Summer Sales Up 96 Percent...

so reads the headline from the October 16, 2009 Naples Area Board of Realtors press release summarizing September 2009 real estate market.

SUMMER SALES UP 96 PERCENT
Report Shows Inventory Declines 14 Percent

It's the sub-headline that really gets my attention more, though. Of course, increase in sales is one factor that leads to a reduction in inventory but only when it's not outpaced by the new inventory coming into the market. The economy and mortgage crisis has driven a flood of inventory into the market over the last 12 - 18 months. This trend seems to be stabilizing and it's not outpacing sales.

Will the sales activity continue? The ley leading indicator is pending sales - properties for which contracts are written but have not yet closed pending the resolution of various contingencies. At the end of September, the press release state 2,570 homes pending sale compared to 1,314 for the same quater period in 2008.

Other highlights from the press release are:

1. Overall pending sales under $300,000 saw a 126 percent increase in September 2009 compared year-over-year.
2. Overall pending sales for all price ranges and categories increased 107 percent for September 2009 over 2008
3. Single-family home sales increased 87 percent for the period year-over-year while the pending home sales increase 82 percent.
4. The median closed priced decrease to $176,000 from $250,000 in the same period last year. THe median is the value where 50% of the sales above the value and 50% are below.

Also reported...condo sales are climbing steadily and there is an increase of pending sales for home in the $500,000 to $1 million category...the high-end of the market is beginning to return.

Review detailed market reports.