MARKET REPORT 2008
NAPLES – BONITA SPRINGS – ESTERO MARKET AREA
CLOSED SALES
Total closed sales units in 2008 increased by 20% over 2007. This upward trend continued through the year with most months showing increases over prior year month. In fact, as you can see from the graph below, 2008 is very close to 2002, the year that preceded the run-up in units and volume experienced during 2003 through 2005. Volume for the year is down 9.6% and almost on par with 2003 volume, the third highest year during the nine year reporting history.
ANNUAL CLOSED SALES UNITS HISTORY 
The highest number of closed sales occurred during May with 695 sales recorded, and the lowest number in January with 372. The unit growth was driven by the sale of properties priced under $250,000, with this segment posting a gain of 130% over prior year. Overall, active listing inventory was reduced by 7% during the year, and the number of new listings taken was the lowest since 2005.
ANNUAL NEW LISTINGS HISTORY
Inventory levels based on closed sales are down from approximately a 3.1 year supply in February 2008 to a 2.1 year supply on January 1, 2009. Absorption levels are increasing, while supply levels are decreasing in the overall market, creating an increasingly balanced situation in many market segments. This has already occurred in a number of areas which are currently showing a one year or less supply of product.
PENDED SALES
Pended sales are the best indicator of current market conditions. Commencing October 2005, pended sales began showing a significant decrease on a monthly basis when compared to same month, prior year. This decline continued, almost uninterrupted, for 28 months, until February 2008 when pended sales began posting increases over prior year. Although January and March 2008 were down slightly from prior year, all other months recorded increases. The month over prior year month increases ranged from 6% in April (the lowest monthly increase for the year) to 107% in September (the highest monthly increase in 2008). Actual fourth quarter increase was almost 68% over 2007 fourth quarter.
ANNUAL PENDED SALES UNITS HISTORY
The ratio of pended sales to new listings taken (on a monthly basis) was one pended sale for every 2.6 new listings at the end of December, vs. the high of one pended sale for every 6 new listings recorded in January 2007.
SUMMARY
The increases in both closed and pended sales throughout most of 2008 indicate that a steady and strengthening recovery is underway. The reduction in inventory, along with decreasing numbers of new properties coming on the market, should bode well for real estate activity in 2009. A key to the strength of the recovery lies with what happens in the market segment of properties priced above $2,000,000. This segment has been comparatively quiet during 2008, posting a 20% decline in sales units from 2007. Although not quantifiable at this point, activity in this segment has increased significantly over the past three weeks, based on the number of showing appointments scheduled. The next 30 days should indicate whether there will be a full recovery of this segment in 2009.
Prices have fallen in virtually every price segment and property type across the market. Existing median price is almost 25% below 2007, but we expect this to begin to move upward again in some areas where supply and demand have balanced. Be aware that some areas are still over supplied and will require further price adjustments. However, these are diminishing, and prudent buyers and sellers will insist on specific neighborhood and/or building information upon which to base a buying or pricing decision.
John R. Wood Realtors continues to be a market leader in today’s market. As the “Symbol of Local Knowledge” in real estate, we attribute our success to:
- The delivery of timely, reliable information to the customer.
- Well educated and informed agents who can communicate and interpret market indicators.
- Highly targeted marketing designed to reach a maximum number of buyers and sellers.
This focus enabled us to sell more of the properties listed with our firm in 2008 than any other local broker, and achieve an enviable position at the top of the market. |
