May Results

$300-$500K Housing Market Gains Momentum in May  Contacts: Pat Pitocchi, NABOR® Media Relations Committee Chairman, (239) 398-8650,         Marcia Albert, NABOR® Director of Marketing, (239) 597-1666 Naples, Fla. (June 19, 2015) - Historically, many local REALTORS® consider May an "in-between month" as it sits between when seasonal winter residents leave Naples for their homes up north and summer visitors arrive. Yet despite this perception, activity for May in the $300,000 to $500,000 price category of the housing market was on fire with a 30 percent increase (month over month) in overall closed sales from 181 homes in May 2014 to 236 homes in May 2015 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). Many of the homes in the under $300,000 price category have moved into the $300,000-$500,000 price category (bracket creep), a phenomenon that contributes to the increase in inventory levels for single family homes in all price categories above $300,000, all of which increased by double digits. NABOR®'s May 2015 Market Report also indicated closed sales for single family homes in the $300,000 to $500,000 price category, while impressive at an increase of 25 percent from 102 single family homes in May 2014 to 127 single family homes in May 2015, was not actually the highest performing price segment. It was closed sales for single family homes in the $1M to $2M price category that experienced the highest increase - 38 percent - from 32 single family homes in May 2014 to 44 single family homes in May 2015. Interestingly, closed sales in the $300,000 to $500,000 condominium market in May were also impressive with an increase of 38 percent from 79 condominiums in the 12-months ending May 2014 to 109 condominiums in the 12-months ending May 2015. Homes in the $300,000 to $500,000 price category saw positive double-digit action in overall pending and closed sales (and inventory), yet the overall median closed price did not change. Contributing to this category's median closed pricing stabilization was a 2 percent increase for single-family homes from $380,000 in the 12-months ending May 2014 to $386,000 in the 12-months ending 2015; and a 1 percent decrease in the median closed price for condominiums in the same price category from $370,000 in the 12-months ending May 2014 to $367,000 in the 12-months ending May 2015. According to Jeff Jones, NABOR treasurer and Managing Broker at the Naples-Park Shore office of Coldwell Banker®, the May report also indicated that, "historically, the median closed price for homes above $300,000 in May was the lowest since NABOR®'s been tracking statistics [March 2008]." Effectively, the median closed price for homes above $300,000 was $520,000 in the 12-months ending May 2015 compared to $550,000 in the 12-months ending May 2009. "In all actuality, prices for homes between $300,000 and $1M are remaining relatively static," said John Steinwand, Broker and Principal at Naples Realty Services, Inc. The May Market Report supported Steinwand's observation as it indicated that the overall median closed price for homes under $300,000 increased 10 percent from $170,000 in the 12-months ending May 2014 to $187,000 in the 12-months ending May 2015; and the overall median closed price for homes $2 million and above increased 11 percent from 2,900,000 in the 12-months ending May 2014 to 3,212,000 in the 12-months ending May 2015. The NABOR® May 2015 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® May 2015 sales statistics are presented in chart format, including these overall (single-family and condominium) findings: Overall pending sales decreased 11 percent from 1,096 in May 2014 to 977 in May 2015. Overall closed sales remained flat for a second month with no increase or decrease reported on a 12-months ending basis. Closed sales for single family homes in the $300,000 to $500,000 price category increased 22 percent from 1,075 homes in the 12-months ending May 2014 to 1,316 homes in the 12-months ending May 2015. Closed sales for condominiums in the $300,000 to $500,000 price category increased 33 percent from 691 condominiums in the 12-months ending May 2014 to 922 condominiums in the 12-months ending May 2015 Overall median closed price increased 15 percent from $252,000 in the 12-months ending May 2014 to $289,000 in the 12-months ending May 2015. Overall inventory decreased 3 percent from 3,919 homes in May 2014 to 3,800 homes in May 2015. Inventory for single-family homes in the under $300,000 price category decreased 34 percent from 465 single-family homes in May 2014 to 307 single-family homes in May 2015. Inventory for condominiums in the $2M and above price category increased 83 percent from 30 condominiums in May 2014 to 55 condominiums in May 2015. Average days on market decreased 21 percent from 95 days in May 2014 to 75 days in May 2015.  As pointed out by Bill Coffey, Broker Manager of Amerivest Realty Naples, there is only a 1.85-month supply of homes under $300,000. "Inventory is not going down as much as it once did," noted Mike Hughes, NABOR® president, Vice President and General Manager of Downing-Frye Realty. "The inventory of properties below $300,000 has been reduced quite a bit from several years ago. This market is under tremendous pressure from multiple groups including first time home buyers, retirees and boomerang buyers. The dynamics of the Naples market in 2015 are quite different than they were in 2005. We are not seeing the rampant flipping of properties that occurred in 2005. Many of our buyers recently are end users. The financing market today is a lot tougher now than it was in 2005. Roughly 60 to 70 percent of our buyers these days are cash buyers. Also, many of the developers are requiring a larger down payment than they did back in 2005. Certainly property values have climbed in the area. With respect to the low-end part of the market, we still have many properties within Naples and there are plenty of these properties on the outskirts of the Naples area too. The bottom line is that the consumer looking for properties below $300,000 still has a wide selection of choices in Southwest Florida." Hughes also pointed to similar dynamics affecting other high demand cities like Washington, DC, where most of the affordable homes are located in suburban areas. The projections are for tremendous growth east of Collier Boulevard over the next 20+ years. This area is very desirable for the consumer who wants land and wants to stay in a more affordable budget. Homebuyers are fueling the decrease in days on market according to broker analysts, as shown by an overall decrease of 21 percent from 95 days on the market in May of 2014 to 75 days on the market in May of 2015. "It takes a lot less time to sell your house when it's priced right," remarked Brenda Fioretti, Managing Broker at Berkshire Hathaway HomeServices Florida Realty. "And if a buyer finds a home they like, they need to move quickly!" To ensure your next sale or purchase in the Naples area is a success contact a REALTOR® on Naplesarea.com." The Naples Area Board of REALTORS® (NABOR®) is an established organization (Chartered in 1949) whose members have a positive and progressive impact on the Naples Community. NABOR® is a local board of REALTORS® and real estate professionals with a legacy of nearly 60 years serving 5,000 plus members. NABOR® is a member of the Florida Realtors and the National Association of REALTORS®, which is the largest association in the United States with more than 1.3 million members and over 1,400 local board of REALTORS® nationwide. NABOR® is structured to provide programs and services to its membership through various committees and the NABOR® Board of Directors, all of whose members are non-paid volunteers.    The term REALTOR® is a registered collective membership mark which identifies a real estate prof

