Naples Property Preview Blog

 

April 13, 2018

First Quarter Housing Market Activity Sets the Stage for Strong Year

FOR SALE: 516 Portside Dr, Naples, FL  34103

Naples, Fla. (April 13, 2018) - Sales of homes above $1 million in Naples during the first quarter of 2018 drove the market. Their sales increased 61 percent compared to the same quarter of 2017 according to the First Quarter 2018 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island).

"January's results led some to question expectations for the year when compared to last, yet in February the market gained its stride which accelerated in March with closed sales shooting ahead to end the first quarter on a very impressive note," said Budge Huskey, President, Premier Sotheby's International Realty. According to NABOR's monthly reports, January had 672 closed sales, February reported 672 closed sales, but March kept agents very busy with 942 closed sales, driven by a strong high end which included a number of new construction condominiums just delivered. 

Pending sales in the first quarter of 2018 increased 3 percent to 3,177 compared to 3,097 in the first quarter of 2017. Although pending sales for both single-family homes and condominiums over $1 million increased by double digits, it was the $2 million and above condominium market that raised eyebrows among brokers who reviewed the reports.

"Tourism was up in our area this season compared to last year so it is not surprising that we would end with strong pending sales for the quarter," said Kathy Zorn, President/Owner, Better Homes and Gardens Real Estate Pristine. "But I wasn't expecting to see a 109 percent increase during the quarter in pending sales for condominiums over $2 million!"

"There are very good investment opportunities in the condominium market, especially at both ends of the market," added Coco Amar, a managing broker at John R. Wood Properties. "The top and bottom price categories are where both the inventory has grown and the prices have dropped."

As reflected in the market's year-ending statistics (12-months ending 1Q 2018 versus 12-months ending 1Q 2017), there was a 69 percent increase in closed sales of condominiums in the $2 million and above market, and a 17 percent decrease in its median closed price to $2,450,000 from $2,962,000 in 2017. Despite rocket sales in this high-end sector during the first quarter of 2018 (179 percent increase) and a drop in median closed prices for the first quarter (24 percent decrease), its inventory increased 5 percent! Similarly, median closed prices for condominiums in the $300,000 and below price category dropped 1 percent to $199,000 from $200,000 in the first quarter of 2017, but inventory increased 3 percent.

The NABOR® First Quarter 2018 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® First Quarter 2018 sales statistics are presented in chart format, including these overall (single-family and condominium) findings: 

 

CATEGORIES
Q1 2017 Q1 2018 CHANGE
Total homes under contract (pending sales) (quarter/quarter)
3,097
3,177
+3%
Total closed sales (quarter/quarter) 2,205 2,306 +5%
Median closed price (quarter/quarter) $330,000 $370,000 +12%
Median closed price >$300K (quarter/quarter) $510,000 $575,000 +13%
Total active listings (inventory) 6,389 6,112 -4%
Average days on market  95 95 0%
Single-family closed sales (quarter/quarter) 1,059 1,050 -1%
Single-family median closed price (quarter/quarter) $410,000 $448,000 +9%
Single-family inventory 3,236 2,964 -8%
Condominium closed sales (quarter/quarter) 1,146 1,256 +10%
Condominium median closed price (quarter/quarter) $270,000 $299,000 +11%
Condominium inventory 3,154 3,148 0%

Broker experts analyzing the reports said most counties in Florida continue to see inventories decline, but the Naples area experienced a steady rise over the past few months. In fact, according to Jeff Jones, Managing Broker for Engel & Völkers Naples and Bonita Springs offices, there is currently 8.25 months of inventory available in Collier County. Months of inventory is a nationally accepted measurement of how fast all existing homes on the market would last assuming no additional listings are added and sales activity continues to remain the same as the previous 12 months of sales.

"There were 118 closed sales of condominiums between $1.4 million and just over $2 million in a new development located in North Naples during the last two months that impacted our median closed price statistics," said Wes Kunkle, President and Managing Broker at Kunkle International Realty. These "one-day-on-the-market" closed sales are one reason why the report showed a 13 percent increase in the median closed price for condominiums in the $1 to $2 million price category and a 24 percent decrease in median closed prices for condominiums in the $2 million and above price category.

Kunkle, along with several brokers who reviewed the reports, is concerned sellers may misinterpret this statistical anomaly as a reflection of the area's comparable pricing activity. "These sales were for new luxury condos that were secured over a two year period. When the project obtained its final Certificate of Occupancy, the closings were finalized and they all appeared as a one-day sale in the MLS."

However, this was not the only new construction activity that influenced NABOR®'s first quarter statistics. According to Jones, many sellers of speculative single-family homes that have been on the market for over two years in neighborhoods like Park Shore and the Moorings began to set more realistic list prices this past quarter, which resulted in more sales in the high-end, single-family home market.

"Overpriced homes don't sell," said Jones. "In fact, I think sales during January and February could have been better had many of these sellers set their prices realistically earlier. It wasn't until March that I began to see an uptick in price decreases in the MLS for many of these speculative homes, and then those sellers saw multiple offers from buyers who had been holding out."

If you are in the market to buy or sell your home in Southwest Florida, give me a call for assistance. I can do a market comparison and determine a fair and reasonable listing price, both with and without renovations. I can also identify properties best suited for your needs and negotiate a purchase price that fits your budget. Discover more at www.NaplesPropertyPreview.com.

