Home prices took a huge leap in January 2015 with a whopping 25 percent increase beating last January’s shocking 20 percent! Overall, the median closed home price was $322,000 compared to January 2014’s median price of $258,000 and $215,000 in January 2013 reported from the Naples Area Board of Realtors. That is an amazing $100,000 in two years! “It’s phenomenal,” said Naples broker Pat Pitocchi, immediate past president of NABOR.
The increase is most likely caused by not only the growing economy, low interest rates, a strong stock market, and low inventory. However, the weather in the Northeast has been very blizzard friendly winter which could explain why more snowbirds have flocked to SWFL like never before! It has been one of the busiest seasons with a significantly noticeable increase of visitors to our area.
NABOR also reported that as the number of new construction homes being built under the $250,000 price range, the number of cash sales is decreasing. This wasn’t the same case in January 2014 because prices were influenced by the upper end of the market which included more cash buyers.
The median price of homes in the $1 million to $ 2 million range remained relatively the ssme, but the homes over $2 million dropped 4.5 percent to a median of $2.292 million.
Single-family home prices hit $375,000 in January from a year earlier, a 15 percent increase.
Condos are sought after by seasonal and older buyers, said NABOR President Mike Hughes, as well as those who have been pushed out of the single-family market by rapidly rising prices.
The Naples Daily News reported, “While supply is still shrinking — inventory levels fell 5 percent, to 4,515 year-over-year, NABOR’s report said — Hughes said that it has been “hovering between 4,000 and 4,500 for quite some time.” That’s a good sign that short supply, which has been constraining sales, is easing, he said.
Closed sales dropped 16 percent for the period, to 607, and pending sales remained flat, NABOR reported.
Low inventory is also the main reason prices are rising and closed sales are falling on Marco Island, according to Susan Ackerson, president of the Marco Island Area Association of Realtors. The trade group said Monday that overall closed sales on Marco fell 8 percent, to 88, in January from the prior year. Median sale prices rose 8.5 percent to $410,000.”