US Housing Starts

NEW RESIDENTIAL CONSTRUCTION IN MAY 2015
The U.S. Census Bureau and the Department of Housing and Urban Development jointly announced the following new residential construction statistics for May 2015:
BUILDING PERMITS
Privately-owned housing units authorized by building permits in May were at a seasonally adjusted annual rate of 1,275,000.  This is 11.8 percent (±1.8%) above the revised April rate of 1,140,000 and is 25.4 percent (±2.1%) above the May 2014 estimate of 1,017,000.
Single-family authorizations in May were at a rate of 683,000; this is 2.6 percent (±1.2%) above the revised April figure of 666,000.  Authorizations of units in buildings with five units or more were at a rate of 557,000 in May.
HOUSING STARTS Privately-owned housing starts in May were at a seasonally adjusted annual rate of 1,036,000.  This is 11.1 percent (±10.4%) below the revised April estimate of 1,165,000, but is 5.1 percent (±11.2%)* above the May 2014 rate of 986,000.
Single-family housing starts in May were at a rate of 680,000; this is 5.4 percent (±7.0%)* below the revised April figure of 719,000.  The May rate for units in buildings with five units or more was 349,000.
HOUSING COMPLETIONS Privately-owned housing completions in May were at a seasonally adjusted annual rate of 1,034,000.  This is 4.7 percent (±13.8%)* above the revised April estimate of 988,000 and is 14.5 percent (±14.4%) above the May 2014 rate of 903,000.
Single-family housing completions in May were at a rate of 635,000; this is 5.2 percent (±11.4%)* below the revised April rate of 670,000.  The May rate for units in buildings with five units or more was 392,000.
New Residential Construction data for June 2015 will be released on Friday, July 17, 2015, at 8:30 A.M. EDT.