Posted in Market Report
March 19, 2018

February Market Report Shows High End Properties in High Demand

2175 Crayton Rd Naples, FL 34103 

FOR SALE - 2175 Crayton Rd, Naples, FL 34103

Buyer interest in homes over $1 million in Naples continued to climb during February as overall closed sales increased 10 percent to 672 homes sold compared to 613 homes sold in February 2017, according to the February 2018 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island).
 
The February Market Report revealed a 9 percent increase in the overall median closed price to $364,000 in February 2018 from $333,000 in February 2017. However, as identified by Bill Coffey, Broker Manager of Amerivest Realty Naples, this was due in part to a 95 percent increase in closed sales for properties priced over $1 million in February. In fact, the median closed price within each of the five price categories tracked by NABOR® actually decreased. The greatest decrease appeared in the $1 million to $2 million price category, which reflected a 12 percent drop to $1,326,000 from $1,500,000 in February 2017.

Inventory continued to rise for the fifth straight month, but it decreased in February by 3 percent to 6,286 properties compared to 6,466 properties in February 2017. 
 
Overall pending sales in February decreased 3 percent, but it increased 14 percent in the $1 million and above price category and 39 percent in the $2 million and over price category. "I believe that the high end market is poised for a good year," said Mike Hughes, Vice President and General Manager of Downing-Frye Realty, Inc. "The economy is doing much better. The stock market has risen substantially over the last year. All in all many Americans have seen their financial picture improve. This should translate to improved sales, particularly with the high-end market."
"The new tax laws appear to be inspiring confidence in wealthy buyers," said Kathy Zorn, broker/owner, Better Homes and Gardens Real Estate Pristine, who also pointed out that the February Market Report showed 44 of the 52 homes purchased in the $2 million price category were cash purchases. 
 
Growth in the luxury home market in Naples is not just a seasonal phenomenon. According to Phil Wood, President & CEO of John R. Wood Properties, "The 12-month rolling numbers are remarkable for properties above $1 million, especially in the condominium market where the data shows a 60 percent increase in closed sales over the last 12 months." 
 
The NABOR® February 2018 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® February 2018 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:

 

CATEGORIES
Feb 2017 Feb 2018 CHANGE
Total homes under contract (pending sales) (month/month)
1,092
1,056
-3%
Total closed sales (month/month) 613 672 10%
Median closed price (month/month) $333,000 $364,000 9%
Median closed price >$300K (month/month) $488,000 $570,000 17%
Total active listings (inventory) 6,466 6,286 -3%
Average days on market  99 96 -3%
Single-family closed sales (month/month) 294 298 1%
Single-family median closed price (month/month) $402,000 $472,000 17%
Single-family inventory 3,259 3,050 -6%
Condominium closed sales (month/month) 319 374 17%
Condominium median closed price (month/month) $270,000 $275,000 2%
Condominium inventory 3,207 3,236 1%
 
The February report showed a 6 percent increase in inventory for condominiums in the $300,000 and below market. This was the highest increase reported among all price categories and home types. Interestingly, this segment's median closed price dropped 2 percent in February (month over month) to $200,000 from $205,000 in February 2017.
 
Geographically, sales activity in the Naples Beach single-family homes market outpaced all other areas. Increased buyer interest in luxury properties located in this highly valued location resulted in a 33 percent uptick in closed sales, yet the heightened attention also influenced median closed prices, which rose 52 percent in February to $1,350,000 from $860,000 in February 2017.
 
Coincidentally, similar to an unusual closed sales anomaly in January that was reported last month, a high number of delayed closed sales in one luxury condominium located in North Naples influenced February's closed sales, median closed price, and days on market statistics for the month. As reflected in the report, there were 56 closed sales of condominiums above $1 million in the North Naples area in February (a 211 percent increase over February 2017). A great majority of them were identified as having zero days on market, which broker analysts contend were from one particular condominium's sales activity.
If you are in the market to buy or sell your home in Southwest Florida, give me a call for assistance. I can do a market comparison and determine a fair and reasonable listing price, both with and without renovations. I can also identify properties best suited for your needs and negotiate a purchase price that fits your budget. Discover more at www.NaplesPropertyPreview.com.
 

 

Posted in Market Report
Feb. 26, 2018

Luxury Market Surges in January

FOR SALE: 9459 CAMPANILE CIR, NAPLES, FL  34114

Home sales in Collier County rose 11 percent in January to 671 home sales in January 2018 from 603 home sales in January 2017. In fact, closed sales of luxury properties (homes above $1 million) were quite remarkable in January with a 123 percent increase over the number of closed sales of luxury properties in January 2017, according to the January 2018 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island).

"Thank goodness for the luxury properties for sale; they are driving the market," said Bill Coffey, Broker Manager of Amerivest Realty Naples, who added, "Pending sales of homes priced above $1 million increased 67 percent in January compared to last year." 
 
Broker analysts reviewing the report agreed that many of the high-end speculative homes that had been on the market for over two years, especially in desirable locations like the Naples Beach area, were sold in January. 
 
Dominic Pallini, Broker at Vanderbilt Realty said, "An increase in motivated sellers is demonstrated by January's overall pending sales, which increased 11 percent."
 
"I think we had a lot of pent up demand from wealthy buyers who waited to see how the new tax laws would affect them," said Jeff Jones, Managing Broker for Engel & Völkers' Naples and Bonita Springs offices. "Once they understood the law, they obviously felt confident in making a big purchasing decision." 
 
