Pending sales in the Naples area during March increased for the second consecutive month – resulting in the greatest market activity in the past 31 months – according to a report released by the Naples Area Board of Realtors® (NABOR), which tracks home listings and sales within Collier County (excluding Marco Island).
Overall pending sales, which are a key indicator of buyer activity, increased 7 percent year-to-date in March, following a 10.6 year-to-date increase in February, which marked the end of a 28-month downward trend. This year-to-date increase was seen in both the condo market, which was up 6 percent, and the single-family home market, where pending sales increased 9 percent.
“This is the best March we’ve experienced in three years,” confirmed Arlene Carozza, NABOR President and Realtor®, noting that properties under $300,000 are leading this upward trend. “There is no doubt that lower-priced properties account for the majority of sales, but this is indicative of overall market improvement.” Carozza stated.
The report, which provides annual comparisons of single-family home and condo sales (via the SunshineMLS), price ranges and geographic segmentation, also includes an overall market summary. The statistics are presented in chart format, along with the following analysis:
Overall pending home sales under $300,000 in the greater Naples Area, which includes Naples Beach, North Naples, Central Naples, South Naples, East Naples, Immokalee and Ave Maria, increased 69 percent, with 294 in March 2008 compared to 174 in March 2007.
Overall homes sales were 388 in March 2008 compared to 440 in March 2007, a 12 percent decrease.
Overall condo sales decreased slightly with 237 sold in March 2008 compared to 244 in March 2007; and condo sales under $300,000 increased 12 percent with 131 in March 2008 compared to 117 in March 2007.
Single-family home sales decreased 23 percent overall, with 151 in March 2008 compared to 196 in March 2007, but sales in the less than $300,000 category saw a 33 percent increase with 56 in March 2008 compared to 42 in March 2007.
While the overall median sales price is still down, the gap is closing. The median sale prices are gradually rising and increased 8.4 percent year-to-date in the $300,000-$500,000 price range. If this trend continues, we will look back in a few months realizing the market hit bottom.
Even though the population swells with snowbirds during the winter months, the ones who rent often decide to own something a day or two before they return up north. Most of the first time buyers prefer a condominium because there is no outside area to maintain. Some buy a villa style home, which is a single-family home in a community where the association maintains the outside of the home for the owners. Regardless of what the seasonal residents are looking for, they will return during the summer and buy something.
To view the entire March report, click here.
- Michael Kikkert