April Results

Traditional Sales of Homes Highest on Record   Contacts: Pat Pitocchi, NABOR® Media Relations Committee Chairman, (239) 398-8650,         Marcia Albert, NABOR® Director of Marketing, (239) 597-1666 Naples, Fla. (May 22, 2015) - What makes a room full of real estate brokers happy? Record-breaking sales! This realization surfaced during a recent meeting where 10 NABOR® brokers reviewed the April 2015 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). The report showed that traditional sales comprised 94% of all closed sales as compared to non-traditional sales (foreclosures or short sales). Carmen Vasquez, owner/broker U.S. Prime Realty, pointed out that, "April 2015 had 1,095 traditional sales. This is the highest number of traditional sales in a month since we started tracking the NABOR® numbers back in 2009." Veteran Broker and Principal at Naples Realty Services, Inc. John Steinwand concurred with Vasquez and illustrated further that, "Not only did April register the highest percentage of traditional sales since 2009, but the data revealed the highest total number of closed sales since July 2009, and the lowest level of distressed property closings in the past six years. Just 10 short sales and 57 foreclosed sales were closed this April versus 330 total distressed sales back in July of 2009." April was a remarkable month for the real estate market with notable results in pending sales (properties under contract) of condominiums in the $2 million and above price category, which saw a 58 percent increase from 12 pending sales in April 2014 to 19 pending sales in April 2015. Relative to this increase was an increase in the same category's inventory, which rose by 74 percent from 34 condos in inventory in April 2014 to 59 condos in inventory in April 2015. Further, the April 2015 Market Report indicated that overall closed sales had positive gains in all price categories above $300,000 with the $300,000 to $500,000 category capturing the highest gain - 21 percent from 1,787 in the 12-months ending April 2014 to 2,162 in the 12-months ending April 2015. The overall median closed price increased 13 percent in April from $250,000 in the 12-months ending April 2014 to $283,000 in the 12-months ending April2015. This was fueled mostly by activity on both ends of the price spectrum. Homes in the $0 to $300,000 price category experienced a 10 percent increase in median home price from $168,000 in the 12-months ending April 2014 to $185,000 in the 12-months ending April 2015, while homes in the $2 million and above price category experienced a 9 percent increase in median home price from $2,900,000 in the 12-months ending April 2014 to $3,175,000 in the 12-months ending April 2015. According to Cindy Carroll, SRA, with the real estate appraisal and consultancy firm Carroll & Carroll, Inc., "We can see some real trends when we look at the market with an historic comparison. For example, in the fall of 2013, the median closed price for single-family homes in the $0 to $300,000 price range increased 18 percent. For April 2015, there was only a 9 percent increase from $182,000 in the 12-months ending April 2014 to $199,000 in the 12-months ending April 2015." The self-correcting trend became even more apparent when Carroll compared activity from the report by neighborhood, "In July 2014, the median closed price for single-family homes in the Naples Beach area increased 36 percent. In April 2015, this area saw an 11 percent increase. I think the market played catch up between 2013 and 2014 and we are seeing a tempering of it now." The NABOR® April 2015 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® April 2015 sales statistics are presented in chart format, including these overall (single-family and condominium) findings: Overall pending sales decreased 2 percent from 1,231 in April 2014 to 1,210 in April 2015. Overall closed sales remained flat with no increase or decrease reported on a 12-months ending basis. Overall closed sales in the $300,000 to $500,000 price category increased 21 percent from 1,787 homes in the 12-months ending April 2014 to 2,162 homes in the 12-months ending April 2015. Overall median closed price increased 13 percent from $250,000 in the 12-months ending April 2014 to $283,000 in the 12-months ending April 2015. Overall inventory decreased 3 percent from 4,157 homes in April 2014 to 4,040 homes in April 2015. Inventory for single-family homes increased 4 percent from 2,206 single-family homes in April 2014 to 2,289 single-family homes in April 2015. Inventory for condominiums decreased 10 percent from 1,951 condominiums in April 2014 to 1,751 condominiums in April 2015. Average days on market decreased 28 percent from 99 homes in April 2014 to 71 homes in April 2015.  "Overall, April 2015 had a 5.06-month supply of inventory compared to a 34.78-month supply in April 2007," said Bill Coffey, Broker Manager of Amerivest Realty Naples. Many of the brokers who analyzed the April 2015 Market Report had recently returned from the National Association of REALTORS® Legislative Meetings & Trade Expo in Washington, DC, and concurred that sales activity in the Naples area, as also reflected in the report, is in line with the national average. However, the April 2015 Market Report by NABOR® showed an 18 percent decline in the days on market to 76 days from 93 days a year ago. Yet according to a REALTOR® Confidence Index report published by Lawrence Yun, Senior Vice President and Chief Economist with the National Association of REALTORS®, the national average in March 2015 was 52 days. When you are ready to put your home on the market, look to a REALTOR® for the experience and knowledge you need to determine whether now is the right time to sell your home and ensure your next sale or purchase in the Naples area is a success. Contact a REALTOR® on NaplesArea.com®. The Naples Area Board of REALTORS® (NABOR®) is an established organization (Chartered in 1949) whose members have a positive and progressive impact on the Naples Community. NABOR® is a local board of REALTORS® and real estate professionals with a legacy of nearly 60 years serving 5,000 plus members. NABOR® is a member of the Florida Realtors and the National Association of REALTORS®, which is the largest association in the United States with more than 1.3 million members and over 1,400 local board of REALTORS® nationwide. NABOR® is structured to provide programs and services to its membership through various committees and the NABOR® Board of Directors, all of whose members are non-paid volunteers.    The term REALTOR® is a registered collective membership mark which identifies a real estate professional who is a

