Naples Property Preview Blog

 

June 25, 2022

Inventory Heating Up is Good News for Summer Buyers

Downtown Naples Condos For Sale

Naples, FL (June 24, 2022) – During a meeting to review the May 2022 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), long-time Naples broker Bill Coffey, Broker Manager of Amerivest Realty Naples, remarked that, “May had the highest number of new listings than any May in the last three years.” Fellow brokers who also analyzed the May report are pleased with this trend as it will lead to more options for summer buyers. New listings during May pushed the inventory of homes for sale up 58.6 percent to 2,046 properties compared to 1,290 properties in May 2021.

 

“Inventory has been rising since December,” said Jeff Jones, Broker at Keller Williams Naples. “By the end of May, our inventory in Naples has nearly doubled since the same time a year ago. And if you include the 889 homes that had a price reduction in May to this inventory mix, then we’re in good shape heading into summer. Price reductions are basically like new listings because the home’s new price point becomes a new opportunity to a larger pool of buyers.”

Though many of the brokers reviewing the report warn against comparing activity today to activity in the last two years. “If you look at the percentage of home sales since January compared to last year, it appears we are doing poorly [-32.5%],” said Budge Huskey, CEO, Premier Sotheby’s International Realty. “But 2021 was not a typical year for home sales in Naples. We had record level sales last year. However, we also can’t compare activity today to 2020 because during the first half of that year, the country was under pandemic restrictions which caused sales to suffer.”

As such, brokers prefer to compare this year’s activity to activity in 2019 as it was a balanced year with 7.3 months supply of inventory. “A healthy market for us is six to 12 months of inventory,” said Brenda Fioretti, Broker Associate at Berkshire Hathaway HomeServices Florida Realty.

Looking at closed sales, there was a 24.5 percent decrease in May to 1,249 closed sales from 1,654 closed sales in May 2021. However, using 2019’s balanced market activity as a comparison, closed sales increased 7 percent month/month and 18 percent year to date/year to date. Demand remains strong despite having three times fewer options in inventory compared to 2019 levels. Today, we have 1.9 months supply of inventory.

Not surprisingly, low supply and high demand are driving price increases in Naples and across the nation. “Macro factors are now impacting the pace of sales, but the fundamentals suggest values will be insulated,” added Huskey. “In fact, home prices have historically outpaced the rate of inflation.”

And while new construction is adding to the inventory, it’s not at a rate that will triple the inventory anytime soon.

The overall median closed price increased 40.3 percent in May to $608,000 from $433,500 in May 2021. Jones responded, “Median closed price increases today are somewhat misleading. If we look at closed sales by price range, the $300,000 and below market is down 56 percent. That’s because we have few homes in inventory within this price category anymore. Therefore, a huge drop in the number of sales in the lower price categories means the calculation used to determine today’s median closed price reflects sales in those price categories where there is more inventory.”

“Since January, we’ve seen a 21.9 percent increase in the number of homes sold in the $500,000 to $1 million price category,” added Coffey.

The NABOR® May 2022 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. NABOR® sales statistics are presented in chart format, including these overall (single-family and condominium) findings for 2022:

 

“First-time homebuyers may be hesitant to jump into the market today because of rising interest rates,” said Fioretti. “But it’s important to point out that rates are expected to go up again before the end of the year. Locking in today at six percent on a 30-year fixed mortgage should not be seen as a 30-year commitment as refinancing is always an option if or when rates decrease in the future.”

Wes Kunkle, President and Managing Broker at Kunkle International Realty, added that, “There’s a whole generation of new home buyers that have never seen rates this high before. But historically, rates have rarely gone below six percent. Aside from locking in at a rate before it increases, another advantage of buying a home today is that these buyers will be able to take advantage of the mortgage interest deduction on their income taxes.”

Closed sales were down slightly in the high end of the market in May, but this might be due to buyer reluctance to move cash out of the stock market right now. Notwithstanding, cash sales commanded 63.3 percent of closed sales in May, though brokers reviewing the report contend they are seeing more opportunities for buyers choosing to finance their purchase.

