose 25 percent in the 2Q of 2018, which—along with other market indicators—leads many broker analysts to believe that interest in luxury homes will remain in high demand
“We’ve had record setting nine sales for properties worth over $10 million,” Hughes said. “I believe we are the holy grail of Florida and people have found us, people want to be here.”
Despite an increased sale in nearly every price category for properties priced above $300,000 during the 2Q of 2018, the median closed prices for properties above $300,000 decreased 5 percent!
Median means “in the middle”. So, with regard to List Price, this means exactly half of the homes listed are above the median price and exactly half are below.
With an increase of sales across the board, conference goers asked, “what about the inventory?” Meaning, is there enough homes for properties for people to buy?
“Our steady inventory tells me that homes are coming onto the market at the same rate we are selling them,” Hughes said.
Available inventory at the end of the 2Q of 2018 was 5,165 properties, just 24 units behind the inventory level at the end of the 2Q of 2017 (5,189 properties).
The market is steady for the moment, and with the greatest increases in pending and closed sales coming from properties and condominiums in the $2 million and above range, it seems that 2018 is on track for another profitable year.
“We are seeing a very different sales environment locally from that of 10 years ago when home sales in northern states stalled,” said Coco Amar, a managing broker at John R. Wood Properties. “But now that homes are moving fast up north, sales of high-end single-family homes in Naples are stronger than ever.
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