RSS 2.0 In real estate, existing resale home inventory is a leading indicator in determining the health of a market. Typically, a balanced real estate market is approximately twelve months of inventory. Yet, when the economy took a dive a few years ago, inventory skyrocketed as homes sat on the market for long periods of time, leaving many Naples’ and Bonita Springs’ neighborhoods with several years worth of resales.
Today, however, as sales increase, inventories in many neighborhoods are teetering on the edge of being healthy.
Take for instance Bay Colony in Naples whose single-family homes and condominiums have experienced a considerable drop in inventory. This time last year, Bay Colony was reporting 2.5 years worth of single-family homes and 2.6 years of condos. Today, the market is close to being balanced, with inventory that is down to just under one year and 1.4 years, respectively.
While significant, other communities like The Colony at Pelican Landing in Bonita Springs, with 14 current listings and 10 closed sales in the past 12 months, have seen astounding changes in inventory, from 11 years worth of single-family homes a year ago to 1.4 years today and 3.1 years of condos in 2009 compared to 1.1 years in 2010.
The Vineyards in Naples has also experienced an amazing recovery from 3.1 years of single-family homes in 2009 to 1.1 years in 2010. Similarly, Pelican Bay condos have seen a huge drop down to 1.2 years compared with 5.7 years worth in 2009.
Savvy buyers taking advantage of the low interest rates and competitive prices continue to absorb Southwest Florida’s existing inventory. For example, 267 Naples waterfront properties have sold in the last 12 months in Park Shore, The Moorings and Seagate versus 161 sales the 12 months prior.
Not every community is as fortunate, but throughout Naples and Bonita Springs the majority of neighborhoods are showing a substantial drop in inventory in 2010, which bodes well for Southwest Florida.
