The Naples housing market continues to show strength after closed property sales increased by 5 percent and inventory rose 2 percent in August, according to new data from the Naples Area Board of Realtors.
“I’m really encouraged by activity in the lower end of the market during August,” said Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc. “Historically, August is where we begin to see an increase in inventory as sellers get ready for our busy winter season.”
Hughes, along with several broker analysts reviewing the August Market Report, believes we’ll continue to see an uptick in inventory through the end of the year. He also went on to point out that the majority of the new inventory in August appeared in the single-family home market for properties below $500,000. Yet, closed sales during August were driven by activity in the condominium market, which experienced a 21 percent increase.
“If you look at year over year numbers, the upper end continues to drive our market.” Jeff Jones, Managing Broker for Engel & Völkers Naples and Bonita Springs offices, said.
As such, pending and closed sales of properties above $1 million increased by double digits, year over year ending August 2018.
In response the whether or not the heightened Red Tide activity affected the Naples housing market in August, Bill Coffey, Broker Manager of Amerivest Realty Naples, said, “There were only 14 fewer pending sales in August compared to last year. And remember, we are still working with only 11 months of data since Hurricane Irma essentially halted activity for nearly a month last year.”
Overall pending sales in August fell 3 percent; but pending sales of condominiums in the $500,000 to $1 million price range soared 28 percent in August. And pending sales for single family homes above $300,000 increased as well, with an impressive 62 percent increase for single family homes in the $2 million and above price category.
According to Adam Vellano, West Coast Sales Manager, BEX Realty – Florida, “One indication that homeowners were pricing homes to sell in August was apparent in the MLS as 50 percent of the inventory that sold during the month had been on the market for over 100 days.”
Overall median closed prices fell 3 percent in August to $319,000 from $328,000 in August 2017, and it fell 13 percent for properties above $300,000 to $446,000 from $510,000 in August 2017. The only place prices increased was in the $500,00 to $1 million condominium market, which saw a 13 percent increase to $672,000 from $595,000 in August 2017.
Geographically, the median closed price increased 16 percent for homes in the South Naples area. This increase was reflected in a combined 37 percent increase in the single-family home market and 21 percent increase in the condominium market.
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