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  • Southwest Florida Housing Closed 2017 Strong

    Wednesday, January 10, 2018   /   by Hunter Habib

    Southwest Florida Housing Closed 2017 Strong

    The Southwest Florida housing market showed resilience and strength in 2017, according to end of year market reports recently released. Real estate sales and overall housing market conditions as a whole are based on many factors. In 2017, we saw above average employment rates, low inflation, record stock market activity, and increased consumer confidence. Looking into 2018, there are additional factors that will attract buyers to the Southwest Florida area, including tax reform and continued growth of their investment portfolios. All in all, Southwest Florida housing closed 2017 strong and has entered the New Year with a forecast to remain on the same path.

    For the Naples area, home sales increase 4 percent in 2017 and the median closed price rose by 3 percent, according to the Year End 2017 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales for Collier County (excluding Marco Island). The report showed increased activity for the luxury market, with closed sales of home in the $2 million and above price category dramatically increasing (20 percent) in 2017. Industry professionals credit exceptionally cold temperatures in the northern states for encouraging people to head south and purchase homes.

    Pending sales during the third quarter increased 5 percent (12-months ending August 2017), while pending sales at the end of the fourth quarter increased 2 percent (12-months ending December 31, 2017). The year-end report showed a 4 percent increase in closed sales to 8.815 in 2017 in comparison to 8.510 in 2016. Industry experts cannot help but wonder what these numbers would have looked like if the market had not been virtually shut down for five weeks due to the hurricane aftermath.

    “Between December of 2015 and December of 2016, overall market inventory increased 54 percent; between December of 2016 and December of 2017 overall inventory decreased by 11 percent. The single family and condominium markets are well positioned with about 7.5 months of supply in each,” said Cindy Carroll, SRA of Carroll & Carroll Appraisers and Consultants, LLC.

    Properties priced under $300,000 were on the market for the least number of days in 2017. Some broker analysts reported that they saw many of the properties in this price range go from list to close in under 10 days. Inventory continued to provide challenges in the lower end of the market, limiting options for buyers looking for single-family homes in this price range. For reference, 1,265 of the 1,554 available properties in the $300,000 and below price category were condominiums.

    Notably, condominiums in the $1 million to $2 million-price category showed a 28 percent increase in pending sales and a 14 increase in closed sales. For the Naples area, condominiums in the North Naples portion were the biggest sellers in 2017. Closed sales in this region increased by 17 percent, while pending sales increased by 15 percent.

    The Bonita Springs-Estero December Sales for Real Estate report showed a significant increase in condominium home sales and a modest increase in single-family home sales, according to the Bonita Springs-Estero Association of REALTORS®. Overall, for both single-family homes and condominium homes, pending sales and closed sales were up when compared to December of 2016. Inventory levels remained consistent from the end of 2016 to the end of 2017.

    Buyer traffic has increased over the past month for the Bonita Springs-Estero area and analysts forecast continued high levels of activity. While mortgage rates remain historically low, it is a great time to purchase a single-family or condominium home in Southwest Florida.

    End of year Bonita Springs-Estero single-family housing activity for 2017 compared to 2016 includes:

    ·         Closed sales increased 5.3 percent from 95 homes sold in December 2016 to 100 homes sold in December 2017

    ·         Pending sales increased 8.5 percent from 71 in December 2016 to 77 in December 2017

    ·         Median sale price remained the sale from 2016 to 2017 at $370,000

    ·         New listings decreased 16.8 percent from 143 in 2016 to 119 in December 2017

    ·         Inventory decreased 5.6 percent from 611 homes in December 2016 to 577 homes in December 2017

    Though inventory levels of single-family homes are expected to rise, the high demand and the pace at which they sell will likely keep inventory in shorter supply than desired.

    Year-over-year Bonita Springs-Estero condominium home activity for 2017 compared to 2016 includes:

    ·         Closed sales increased 22.4 percent from 58 homes sold in December 2016 to 71 homes sold in December 2017

    ·         Pending sales in December increased 25 percent from 56 in 2016 to 70 in 2017

    ·         Median sale price decreased 15.5 percent from $269,700 to $228,000 year-over-year

    ·         New listings increased 11.2 percent from 116 in 2016 to 129 in December 2017

    ·         Inventory increased 0.2 percent from 526 in December 2016 to 527 in December 2017

    Despite the disruption caused by Hurricane Irma, the Southwest Florida housing market closed 2017 strong and remains on a path projected to show continued resilience and strength.

    D. Michael Burke, P.A.                                                                                             

    Keller Williams Elite Realty

    26381 S. Tamiami Trail, Suite 300

    Bonita Springs, FL 34134