Happy New Year! New Years Day is the last of the big days of the Holiday Season, a day for Bowl Games and Parades; resolutions and relaxation.
But to those of us active in the Real Estate Community here in Naples, it means one very important thing: “The Season” is here!
We are very optimistic that 2017 will be a strong year for real estate in Naples and Southwest Florida. 2016 was a year of caution in the market, due in part to uncertainty about the election and the economy. There was also a profound lack of inventory, frustrating many buyers. But things have changed.
Let us tell you why we are predicting a strong season for buyers.
NAPLES: HIGH ACTIVITY LEVELS PREDICTED - Purchase activity is up, and more properties are available.
Pending and closed sales in the greater Naples housing market continue to increase. In addition, more sellers entered the market in November, which resulted in a 40 percent increase in inventory to 5,733 properties in November 2016 from 4,095 properties in November 2015 (300 more properties than October 2016).
Over 50 percent of homes sold in the last year were in the $300,000 and below price category. This segment continues to see an increase in sales month over month. In November 2016 there was an 8 percent increase in overall closed sales to 285 closed sales from 264 closed sales in November 2015.
Although it might be surprising, one of the drivers of real estate activity in Naples and the surrounding areas is the weather up North. Cold temperatures or a large number of snowstorms make a move to Southwest Florida even more appealing than it usually is. In some parts of the Northeast and Midwest, temperatures were very cold this fall. We notice a real spike on our website in response to weather and this fall has been no exception. We are seeing and hearing from a larger than normal number of buyers, so we are optimistic that there will be many buyers interested in our greatly increased inventory.
BONITA /ESTERO: VALUES INCREASING - Pending Sales jumped 30% over November 2015 and Median Prices increased by 5%.
In comparing the month of November 2016 to the month of November 2015, closed sales increased by 3 percent, pending sales increased by 30 percent and the median price increased by 5 percent. “November’s increase in closed and pending sales indicates buyers are ready to move on the properties they want,” said Jerry Murphy, Managing Broker of Downing-Frye’s Bonita Springs office. “Buyers know that homes in Bonita Springs and Estero are value-priced and this is where they want to be. Buyers will continue to purchase homes that are priced to market.”
FLORIDA: MORE CREDIT AVAILABLE; BUSY REAL ESTATE MARKETS -10% Price Increases over 2016; more credit is available, which means more buyers; and more new listings than 2015.
November was a busy month for Florida’s housing market with more sales, more new listings, rising median prices and fewer all-cash transactions. Single- family home sales totaled 19,763, up 12.8 percent from November 2015, while townhouse-condo sales totaled 7,794, up 4.1 percent compared to a year ago.
The statewide median sales price for single-family existing homes last month was $220,000, up 10 percent from the previous year, and for townhouse-condo properties was $162,000, up 8 percent over the year- ago figure. Inventory dipped to a 4.1-months’ supply in November for single-family homes and was at a 6.1-months’ supply for townhouse-condo properties.
USA: SALES FORGE AHEAD - Strong national market means that if you are coming from out of town, selling your home for a good price will be easier.
Lawrence Yun, NAR chief economist, says it’s been an outstanding three-month stretch for the housing market as 2016 nears the finish line. “The healthiest job market since the Great Recession and the anticipation of some buyers to close on a home before mortgage rates accurately rose from their historically low level have combined to drive sales higher in recent months,” he said. “Furthermore, it’s no coincidence that home shoppers in the Northeast — where price growth has been tame all year — had the most success last month.”
The median existing-home price for all housing types in November was $234,900, up 6.8 percent from November 2015 ($220,000). November’s price increase marks the 57th consecutive month of year- over-year gains. Total housing inventory at the end of November dropped 8.0 percent to 1.85 million existing homes available for sale, and is now 9.3 percent lower than a year ago (2.04 million) and has fallen year-over-year for 18 straight months. Unsold inventory is at a 4-month supply at the current sales pace, which is down from 4.3 months in October.
“Existing housing supply at the beginning of the year was inadequate and is now even worse heading into 2017,” added Yun. “Rental units are also seeing this shortage. As a result, both home prices and rents continue to far outstrip incomes in much of the country.”
IN SUMMARY
In summary, it might be too much to call this a perfect Market for Buyers, but things look exceptionally good for the Naples and Bonita areas.
We have:
- Very strong inventory, as more Sellers are entering the market.
- A strong stock market, available credit and high consumer confidence.
- Forward momentum from a very positive November compared to previous years.
- Healthy markets in the places our Buyers will be coming from, which increases the confidence and size of the pool of Buyers.
As always, Naples and Bonita have the finest communities and construction quality you can find in Florida. And we have weather and natural beauty that is unbeatable, anywhere in the world.
ABOUT OS FLORIDA
Outstanding Service
Starting with our website, we strive to provide our customers with the best service in town. We listen, we work hard and we make sure you are happy. Our last names start with ‘O’ and ‘S,’ but OS really stands for Outstanding Service.
Experienced, Connected and Smart
In addition, we are part of the largest brokerage in our market. We have closed transactions worth more than $200 million.
Most important, we are friendly and we love working with our clients to help them find the perfect home to fit their needs.
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