As such, January's median closed price decreased 19 percent in the $2 million and above price category. For the entire market, the overall median closed price increased 19 percent in January.
 
"The storm blew in a lot of business," remarked Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., who added, "I believe that some buyers who would have purchased in the fourth quarter of 2017 delayed their decision until the first quarter of 2018. It looks like we are off to a good start this year with respect to sales."
 
Overall median prices in January decreased for homes up to $1 million compared to last year. For example, median closed prices for properties in the $300,000 and below price category decreased 6 percent in January to $205,000 from $219,000 in January 2017. 
 
"For a long time we saw double digit increases in median closed prices for single-family homes in the $300,000 and below market," said Cindy Carroll, SRA of Carroll & Carroll Appraisers and Consultants LLC. "But for January, the report showed only a 4 percent increase [year over year (or a 5 percent increase month over month)]."
Overall inventory in Collier County decreased 5 percent in January to 6,071 homes from 6,393 homes in January 2017. However, inventory has been on the rise over the past few months and while the nation continues to experience declining inventory levels that resulted in a 3.4 months supply for January, the Naples area market is seeing its inventory levels increase to 8.2 months of inventory for January. 
 
However, the report also showed a 21 percent decline in inventory for single-family homes in the Naples Beach area, which Carroll says can be attributed to a rush of speculative homes sales in that area.
 
The NABOR® January 2018 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® January 2018 sales statistics are presented in chart format, including these overall (single-family and condominium) findings: 
CATEGORIES
Jan 2017 Jan 2018 CHANGE
Total homes under contract (pending sales) (month/month)
924
1,030
11%
Total closed sales (month/month) 603 671 11%
Median closed price (month/month) $314,000 $375,000 19%
Median closed price >$300K (month/month) $485,000 $646,000 33%
Total active listings (inventory) 6,393 6,071 -5%
Average days on market  91 91 0
Single-family closed sales (month/month) 284 280 -1%
Single-family median closed price (month/month) $397,000 $430,000 8%
Single-family inventory 3,219 2,961 -8%
Condominium closed sales (month/month) 319 391 23%
Condominium median closed price (month/month) $265,000 $320,000 21%
Condominium inventory 3,174 3,110 -2%

According to Carroll, the South Naples (34112, 34113) and East Naples (34114, 34117, 34120, 34137) single-family home markets continued to see the strongest increases in value in January, as reflected in 8 and 9 percent increases in median closed prices, respectively. 
 
Interestingly, and as confirmed by several broker analysts reviewing the January report, an unusual closed sales anomaly transpired in January that, while impacting figures for the month, does not influence the market's activity trend on a 12-month ending basis.
 
Basically, and as explained by Hughes, "A newly constructed luxury high rise condominium in North Naples delayed the closings for 79 of its units that were previously pending until January. This in turn, influenced NABOR®'s closed sales, median closed price, and days on market statistics for the month." 
 
As reflected in the report, there were 150 closed sales of condominiums in the North Naples area in January (a 150 percent increase over January 2017). By the same token, because the 79 condominiums sold between $1.8 million and $2.5 million, the median closed price in this geographic area increased by 428 percent. The data also showed 0 days on the market for the 79 units. The closings were apparently postponed as a result of the hurricane disruption and not completed until January.
 
"This type of anomaly is why it's best for REALTORS® to also review the 12-months ending data that accompanies each monthly report," said Brenda Fioretti, Managing Broker at Berkshire Hathaway HomeServices Florida Realty. "We feel a long-view of the statistics reflects the market's true behavior better and will help REALTORS® educate both buyers and sellers on how the market is really performing."
If you are in the market to buy or sell your home in Southwest Florida, give me a call for assistance. I can do a market comparison and determine a fair and reasonable listing price, both with and without renovations. I can also identify properties best suited for your needs and negotiate a purchase price that fits your budget. Discover more at www.NaplesPropertyPreview.com.
Posted in Market Report
Jan. 22, 2018

Naples Real Estate Market Showed Resilience & Strength in 2017

Home sales increased 4 percent in 2017 and the median closed price increased 3 percent, according to the Year End 2017 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). The report also showed heightened activity in the high-end market, with closed sales of homes in the $2 million and above price category skyrocketing 20 percent in 2017.

 

"Real estate sales are based on many other economic factors," said Tom Bringardner, Jr, President and CEO of Premier Commercial. "In 2017, we saw above average employment rates, low inflation, record stock market activity, and increased consumer confidence. Looking into 2018, there are additional reasons for buyers to be optimistic including new tax cuts on the horizon and continued growth of their investment portfolios." 
 
Adam Vellano, West Coast Sales Manager, BEX Realty - Florida, agrees with Bringardner and also points to the unusually frigid weather in northern states recently, which he says will encourage more people to head south and buy homes. "Now is a great time to diversify and invest in property because there's still plenty of inventory and prices have remained stable."
 
This may not always be the case as indicated by Cindy Carroll, SRA of Carroll & Carroll Appraisers and Consultants LLC, who advises real estate agents to start watching closely for pockets that may soon show an increase in value. "Overall we had a solid year, but there are hints that change is coming with opportunities for increasing values in market sectors with tightening inventories."
 
