Naples - slow market - prices mostly up

The first 15 days of March 2006, for the Naples real estate market, transactions for both single family homes and condominiums continues to lag behind the same period of 2005, while the median prices of single family homes continues with upward movement. The median prices of condominiums for closed sales shows an increase over 2005, while the pending sales is showing a slight downward trend.

Closed sales represents those real estate transactions where the property has transferred title. In the case of closed sales the negotiation and agreement of the sales price for real estate took place generally 6 to 8 weeks prior to the actual closing. They in fact represent a current historical view of the real estate market.

Pending sales on the other hand are real estate transactions, where the seller and buyer have negotiated and agreed upon a price. The actual agreed upon price is not known until shortly after closing. Pending sales can reveal a pricing trend, but not the true trend because the actual sales price could be the same, less than or more than the list price of the property at the time the contract was negotiated.

During the first 15 days of March 2006, 127 single family homes sold with a median price of $530,000. In 2005, 214 homes sold with a median price of $427,500. The drop in sales transactions is about 41%, while the median price paid increased about 24%.

The condominium market for the same period of time shows 94 units sold with a median price of $415,000. The same period in 2005, 216 units sold with a median price of $340,750. Transaction activity dropped about 56%, while the median price paid increased approximately 22%.

Looking at pending sales, single family homes in the first 15 days of March shows 152 homes with a median price of $549,000. Compared to 2005, where 229 homes with a median price $479,900 went under contract (pended sale). Transactions are down about 34%, while median price are continuing an upward trend or an increase of about 14%.

In condominium sector, in the first 15 days of March, 98 units went under contract with a median price of $375,500. In 2005, there were 239 units pended at a median price of $389,000. The reduction in median price (3.5%) is not significant enough to say there "the real estate bubble has burst". Transactions in this segment of the market is down about 59% from last year.

The first half of March is showing an increase in activity for both closed sales and pending sales over the January/February time-frame, while prices in the single home segment are increasing and the condominium segment remaining stable.

Both single family homes and condominiums on the resale market are plentiful, giving potential buyers an excellent selection properties. Buyers should be constantly aware of pricing trends along with the interest rates projections.

Sellers with their properties priced according to the market should realize optimum price.

Sphere: Related Content