Naples homes and condos increased to 595 closed sales in February (1,838 total for 2011 through the end of February), up from 585 in the same month last year according to statistics released by the Naples Area Board of Realtors (NABOR) NABOR tracks Realtor assisted home and condo sales through the MLS.
Overall, the inventory of Naples homes available for sale continues to decline. February saw another 5% decline in Naples homes for sale to a total of 9,213 available properties (This figure includes single-family homes, condos and lots. It does not include Marco Island or commercial properties, although we do sell these properties as well on our website for Naples homes.).
For the past eight consecutive months, single-family median home prices has increased to $202,000, up from $188,000 a year ago. This is consistent with inventory decline statistics this month. As available inventory declines, especially distressed property inventory (read: short sales and foreclosures), Naples home buyers are left with fewer and fewer choices. Fewer choices means prices start to inch up from the bottom first as we are seeing now in the under $300,000 market.
Keep in mind, although the overall median home price is $202,000 in Naples, the current median home price in Olde Naples is $742,500 as of February 2011. As in most beachfront communities, Naples home prices increase the closer you get to the beach and the Gulf of Mexico.
So, what does this mean for the future of Naples real estate?
At White Sands Realty, we see median home prices continue to slowly increase over the rest of 2011 and into 2012. Inventory should decline further over the summer and perhaps increase at the beginning of the 2012 season. Prices in certain communities will begin to increase 3% to 6% over the next year into February of 2012 while others stabilize. We have already see this happen in Marbella Lakes single-family homes.