If you're 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 or call Susan Sanderson at 239-821-2370

 

Posted in Market Report
May 25, 2022

Signs Show Naples Housing Market is Regaining Balance

North Naples Homes For Sale

Naples, FL (May 23, 2022) – Overall inventory in Naples during April increased 16.5 percent to 1,668 properties from 1,432 properties in April 2021. Fueled by a swell of new single-family home listings, up 5.7 percent over last year, broker analysts reviewing the April 2022 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), are confident the Naples area housing market has reached a crossroad and is making its turn toward a balanced and healthy market.

 

“It’s been thirty months since we’ve seen this many single-family home sellers enter our market in one month,” said Bill Coffey, Broker Manager of Amerivest Realty Naples. Coffey, along with several top brokers in Naples, say the shift indicates the Naples area housing market is redefining itself. Another major factor that signified the market was self-correcting to a new normal in April were the 549 price reductions (33 percent of the inventory) during the month.

“What we are seeing today are more sellers setting realistic list prices from the start and more buyers less willing to settle for homes that don’t meet their exact needs and desires,” said Brenda Fioretti, Broker Associate at Berkshire Hathaway HomeServices Florida Realty, who added that the report showed “we now have 1.5 months of inventory, the highest level since March 2021.”

Demand for the Naples lifestyle remains strong. Days on market for April was 16 days, considerably less than the historic 90-day average. As inventory begins to rise, days on market may increase and list prices in some neighborhoods may shift down slightly; but broker analysts agree that we should not expect home prices to drop to anywhere near pre-pandemic levels.

“There is virtually no data in the MLS for home sales below $300,000,” said Molly Lane, Senior Vice President at William Raveis Real Estate.

Coffey remarked that the $300,000 and below market was once the biggest category for closed sales in Naples. But rapid sales during the last 18 months severely depleted inventory in this price category. As such, there were only 96 properties below $300,000 in April’s inventory.

The overall median closed price in April increased 39.2 percent to $599,000 from $440,000 in April 2021. The uptick reflects the low number of sales in the $300 and below price category. Median closed prices continue to rise in the single-family home market, up 8.7 percent from March, but median closed prices during April in the condominium market decreased 1.1 percent from March.

The NABOR® April 2022 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. NABOR® sales statistics are presented in chart format, including these overall (single-family and condominium) findings for 2022:

 

Even though inventory rose 39.5 percent in the single-family home market during April, pent up demand for this property type did not temper its median closed price. “When inventory rises, buyers have more options. If inventory continues to rise, it should create more balance during negotiations between sellers and buyers,” said Dominic Pallini, Broker at Vanderbilt Realty.

Rising mortgage rates are likely reducing the number of buyers who can get pre-qualified for a home purchase in Naples, but it did not negatively impact buyer interest during April. In fact, there were over 200 more showing appointments during the month than reported in March, and 66.7 percent of all closed sales in April were cash sales.

Many brokers, including Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., recommend buyers place back-up offers because over 600 properties that went pending were put back onto the market in the last two months. “This is encouraging news for summer buyers as a back-up offer could win the day for them.”

If you're 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 or call Susan Sanderson at 239-821-2370

Posted in Market Report
April 27, 2022

Rising Inventory Encouraging

Park Shore Properties For Sale

Naples, FL (April 22, 2022) – Demand for the Naples lifestyle remains strong as closed sales in March increased 49.9 percent compared to closed sales reported in February. Although closed sales decreased 36.5 percent to 1,205 in March 2022 from 1,899 in March 2021, the increase from February to March was a welcome result of a steady wave of new listings. According to the March 2022 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), new listings decreased only 4.3 percent to 1,637 new listings from 1,711 new listings in March 2021. If this wave of new listings remains steady during the coming months, it could mean more options for buyers navigating the area’s limited inventory.

“New listings are almost where they were a year ago,” said Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc. “Overall, the report showed new listings have risen since the end of last year, over a three-month period.”