US and regional existing sales stats

Single-family and Condo/Co-op Sales

Single-family home sales rose 5.5 percent to a seasonally adjusted annual rate of 4.59 million in March from 4.35 million in February, and are now 10.9 percent above the 4.14 million pace a year ago. The median existing single-family home price was $213,500 in March, up 8.7 percent from March 2014.

Existing condominium and co-op sales increased 11.1 percent to a seasonally adjusted annual rate of 600,000 units in March from 540,000 units in February, and are now 7.1 percent higher than March 2014 (560,000 units). The median existing condo price was $201,400 in March, which is 1.6 percent higher than a year ago.

Regional Breakdown

March existing-home sales in the Northeast increased 6.9 percent to an annual rate of 620,000, and are 1.6 percent above a year ago. The median price in the Northeast was $240,500, which is 1.6 percent below a year ago.

In the Midwest, existing-home sales jumped 10.1 percent to an annual rate of 1.20 million in March, and are now 12.1 percent above March 2014. The median price in the Midwest was $163,600, up 9.7 percent from a year ago.

Existing-home sales in the South climbed 3.8 percent to an annual rate of 2.19 million in March, and are now 11.7 percent above March 2014. The median price in the South was $187,900, up 9.3 percent from a year ago.

Existing-home sales in the West rose 6.3 percent to an annual rate of 1.18 million in March, and are now 11.3 percent above a year ago. The median price in the West was $305,000, which is 8.3 percent above March 2014.

