July Home Sales Hit the Sweet Spot
Contacts: Dominic Pallini, President, (239) 597-1666,
Marcia Albert, NABOR® Director of Marketing, (239) 597-1666
Naples, Fla. (August 25, 2017) – REALTORS® in Naples sold more existing homes in July (682) than they did in January (603) or February (613), a statistical reality that busts an old myth that home sales stall in the summer. In fact, overall closed sales in the market’s sweet spot (homes priced between $300,000 and $500,000) increased 32 percent in July. Broker analysts reviewing the July 2017 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which track home listings and sales within Collier County (excluding Marco Island), said a 9 percent increase in closed sales during July was very good, but the continued reduction of inventory, especially in the single-family home market, is cause for concern as it limits choices for buyers.
One segment of the market that brokers are watching closely is the $300,000 and below single-family home market, which saw pending sales decrease 24 percent, closed sales decrease 19 percent, and inventory decrease 2 percent in July. In fact, the entire single-family home market is getting stretched thin as inventory tightens. In July, inventory rose just 3 percent overall, but single family home inventory decreased 1 percent.
The July report showed the median closed price for homes under $300,000 was the highest since 2008. However, the median closed price for homes over $300,000 was the lowest reported in 9 years!
According to the report, overall median closed prices in July increased 6 percent to $319,000 from $300,000 in July 2016. For homes in the $300,000 and below price category, the median closed price increased only 3 percent to $225,000 from $219,000 in July 2016. And for homes above $300,000, the median closed price decreased 7 percent to $485,000 from $524,000 in July 2016.
Many broker analysts reviewing the July report agreed that an increase in conventional sales (homes purchased with financing) is a good sign that first-time homebuyers are gaining a foothold in the market. As such, the July Market Report showed total closed sales were split almost equally between cash sales and conventional sales.
For months, broker analysts and NABOR® have warned against setting unrealistic pricing, a strategy that Dominic Pallini, NABOR® President and Broker at Vanderbilt Realty, said can “hurt a homebuyer because a home is often overlooked if it’s overpriced.”
High prices are a strategy that can work in an accelerating market, but it’s risky. A home might sit for months without an offer and sellers typically end up marking the price down, perhaps lower than it should have sold for in the first place. A licensed REALTOR® uses real-time MLS data that can help a seller hit the sweet spot when setting the listing price: a price that’s high enough to reflect the home’s value, but attractive enough to gain buyer attention and get it sold quickly.
The NABOR® July 2017 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® July 2017 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:
Total homes under contract (pending sales)
Total closed sales
627 682 9%
Median closed price
$300,000 $319,000 6%
Median closed price >$300K
$524,000 $485,000 -7%
Total active listings (inventory)
4,801 4,928 3%
Average days on market
75 105 40%
Single-family closed sales
323 354 10%
Single-family median closed price
$375,000 $409,000 9%
2,565 2,552 -1%
Condominium closed sales
304 328 8%
Condominium median closed price
$245,000 $248,000 1%
2,236 2,376 6%
Geographically, pending and closed sales activity in South Naples in July outperformed all other areas, showing a 36 and 35 percent increase, respectively. With respect to property type, single-family homes in North Naples saw the most impressive activity in its pending and closed sales (23 and 45 percent, respectively); possibly as a result of a 14 percent decrease in its median closed price and a 3 percent decrease in its inventory.
If you are weighing the pros and cons of buying or selling a home in the coming months, let a REALTOR® be your guide. A Naples REALTOR® can help you do a market comparison and determine a fair and reasonable listing price.Dominic can also identify properties best suited for your needs and negotiate a purchase price that fits your budget. Discover more at www.napleshouse.forsale
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 6,000 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.