Strong 2017 Close for Southwest Florida Residential Real Estate
February 20, 2018 | nella
The Southwest Florida housing market closed 2017 with robust results, according to end of year market reports recently released. Real estate sales and overall housing market conditions as a whole are based on many factors. In 2017, the area saw above average employment rates, low inflation, record stock market activity, and increased consumer confidence. Looking into 2018, there are additional factors that will attract buyers to the Southwest Florida area, including tax reform and continued growth of their investment portfolios. All in all, Southwest Florida housing closed 2017 strong and has entered the New Year with a forecast to remain on the same path.
For the Naples area, home sales increased 4 percent in 2017 and the median closed price rose by 3 percent, according to the Year End 2017 Market Report released by the Naples Area Board of REALTORS® (NABOR®). The report showed increased activity for the luxury market, with closed sales of homes in the $2 million and above price category dramatically increasing (20 percent) in 2017.
Pending sales during the third quarter increased 5 percent (12-months ending August 2017), while pending sales at the end of the fourth quarter increased 2 percent (12-months ending December 31, 2017). The year-end report showed a 4 percent increase in closed sales to 8.815 in 2017 in comparison to 8.510 in 2016. Industry experts cannot help but wonder what these numbers would have looked like if the market had not been virtually shut down for five weeks due to the hurricane aftermath.
“Between December of 2015 and December of 2016, overall market inventory increased 54 percent; between December of 2016 and December of 2017 overall inventory decreased by 11 percent. The single family and condominium markets are well positioned with about 7.5 months of supply in each,” said Cindy Carroll, SRA of Carroll & Carroll Appraisers and Consultants, LLC.
Condominiums in the $1 million to $2 million-price category showed a 28 percent increase in pending sales and a 14 increase in closed sales.
The Bonita Springs-Estero December Sales for Real Estate report showed a significant increase in condominium home sales and a modest increase in single-family home sales, according to the Bonita Springs-Estero Association of REALTORS®. Overall, for both single-family homes and condominium homes, pending sales and closed sales were up when compared to December of 2016. Inventory levels remained consistent from the end of 2016 to the end of 2017.
Buyer traffic has increased over the past month for the Bonita Springs-Estero area and analysts forecast continued high levels of activity. While mortgage rates remain historically low, it is a great time to purchase a single-family or condominium home in Southwest Florida.
End of year Bonita Springs-Estero single-family housing activity for 2017 compared to 2016 includes:
- Closed sales increased 5.3 percent from 95 homes sold in December 2016 to 100 homes sold in December 2017
- Pending sales increased 8.5 percent from 71 in December 2016 to 77 in December 2017
- Median sale price remained the sale from 2016 to 2017 at $370,000
- New listings decreased 16.8 percent from 143 in 2016 to 119 in December 2017
- Inventory decreased 5.6 percent from 611 homes in December 2016 to 577 homes in December 2017
Though inventory levels of single-family homes are expected to rise, the high demand and the pace at which they sell will likely keep inventory in shorter supply than desired.
Year-over-year Bonita Springs-Estero condominium home activity for 2017 compared to 2016 includes:
- Closed sales increased 22.4 percent from 58 homes sold in December 2016 to 71 homes sold in December 2017
- Pending sales in December increased 25 percent from 56 in 2016 to 70 in 2017
- Median sale price decreased 15.5 percent from $269,700 to $228,000 year-over-year
- New listings increased 11.2 percent from 116 in 2016 to 129 in December 2017
- Inventory increased 0.2 percent from 526 in December 2016 to 527 in December 2017