The latest reports from NABOR (Naples Area Board of Realtors) illustrate the effects of the economic law, “Supply and Demand”. Home listings and closed sales are tracked each month with the reports reflecting trends month to month as well as comparing year to year figures. Overall, inventory dropped as much as 20 percent in some price categories and as a consequence, of course, prices have risen steadily. The Naples area real estate market is hyper-sensitive to location with the water, beaches, boating, amenities, retail hubs and Olde Naples being some of the driving forces that strongly influence value.
Low inventory was also a strong factor in the decrease of pending and closed sales activity in the Naples beach area condominium market. This desirable location experienced a 28 percent decrease in available inventory from 571 condos to 409 condos in August 2014 compared to August 2013. The low inventory contributed to a 31 percent decrease in pending sales and a 23 percent decrease in closed sales of condominiums in this area. The median closed price in this area increased 7 percent from $495,000 in the 12 months ending August 2013 to $530,000 in the 12 months ending August 2014. Putting statistics aside for a moment, the bottom line on a practical level is that sellers need to be priced accurately from Day One of listing a home to be in tune with the day to day changes in the real estate market and buyers must be up to speed with the activity in specific neighborhoods to recognize value so that they can act quickly.
Other related reports have the state of Florida leading the way in all cash real estate transactions. Over half of the property sales in the entire state were cash with some local pockets way out in front of other cities in the country.
Also, data was released regarding foreign buyers and investors in Florida real estate. In the 12 months that ended in June 2014, the dollar value of real estate purchases in Florida hit $7.97 billion. That is a 24 percent increase over the amount spent ($6.43 billion) the year before. About one in ten property purchases in the state involved a foreign buyer which is an increase from 9 percent the year before. Real estate in the U.S. appeals to foreign buyers and about 25 percent of all international home purchases in the country were in Florida for 2014. Two major trends drove an increase in foreign buyers – a continuing recovery of the world’s economy and the affordability of U.S. properties.
Where are the foreign buyers coming from?
- Canadian buyers accounted for the largest share on international clients at 32 percent
- Western Europe at 24 percent, primarily from the United Kingdom, France and Germany
- Latin America / Carribbean at 23 percent, mostly from Brazil and Venezuela
- Asia, mostly China, provided 10 percent
If you are a potential seller, consult us to position your home correctly in this real estate market and benefit from our global marketing strategy. If you are a serious buyer, call us to spearhead negotiations and to get educated neighborhood by neighborhood so that you feel confident in making the right decisions.
Ellie Penaranda at (239) 776-5077 or Tim Cranch at (239) 272-4848
Ellie@StepsToTheBeach.com or TimCranch@StepsToTheBeach.com