According to Vellano, pending sales during the 3rd Quarter increased 5 percent (12-months ending August 2017), while pending sales at the end of the 4th Quarter increased 2 percent (12-months ending December 31, 2017). "We can only imagine how much more activity the statistics would reflect if the market had not been shut down for nearly five weeks because of a major hurricane in 2017." 
 
The year-end report showed a 4 percent increase in closed sales to 8,815 in 2017 compared to 8,510 in 2016. Many brokers, including Budge Huskey, President of Premier Sotheby's International Realty,think, "4 percent growth is great considering we had a hurricane and we lost over a month of real estate activity."
 
"Between December of 2015 and December of 2016, overall market inventory increased 54 percent; between December of 2016 and December of 2017 overall inventory has decreased 11 percent. The single family and condominium markets are well positioned with about 7.5 months of supply in each," said Carroll.
 
"Other areas in Florida, like Tampa Bay, have less than 2 months worth of inventory," said Vellano.
 
Properties priced below $300,000 experienced the fewest days on market in 2017. Some broker analysts reported that they saw many of these properties go from list to close in less than 10 days. Inventory continued to struggle in the low end of the market making options difficult for buyers looking for single-family homes in this price range. In fact, 1,265 of the 1,554 available properties in the $300,000 and below price category were condominiums. 
 
"The shining star in 2017 was condominiums in the $1 to $2 million price category," said Brenda Fioretti, Managing Broker at Berkshire Hathaway HomeServices Florida Realty. "This category had a 28 percent increase in pending sales and a 14 percent increase in closed sales."   
 
The NABOR® Year End 2017 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® Year End 2017 sales statistics are presented in chart format, including these overall (single-family and condominium) findings: 
CATEGORIES
2016 2017 CHANGE
Total homes under contract (pending sales) (year/year)
8,903
9,121
2%
Total closed sales (year/year) 8,510 8,815 4%
Median closed price ((year/year) $320,000 $330,000 3%
Median closed price >$300K (year/year) $520,000 $514,000 -1%
Total active listings (inventory) 5,946 5,491 -8%
Average days on market  89 104 17%
Single-family closed sales (year/year) 4,268 4,347 2%
Single-family median closed price (year/year) $400,000 $418,000 4%
Single-family inventory 3,015 2,685 -11%
Condominium closed sales (year/year) 4,242 4,468 5%
Condominium median closed price (year/year) $253,000 $263,000 4%
Condominium inventory 2,931 2,806 -4%
 
Geographically, condominiums in North Naples were the biggest sellers in 2017. Closed sales in this region increased 17 percent, while pending sales increased 15 percent. 
 
How homes are purchased continued to shift in 2017 with an increase in conventional sales (properties with a mortgage). According to Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., "Only 54 percent of home sales in Naples were cash buys in 2017 compared to 69 percent in 2013. Many factors play into this trend including the fact that we have more end users and fewer investors. Also, a buyer's ability to lock in a low interest rate allows them to continue to enjoy the high performing stock market, which had a 25 percent increase in 2017.
If you are in the market to buy or sell your home in Southwest Florida, give me a call for assistance. I can do a market comparison and determine a fair and reasonable listing price, both with and without renovations. I can also identify properties best suited for your needs and negotiate a purchase price that fits your budget. Discover more at www.NaplesPropertyPreview.com.
Posted in Market Report
Dec. 18, 2017

November Housing Market Returns to Normal

Home sales in the Naples area increased 3 percent in November year over year, according to the November 2017 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). The report also showed heightened activity in the single-family home market in November where sales of properties priced above $300,000 increased by double digits. Local brokers analyzing the Market Report said they were pleased with the high-end market's closed sales activity in November, which experienced a 21 percent increase in single-family home sales and a 22 percent increase in condominium sales in the $2 million and above price category.

 

 "Sellers are pricing homes to sell and there were 521 homes sold in the month of November despite the effects of Hurricane Irma. This is only 51 fewer homes than sold in November 2016."
 
These observations were also recognized by the Vice President and General Manager for Downing-Frye Realty, Inc., Mike Hughes, who said, "Buyers and sellers have good reason to be confident as there are many positives on both sides of the fence. Sellers should get their properties on the market now and buyers should move quickly as multiple offers could occur as a result of the tight inventory."
 
The November Market Report showed the overall median closed price rose 9 percent to $330,000 compared to $303,000 in November 2016, and overall pending sales in November increased 2 percent to 728 compared to 713 last year. More impressively, pending sales for homes valued at $1 to $2 million increased by 30 percent in November to 61 from 47 last November.
 
"There were 116 cash transactions for properties below $300,000 in November," said Melo. "This was higher than expected and may indicate the return of investors to the market."
 
The report also showed that a 12 percent decrease in single-family inventory during November led to a subsequent 9 percent increase in the market value of single-family homes. The Naples Beach area saw a 28 percent increase in its median closed price to $975,000 from $762,000 in November 2016.
 
"The luxury market has gone wild," said Phil Wood, President & CEO of John R. Wood Properties. "November had a 63 percent increase in pending sales for single-family homes over $1 million. This is a clear indication that high-end buyers continue to find Naples a desirable location for investment."
 