The March report showed inventory decreased 23.5 percent to 1,392 properties from 1,819 properties in March 2021. However, the good news is that March inventory increased 20 percent compared to inventory levels NABOR® reported in February (1,176 homes). More homes for sale in March meant sellers enjoyed 43,206 showings that ultimately inspired 1,611 pending sales (homes under contract). The median closed price continued to increase in March, up 39.6 percent to $575,000 from $412,000 in March 2021, and 62.7 percent of the month’s closings were cash sales.

Upon reviewing the report, Molly Lane, Senior Vice President at William Raveis Real Estate, said, “As winter visitors go back up north, it’s likely we’ll start to see more new properties come onto the market as homeowners and landlords will want to cash out and take advantage of their ability to make a profit.”

The NABOR® March 2022 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. NABOR® sales statistics are presented in chart format, including these overall (single-family and condominium) findings for 2022:

The March report showed about a third of the homes for sale (417) decreased in price during the month. Broker analysts reviewing the report said the list price reduction reflects a typical scenario wherein sellers list their property with a high price at the beginning of winter season and then reduce it as Easter approaches (historically considered to be the end of Southwest Florida’s high visitor season) with the hope of selling their property before season ends.

“There were 51 percent more price decreases in March than February,” said Ryan Bleggi, President of NABOR® and Managing Broker for John R. Wood Properties. “That means a good number of homes were not priced properly when they were originally listed.”

Mike Dodge, Director of Education and Market Research for John R. Wood Properties, pointed out “This could be good timing for potential sellers who have been reluctant to list due to concern about finding a replacement property. Listing now could reap the benefits of selling in an up market, but also the benefit of a market where recent increases in listing inventory should lessen the stress of finding a property to purchase.” 

Adam Vellano, a Naples Sales Manager at Compass Florida, agreed and replied by stating, “The trend to list a home at $25,000 to $75,000 over comps is beginning to fade. Pricing should reflect, among other things, the location of the property and volume of homes for sale nearby.”

Hughes added, “In this rapidly fluid market, it’s very hard for homeowners to price a property without assistance from a REALTOR® with knowledge of the Naples market. For example, the March report showed days on market for condominiums dropped to 13 days. When properties sell and close that quickly it provides a good collection of comps for REALTORS® to access as they help a new seller set a good listing price. A qualified REALTOR® can help a seller price the home competitively to begin with so they can avoid a need to reduce the price or wait a long time for their property to sell.”

If you're 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 or call Susan Sanderson at 239-821-2370

Posted in Market Report
March 26, 2022

Sellers are Taking Advantage of Home Values ?Hitting Record Highs

Isles of Collier Preserve Homes For Sale

Naples, FL (March 25, 2022) – More sellers are motivated to enter the market as home values continue to rise as a result of limited inventory and high demand in the Naples area. According to the February 2022 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), the overall median closed price in February was $550,000, a 37.5 percent increase over the median closed price in February 2021. The high demand for homes is demonstrated by the number of showings in February, which was 43,032. When divided by the number of homes in inventory during February (1,176), this translates to 36 showings per home. For perspective, in 2019 there were 2.9 showings per home. The data also shows that homes sold fast in February, within 23 days on the market, and the percent of list price received was 100.6 percent, which pleased many sellers.

“Twenty-five percent of the homes that went under contract in February came back onto the market within 20 days on average during February,” said Jeff Jones, Broker at Keller Williams Naples.

To take advantage of this occurrence, Jones suggests buyers use a very important tool in real estate: the back-up offer contract. A back-up offer can be placed on any property when that property is already under contract with another buyer. But in today’s market, there is a higher likelihood that the first offer may not stick so a back-up offer is a smart tool for buyers right now.

Brenda Fioretti, Broker Associate at Berkshire Hathaway HomeServices Florida Realty, agreed with Jones and added, “Before the pandemic, we had a 3 to 5 percent back-on-market rate monthly. But things are different today. We are seeing some good success stories when back-up offers are used.”

Fioretti went on to explain that a back-up offer contract – if recommended by a REALTOR® and approved by the seller – may not require a deposit and the buyer can keep searching for a home to purchase until they either become the primary buyer on the first home or cancel the back-up offer. For the seller, back-up offer contracts can provide confidence. In such cases, if a buyer asks to renegotiate, the seller has leverage because they have a back-up offer. Additionally for sellers, back-up contracts allow them to avoid having to re-list the home and start showing it again.

