Collier County Florida, home to Naples and Marco Island, saw a positive upward trend in its real estate market in 2011. The regions housing inventory reached a five time low over the past year signaling an “end in sight” to the housing market crisis. In addition to a low housing inventory, Collier County has also seen a surprising increase in million dollar home sales and decrease in foreclosures that has helped to develop growth in the market.
In a recent report released by the Naples Area Board of Realtors, available housing levels are shown to be at a five year low. In the start of 2012 the region’s housing inventory stood at 7,581 homes, a decrease of 17 percent from January 2011, when there were 9,145 units available. With homes becoming hard to find in desirable neighborhoods, homeowners can expect to see home values rise in 2012.
One of the biggest surprises with the Collier County real estate market in 2011 was the amazing increase in sales of million dollar properties. Despite a struggling national economy, the region posted large gains in million dollar sales throughout the year. Sales of homes in the million to two million dollar range saw an increase of 9 percent from 2010, with 370 homes being sold. In the two million dollar plus price range there were 223 sales, a 12 percent increase from 2010. In addition to an increase of sales, high end and waterfront properties are seeing an increase in market value.
One major factor in the steady recovery of the area is the decrease of foreclosures in Collier County. Throughout the housing crisis, Southwest Florida’s counties have been ranked in the top ten on the list of the National Foreclosure Rankings. In 2011, Collier saw a drastic reduction in its number of foreclosures. On the 2011 National Foreclosure Listings the region dropped to number 39. In addition to foreclosure rates dropping the area is seeing a reduction of foreclosure properties. Naples area realtors are reporting that available foreclosure property inventories are dwindling and that demand for available homes in the market is high.
Expectations for Collier County’s real estate market in 2012 remain high. Dropping foreclosure rates as the area saw in 2011 will help continue to decrease the regions available housing market, while closed sales in higher price ranges are expected to remain high in despite of a recovery economy.