Naples Coastal Neighborhoods Trend Line Continues Upward March in the Third Quarter of 2006

As Reported by the Naples Area Board Of Realtors:

Pelican Bay: This shows the 3-year quarterly trend for the Pelican Bay area. The Median Sold Price for 2003 4th quarter was $597,500; the Median Sold Price for 2006 3rd quarter was $1,185,000.

Park Shore, Coquina Sands & The Moorings: This shows the 3-year quarterly trend for the area encompassing Moorings, Coquina Sands, and Park Shore. The Median Sold Price for 2003 4th quarter was $645,000; the Median Sold Price for 2006 3rd quarter was $1,600,000.

Port Royal, Aqualane Shores & Old Naples:

This shows the 3-year quarterly trend for the area encompassing Olde Naples, Aqualane Shores, and Port Royal. The Median Sold Price for 2003 4th quarter was $892,500; the Median Sold Price for 2006 3rd quarter was $1,960,000.

NAPLES FLORIDA – Third quarter statistics generated by Naples area Realtors® show a mix in pricing in Naples’ coastal neighborhoods, which include residential properties west of U.S. 41. However, the median three-year trend line in all the coastal neighborhoods remains in a consistent upward direction and is not expected to deviate from that path.

While the median price of closed home sales dipped slightly in Pelican Bay, the median sold price spiked sharply upward in the neighborhoods that include Park Shore, Coquina Sands and Moorings. Meanwhile, the median price in the Port Royal, Aqualane and Olde Naples area held fairly steady.

The median refers to the middle value in a set of statistical values that are arranged in ascending or descending order, in this case prices at which homes were actually sold.

The median sold price in the Pelican Bay area was $1,185,000 for the third quarter of 2006. In the Park Shore, Coquina Sands, Moorings area, the median sold price was $1,600,000. In the Port Royal, Aqualane Shores, Olde Naples area, the median sold price for the third quarter was $1,960,000.

“In any quarter, or even in any month, the median can vary greatly if there is an anomaly, a single sale that is significantly higher or lower than other properties in the area,” said Jo Carter, president of the Naples Area Board of Realtors® (NABOR). “We look at the trend line over a longer period to determine market shifts.”

Looking at the fourth quarter of 2003, the earliest period that the statistical analysis was available, the median sold price in Pelican Bay was $597,500. In the fourth quarter of 2003, the median sold price in Park Shore, Coquina Sands and Moorings was $645,000; and in the Port Royal, Aqualane, Olde Naples area, the median price in the fourth quarter of 2003 was $892,500.

“Over the past three years, the trend is significantly upward,” Carter said. “If you do the math, you see an increase in the median price of homes in Pelican Bay was up about 98 percent. In Park Shore, Coquina Sands and Moorings, the median price rose an impressive 148 percent. In the Port Royal, Aqualane Shores, Olde Naples area, the increase in the median was almost 120 percent.”

According to Carter, the areas west of U.S. 41 in Naples have long been considered the “price setters” for Naples area real estate. As prices have risen in these neighborhoods along the coast, pricing of homes in the inland neighborhoods have followed suit, although sometimes more slowly.

Carter said that NABOR’s new capability to generate statistical data on various segments of the Naples market provides an opportunity for accurate and significant trend analysis.

“By utilizing all of the data available to us, we can avoid drawing conclusions about the market on incomplete or inaccurate data,” she said.

She also noted that the upward trend lines are normal for the Naples area. “If you look at any period in the last 40 years, the trend lines look fairly similar to the current trend lines,” she said. “Prices consistently move upwards, with very occasional plateaus or slight dips.”