Naples and Bonita Springs - Estero Market Watch

June 2009

Since it is now July and all the data for the first half of the year are available I thought it would be useful to deviate from the routine monthly reporting that I usually provide. We all like to look at data organized in nice neat buckets or groups and what better than a six month bucket - the first half of 2009.

Once the data is available to look back upon and report, it's human nature to ask what will the next six months bring. It would be nice to know for sure, I don't. But, I can tell you that based on the data (sales volume for the first six months) and simple projection mathematics one would guess that the Naples market is going to have a bang-up year with a 42% gain is sales and the Bonita-Estero market will post a much more conservative 8% gain is sales volume. At least, that's what the simple projection would indicate.

Last month I indicated that the Bonita-Estero market seemed to be lagging behind the Naples area in the "recovery". I still believe that to be true and I expect that Bonita-Estero will post higher increases in sales in the second half of 2009 versus the first half leading to a year-over-year gain of more than the 8% projected. The data for June tends to support this. Naples sales volume in June dropped back from May as would be expected with the typical seasonal sales cycles. However, while the Bonita-Estero market would usually follow the seasonal cycle in June it did not. Bonita-Estero posted a slight increase in sales from May 2009 to June 2009.

As far as prices are concerned, I have previously reported "the bottom" and it seems to hold true again in June 2009. For Naples, the average price for single family homes sold has remained effectively unchanged over the past six consecutive months within plus or minus 5%-6%. The average sales price in Bonita-Estero is the same also over the same six month period however the range plus or minus each month is much larger. This is due to the fact that the overall sales volume each month is greater by about a factor of four.

Bob Pisa
REALTOR®, e-PRO®
239-898-6865

4947 Tamiami Trail North, Suite 106
Naples, Florida 34102