While inventory during February decreased 47.1 percent to 1,176 homes from 2,224 homes in February 2021, brokers reviewing the report like Molly Lane, Senior Vice President at William Raveis Real Estate, say the real inventory number is actually higher because the report doesn’t capture the number of off-market listings. “Because new listings are a hot commodity these days, they often don’t make it to the MLS until after they are sold. Sales are happening so fast that transactions in the ‘shadow inventory’ (homes that are not yet for sale but will be coming to market in the future) are more common than ever before.”

The median closed price in February increased 37.5 percent to $550,000 from $400,000 in February 2021. But according to Dominic Pallini, Broker at Vanderbilt Realty, he believes that prices are beginning to stabilize. “The median closed price only increased .2 percent from January to February, and the report shows February had more price decreases [276] during the month than price increases [170].”

Closed sales in February during the years leading up to the pandemic (2017-2019) averaged in the low 600s, but demand for the Naples lifestyle and the amenities living in paradise offer have driven buyers to the paradise coast in record numbers in recent years. It is only due to a lack of inventory that home sales in Naples did not fare as well as last February. While overall closed sales decreased 39.5 percent to 804 in February from 1,330 in February 2021, Bill Coffey, Broker Manager of Amerivest Realty Naples, pointed out that the report showed “the only area where we are seeing a decrease in closed sales over the last year is in the $300,000 and below price category.”

Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., pointed out that it’s “slim pickins’” for first-time home buyers as the report showed “there were only 26 single family homes on the market during February that were in the $300,000 and below price category.”

The NABOR® February 2022 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. NABOR® sales statistics are presented in chart format, including these overall (single-family and condominium) findings for 2022:

 

There are several other key performance areas within the February report, month/month, that are worthy of mention:

1,261 – The number of new listings added to the existing inventory

69.7% – The percentage increase in median closed price for properties located in 34113

$1,161,203 – The average closed price for single family homes (+5.3%)

5% – The percentage increase in overall closed sales in Central Naples (34104, 34105, 34116)

4 – The number of months in a row that condominiums have sold for over 100% of list price

46% – The percentage decrease in median closed price for single-family homes in the Naples Beach area (34102, 34103, 34108)

“The process and complexity of real estate has changed,” said Budge Huskey, CEO, Premier Sotheby’s International Realty. “Having a REALTOR® on your side is the best way to ensure your interests are met and that you understand what to expect when you buy or sell a home in Naples.”

If you're 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 or call Susan Sanderson at 239-821-2370

Posted in Market Report
Feb. 26, 2022

Low Inventory & High Demand Continues to Push Home Prices Up in January

Naples, FL (February 25, 2022) – A 34.5 percent increase in new listings sparked 19,277 more showings during January compared to new listings and showings reported in December 2021. While an increase in new listings demonstrates a solid start for the real estate market this year, low inventory continues to harness the market’s potential. As a result of tight inventory, January sales activity could not meet the level of sales activity reported in January 2021. Historically, month to month sales activity during season ascends through April. But according to broker analysts reviewing the January 2022 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), a 74.9 percent decrease in inventory for January to 1,122 homes from 4,474 homes in January 2021 will not provide the same level of sales transactions that occurred last season.  

 

“Low inventory does not mean there are not opportunities for buyers in 2022,” said Ryan Bleggi, President of NABOR® and Managing Broker for John R Wood Properties. “In fact, as expected at the start of season, there was an increase in new listings during January compared to December, so buyers could explore an inventory that included 1,272 new listings.”

Those new listings translated to a 32 percent increase in pending sales to 1,373 pending sales during January compared to 1,038 pending sales reported in December.

“Cash sales exceeded 63 percent in January which is a good sign and proof that there is plenty of equity in the market,” said Adam Vellano, a Naples Sales Manager at Compass Florida. “Buyer demand has not slowed down and we’re seeing a rise in multiple offer situations as well as homes selling for above list price.”

