May 2019: Montgomery Real Estate Market Update

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DOWNING-FRYE: PENDING SALES CLIMB

“We’ve been going through a busy period,” said Mike Hughes, General Manager for Downing-Frye Realty, Inc. “People are making purchasing decisions just before returning home after their winter visits. We’re also seeing the initial group of summer season buyers who have arrived early hoping to locate the best deals. This year our agents turned in 1,007 pending sales through April, with more than a third of them happening during the last month. Interestingly, almost half of our April pending sales were newly constructed homes in the $250-500,000 price range, many of which are being built in the eastern areas of Naples. New construction is filling the demand for inventory, which is at healthy levels.”

NAPLES AREA: STRONG MARCH SALES

An increase in the number of closed sales of homes priced under $500,000 during the last year resulted in strong March sales and a slight decrease in the overall median sales price. The median closed price of homes decreased 5.6 percent to $340,000 in March 2019 from $360,000 in March 2018. Another factor relating to the decrease was that sellers adjusted their pricing to be based on recent sales rather than unvalidated values. The total inventory in March 2019 was 6,829 available properties, down over 10 percent from March 2018. Many brokers reported an increase in contracts (pending sales) during March, which they feel contributed to the decrease in inventory. Only one segment (single-family homes in the Naples Beach area) increased by 4.1 percent and is where there is a large majority of “spec” home building.

BONITA / ESTERO: MARKET ON UPTURN

As of the end of March, year-to-date sales were higher than they were at the same time last year. Pending sales in new construction, pre-construction and under construction homes increased 29.2 percent. Most of the new construction is taking place in the Village of Estero area, which is experiencing a younger demographic as more families move there for year around living. The resale market is also on the upturn with year-to-date pending sales 9 percent above last year. Inventory is keeping pace with increased demand with a 6.5 percent increase in available properties since the same time last year. “Another factor supporting the increase in sales,” said Jerry Murphy, Downing-Frye’s Bonita Springs manager, “is that many sellers have repositioned their prices to be more attractive to buyers. There are a lot of great properties available.”

FLORIDA: PENDING SALES & MEDIAN PRICES UP

Florida’s housing market reported more pending sales, higher median prices and increased inventory (active listings) in March compared to a year ago. In March, statewide median sales prices for both single-family homes and condo-townhouse properties rose year-over-year for the 87th month-in-a-row. The statewide median sales price for single-family existing homes was $256,000, up 2 percent from the previous year, and for condo-townhouse units was $189,500, up 3.6 percent over the year-ago figure. “On a statewide basis, more homes typically go under contract in March than in any other month of the year,” said Florida Realtors Chief Economist Dr. Brad O’Connor. “And compared to March of last year, new pending sales of single-family homes this March were up by 2.6 percent to a total of 31,383. In
fact, this is the highest number of new pending sales we’ve seen in any month across the previous 11 years in which Florida Realtors has tracked this statistic.

USA: EXISTING HOME SALES SLIDE

Existing-home sales retreated in March, following February’s surge of sales. Sales as a whole are down 5.4% from a year ago (5.21 million in March 2019 compared to 5.51 million in March 2018). Total housing inventory at the end of March increased to 1.68 million, up from 1.63 million existing homes available for sale in February and a 2.4% increase from 1.64 million a year ago. Unsold inventory is at a 3.9-month supply at the current sales pace, up from 3.6 months in February and up from 3.6 months in March 2018. Properties remained on the market for an average of 36 days in March, down from 44 days in February but up from 30 days a year ago. Forty- seven percent of homes sold in March were on the market for less than a month. First-time buyers were responsible for 33% of sales in March, up from the previous month and a year ago (32% and 30%). All-cash sales accounted for 21% of transactions, and foreclosure 3 percent.

Work with a Downing-Frye Realtor In Southwest Florida

Interested in buying or selling a home in Southwest Florida? Jay Montgomery is a Downing-Frye realtor that has an expertise in the area from Marco Island to Fort Myers and can help you through the process of finding your dream home or listing your current home on the market. Call 239-301-9453 or contact Jay online to learn more!

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