Sales Slow in Naples While Home Prices Rise
Home prices are currently increasing at a double digit-rate in Naples, even though both the pending and closing sales have slowed. However, expensive houses along the beach are still being sold at an increasing rate. When compared to last year's April sales number, realtors concluded that the volume of the estates were decreasing due to rapid sales. This was released on Friday, which showed that an average sales rate increased by over 42 percent causing a home to be sold within 93 days, causing supplies to fall nearly 12 percent to a little over 4 thousand units.
Due to the scarcity of the supplied, it increased the median prices to 12 percent, pushing closing sales to $269,000. Mike Hughes, a real estate broker, commented that all the price points were performing really well and also added that, although the winter season was over, he still sees bidding cases on a few homes.
Cheaper homes also experienced an increase in price, being upped to $175,000. This was an increase in nearly 13 percent, covering a constant annual changed. Condos shared in this increase, jumping to 10.7 percent, which was an increase to $166,000. These statistics cover median prices of home under $300,000.
Even the lower-cost homes had also a dramatic increase to 17 percent, which was remarkable to agents as these homes are usually preferred to be permanent investments by families. But the reason for such an increase is as Brenda Floretti, another broker says that, investors have been purchasing these homes and flipping them for a profit.
On the other end, estates ranging at or above the 2 million mark have received a small declination on sales, dipping 3.9 percent. The median now stands at $2.6 million dollars, which is assumed to be the cause of less-luxurious condominiums. The price of these do no seem to match the quality. However there was a case when an estimated $34 million home was sold in the same month, which helped increase the median of the highest-end market by 2.2 percent. This single-family home sat comfortably in front of the beach, which was probably the cause of its likelihood sale. And many other luxury homes are being sold off at an alarming rate, considering that there are cheaper homes out there.
The 1 to $2 million homes have increased sales to 91, which is an increase of a whopping 38 percent. Such an increase was also seen on homes that were sold above $2 million, to 58 sales. Regarding pending sales, there were increases of 6.2 percent of 1 to $2 million homes and 2.5 percent of homes above $2 million. This was an increase of 86 to the former and 56 to the latter.
Real estate broker Phil Wood of the Naples area also commented on the pure amazement of these luxury homes, and attributes such increase by how the stock market has been performing. Stocks are at a high return it seems and when a stockholder with a $10 million portfolio gets an increase of 10 percent, it leaves him with at least $1 million to spend with. This has caused man of Phil Wood's client to invest much into real estates to diversify their portfolios, that even some are purchasing multiple properties.
Unfortunately homes and condos costing less than $500,000 were not doing so well with the lack of inventory. Sales had decreased in addition to the 8.7 drop of closed sales and 5.9 drop of pending sales, which Fioretti commented the consummation rate of inventories.