The overall median closed price increased 39 percent in January to $549,000 from $395,000 in January 2021. The condominium market continued to report sales at an above list price trend for the second month in a row, and a 47.2 percent increase in median closed price in January to $427,000 from $290,132 in January 2021. The median closed price for single-family homes rose 25.1 percent in January to $675,000 from $539,500 in January 2021.

With less than a one-month supply of homes, closed sales during January could not realize the level of activity it experienced a year ago and decreased 27.9 percent to 818 closed sales from 1,134 closed sales in January 2021. Pending sales – which reflect the number of new homes under contract – decreased 37.9 percent to 1,373 from 2,210 in January 2021; but, as mentioned above, pending sales in January increased by 335 contracts (32 percent) compared to pending sales reported in December 2021 (1,038).

Molly Lane, Senior Vice President at William Raveis Real Estate, remarked that “if you’re a buyer, don’t expect to negotiate price in this tight market. Homes are being sold at full price or above list price and often without contingencies. I recommend working with a REALTOR® because they have the ability to help a buyer determine whether a home is priced competitively. I also recommend sellers work with a REALTOR® to price their homes right so a majority of offers can begin at full list price.”

The NABOR® January 2022 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. NABOR® sales statistics are presented in chart format, including these overall (single-family and condominium) findings for 2022:

 

New lending rules from Fannie Mae and Freddie Mac go into effect April 1st and add more requirements from those purchasing a second home or condominium. According to Wes Kunkle, President and Managing Broker at Kunkle International Realty, “Some condominium associations are changing their bylaws to prohibit renting within the first year of ownership, which discourages investors.”

Buying or selling a home in Naples is a big and fast-moving endeavor. That is why there has never been a more important time to work with a REALTOR® who can help you write a good contract that protects you and gets the paperwork in order so your sale or purchase goes smoothly. “I know a buyer who didn’t make the deposit on time and the seller cancelled the contract and took a back-up offer for $40,000 more,” said Vellano. “A good REALTOR® can help you avoid situations that might threaten a good opportunity.”  

Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., admitted that regardless of when the current seller’s market ends, “Collier is running out of land to develop.” Vellano added that, “Buyer demand is not likely to slow down anytime soon because homes in Naples are still much more affordable than homes in other parts of the country like California, New York and Chicago.”

“I don’t know if we’ll see another 39 percent increase in median closed price year over year this year,” said Dominic Pallini, Broker at Vanderbilt Realty, “but we’re in a unique area of the world where there are buyers willing to pay to be here.”

We encourage the following groups of homeowners to consider listing their properties now if they want to maximize profits before the market changes:

Owners of rental property that require substantial maintenance and who could gain the same or more profit from investment dividends

  • Older homeowners whose future plans include living in a retirement or assisted living community
  • Empty nesters who don’t require a large single-family home anymore
  • Second-home owners who would enjoy a profit and can purchase a Naples home closer to retirement

If you're 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 or call Susan Sanderson at 239-821-2370

Posted in Market Report
Jan. 27, 2022

Home Sellers Capitalized on Surging Buyer Demand in 2021

Naples, FL (January 27, 2022) – Demand for the Naples lifestyle eclipsed all expectations and helped to break several home-sales records in 2021. The year ended with a 25.8 percent increase in overall closed sales and a 20.3 percent increase in median closed price (year over year). Broker analysts reviewing the December and Year End 2021 Market Reports released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), agree that the Naples housing market is going through a transformation and the last 18 months of record sales activity will not be sustainable in 2022. They strongly urge that sellers and buyers work with a local REALTOR® to help them navigate transactions smoothly with the least obstacles.

 

 

Sellers of homes located in Naples capitalized on a long wave of pent-up buyer demand in 2021, a year that exceeded many NABOR® records, including over $17 billion in home sales, a 52 percent increase from 2020. The closed sales momentum reached its zenith just as summer arrived but began to dim when inventory could no longer meet the rapid pace of demand during the second half of 2021. As a result, there were 20 percent fewer closed sales (6,109) from July to December than January through June (9,414).