US statistics

Sales of new single family houses in March 2015 were 481,000 at a seasonally adjusted annual rate (SAAR), down 11.4 percent from February’s revised rate but up 19.4 percent from March 2014.

Naples Area Statistics

Buyers Shift Focus to Condominium Market

 

Contacts: Pat Pitocchi, NABOR® Media Relations Committee Chairman, (239) 398-8650,

        Marcia Albert, NABOR® Director of Marketing, (239) 597-1666

Naples, Fla. (April 17, 2015) - Overall activity in the Naples area real estate market across all price categories remains steady, according to the First Quarter 2015 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). Most notable in the report was the $300,000 - $500,000 price category for condominiums in which the overall closed and pending sales increased by double digits in the first quarter of 2015. Statistics show a recent shift in buyer focus from single-family homes to condominiums.

Broker analysts reviewing the First Quarter 2015 Market Report agree that a new trend may be emerging, as the report showed condominiums outperforming single-family home sales. As such, these analysts predict condominiums will see continued rise in activity moving into summer.

"Pending and closed sales in the mid-level price range [$300K - $500K] for both March and first quarter outperformed all other areas of the market," said Phil Wood, President & CEO of John R. Wood Properties.  "Perhaps this is reflective of vacation home buyers who want a place to escape the winter weather. Condos are the easiest way for them to do so, since exterior maintenance issues are handled by the associations."

"The difference in performance between the single-family home market and condo market in the $300,000 -$500,000 price category for the first quarter is quite impressive," said Steve Barker, Advising Broker for Equity Realty. "Pending sales for condominiums in the $300,000 - $500,000 price category increased 53 percent. Yet, while the single family home market is very good, pending sales for single-family homes in this same price category increased only half that, at 26 percent."

Supporting analysis presented by Cindy Carroll SRA, with the real estate appraisal and consultancy firm Carroll & Carroll, Inc., at NABOR®'s Economic Summit earlier this month, several brokers including Kathy Zorn, Bill Coffey and Mike Hughes pointed out that the First Quarter 2015 Market Report indicated location as a big factor in home sales activity.

Hughes remarked that, "the overall median closed price in all geo-specific areas of the county increased double digits compared to the same quarter last year." Zorn added, "in both the Central Naples and South Naples areas, the median closed price rose 17 percent compared to the first quarter of 2014."

Overall inventory for the $300,000 - $500,000 price category in the first quarter of 2015 increased 14 percent from 934 homes in the first quarter of 2014 to 1,061 homes in the first quarter of 2015. Only the inventory in the over $2 million price category had a larger increase - 18 percent - expanding from 400 homes in the first quarter of 2014 to 471 homes in the first quarter of 2015.

"The number of people paying cash for their homes remains strong," said Barker, who added, "a stunning 73 percent of all home sales in the first quarter of 2015 were cash-only purchases. Strict lending standards combined with low inventory continue to give the advantage to cash buyers in this housing market."

"We also see that in March, traditional sales dominated the market at 91 percent," said Bill Poteet, owner and broker at Poteet Properties. "There were 921 traditional sales and only 19 non-traditional [short sale and/or foreclosed] sales." He went on to note that March's market performance is typically a leading indicator of the trend we can expect going in to the summer.

  

The NABOR® 1Q 2015 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® 1Q 2015 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:  

