Probably the most frequently asked question from our visitors this year is the situation with the Naples real estate market and market values. As the old adage goes “ If you have to ASK then you have already missed it !!”

There are lots of indicators in today’s Naples real estate market that corroborate the fact that we are creating a bottom to the market in general and climbing out of the bottom in specific segments of our community.

A CNN study last summer and a more recent study by CNN Money have indicated that Naples has transitioned from THE most Overvalued Market in 2005 to the 15th most Undervalued Market in in the US in 2010. There are other sources that have confirmed this observation.

Another effective way of looking at the current market situation in Naples is the percentage of the Listing price realized by the Seller at closing. These percentages indicate how realistic prices are relative to the current market conditions.

The most active segment of the Naples real estate market remains the under $300,000 price point. Here there are a significant number of Bank Owned and Short Sale properties which fuel the excitement of “Great Deals” for potential buyers. There have been over 800 closed sales in this category in Naples in 2010. The average Selling Price to Listing Price is over 96% for all properties in this price range. One interesting point in this market segment is that traditional resale properties are often more attractive as Sellers have adjusted their prices to compete with the distressed properties (once values are adjusted to reflect the repairs needed to occupy foreclosed and short sale residences). Resale transactions are often much faster and easier to complete that their distressed property counterparts.

The next market segment of residences priced from $300,000 to $1 Million has seen an uptick in activity especially for those Sellers who are realistic their pricing. The resale values of the 336 closed sales to date in 2010 in this segment are now averaging over 91% of their listing price. This is a clear indication that listing prices have been adjusted to reflect current market conditions in this category.

In the over $1 Million segment, prices continue to be adjusted downward to meet the market. Of the 90 closed sales to date in 2010 in this segment, selling prices have averaged only 86% of listing price. This is a clear indication that list prices have not yet fully adjusted to reflect the current market conditions.

In Summary, there are many indicators that the Naples real estate market is at or near the bottom and that conditions are terrific for potential buyers in all segments of our market. No matter what technique you prefer to use, positive signs abound with the great home values now available in Naples !!