The NABOR® November 2017 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® November 2017 sales statistics are presented in chart format, including these overall (single-family and condominium) findings: 

CATEGORIES
Nov 2016 Nov 2017 CHANGE
Total homes under contract (pending sales) (month/month)
713
728
2%
Total closed sales (month/month) 572 521 -9%
Median closed price (month/month) $303,000 $330,000 9%
Median closed price >$300K ((month/month) $519,000 $482,000 -7%
Total active listings (inventory) 5,733 5,322 -7%
Average days on market  88 101 15%
Single-family closed sales (month/month) 268 271 1%
Single-family median closed price (month/month) $397,000 $433,000 9%
Single-family inventory 2,971 2,606 -12%
Condominium closed sales (month/month) 304 250 -18%
Condominium median closed price (month/month) $251,000 $250,000 0%
Condominium inventory 2,762 2,716 -2%
 

As pointed out by Cindy Carroll, SRA, with the real estate appraisal and consultancy firm Carroll & Carroll, Inc., the November report showed a high concentration of condominiums available in the $300,000 and below price category (1,228). "Even though they appear to be a more affordable option, condominiums often have obstacles during the buying process like 55 and older age restrictions or high annual fees."

 

Despite these challenges and a 2 percent decrease in inventory in November, condominiums in both the $300,000 and below and the $2 million and above price categories saw inventory rise by 4 percent. 

 

Geographically, sales activity for single-family homes in the North Naples market is heating up as evidenced in the 21 percent increase in pending sales during November. Also hot are condominiums in the Naples Beach area, which saw an 11 percent increase in pending sales during November.

 

If you are in the market to buy or sell your home in Southwest Florida, give me a call for assistance. I can do a market comparison and determine a fair and reasonable listing price, both with and without renovations. I can also identify properties best suited for your needs and negotiate a purchase price that fits your budget. Discover more at www.NaplesPropertyPreview.com.

Posted in Market Report
Nov. 20, 2017

October Housing Market Rebounds After Hurricane Irma

 Ocean Sunset

Naples, Fla. (November 17, 2017) - The evidence that a hurricane hit the Naples area in September became less visible in October because residents were quick to address damages to their property and our county and utility service providers worked overtime to get the area back to normal as quickly as possible. The Naples area housing market finished on a positive note in October with closed sales increasing 1 percent over last October, according to the October 2017 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). October's housing market activity was better than NABOR® expected.

"October could have been better, but it did pretty well given the fact that we had no historic perspective of how the market would behave after a hurricane," said Bill Coffey, Broker Manager of Amerivest Realty Naples. "Even though overall pending sales decreased 11 percent in October, some pockets of the market saw really good activity during the month. The drop in pending sales is most likely because many homes damaged by the hurricane are in need of repair before they can go back on the market."

There were 57 closed sales of high-end, luxury properties priced above $1 million in October, a 36 percent increase over October 2016. Yet closed sales of properties priced below $300,000 dropped 12 percent, a loss of just 32 sales compared to October 2016. Also reflected in the October report, closed sales for single-family homes priced between $1-$2 million increased 50 percent in October, while closed sales of condominiums priced between $300,000-$500,000 increased 26 percent.

A lull in inventory following the hurricane was predicted by broker panelists at NABOR®'s Third Quarter Market Conference. Their prediction was spot on as the October report shows an 8 percent decrease in inventory, or about 400 fewer homes available compared to October 2016 levels.

"Tradesmen and construction supplies are in high demand right now," said Dominic Pallini, NABOR® President and Broker at Vanderbilt Realty. "Reports of roofing companies and carpenters being booked several months out with hurricane repair jobs puts things in perspective when you look at our inventory. Homebuyers want move-in ready homes, and these delayed listings of homes needing repairs will create a higher demand for inventory moving into season."

Inventory increased on the high and low end of the condominium market in October. While the report showed no increase or decrease in inventory overall, there were an additional 76 condominiums (a 7 percent increase) added to the $300,000 and below market in October, and 10 condominiums (a 10 percent increase) were added to the $2 million and above market.

Median closed prices in the single-family home market increased to $425,000 (13 percent) in October, while median closed prices in the condominium market increased to $250,000 (4 percent). Interestingly, the median closed price for condominiums in the $2 million and above price category dropped 42 percent in October to $2,545,000, while the median closed price for single-family homes in the same price category increased 22 percent to $2,237,000.

"There's been a big increase in showings for high-end homes recently," said Coco Amar, a managing broker at John R. Wood Properties, who pointed out that, geographically, there was a decrease in median closed prices for condominiums in all areas except North Naples in October.

According to Brenda Fioretti, Broker Associate with Berkshire Hathaway Home Services Florida Realty, evidence of bracket creep can be seen in the lower end of the market where some homes once priced below $300,000 have moved into the $300,000-$500,000 price category. "This may also account for some of the lost inventory in the $300,000 and below single-family home market, where demand has always been higher."

The NABOR® October 2017 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® October 2017 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:

 

CATEGORIES

Oct 2016

Oct 2017

CHANGE

Total homes under contract (pending sales) (month/month)

702

623

-11%

Total closed sales (month/month)

556

561

1%

Median closed price (month/month)

$315,000

$342,000

9%

Median closed price >$300K ((month/month)

$459,000

$480,000

5%

Total active listings (inventory)

5,426

5,010

-8%

Average days on market

85

104

22%

Single-family closed sales (month/month)

295

301

2%

Single-family median closed price (month/month)

$375,000

$425,000

13%

Single-family inventory

2,849

2,432

-15%

Condominium closed sales (month/month)

261

260

0%

Condominium median closed price (month/month)

$240,000

$250,000

4%

Condominium inventory

2,577

2,578

0%

 

"Compared to closed sales in September, which dropped 30 percent month over month, October's 1percent increase in closed sales is an indication that we recovered rather quickly from the hurricane, and buyer interest in our market is still very strong," said Adam Vellano, West Coast Sales Manager, BEX Realty - Florida.

