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For years following the recession, Naples real estate agents bemoaned the lack of inventory of existing single-family homes and condos for sale.
That acute lack of inventory has been one of the big reasons why prices of existing single-family homes and condos surged in recent years. For example, the median price of an existing single-family home in Naples is now $432,000, the Naples Area Board of Realtors reports.
But as longtime real estate experts know, the business in Florida is boom or bust.
Witness the surge in inventory in Naples. Overall, the number of existing single-family homes and condos for sale in Naples surged 37% in May over May 2015, to 5,207. The inventory of existing single-family homes on the market rose 27% to 2,744 and condos saw a 51% jump to 2,463 in the same period, according to the Realtor association.
Residential brokers have been warning this may happen. After all, many homeowners have seen significant appreciation over what they originally paid and some of them want to cash in on the price boom.
Some price categories in Naples may be more vulnerable to price reductions because of sudden spikes in for-sale inventory and competition from new-home construction. In the existing single-family home market, inventory of homes for sale in the $300,000 to $500,000 price range rose 32% and home in the $500,000 to $1 million rose 45% in May compared with May 2015.
Inventories spiked even more dramatically in existing condos for sale. On that front, inventory for condos in Naples priced from $1 million to $2 million rose 92% year over year in May; inventory in the $300,000 to $500,000 price range increased 57%; and inventory in the $500,000 to $1 million bracket range increased 48%.
Watch for price declines if this trend continues.
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