Naples Florida Housing Market is About to Get Hotter
Home and condo sales in the Naples Florida real estate market were strong again for the first quarter of 2015.
A stunning 73 percent of all sales were also cash-only purchases.
The cash buyer clearly has an advantage in a low inventory environment like we are currently experiencing.
Sellers favor cash buyers because of the shorter closing period compared with financed transactions.
In addition, loan contingencies add uncertainty to the closing process.
Traditional sales, which exclude both short sales and foreclosures, were also an impressive 91% of total transactions in April 2015.
Said another way, distressed property closings were the lowest in the past six years.
Things are very healthy these days and sellers definitely have an edge.
We just hope more properties begin to be listed.
Unfortunately for home and condo buyers yet to enter the game, the facts point to the trend of tight inventory continuing as the boomer generation of buyers continue to scoop up homes and condos at a fast pace.
The fact is, people are buying housing more often than folks are selling it.
Inventory decreased again by 3% in the first quarter of 2015 reflecting that home and condo purchases in the Naples Florida housing arena outpace the number being listed.
This trend has actually been ongoing for many years now.
In April 2015 we had the lowest number of available properties in recent memory.
April was calculated at a very tight five months.
Compare that with April 2007 when we had a 34 months of supply, and you realize why prices are climbing quickly.
The basic law of supply and demand clearly applies here.
For definition, months of supply is the measure of how many months it would take for the April 2015 inventory of properties on the market to sell at the current rate of property sales.
For example, if there are 1000 properties on the market with 200 selling each month, there is a five month supply of homes for sale.
Months of supply is an excellent indicator of whether the real estate market is favoring buyers or sellers.
Typically, a market that favors sellers has less than 12 months supply.
Noting that we are well below 12 months inventory of properties for sale, it is going take a lot to turn things around, and we do not see that happening any time soon.
The post WWII boomer generation is the largest in history and the combined size and appetite the boomer generation has for our housing market is huge.
It is quite evident when looking over the numbers of the last several years that the current trend has legs.
For those buyers who have been perpetually looking, a word of caution.
It is not going to get any cheaper to acquire property here.
Our advice is that now is the time to buy as we believe real estate prices will continue to climb with strong demand.
A stunning 73 percent of all sales were also cash-only purchases.
The cash buyer clearly has an advantage in a low inventory environment like we are currently experiencing.
Sellers favor cash buyers because of the shorter closing period compared with financed transactions.
In addition, loan contingencies add uncertainty to the closing process.
Traditional sales, which exclude both short sales and foreclosures, were also an impressive 91% of total transactions in April 2015.
Said another way, distressed property closings were the lowest in the past six years.
Things are very healthy these days and sellers definitely have an edge.
We just hope more properties begin to be listed.
Unfortunately for home and condo buyers yet to enter the game, the facts point to the trend of tight inventory continuing as the boomer generation of buyers continue to scoop up homes and condos at a fast pace.
The fact is, people are buying housing more often than folks are selling it.
Inventory decreased again by 3% in the first quarter of 2015 reflecting that home and condo purchases in the Naples Florida housing arena outpace the number being listed.
This trend has actually been ongoing for many years now.
In April 2015 we had the lowest number of available properties in recent memory.
April was calculated at a very tight five months.
Compare that with April 2007 when we had a 34 months of supply, and you realize why prices are climbing quickly.
The basic law of supply and demand clearly applies here.
For definition, months of supply is the measure of how many months it would take for the April 2015 inventory of properties on the market to sell at the current rate of property sales.
For example, if there are 1000 properties on the market with 200 selling each month, there is a five month supply of homes for sale.
Months of supply is an excellent indicator of whether the real estate market is favoring buyers or sellers.
Typically, a market that favors sellers has less than 12 months supply.
Noting that we are well below 12 months inventory of properties for sale, it is going take a lot to turn things around, and we do not see that happening any time soon.
The post WWII boomer generation is the largest in history and the combined size and appetite the boomer generation has for our housing market is huge.
It is quite evident when looking over the numbers of the last several years that the current trend has legs.
For those buyers who have been perpetually looking, a word of caution.
It is not going to get any cheaper to acquire property here.
Our advice is that now is the time to buy as we believe real estate prices will continue to climb with strong demand.
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