According to NABOR®’s Market Reports, 487,677 showings and 15,523 closed sales occurred in 2021. Strong buyer demand devoured the inventory, resulting in a 76.6 percent decrease in the number of homes for sale to a record low of 1,042 properties from 4,462 properties at the end of 2020. Strong buyer demand and a declining inventory influenced the median closed price (year over year) during 2021, which increased 20.3 percent to $445,000 from $370,000 in 2020.

“The number of units are declining because of the basic fundamentals of supply and demand,” said Budge Huskey, CEO, Premier Sotheby’s International Realty, who added, “most brokers are confident the values we gained in 2021 will hold and may increase, even if at a slightly slower pace.”

Rising home values in Naples inspired many sellers in 2021, as reflected in the 17.4 percent annual increase in average closed prices to $807,695 from $688,091 in 2020.

Adam Vellano, a Naples Sales Manager at Compass Florida, agreed with Huskey and added, “Just because the number of closed sales are declining does not mean that interest in our market is declining. Demand in our market is still very high. We just don’t have the inventory to meet the high demand right now.”

The likelihood of Naples increasing its inventory four-fold in 2022 to meet the level we enjoyed in the beginning of 2021 is unlikely according to Bill Coffey, Broker Manager of Amerivest Realty Naples, who was quick to point out, “We’re going into 2022 with 3,000 fewer listings than 2021.” Coffey urges homeowners to sell now before interest rates rise. “When the Fed starts to adjust rates this year, the new rates may prevent buyers from affording a mortgage or high monthly mortgage payments.”

Jeff Jones, Broker at Keller Williams Naples, agrees that “there’s never been a better time to sell in Naples,” and recommends that “sellers work with a local REALTOR® to obtain an in-depth market analysis [an accurate valuation of their homes] to secure the maximum return.”

Spencer Haynes, Vice President of Business Development and Broker with John R. Wood Properties, said, “Demand for the Naples lifestyle is fueling the price increase. But my father always told me ‘An elevator goes up and down, but it also stops to let people on and off. Eventually, some of these people must decide whether and when they want to get back on or not.’ 2022 is a good time to get back on. There are many other towns in America that went through what our area is experiencing today: high demand and low supply. Naples has become a desirable place to live and until there’s a shift in what people want, we should expect to continue to see this level of demand.”

During 2021, pending sales listings increased 14.8 percent to 18,664 pending sales from 16,254 pending sales during 2020. However, like closed sales activity, much of the pending sale activity occurred during the first half of the year when inventory was more plentiful.

The NABOR® December and Year End 2021 Market Reports provide comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. NABOR® sales statistics are presented in chart format, including these overall (single-family and condominium) findings for 2021: 

 

Brenda Fioretti, Broker Associate at Berkshire Hathaway HomeServices Florida Realty, and Molly Lane, Senior Vice President at William Raveis Real Estate, encourage specific groups of homeowners to list their properties now to maximize their profits and achieve their intended home goals:

  • Owners of rental property who might have lost money during the pandemic or are tired of being a landlord and want to cash out
  • Older homeowners whose future plans include living in an adult and/or assisted living community and want to sell, bank their profit and move to a retirement community
  • Married couples who are no longer raising children that require a large single-family home and are ready to downsize with the profit from the sale of their large home
  • Second-home or seasonal homeowners who would prefer a profit in the bank now and can purchase a Naples home closer to retirement

Broker analysts agree that pandemic-induced changes to housing needs and preferences that began in the fall of 2020 contributed greatly to heightened buyer demand during 2021. Only during July and August, when families with children tend to relocate, did closed sales of single-family homes outpace condominiums during the year. The data indicates that home-type preferences shifted in 2021 to condominiums, as shown by an increase in closed sales of 37.2 percent to 8,206 condominiums from 5,979 condominiums in 2020. Condominiums in the $500,000 to $1 million price range reported the highest increase (97.8 percent) in closed sales compared to all other home types and price ranges tracked by NABOR®. Furthermore, while the overall percent of current list price received rose to 98.6 percent in 2021, during November and December this figure was reported to be over 100 percent in the condominium market.

