NAPLES / FT MYERS HOUSING 1Q18: New Home Starts Up as Closings Jump from Fourth Quarter Numbers Copy
- Quarterly New Home Starts are up 12% from 4Q17 and up 11% YoY; Annual New Home Starts are up 1% YoY
- Quarterly closings are up 11% from 4Q17 and up 3% YoY
- On a county basis, starts in Collier County are up 24% YoY while Lee County starts are up 3%
Metrostudy’s 1Q18 survey of the Naples/Ft. Myers new home market – including Lee and Collier counties – shows that the quarterly starts rate increased 12% to 1,225 from the previous quarter, and increased 11% when compared to the first quarter of 2017. The annual starts pace increased 3% over the previous quarter to 4,699, and increased 1% from the first quarter of 2017. 1Q18 closings increased 11% from 4Q17, and increased 3% YoY. The annual closing pace increased 0.7% from the previous quarter, but fell 0.6% from the first quarter of 2017.
The chart below shows annual new home starts by price range from 1Q16 to 1Q18:
Lee’s finished, vacant home (F/V) rate decreased to 1.7 months of supply (MOS) while Collier’s F/V remained the same at 1.5 MOS. The previous quarter’s F/V MOS was 1.9 for Lee and 1.5 for Collier. Vacant, developed lot (VDL) inventory decreased 5% from the previous quarter to 11,036 lots. This count is down 7% year over year (y-o-y). Lot deliveries for the quarter decreased 65% to 595 when compared to the previous quarter. Future lots totaled 66,051, which is down 1% from the previous quarter, and down 2% y-o-y.
A county-by-county breakdown of starts and closings is below:
- Lee County: Lee County is comprised of the Ft. Myers-Cape Coral MSA. Quarterly starts increased 3%, while quarterly closings increased 14% from the previous quarter. The annual starts rate increased 5% and the annual closings rate decreased 2% from the first quarter of 2017. Housing Inventory in Lee County remains below equilibrium at 7.9 MOS, but is up from 7.5 MOS noted in the previous quarter.
- Collier County: Collier County is comprised of the Naples – Marco Island – Immokalee MSA. Quarterly starts increased by 24%, and quarterly closings increased by 7% from the previous quarter, showing a rebound from the effects of Hurricane Irma. The annual starts rate decreased 3%, while the annual closings rate increased 1% from the first quarter of 2017. Housing Inventory decreased quarter-over-quarter to 6.6 MOS from 7.2 MOS.
The Top 10 single family communities in the Naples/Ft. Myers market, ranked by the past 12 months starts through the first quarter of 2018:
Ave Maria remains at the top spot once again and has been the starts leader for thirteen consecutive quarters. Naples Reserve holds on to second, while Plantation moves up to third. River Hall and Marina Bay round out the top five communities. Bonita Bay, Valencia Bonita, and Entrada make the top ten list this quarter.
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