July 2012 Real Estate Market Update – Naples and Surrounding Areas

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Noteworthy news: inventory drop over the past several years, sales on the rise and prices steadily trending upward.

Sold Listings Have Risen During Four-Year Period

Our 4-year average residential sold listings by month indicate the strongest period overall in the first quarter of 2012 with the number of sold properties in May of this year reaching a four-year high of 976. Though June slowed down a bit, it is expected with the warmer summer months.  Looking at the past 12 months, our strongest sales period has been from March through May this year, with sales figures in the 900s as compared to the 500s and low 600s as recent as through December 2011.

Prices Remain Steady; Heading Upward

Prices have remained stable over the past four years, with a slow but steady incline. As of the end of June 2012, the average sold price for residential properties was $353,179 with June’s average sold price coming in at $362,855. Once again, mirroring the busiest time for real estate in the second quarter of 2012 there was a spike in monthly average sold price to $440,023 in May of 2012.

Total Sales Continue to Rise in the Naples Area

Looking at the previous four years, our strongest sales period is evident leading to 2011 with figures almost doubled from 2007. This year in June, though sales remain closely in line with the previous year’s sales figures, we saw an upward trend. Total sales in June 2012 were 5,030 compared to 4,891 in June 2011. Considering that in 2011, 58.5% of the sales were in the first half of the year, we are on pace for 8,585 sales in 2012.

New and Expired Listings Remain Fairly Steady

As of the end of June, we are reporting 7,861 new listings this year as compared to 8,319 of the same in June 2011. Similarly, there were 2,419 expired listings as of June 30, 2012 versus 3,368 reported at the same time in 2011.

Dramatic Reduction in Inventory Continues

Known nationally for a tremendous number of distressed sales, Florida continues to recover from the aftermath of 2007’s housing market crash. Our current pending inventory is 2,056 – about half of these properties being short sales. At the present time, there are 5,077 available homes on the market, 313 of which are short sales and 203 foreclosures – amounting to about 10% of inventory being distressed properties.

2nd Quarter 2012 Snapshot

PENDING SALES
Looking at the 2nd quarter of 2012 compared to the same time the previous year, we are reporting an even average in terms of percent change overall for all price ranges. However, there was a significant increase of 9% in the $300k-$500k price range. The most significant change was reported in Naples Beach with a 6% increase in pending sales in the 2nd quarter this year versus last year.

CLOSED SALES
We are reporting a 4% increase in sales this year versus in the second quarter of 2011, with the most change taking place in both the $500k-$1M and $1M-$2M price ranges respectively at a 16% increase in each bracket. Naples Beach reported the most increase in closed sales among all markets – with a 13% increase over last year at the same time.

MEDIAN CLOSED PRICE
With an average increase of 11% in the second quarter of 2012, median prices were most significantly changed in the $0-$300k and $2M+ price ranges with an increase of 7% and 5% respectively. An unprecedented change was reported in the Immokalee/Ave Maria market at a 190% higher median closed price. Also noteworthy is the North Naples area with a 10% rise in median closed price as compared to the same time last year.

INVENTORY
We saw a 12% decrease in inventory in the second quarter of 2012 versus the same time in the prior year. Last year there were 7,208 available properties on the market whereas this year as of the 2nd quarter the figure is 6,310. The two most significantly impacted areas in terms of lower inventory on hand are Naples Beach at 17% less inventory and North Naples at 15% fewer available homes. Both figures represent a dip in the number of homes on the market at the end of 2nd quarter 2012 versus 2011.

AVERAGE DAYS ON MARKET
With a 2% drop in the number of days a property remains on the market before sale, the number is stable. Our current DOM remains a relatively high 185 days as reported at the end of 2012’s second quarter. We are seeing a 20% lower DOM average in East Naples, indicating increased interest in the area.
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For a detailed analysis of an area that you may be considering – or for any other of your real estate needs, we invite you to contact us today or take a look at the graphs below.

Home Inspector to the Rescue!

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You Better Give Sherlock Holmes a Ring!

No, you don't need the fictional detective inspector. However, you do need a home inspector! Think of this as a "pre-emptive strike" to maintain or increase your home's value before you put it on the market. Here are the benefits an inspector provides you:

Benefit 1: The inspector can uncover any problems that need fixing, and you can correct them before any potential buyers enter your home. Such an inspection can prevent your sale from falling through!

Benefit 2: With an inspection, you can show prospective buyers receipts to prove the work has been done. Buyers love proof! In reality and in their eyes, it underpins the value of your home and the asking price.

Benefit 3: You may be able to factor the cost of the inspection into the asking price for your home!

Benefit 4: When you have a pre-sale home inspection completed, you're able to estimate if the discount the prospective buyer is asking is reasonable. In other words, you can refuse unreasonably low offers if you know the value of your house, including the degree of its defects.

So, How Do I Find a Qualified Home Inspector?

I can recommend a certified home inspector who will do a great job for you. However, if you decide you want to do it on your own, make sure he or she is qualified!

Con artists sometimes pose as home inspectors, taking your money and giving you nothing but grief in return. Here's how to know if an inspector is the real deal:

Ask your friends for referrals. If they've had a good experience, go with that home inspector. I’d recommend you interview a minimum of two or three inspectors before choosing one. Make sure they’re full-time professionals conducting several inspections a year.