Geographically, closed sales of condominiums in Immokalee/Ave Maria reported the highest gain, 72 percent in 2021. Median closed prices for condominiums in Central Naples (34104, 34105, 34116) during 2021 increased 15 percent to $230,000 from $200,000 in 2020. And there was only a 1.1 percent decrease in new listings for single-family homes in East Naples (34114, 34117, 34120, 34137) in 2021 to 2,438 homes from 2,466 homes in 2020.

If you're 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 or call Susan Sanderson at 239-821-2370

Posted in Market Report
Dec. 23, 2021

Naples Lifestyle Continues to Fuel Demand

Golf Course Homes For Sale

Naples, FL (December 22, 2021) – Pre-season buyers descended on the Naples real estate market in November pushing the area’s overall inventory down 76.1 percent to 1,198 homes from 5,006 homes in November 2020. Demand for the Naples lifestyle during November also influenced the median closed price which increased 31.3 percent to $499,000 from $380,000 in November 2020. Broker analysts reviewing the November 2021 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), predict buyer demand to continue as homeowners in Northern states seek lifestyles with fewer COVID-19 restrictions and international buyers seek investments in the U.S. real estate market.

 

REALTORS® across the Naples area are working harder than ever to find homes for clients as indicated by the 31,291 showings in November and 70 percent decrease in days on the market to 24 days until pending from 80 days.

Although the overall median closed price continued to rise due to a tight inventory in November, it should be noted that – in the last 12-months ending November 2021 – 57 percent of closed sales in Naples were for homes priced below $500,000.

“We’ve had strong pending sales for the past few months, but those are beginning to wane now that we are reaching parity in this situation,” said Budge Huskey, CEO, Premier Sotheby’s International Realty. “The variance in new listings this November versus last November is related to closed sales because the market is trying to find the right balance. The problem is that new listings can’t carry all this demand alone.”

New listings in November fell 22.9 percent to 958 homes from 1,242 in November 2020. The lack of inventory will become a challenge for REALTORS® in 2022 as demand is expected to remain steady with no inventory surplus expected. “Year over year business growth like we saw last year is just not feasible in today’s market,” said Adam Vellano, a Naples Sales Manager at Compass Florida. “But our issue is exactly what all other industries are facing right now: Supply. We are simply becoming the store that is selling out of inventory.”

Vellano added that he’s heard new-home builders are facing similar obstacles with lack of building supplies in the area. As such, a backlog of newly constructed homes likely means we won’t see new home inventory rise to assist with demand anytime soon either.

"As demand continues to outpace supply, REALTORS® should expect to work harder in 2022 to stay on top of new listings because they’ll need to guide clients through the negotiation process in hours not days,” said Vellano.

Molly Lane, Senior Vice President at William Raveis Real Estate, agreed and added, “If you’re a buyer and expect to find a home that fits your needs without a REALTOR®, you’re going to be looking for a long time. New listings today barely make the MLS without already having a contract. An experienced agent knows the market well and will help you maneuver and negotiate fast. A lot of the work to get you into a Naples home right now needs to be done before a home is available. For example, understanding your cash sale limits, helping you get pre-approved for financing, and discussing what contingencies you might expect, and what liabilities you may incur. It’s a seller’s market, so agents need to coach buyers on the realities of buying a home in our market today.”

“Working with a REALTOR® is equally important for sellers because REALTORS® have the experience and resources necessary to find greater opportunities in an open market,” quipped Vellano. “There are enough people looking for homes in Naples today that will pay full-list price if they know it is priced right.”

The NABOR® November 2021 Market Report provide comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. NABOR® sales statistics are presented in chart format, including these overall (single-family and condominium) findings: 

 

According to Brenda Fioretti, Broker Associate at Berkshire Hathaway HomeServices Florida Realty, “Our area is still considered undervalued compared to many other desirable markets in America, so waiting for prices to drop in Naples is not a good strategy for homebuyers.” Fioretti was quick to also point out that “for the first time since NABOR® recorded market data, the overall percent of current list price received for condominiums exceeded 100 percent in November.”

The median closed price for condominiums in November was $375,000 compared to $622,000 for single-family homes. This level of affordability might account for condominium inventory decreasing 85 percent during November compared to a 65 percent decrease in single-family home inventory.