Budge Huskey, President, Premier Sotheby's International Realty, agreed and added that "if the hurricane hadn't happened and the market had kept the same pace as it did last September and October, we would have seen 400 more sales and been on track for a 6 percent increase in total closed sales year-to-date."

If you are in the market to buy or sell your home in Southwest Florida, give me a call for assistance. I can do a market comparison and determine a fair and reasonable listing price, both with and without renovations. I can also identify properties best suited for your needs and negotiate a purchase price that fits your budget. Discover more at www.NaplesPropertyPreview.com.

Posted in Market Report
Oct. 28, 2017

Naples FL Market Shows Resilience

Naples, Fla. (October 27, 2017) - The Naples area housing market maintained positive traction during the Third Quarter of 2017 despite enduring a hurricane that impeded activity for three weeks in September. According to the September 2017 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which track home listings and sales within Collier County (excluding Marco Island), there were 398 closed sales during the month of September, a 30 percent decrease compared to September 2016.

 

September proved challenging for the real estate market as homeowners and agents were forced to wait while public and utility services rebuilt or repaired infrastructure damaged by the hurricane. This was reflected in statistics released for September, which affected total outcomes for the Third Quarter of 2017. However, year-to-date numbers tell a different story as activity in pending, closed and median price categories were up year over year at the end of the quarter!

 

To withstand a hurricane and still outperform last year's activity is a clear sign of market resilience.  Broker analysts agreed that our county's hurricane building code standards and quality craftsmanship by local builders helped to greatly reduce the amount of major structural damage in the area.

 

The hurricane hit us in the right month since September is typically when the housing market takes a breath before it begins to intensify again. Yet despite a direct hit by a major hurricane, overall closed sales for the third quarter increased 3 percent (year over year). Not surprisingly, the storm's short-term impact on the housing market in September only tempered sales slightly in the third quarter by 5 percent (quarter over quarter), which translated to just 86 fewer closed sales than in the third quarter of 2016.

 

Activity in July and August outperformed the same months last year. If the hurricane had not hit the area in September, the third quarter of 2017 would have shown much more impressive activity.

 

The hurricane's force slowed inventory in September, which resulted in a third quarter decrease of 9 percent. This was most likely a result of homeowners either delaying to list because they evacuated or removing a listing because they needed time to clean up and make minor repairs to properties following the storm.

 

The hurricane created big concerns and delays from banks too.  Most lenders are requiring re-inspections and re-appraisals of properties after the hurricane.

 

One element the hurricane failed to harm was the continued growth in property value for Naples. Overall median closed prices in the third quarter of 2017 increased 3 percent to $320,000 compared to $312,000 in the third quarter of 2016.

 

The integrity of our real estate market has been renewed now that it survived a direct hit from a major storm like Hurricane Irma.  Even homes built over 50 years ago withstood damage. Our survival actually strengthened buyer confidence.

 

Fortunately, media in most of the core areas where our buyers come from didn't overhype the storm, which helped obscure fears.  This is going to be a very good history lesson for us because the hurricane hit during a time of stable market activity.  By January though, we think our brush with Irma will be forgotten.

 

Sales of existing homes are poised to increase in the coming months too because much of the labor force stepped away from new construction to work for companies that provide a variety of property maintenance, including tree removal and lawn debris cleanup.

 

Material costs for new construction may increase too as there will be shortages across the country due to the hurricanes and fires. Delays in new home construction might spur increases in existing home values, especially if inventory does not keep up with the pace of sales.

 

Compared to other tropical second-home destinations like Puerto Rico, the Southwest Florida housing market fared quite well after it faced a hurricane. Broker analysts believe our area may see an uptick in sales from buyers who had their eyes set on an island home in the Caribbean. 

 

If you are looking to sell your home in Naples, we can help you determine a fair market price for your home and then market your property correctly to appeal to buyers. We can also locate properties that match buyer needs and negotiate a purchase price that reflects the market. Discover more at www.NaplesPropertyPreview.com.

 

 

 

 

Posted in Market Report
Oct. 1, 2017

August Home Sales were Outstanding!

August proved to be an outstanding month for the Naples area housing market with more pending and closed sales than last August.  Sales of 685 homes was impressive for August, up 5 percent compared to August 2016. This was encouraging to broker analysts since inventory increased by only 20 properties compared to August's inventory last year.

 

This turned out to be a great summer for sales in Naples.  Pending sales in August were up 13 percent, overall sales were up 5 percent, and there were some nice surprises in the report that weren’t expected.

 

These surprises included a 75 percent increase in pending sales and a 42 percent increase in closed sales for single-family homes located in South Naples. The August report also showed single-family homes in this geographic area had a 22 percent decrease in median closed price.

 

The condominium market performed just as well as the single-family home market in August, reporting a similar 13 percent increase in pending sales. The Pending Home Sales statistic is a forward-looking indicator that is based on contract signings.

 

We believe that summer's sales activity outpaced last years because of renewed consumer confidence. Buyer traffic continued to exceed expectations in August.

