Real Estate Market Statistics
The real estate market statistics for February 2017 were released last week.
Breaking it down, as reported by the Bonita Estero Area Board of REALTORS (BEAR), the Bonita Springs-Estero market saw an increase of 13% in Pending Sales for February. Closed sales rebounded from last February up 28% from the depressing drop in 2016. Sales Volume was up 39% compared to February ’16. Contrary to the Naples market, new inventory declined by 9% compared to last year, from 330 in 2016 and 300 in 2017.
The Naples Area Board of REALTORS (NABOR) reported that Pending Sales in Naples zip codes saw an increase of 10%. Closed Sales up 18%, Median price up by 3%, Inventory up by 16% and days on market up 25% overall. Typical for the seasonal buyer, the Naples Beach condominium market is enjoying a good winter. Closed sales were up 50% from last February and the pending sales are also up by 10% compared to last year. This increase in sales was no doubt influenced by the 18% drop in median price for this area.
As the economy continues to pull itself out of the recession, investors who anticipated increased home building began buying construction related stocks, fueling market movement. Rising stock market prices precede the renewal of the housing sector. As major home builders’ shares are traded on the New York stock exchange and their stock begins to rise, the housing sector touches the trades, interior designers, furniture manufacturers, financial institutions, trucking companies, home improvement stores and the list goes on and on. Today, consumer confidence grows as the stock market rises and that in turn, has an influence on real estate. If buyers are confident in the economy and their economic future, they are more inclined to step up to that larger mortgage payment.
As stock portfolios continue to grow, investors often look to other investments to diversify their holdings and real estate is often a good alternative investment for them. Buyers might purchase second homes or take advantage of current prices and rates by purchasing pre-construction or vacant land with the intent to build in the future. Investors may purchase homes to use as rentals as our local rental market maintains its strength. All these indicators are strong factors in any real estate market and where better to invest than Southwest Florida!
For more information on local real estate market statistics, visit FloridaHomeRealty.com.
Kathy Zorn, Broker