• Overall pending sales increased 3 percent from 3,532 in 1Q 2014 to 3,628 in 1Q 2015.
• Pending sales in the single-family home market increased 5 percent from 1,563 single-family homes in 1Q 2014 to 1,634 single-family homes in 1Q 2015.
• Pending sales in the condominium market increase 1 percent from 1,969 condominiums in 1Q 2014 to 1,994 condominiums in 1Q 2015.
• Overall closed sales decreased 4 percent from 2,409 in 1Q 2014 to 2,312 in 1Q 2015.
• Closed sales for single-family homes decreased 13 percent in the $0 - $300,000 price category from 473 single-family homes in 1Q 2014 to 412 single-family homes in the 1Q 2015,
• Closed sales for single-family homes increased 14 percent in the $300,000 - $500,000 price category from 264 single-family homes in 1Q 2014 to 300 single-family homes in 1Q 2015.
• Overall median closed price increased 13 percent from $265,000 in 1Q 2014 to $300,000 in 1Q 2015.
• Overall median closed price for homes over $2 million increased 11 percent from $2,877,000 in 1Q 2014 to $3,200,000 in 1Q 2015.
• Median closed price for condominiums in the $2 million and above price category decreased 13 percent from $2,775,000 in 1Q 2014 to $2,405,000 in 1Q 2015.
• Overall inventory decreased 3 percent from 4,405 homes in 1Q 2014 to 4,253 homes in 1Q 2015.
• Inventory of single-family homes in the $0 - $300,000 price category decreased 28 percent from 537 single-family homes in 1Q 2014 to 385 single-family homes in 1Q 2015.
• Inventory of single-family homes in the $500,000 - $1 million price category increased 21 percent from 529 in 1Q 2014 to 640 in 1Q 2015.
• Inventory for condominiums in the $2 million and above price category increased 77 percent from 39 in 1Q 2014 to 69 in 1Q 2015.
• Average days on market decreased 11 percent from 95 in 1Q 2014 to 85 in 1Q 2015.

The NABOR® March 2015 Market Report was also released and reflected these overall (single-family and condominium) findings: 

• Overall pending sales increased 9 percent from 1,399 homes in March 2014 to 1,520 homes in March 2015.
• Overall closed sales increased 3 percent from 981 homes in March 2014 to 1,014 homes in March 2015.
• Overall median closed price increased 12 percent from $248,000 in the 12-months ending March 2014 to $278,000 in the 12-months ending March 2015.
• Overall median closed price in the $0-$300,000 category increased 9 percent from $165,000 in the 12-months ending March 2014 to $189,000 in the 12-months ending March 2015.
• Overall inventory decreased 3 percent from 4,405 homes in March 2014 to 4,253 in March 2015.
• Average days on market decreased 16 percent from 94 days in March 2014 to 80 days in March 2015.

"The statistics show that the lower the price category, the faster the home will sell and the higher the price category, the longer it takes to sell," said Brenda Fioretti, Managing Broker at Berkshire Hathaway HomeServices Florida Realty. "For example, homes in the $0 - $300,000 price range sold in an average of 64 days in the first quarter of 2015, while homes in the over $2 million price category stayed on the market 152 days before they sold."

The First Quarter 2015 and March 2015 Market Reports reflect exactly what all three economic experts predicted at NABOR®'s 4^th annual Economic Summit: that the real estate industry in Florida is very good and will continue to stay very good through 2015. 

The Naples Area Board of REALTORS® (NABOR®) is an established organization (Chartered in 1949) whose members have a positive and progressive impact on the Naples Community. NABOR® is a local board of REALTORS® and real estate professionals with a legacy of nearly 60 years serving 5,000 plus members. NABOR® is a member of the Florida Realtors and the National Association of REALTORS®, which is the largest association in the United States with more than 1.3 million members and over 1,400 local board of REALTORS® nationwide. NABOR® is structured to provide programs and services to its membership through various committees and the NABOR® Board of Directors, all of whose members are non-paid volunteers.

  

The term REALTOR® is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribe to its strict Code of Ethics.

1st Quarter 2015 results

Prices are continuing their upward trend.  The first quarter results are in, average days of the market was 74(DOM), average sales price was $1,232,280 and the median sales price was $835,000.  The most significant fact was the DOM last August it was 127 days, indicating that buyers are moving faster to gobble up listings that are fairly priced.  We had 94 sales the first quarter with inventory today of 99 listings indicating tight market of only 3 months supply.  Average sales price to listing was 95.5%