 

The overall median closed price for August was $328,000, a 2 percent increase over August 2016. Geographically, prices in the Naples Beach area continue to rise faster than all other areas tracked. In fact, median closed prices for single-family homes in the Naples Beach area increased 32 percent in August.

 

Median closed price for single-family homes jumped 10 percent in August to $422,000. This initially surprised broker analysts but, as reflected in the report, this figure was heavily influenced by 17 sales in the $2 million and above single-family home market, which saw a 54 percent increase in median closed price. All other price categories in the single-family home market reported median closed price increases of 5 percent or below.

 

However, when taking a long look at closed pricing trends (12-month ending), August's median closed price for single-family homes was $405,000, the same as August 2016. Median closed price actually dropped 5 percent for single-family homes over $300,000 to $510,000 for the 12-month ending August 2017 from $535,000 in the 12-months ending August 2016.

 

Overall inventory for August barely budged with a total of 4,807 homes compared to 4,787 in August 2016. Single-family home inventory decreased 4 percent, while the condominium market saw a 6 percent increase in inventory for August.

 

Inventory for condominiums priced below $300,000 in August increased by 133 units to 1,107 total units available. This was the highest increase (14 percent) of all property types and price categories reported in the month.

 

Statistically, major weather events impact housing market sales, and Hurricane Irma was no exception. There was virtually no activity for almost two weeks following the storm.   We won't truly know the impact of Hurricane Irma on the area's housing market for a few months.  The event presents a great opportunity for sellers to refresh their homes and make them more appealing to buyers before season starts.

 

If you are weighing the pros and cons of renovations to your home following Hurricane Irma before you decide to sell, give me a call for assistance. I can do a market comparison and determine a fair and reasonable listing price, both with and without renovations. I can also identify properties best suited for your needs and negotiate a purchase price that fits your budget. Discover more at www.NaplesPropertyPreview.com.

 

Posted in Market Report
Aug. 25, 2017

Naples FL - July Home Sales were Stellar!

http://www.NaplesPropertyPreview.comNaples, Fla. (August 25, 2017) - REALTORS® in Naples sold more existing homes in July (682) than they did in January (603) or February (613), a statistical reality that busts an old myth that home sales stall in the summer. In fact, overall closed sales in the market's sweet spot (homes priced between $300,000 and $500,000) increased 32 percent in July. Broker analysts reviewing the July 2017 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which track home listings and sales within Collier County (excluding Marco Island), said a 9 percent increase in closed sales during July was very good, but the continued reduction of inventory, especially in the single-family home market, is cause for concern as it limits choices for buyers.

One segment of the market that brokers are watching closely is the $300,000 and below single-family home market, which saw pending sales decrease 24 percent, closed sales decrease 19 percent, and inventory decrease 2 percent in July. In fact, the entire single-family home market is getting stretched thin as inventory tightens. In July, inventory rose just 3 percent overall, but single family home inventory decreased 1 percent.

According to the report, overall median closed prices in July increased 6 percent to $319,000 from $300,000 in July 2016. For homes in the $300,000 and below price category, the median closed price increased only 3 percent to $225,000 from $219,000 in July 2016. And for homes above $300,000, the median closed price decreased 7 percent to $485,000 from $524,000 in July 2016

Many broker analysts reviewing the July report agreed that an increase in conventional sales (homes purchased with financing) is a good sign that first-time homebuyers are gaining a foothold in the market. As such, the July Market Report showed total closed sales were split almost equally between cash sales and conventional sales.

Brokers are optimistic that the third quarter closed sales will finish ahead of the second quarter, and point to activity in the $500,000 to $1 million price category, which saw the overall pending sales increase 44 percent in July from July 2016. "The median closed price went down 16 percent for condos in this $500,000 to $1 million price category. This may be a reflection of smart pricing strategies finally taking hold."

For months, broker analysts and NABOR® have warned against setting unrealistic pricing, a strategy that many brokers, said can "hurt a homebuyer because a home is often overlooked if it's overpriced."

High prices are a strategy that can work in an accelerating market, but it's risky. A home might sit for months without an offer and sellers typically end up marking the price down, perhaps lower than it should have sold for in the first place. A licensed REALTOR® uses real-time MLS data that can help a seller hit the sweet spot when setting the listing price: a price that's high enough to reflect the home's value, but attractive enough to gain buyer attention and get it sold quickly.

Another segment that brokers are watching closely is the number of days on the market it takes for a property to sell, which is on the rise and hit 105 days in July. One reason for this could be cosmetic. "Many homebuyers are looking for a coastal, contemporary look, not the Mediterranean or Tuscan look that dominates much of the existing home market and appears dated. Sellers must either consider making renovations to meet the light, coastal look buyers want or reducing the home's price in order to stay competitive with the new construction product that reflects this new coastal, contemporary style.

The NABOR® July 2017 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® July 2017 sales statistics are presented in chart format, including these overall (single-family and condominium) findings: 

Geographically, pending and closed sales activity in South Naples in July outperformed all other areas, showing a 36 and 35 percent increase, respectively. With respect to property type, single-family homes in North Naples saw the most impressive activity in its pending and closed sales (23 and 45 percent, respectively); possibly as a result of a 14 percent decrease in its median closed price and a 3 percent decrease in its inventory.