If possible, select a home inspector who’s a member of The American Society of Home Inspectors or the National Association of Home Inspectors.These association members follow a stated code of ethics. In addition, they’re prohibited from having a professional interest in the sale, repair or maintenance of a property they inspect. They’re also forbidden from using their inspection business as a way to find customers for a handyman service that they “happen” to own. You may want to go on the Internet and use ASHI’s “Find a Home Inspector” link to identify potential candidates in our locality.

As part of the interview process, ask for samples of comprehensive reports (about 20-50 pages in length). The samples should be painstakingly done and backed up with complete details, including photos and diagrams. If an "inspector" refuses to give you a report or provides only a sloppily written 2-to-5 page sample, run the other way!

What Does a Home Inspector Cost?

Frankly, the rates vary. On a national level, the rates fall in the range of $200 to $400. As part of the interview process, I recommend you ask several inspectors for their rates so you can get an idea of the price range. In the end, keep in mind that while the cost of an inspection may seem high, it can actually add several thousand dollars to the value of your home! So, don't think of it as a cost; think of it as an investment!

What Exactly Does a Home Inspector Evaluate?

In general, he or she will look at the following areas:

- Electrical System Wiring, Service Panel and Service Capacity

- Energy Conservation/Safety Items

- Exterior Walls, Siding, Trim

- Floor, Wall, Ceiling, Roof Structures

- Foundation, Footings, Crawl Space, Basements, Sub-flooring, Decks

- Gutters, Downspouts

- Heating & Cooling Systems

- Insulation & Ventilation

- Interior Floors, Walls, Ceilings

- Moisture Intrusion/Mold

- Overall Structural Integrity

- Plumbing Systems

- Property Drainage/Landscaping

- Roof & Shingles, Chimneys, Attic

- Walks and Drives
 - Windows, Doors, Cabinets, Counters, etc. 

Should I Be Present During a Home Inspection?

You bet! A typical inspection takes three hours or more, so I recommend that you be present for at least the first 30 minutes to make sure the job is being done thoroughly. At the end of the inspection, the home inspector should give you a point-by-point summary of what needs to be corrected in order to add value to your home!

Hope you enjoyed this very useful information about home inspection! If you have more questions, please don't hesitate to contact me!

MAY PENDING SALES UP 10 PERCENT

Activity Remains Strong

Naples, FL (June 15, 2012) – Pending sales increased 10 percent overall in May 2012 compared to May 2011, according to a report by the Naples Area Board of REALTORS® (NABOR), which tracks home listings and sales within Collier County (excluding Marco Island). They increased by double-digit percentages in all price ranges, except in the under $300,000 category which increased a respectable 6 percent in May 2012 compared to May 2011.

"The market seems to be on track right now," said Cindy Carroll of Carroll & Carroll, Inc. "Current inventories in many market sectors mirror levels we saw in 2003/2004. This is further evidence that we are returning to a balanced and stable market."

Mike Hughes, General Manager of Downing-Frye Realty stated, “Inventory is down by almost 1,000 units over the last three months and we have experienced five straight months of positive momentum. Those are indicators of a potential strong summer for home sales.”

John Steinwand, President of Naples Realty Services stated, “With the reduced overall inventory of 9 percent, properties are selling at higher prices than a year ago.”

Coco Waldenmayer, Managing Broker at Engel & Voelkers, agreed, “Our current overall inventory of 6,679 hasn’t been this low since NABOR® began tracking the statistics in January of 2007 when inventory was 10,864.”

Phil Wood, President of John R. Wood Realtors said, “Things are improving. We are starting to see homes sell within three days, and there has been an increase in the sale of teardowns. During March, April and May traditional sales have increased, and the condominium market is especially strong as shown by May condominium sales in the $300,000 to $2 million range up 28 percent.”

The May report provides annual comparisons of single-family home and condominium sales (via the SunshineMLS), price ranges, geographic segmentation and includes an overall market summary.

The May sales statistics are presented in chart format, together with these overall (single-family and condominium units) specifics:

• The overall median closed price increased 8 percent from $175,000 to $189,000 for the 12¬month period ending May 2012.

• Overall pending sales increased 11 percent in the $300,000 to $500,000 category, and 20 percent in the $500,000 to $1 million category for the 12-month period ending May 2012.

• Overall inventory dropped by 13 percent, from 7,705 in May 2011 to 6,679 in May 2012.

• Overall closed sales increased 15 percent in the $500,000 to $ 1 million category, from 781 units to 901 units, and rose 15 percent in the $1 million to $2 million category from 349 units to 403 units for the 12-month period ending May 2012.

• The average days on the market decreased 11 percent in the $300,000 to $500,000 category, from 208 days on the market in May 2011 compared to185 in May 2012.

• Overall pending sales in the Naples Beach area increased 15 percent from 1,690 to 1,943 and closed sales increased 16 percent from 1,493 to 1,727 for the 12-month period ending May 2012.

“Single family home sales remain strong,” remarked Jo Carter, President of Jo Carter & Associates. “Pending sales activity in the $2 million plus category is up 50 percent, from 18 units in May 2011 compared to 27 units in May 2012. In the single family $1 million to $2 million category in closed sales there was a 100 percent increase from 19 units in May 2011 compared to 38 units in May 2012.”

Phil Wood reflected, “Now that the market is improving we have seen local residents make the decision to sell their current homes and move into their dream home. With saleable houses, interest rates at historic lows, and affordable prices, it is the ideal time for many to finally buy their dream home.”

Check out the May Stats here. >>