It was predicted back in April by Dr. Lawrence Yun, chief economist of the National Association of Realtors, that home prices in Southwest Florida would increase by 10% by December 2012.
Well, if Dr. Yun wasn’t right. In fact, we’re a little ahead of schedule!
According to the latest Naples market report published by the Naples Area Board of Realtors (NABOR), the median closed price increased 10%, from $176,000 to $194,000, for the 12-month period ending August 2012.
Cindy Carroll, vice president of Carroll & Carroll Real Estate Appraisers and Consultants in Naples, says, “We are beginning to see the results of the inventory decline coupled with the increased median closed price. Looking at the inventory statistics, it is interesting to note that in less than 8 months, we reached an overall inventory of 6,043 in August 2012 from 7,860 in January 2012. The last time we saw the inventory this low was in 2005.”
While this is great news for Naples, it is important to note that prices and inventory vary from neighborhood to neighborhood. Not every community is experiencing a shortage of inventory and not every community is experiencing price increases.
With that being said, we are in unprecedented times right now with only 1,942 single-family homes for sale in all of Naples and only 2,814 condos/villas for sale.
Yet, even with our inventory being at record lows, sales are still breaking records. For example, pended sales (those that have gone under contract) increased 17% when comparing August 2011 with August 2012, and were the second highest on record for the month.
Closed sales January through August 2012 are at their highest since 2005 with 8,584 closings taking place in the Naples, Bonita Springs and Estero markets.
For a closer look at the numbers, review the Naples Market Report here.
And here’s a closer look at some Naples neighborhoods and their performance and supply levels: