Weather people in the Northeast have their work cut out for them today as a massive storm is set to dump several feet of snow as it makes its way from New York to Maine this weekend. Here in Naples it is unseasonably warm as temperatures rose to 78 degrees today. The consistent climate, white beaches and carefree lifestyle has many seasonal visitors itching to make Naples their refuge from the tundra.
The Naples real estate market outperformed the predictions set forth in early 2012. Dr Lawrence Yun, Chief Economist of the National Association of REALTORS predicted a 10 percent increase in the overall median price for the Naples market by the end of 2012. The area surpassed this goal in October as Naples Meridian previously reported and the last two months of the year set a new standard for buyer activity.
Here are the Highlights: 2011 to 2012 Annual Comparisons as reported by the Naples Area Board of Realtors.
- The median closed price increased 17 percent from $ 175,000 in 2011 to $204,000 in 2012.
- Overall closed sales increased 20 percent in the $ 300,000- $ 500,000 category.
- Overall closed sales increased 29 percent in the $ 500,000 to $ 1M category
- Pending sales in the Naples coastal area increased 15 percent and closed sales increased 14 percent.
- Inventory decreased by 13 percent from 7,581 listed properties to 6,557 listed properties.
The TakeAway:
At the end of 2012 Naples Meridian reported that a lack of inventory had created scarcity in the market place. This shortage was a result of several factors; local full time residents that wanted to buy a year ago were faced with financing restrictions that had eased, cash buyers who had been fearful of entering the market began purchasing property, investors with deep pockets purchased properties in multiples and the international buyer market resumed their property buying spree. The overall result was a double digit increase in all price categories and an astounding 17 percent increase in the overall median sales price.
The Local Pulse:
The momentum continues in early 2013 as we are in the midst of the busiest period in Naples. A time of year we refer to as “season”. Seasonal owners and visitors alike descend on the area to take advantage of our glorious weather, fine dining options and countless leisure activities. My colleagues and I continue to work overtime as buyers from all parts of the country and the world have taken a keen interest in our part of the state. Naples Meridian is associated with Downing Frye Realty a large local firm and our General Manager; Michael Hughes shared the following information earlier this week.
“So how is 2013 shaping up? Pretty good! In January 2013, we had 350 pending sales compared to 325 in January 2012. This 7 1/2% increase might not appear to be significant but it is because we had a strong January last year. This year pending sales volume is up 12% over the previous January. Our pending sales volume for January 2012 was $133 million. ”
We will continue to track results throughout the remainder of the “season” and look forward to sharing our findings. Till then keep applying that sun screen as the sun can be blinding whether on the slopes or by the sea!