Naples, FL: Home sales, pending home sales increase in April

Lower prices have lured back buyers, who are feeling now is the time to buy. In April, Realtors in the Naples area had their busiest month of the year.

Overall, home sales rose 6 percent to 472, compared to 445 last year, according to a monthly report by the Naples Area Board of Realtors (NABOR).

Meanwhile, pending home sales increased 25 percent to 616, from 494 a year ago. "I think we’ve hit bottom in Naples and that comes from the economists who really study this," said Arlene Carozza, a Realtor and NABOR’s president.

In an interview with Mad Money host Jim Cramer on CNBC earlier this week, Bob Toll, CEO of homebuilder Toll Brothers, described the west coast of Florida as its "one ray of hope." "Naples is back. It’s amazing," he said, adding that his company is now out of spec inventory here and its prices are starting to rise in this market.

According to the NABOR statistics, the median price for all homes in the Naples area dropped more than 23 percent last month to $300,000, from $390,000 a year ago. Joe Ballarino, president of Amerivest Realty in Naples, said a spike in foreclosures and short sales _ sales made for less than the bank is owed _ have driven prices down faster in this market.

In April, the median price dropped to $258,000 for condos, and to $400,000 for single-family homes. "You have people walking away from properties and banks that just want to get their loan values and are taking less than what they are owed on the property," Ballarino said.

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Market Takes Off On Lower Prices

Naples & Bonita Springs Florida - Pending sales have reached their highest levels since August of 2005, nearly three years ago; while median home prices are at four year low. They have hit month over month highs the last two months, with April sales even outpacing March sales, bucking the normal seasonal trend.

Pending sales in Naples and Bonita Springs showed 853 units in the month of April, compared to 652 a year ago – a 30% increase. “It’s obvious that buyers have determined that real estate prices can’t go much lower. They are jumping back into the market at an extremely healthy rate. The bottom in terms of activity has come and gone” – Joe Ballarino, Amerivest Realty – President & Founder.

Pending Sales Graph

Median price for the area dropped to $300,000 from $399,000 a year ago, a 25% decline – their lowest level since 2004. “The increased activity is due to the severe drop in prices created by the glut of short sales and foreclosures in the market. Buyers are recognizing the opportunity and making buying decisions. Sellers who are pricing their property aggressively are now seeing results as the market is finding the bottom on pricing” - added Joe.

Median Price Graph

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