January 2019: Montgomery Market Update

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The numbers are in. Buyers continue to purchase in Southwest Florida,” said Mike Hughes, General Manager for Downing-Frye Realty, Inc. “2018 was another solid year for us. We again closed over $1 Billion in sales volume and another 3,000 transactions. We’re ready for the new year! We’ll be moving our Bonita Springs office to a new ideal location, and our Marco Island office continues to grow. Downing-Frye is well-positioned for 2019 with over 1,100 listings.



Home sales in November increased by double digits across every price category resulting in an overall increase of 24 percent compared to November 2017. Median closed prices decreased for homes under $1 million in November and inventory rose 12 percent to 5,971 homes. The $0 to $300,000 single-family home market had the most impressive activity in November: inventory rose 38 percent, closed sales increased 30 percent compared to November 2017, and its median closed price held steady at $250,000. Other activity of note included a 90 percent increase in closed sales of condos in East Naples, which brokers attribute to an increase in new construction of townhome developments east of Collier Boulevard. Also, single-family homes in Central Naples (34104, 34105, 34116) sold the fastest with an average of 66 days on the market from listing to closing.


Current available inventory has increased by 61 units for single-family homes and 74 units for condominiums. The current months of inventory stands at 6.8, indicating an active market. At the end of November, the active inventory was 1,722 units, an increase of 9 percent compared to the 1,587 units on the market in November 2019. Area brokers anticipate more inventory hitting the market after the new year. Overall pending sales increased by 10 percent for the 12-month period ending November 30, 2018, but remained steady for November 2018 versus November 2017. For single-family homes, closed sales increased by 31 percent in November 2018 versus the same time last year and a 7 percent increase for the 12-month period ending November 30, 2018. In November the overall median closed price was $308,000 compared to $294,000 in November 2018.


Florida’s housing market reported more sales, more new listings, and higher median prices in November compared to a year ago. November marked 83 months-in-a-row (more than 6.5 years) that statewide median sales prices for both single-family homes and condo-townhouse properties increased year-over-year. The statewide median sales price for single-family existing homes was $255,000, up 6.3 percent from the previous year while the statewide median price for condo-townhouse units was $185,000, up 5.1 percent over the year-ago figure. “Statewide inventory (active listings) of single-family homes continued to rise in November, with just over 96,000 homes, an increase of nearly 12 percent,” says Erica Plemmons, economist, and director of housing statistics for Florida Realtors. “We see similar trends on the condo/townhome side of the market, with that inventory level up 6.6 percent to over 56,000 condos and townhomes.


Existing-home sales increased in November, marking two consecutive months of increases. Lawrence Yun, NAR’s chief economist, says two consecutive months of increases is a welcomed sign for the market. “The market conditions in November were mixed, with good signs of stabilizing home sales compared to recent months, though down significantly from one year ago. Rising inventory is clearly taming home price appreciation.” He added, “Inventory is plentiful on the upper-end, but a mismatch between supply and demand exists at affordable price points.” The median existing-home price for all housing types in November was $257,700, up 4.2 percent from November 2017 ($247,200). November’s price increase marks the 81st straight month of year-over-year gains. Forty-three percent of homes sold in November were on the market for less than a month.

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