The chart below illustrates that inventory in the Naples real estate market peaked in February 2008 at almost 16,000 units for sale. This represented just over a 37-month supply based on closings at that time. As you can see, the months of supply has dramatically diminished from then until now.

Meanwhile, this chart shows the historical relationship between the number of units for sale (also known as the area’s supply) and the number of closings (aka demand). April 2010 is the point at which sales for the prior 12 months were almost equal to existing inventory. Since that time sales/demand has remained relatively consistent, while available units for sale/supply has continued to decline.