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Monthly Market Report (Month Ending September 2018)
After Hurricane Irma passed through last September, many listings were temporarily withdrawn from inventory, while other would-be new listings waited to enter the market. By October 1st of last year, inventory had dipped by 6.9 percent when compared to 2016. Partly due to that temporary drop, this year’s Oct 1st inventory shows an increase of 10.4 percent. To put things into perspective, this year’s Oct 1st inventory reflects a modest 2.7 percent increase over that of 2016. Marco Island, however, showed an inventory decrease of 4.9 percent compared to last year, which may be partly due to Marco’s more seasonal market, where listings are more likely to hit the market around the first of the year as opposed to the fall months.
Overall, Southwest Florida continues to show all the signs of a healthy and stable market. Year-to-year months of available inventory for October have remained close to 6 months for four out of the past five years, and sales prices have risen an average of 6 percent per year during that time.
Sales in the Naples-Bonita-Estero market continue to show growth over last year. Year-to-date closed sales are up by 3.9 percent and the 12-month rolling average is ahead by 1.4 percent. Sales above $2 million are up considerably, with year-to-date sales reflecting an 18.9 percent increase while the 12-month rolling average is up by 14.4 percent.
Evidence of the seasonal changes are in sight – mainly in the form of car carriers on the highways rather than any significant temperature drops – the beaches are seemingly recovered from red tide, and we look forward to welcoming our winter residents and guest back to the area.
NAPLES, BONITA SPRINGS AND ESTERO
Closed Sales
The number of year-to-date closed sales for 2018 rose by 3.9%, with 9,840 closings compared to 9,467 for the same period in 2017. With 440 closings year-to-date compared to 370 for the same period in 2017, the number of sales priced above $2 million for 2018 have increased by 18.9%.
New Listings/Inventory
A total of 18,436 listings were added to the market during the 12 months ending September 30, 2018, which is down 5.5% from the same period last year. Available inventory on October 1, 2018 consisted of 6,410 units compared to 6,156 units a month ago and 5,807 as of October 1st last year. It should be noted that 2017 October inventory was significantly lower due to Hurricane Irma which occurred in mid-September.
Average and Median Sales Price
The average price for closed sales over the 12-month period ending September 30, 2018 increased by 6.1% when compared to the same period last year. The median sale price rose by 3.3%, and the 12-month average for closings over $2 million declined 3.3% to $3,713,852. Meanwhile, the year-to-date average sales price in this category remained static with 2017.
MARCO ISLAND
Closed Sales
With 683 closings year-to-date, Marco Island sales are steady with those of 2017, showing a 0.3% increase. During the 12 months ending September 30, 2018, the Marco Island area had 855 closings, down 2.8% from the same period last year when there were 880.
New Listings/Inventory
Available inventory as of October 1, 2018 consisted of a total of 578 units, a 4.9% drop compared to 608 units at the same time last year. During the 12 months ending September 30, 2018, a total of 1,284 listings were added to the Marco Island market. This is 6.8% fewer than were added during the same period last year when 1,377 new listings entered the market.
Average and Median Sales Price
Due to several beachfront sales in August, the monthly average closed price for September declined. However, longer term averages tell a different story. The year-to-date average closed price increased 14.4% over 2017 and the rolling 12-month average rose 11.8%.
Nova Homes of South Florida have been building luxury custom homes in Southwest Florida since 2004. Priced from the $200s to over $2 million there is a Nova home for everyone. Call Nick Cornwell at 239.776.5076 or email Nick at BuildNow@NovaHomesBuilder.com.