Naples Condo Market Report for November 07

Big drop in median price paid for Naples condos - good news for condo buyers, but not very good for sellers of condominiums.

New Listings:
A total of 767 Naples condominiums were listed in November. When compared to last November, the number of condos listed was 1,003 – a reduction of about 23%. In November 2005, 815 condos were listed – reduction of about 6%. Hence, the rate of new listings is slowing, at least looking at November. Could a trend be developing? The reduction in condominiums coming on the market will eventually have an impact on the number of months of condominium inventories available for sale.

Median Price Paid:
In the month of November the median price paid for a condo in the Naples area was $250,000. In November 2006, the median price paid a condo in Naples was $321,250 or reduction in the median price of about 22%. Looking at November 2005, the median price paid was $379,000 – the reduction in the median price is about 34%. The reduction in median price is most likely due to condos being sold in communities that were heavily investor owned and apartment to condominium conversions.

Closed Sales:
The closed sales for condos in Naples during November were 100. In November 2006, the number of closed was 108 and 247 in November 2005; the respective reductions are about 7% and 60%. The reduction in the volume of closed sales appears to be bad news; however, considering the reduction in “liberal” loan programs and more restrictive underwriting criteria, this could be somewhat positive, when comparing 2006 and 2007 volumes.

Pending Sales:
The volume of pending sales came in at 131 contracts. The 131, is a reduction of about 5% from 2006’s 138, but a 36% below 2005’s 206 pending sales. Although the drop from 2005 levels is large, the drop from 2006 can be considered positive due to the elimination of “liberal” loan program and stricter underwriting guidelines.

Currently, there are about 5,300 condominiums available for sale in the Naples area, representing about 35 months of inventory – this is provides buyers with an excellent selection in a very strong buyers market.

Source : http://www.adeltarealty.net/