"Because inventory dropped 1 percent in the single-family home market in July, this may be the first sign that we are not far from a shift in the market," said Cindy Carroll, SRA, with the real estate appraisal and consultancy firm Carroll & Carroll, Inc., who went on to add, "the housing market is cyclical, and the rate of inventory increase has been trending down since December. If this behavior continues and we go below our lowest inventory point (3,563), which was in July 2014, I predict we'll shift from a buyer's to a seller's market and probably start to see prices increase again."

If you are in the market to buy or sell your home in Southwest Florida, visit www.NaplesPropertyPreview.com or call me direct at 239-821-2370. 

 
Posted in Market Report
June 23, 2017

Naples Real Estate Shines in May

Naples, Fla. (June 16, 2017) - Overall closed sales of homes in May shined brighter than any other month previously reported in 2017, with an impressive 23 percent increase to 1,027 closed sales in May 2017 from 838 closed sales in May 2016. Likewise, overall pending sales (homes under contract) also outperformed activity reported in the last four months. It’s obvious that real estate agents will be very busy this summer.

If May's momentum continues, this year should turn out better than last year.  Home sales during the summer months have become stronger over the past few years. We are no longer seeing a huge disparity in activity between winter and summer like we once did.

One familiar obstacle summer buyers will face again this year is a reduction in available inventory. Whereas the market saw a 26 percent increase in inventory in January 2017 to 6,393 homes from 5,091 in January 2016, the May report showed only a 4 percent increase to 5,404 homes in May 2017 from 5,207 homes in May 2016. Inventory increases are leveling off. Many broker analysts who track market activity, report that they have witnessed upwards of 900 listings disappear from the Southwest Florida MLS since May 1st. 

Those who let a listing expire at the end of our winter season are missing a huge opportunity to sell their property during the summer months.  Our area attracts a variety of buyers during the summer such as international travelers, families from Northern states, and those relocating from other parts of Florida.

Comparatively, the overall median closed price decreased 8 percent in January, while the May report showed an increase of 5 percent to $355,000 in May 2017 from $338,000 in May 2016. Incidentally, January's median closed price was $314,000. If the logic behind removing a listing at the end of season is based on old beliefs that a property will obtain a higher sale price during the winter months, then sellers need to examine the May statistics more closely. According to NABOR reports, there were 424 more closed sales during May than January.

Buyers during the summer seem to be more serious.  In season, we get a lot of traffic, but it's mostly lookers. In the summer, people are ready to buy. They ask real buyer questions, and most often have financing in place.

Activity in the $2 million and above price category has really picked up strength this year. As reflected in the report, overall pending sales in the $2 million and above price category increased 52 percent in May. There were also 78 closed sales of homes in this price category in May 2017, up from 36 closed sales in May 2016. And while the overall median closed price for homes above $300,000 increased 8 percent to $590,000 in May 2017 from $547,000 in May 2016, the overall median closed price for this top reported price category decreased 8 percent to $2,950,000 in May 2017 from $3,220,000 in May 2016. 

The May report also showed overall inventory increased 4 percent to 5,404 homes in May 2017 from 5,207 homes in May 2016. Homes in the $300,000 and below price category had the highest inventory increase of all other price categories, reporting a 12 percent increase to 1,551 properties in May 2017 from 1,391 properties in May 2016. While still an increase over last year, the rate of the market's overall inventory increase is tempering. In fact, brokers are concerned that housing options in some geographic areas, such as in the Central Naples single family market, may start to pinch sales as this area experienced a 50 percent increase in single-family closed sales during May, but had only an 8 percent decrease in inventory.

The NABOR® May 2017 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® May 2017 sales statistics are presented in chart format, including these overall (single-family and condominium) findings: 

CATEGORIES

May 2016

May 2017

CHANGE

Total homes under contract (pending sales)

921

1,027

12%

Total closed sales

838

1,027

23%

Median closed price

$338,000

$355,000

5%

Median closed price >$300K

$547,000

$590,000

8%

Total active listings (inventory)

5,207

5,404

4%

Average days on market 

73

98

34%

Single-family closed sales

396

485

22%

Single-family median closed price

$432,000

$435,000

1%

Single-family inventory

2,744

2,734

0%

Condominium closed sales

442

542

23%

Condominium median closed price

$276,000

$289,000

5%

Condominium inventory

2,463

2,670

8%

 

Buyers who are looking for a condominium in the Naples Beach or North Naples area this summer may encounter some challenges as these areas are running low on inventory.  In North Naples there was a 47 percent increase in closed sales of condominiums during May, a 26 percent increase in pending sales of condominiums during May, and only a 9 percent increase in inventory. The situation is even more alarming on the beach, as both pending and closed sales of condominiums increased by double digits, but its inventory rose only 1 percent in May. 

If you currently have a home for sale in the Naples market, brokers recommend against terminating the listing during the summer. In fact, there were 875 closed sales in June 2015 and 832 closed sales in June 2016, both higher than the number of closed sales in January (603) and February (613) of 2017. 

As a highly desirable second-home location that rarely falls below 70 degrees, Naples will always increase in population during the winter months and then decrease during the summer. But according to county growth reports, the permanent residential population in Naples is also growing steadily. When asked, several brokers say that a large majority of the next season's part-time residents, along with a host of new permanent transplants, prefer to do their home buying during the summer. So before you pull your home off the market, give us a call so we can help you market your property correctly to appeal to summer buyers. We can also locate properties that match summer buyer needs and negotiate a purchase price that reflects the market. Discover more at www.NaplesPropertyPreview.com

 

Posted in Market Report