As supplies of existing product continue to diminish, it is interesting to note that the July 2012 Neighborhood Snapshot Report now reflects 16 single-family neighborhoods and 15 condominium neighborhoods with less than a one-year supply of product based on closings for the past 12 months.
Overall, inventory in Naples Florida is down to a seven-month level, the lowest since June 2007. Many experts report that a 6-month supply is a balanced market.
Average sales price, based on closings for the past 12 months, is almost dead even with July 2001. Although price increases are already starting to happen in some segments due to supply shortages, the climate remains very favorable for purchasing property in Southwest Florida.
Mortgage rates are still at all-time lows, and financing is available for qualified buyers. For sellers who decided to hold and wait for a better time to sell, this may well be the time.
The resurgence of new construction will be another market dynamic to watch in the coming months. With the limited supply of available new homes, builders have already begun raising prices, a trend that is likely to continue in the coming months.