COMPETITIVE PRICING KEY TO SALES

Getting a listing is good but only if it sells. Many Realtors face a daunting task today: How do you tell a seller that he should have a lower asking price – something less than the amount his neighbor got when his similar-sized home sold in 2006? Richard Coren, a Pembroke Pines seller, listed his home for $420,000 in November and it just sat there. Finally, he knocked $40,000 off the price based on advice from his Realtor, Cyndy Wald with the Keyes Co.’s Weston office. Wald says she told Coren that his $420,000 asking price was “yesterday’s news,” advice she gives all her clients. “We’re still in this correction phase,” Wald says. “They have to price it very competitively.” David Dabby, a Realtor in Coral Gables, notes that the relatively strong economy and still-affordable interest rates keep prices from falling even further – at least for now. Should either of those conditions change, however, a seller unwilling to accept a drop in asking price today could be forced to swallow an even greater loss tomorrow.

SourceFlorida Association of REALTORS

May 2007 Update

Real Estate sales in The Shores came up short, with no sales or any pending sales in May. at the moment we have 26 Single Family Homes & Attached Villa's for sale ranging in price from $309,900 to $619,000.

Real Estate sales in The Preserves on the other hand we have one active with contract and one pending sale, so we now have 22 condominiums for sale ranging in price from $239,900 to $335,000.

Bernie East

Amerivest Realty of Naples

239.248.1966 Cell

239.455.0692 Home Office

www.Berniesellsnaples.com

2007 First Quarter Sales

NAPLES AREA BOARD OF REALTORS®REPORTS FIRST QUARTER TRANSACTIONS
NAPLES -

The Naples Area Board of Realtors® has released first quarter 2007 statistics for home listings and sales in Naples, utilizing the Board’s local reporting format.
In this report, only sales of homes within the Naples geographic area are being shown - specifically all areas in Collier County excluding Marco Island and other outlying areas - to reflect an accurate and relevant portrait of the local real estate market.
A summary of the statistics is presented in graph format, along with the following analysis.
New listings as of March 31, 2007, were 5,885 as compared to the record 6,851 reported in the first quarter of 2006, marking a drop of 14 percent.
Pending sales during the first quarter of 2007 were reported at 1,491, a slight decrease of 4.5 percent from the first quarter of 2006.
There were 939 closed sales reported at the end of the first quarter of 2007, a drop of 25 percent from the first quarter of 2006 which reported 1,250 closed sales.
The median sales price of homes sold during the first quarter of 2007 was $399,512. 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.
It should be noted that in any given period 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.
With Naples Area Board of Realtors® members reporting continuing increases in showings to qualified buyers and pending sales indicating improved activity, the expectation is that the market will maintain an upward push.
Median pricing is again showing a rise, with an overall upward trend line over the long term. Median prices have not yet reached the level experienced during the record sales in early 2005 and first quarter 2006, but the value of the Naples location remains a strong draw for luxury second-home buyers and investors on the national and international level.
Inventory: As of April 1, 2007, there were 12, 123 active listings on the market. With 4,183 homes sold in the previous 12 months, it is calculated that the current inventory represents a 35 month supply.
The calculation of months’ supply is derived by dividing the total number of listings at the beginning of the month (Supply) by the number of sales which closed over the past 12 months (Demand). This way we normalize the data by utilizing the prior rolling 12 months closing statistics (Demand). This methodology illustrates a more realistic trend which takes into account market seasonality. After we calculate the years supply, we then multiply the years supply times 12 to get the months supply. This is the current method used by Hanley Wood Market Intelligence.

Sales report through May 2007

Well the good news to report is sales for 2007 are equal to all sales in 2006 in The Shores.

With 2 sales closing last month we are at a total of 7 sold for the year.

Today I attended an appraisal class and we were informed houses in most of the Naples area are selling at the same level as like homes sold for in the first quarter on 2005, the main problem we have is an over supply of homes on the market and until homes for sale equals homes sold in the previous year it will keep our home prices down.

At the moment there are 26 homes listed on the Naples MLS in The Shores that does not include homes for sale by owner, this results in a 3 to 4 year supply.