Why inventory of homes for sale is falling in Venice Florida.
When I arrived in Venice Florida back in 2004 I was amazed at the low inventory. In early 2005 there were more agents in town than properties on the market. Starting in August of 2005 the market started to change…South West Florida was one of the first areas to notice the effect of the slow down and inventories started to grow out of control reaching over 3,000 units for this area.
Inventory levels rose mainly due to demand going down in Venice. In 2002, 2003, 2004 and 2005 there was an average of 2,035 units selling each year in our mls. This isn’t counting the 100’s of new homes and condos being built in that time frame as well. From 2006, 2007, 2008 and 2009 there was an average of 1,269 units selling each year in our mls with practically no new builds in 2008 & 2009.
Inventory levels started shrinking as property prices found a bottom in Venice in 2009 and 2010 causing consumers to recognize the worst was over. Consumer confidence started to build and the sunshine brought them back. 2012 was a banner year…best since 2005 as far as units sold. There were 2,111 units that sold in our MLS. New construction is at a fever pitch with many communities nearing completion and other communities taking off.
In 2008 there were 283 closed properties in the first quarter…This year there have been 596 closed properties in the first quarter. The average sale price in Venice for the first quarter was $192,000. Last year we had 533 properties close in the first quarter at an average price of $177,000. Venice Florida and Nokomis Florida have bounced back. Single Family homes are on a constant rise and in High demand. Condos and Villas have taken off and are trailing Single Family homes in appreciation.
To go back to the original question in this blog…why are inventory levels so low:
Demand is back
Insurance and Property taxes are stable
People have confidence in the investment
The volume of Cash buyers in our market
Value…this is the best reason I can think of…Buyers want value and Venice offers them that. We have went from an average sale price in 2005 of $300,000 plus to just under $200,000 now, and going up. Consumers recognize value.
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