Bring Your Highest Expectations ANNUAL MARKET REVIEW FOR Naples / Bonita Springs / Estero / Marco Island Market Area

Transcription

1 Bring Your Highest Expectations ANNUAL MARKET REVIEW FOR 216 Naples / Bonita Springs / Estero / Market Area

2 NAPLES, BONITA SPRINGS AND ESTERO Closed Sales The number of closed sales in 216 decreased 12% to 11,582 from prior year, making it the lowest yearend sales volume since 211, the beginning of this expansion cycle. The number of closings above $1 million decreased 14.7% over 215 with 1,69 sales at the end of 216 vs 1,253 at the end of 215. The segment above $5 million decreased 3% year-over-year. Inventory Levels and New Listings Inventory increased 34.6% in 216, in the combined market. This is the largest percentage increase in inventory since the depths of the recession in 28. The supply of condominiums increased 35.8%, while single family homes increased at a rate of 33.6% over the same period last year. It should be noted that John R. Wood Properties does not include manufactured product or time share condominiums in our analysis. Availability of single family homes and condominiums increased in all price segments, with the largest increase noted in the product segment under $35,. Product priced between $35, and $85, had the largest supply of inventory, representing over 4% of the total current inventory and an increase of 22% over the prior year. The largest increase in condominium supply was product priced under $35,. The largest increase in single family supply was for product priced between $35, and $85, and between $2 million and $5 million. The sum of new listings placed on the market during 216 was 2,392, up 9% over 215, and the highest since 21. Pended Sales The number of sales pended during the year was 13,578, down 24% from the prior year and the lowest annual total since 212. All price categories reflected decreases, with properties priced at $35, or below showing the smallest decrease, and down only 1% from 215. It is important to note that not all pended sales close. However, this benchmark along with current inventory has proven to be the best leading indicator of market direction. Summary Year-end evidence indicates that market direction has shifted from one that was in balance at the end of 215, to one that is trending to an oversupply at the end of 216. Some segments are already well above a one year supply. This market dynamic favors buyers, who now have a greater supply of available options for purchase. This shift is a notice to sellers that pricing strategy must be adjusted to reflect current market conditions. The source of this real property information is the copyrighted and proprietary database compilation of Southwest Florida MLS, MLS, Copyright 216, and the proprietary compilation of that data by John R. Wood Properties, its employees,

3 MARCO ISLAND Closed Sales The number of closed sales in 216 decreased 14% to 843 from 982 at year end 215. This sales volume is the lowest since 211, the beginning of the current expansion cycle. Properties priced above $1 million decreased 12.8% over 215, with 149 sales at the end of 216 vs 171 at the end of 215. Inventory Levels and New Listings Inventory increased 22% in 216 compared to last year, with the year-end inventory the highest since 214. The supply of condominiums increased 2% over the same period last year with single family inventory increasing 23%. real estate is distinguished by its view and its open water access. The following summary provides insight into the availability and pricing of single family homes and condominiums based on their view. Inventory data by view has been calculated since September 216. Single family inventory with Direct Access has increased 17.5% and list prices have increased 5% since September. Indirect Access homes have increased 8.6% in inventory with a 5.2% reduction in average list price. Available homes with Inland and Golf Course views have increased 46% and 25% respectively with asking prices lower by 5%. Condominium inventory with Direct Access has increased by 43% and list prices have dropped 2%. Indirect Access condominiums posted a 26% increase in inventory and a 1% reduction in overall asking price. Beachfront high rise condominiums account for the largest product offering on. Current inventory is 6.8% higher than September 216 with the current offering price relatively stable, down less than 2%. Pended Sales The number of sales pended during 216 was 879, down 27% from 215 and the lowest annual total since 28. The real estate market is heavily influenced by second home buyers and the reduction in pended sales is a reflection of the overall market softening. It is important to note that not all pended sales close. However, this benchmark along with current inventory has proven to be the best leading indicator of market direction. Summary The same market dynamics are evident on that we see in Naples, Bonita Springs and Estero. The supply of waterfront properties with boating access posted the greatest increase on over the past year. Beachfront condominiums, which generally cater to the very seasonal market, have also increased, but not to the same level. Overall, the market favors the buyer and sellers should be aware of this price shift. The source of this real property information is the copyrighted and proprietary database compilation of Southwest Florida MLS, MLS, Copyright 216, and the proprietary compilation of that data by John R. Wood Properties, its employees,

4 ANNUAL CLOSED SALES UNIT HISTORY 15, 12, 9, 8,859 9,967 1,494 11,275 12,17 13,271 13,93 11,582 6, 3, ,2 1, The source of this real property information is the copyrighted and proprietary database compilation of Southwest Florida MLS, MLS, Copyright 216, and the proprietary compilation of that data by John R. Wood Properties, its employees,

5 ANNUAL CLOSED SALES UNIT HISTORY OVER $1 MILLION ,186 1,253 1, The source of this real property information is the copyrighted and proprietary database compilation of Southwest Florida MLS, MLS, Copyright 216, and the proprietary compilation of that data by John R. Wood Properties, its employees,

6 ANNUAL INVENTORY LEVELS 8, Condominiums Single Family Homes 7, , 5, 4, 3, , 1, 1/1/9 1/11/1 1/1/11 1/1/12 1/1/13 1/1/14 1/2/15 1/1/16 1/1/17 1, 893 Condominiums Single Family Homes /1/9 1/11/1 1/1/11 1/1/12 1/1/13 1/1/14 1/2/15 1/1/16 1/1/17 The source of this real property information is the copyrighted and proprietary database compilation of Southwest Florida MLS, MLS, Copyright 216, and the proprietary compilation of that data by John R. Wood Properties, its employees,

7 ANNUAL NEW LISTING HISTORY 25, 23,54 22,612 2, 19,652 18,63 17,8 18,433 18,715 2,392 15, 1, 5, , 1,5 1,63 1,67 1,385 1,353 1,415 1,381 1,423 1,471 1, The source of this real property information is the copyrighted and proprietary database compilation of Southwest Florida MLS, MLS, Copyright 216, and the proprietary compilation of that data by John R. Wood Properties, its employees,

8 ANNUAL PENDED SALES UNITS 2, 15, 14,867 15,148 14,718 15,41 16,64 18,433 17,81 13,578 1, 5, , 1,682 1,5 1, 1,143 1,59 1,182 1,318 1,428 1, The source of this real property information is the copyrighted and proprietary database compilation of Southwest Florida MLS, MLS, Copyright 216, and the proprietary compilation of that data by John R. Wood Properties, its employees,

9 MONTHS OF SUPPLY Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan The source of this real property information is the copyrighted and proprietary database compilation of Southwest Florida MLS, MLS, Copyright 216, and the proprietary compilation of that data by John R. Wood Properties, its employees,

10 INVENTORY AND ABSORPTION LEVELS , 14, Available Inventory Closed Past 12 Months 12, 1, 8, 6, 4, 2, 1,6 1,4 Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Available Inventory Closed Past 12 Months 1,2 1, Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan The source of this real property information is the copyrighted and proprietary database compilation of Southwest Florida MLS, MLS, Copyright 216, and the proprietary compilation of that data by John R. Wood Properties, its employees,