If you're 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 or call Susan Sanderson at 239-821-2370

SELLING |  BUYING  | BEACHFRONT  |  BUNDLED GOLF  | PRIVATE GOLF  |  BOATING  | NEW HOMES  |

Posted in Market Report
Nov. 23, 2021

Tight Inventory and High Demand Continues

Luxury Golf Course Homes For Sale

Naples, FL (November 23, 2021) – Home sales were bridled by low inventory during October, but new listings are on the rise according to the October 2021 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). Overall closed sales for October decreased 32.1 percent to 858 closed sales from 1,263 closed sales in October 2020. But irrespective of the home buying frenzy that took place during the second half of 2020 (including October 2020), closed sales in October were historically higher than average for a typical October in Naples, even with the lowest inventory level on record by NABOR®.

 

The overall median closed price in October increased 16.9 percent to $450,000 from $385,000 in October 2020. The COVID-19 pandemic affected buying behaviors and sales of single-family homes outpaced condominiums as people sought more open space in 2020; but those buying behaviors have now shifted. While overall inventory decreased 76.1 percent in October to 1,240 properties from 5,181 properties in October 2020, condominium inventory decreased 84.4 percent in October. As such, there were nearly half as many condominiums (435) available compared to single-family homes (805) at the end of October. Not surprising, the median closed price for condominiums increased 31 percent to $370,000 from $282,500 in October 2020, while the median closed prices for single-family homes increased 18.8 percent to $615,000 from $517,750 in October 2020.

“Closed sales are down for one reason: we just don’t have the inventory,” said Molly Lane, Senior Vice President at William Raveis Real Estate. “But that doesn’t necessarily mean prices will keep rising at the rate we saw this past year. 

Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., commented, “In the past, if you couldn’t find a home to buy, you’d just rent for a while until something came along. But there are few rentals today and this is exacerbating the low inventory issue because sellers can’t just pick up and move when their home sells. A REALTOR® can help them develop a plan that includes finding a place to live once their home sells.”

The NABOR® October 2021 Market Report provide comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. NABOR® sales statistics are presented in chart format, including these overall (single-family and condominium) findings: 

 

According to Spencer Haynes, Vice President of Business Development and Broker with John R. Wood Properties, “There were fewer homes over $1 million coming onto the market in October than in previous months. In fact, we saw more new listings of homes on the lower end and further east become available. Hopefully, the rush of seasonal visitors will bring more sellers with high-end properties to the table.”

“It’s impossible for a home buyer or seller to keep their pulse on the market without a REALTOR®,” said Adam Vellano, a Naples Sales Manager at Compass Florida. “For sellers, a REALTOR® can often negotiate a higher closed price than what they could have received on their own because a REALTOR® can interpret the MLS, evaluate purchase offers, and take steps to maximize their return. For buyers, a REALTOR® can help them find the right home, carefully craft an offer, and quickly maneuver through negotiations, escalation clauses, and closings.”

If you're 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 or call Susan Sanderson at 239-821-2370

Posted in Market Report
Nov. 16, 2021

NAR Economist Yun: Housing Market May Normalize in 2022

Forecasts always include caveats that may upend predictions, but NAR’s Lawrence Yun says the market is hot right now – and he sees more of the same in 2022. While next year’s sales may not surpass 2021 numbers, he expects a banner year compared to those before the pandemic.  

 

SAN DIEGO – The outlook for the residential real estate market, which performed exceptionally well during the height of the pandemic, continues to be promising, according to NAR Chief Economist Lawrence Yun, speaking during the National Association of Realtors® (NAR) convention.

“All markets are seeing strong conditions and home sales are the best they have been in 15 years, Yun said. “The housing sector’s success will continue – but I don’t expect next year’s performance to exceed this year’s.”

Read More...

 

Other Real Estate News: 

Minto released several Villa lots this week in the Isles of Collier Preserve: Southern Exposure on the water.  Call me for more information.  

If you're 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 or call Susan Sanderson at 239-821-2370

 

Oct. 22, 2021

New Listings Absorbed by Buyer Demand

High-rise Homes For Sale in Naples Florida

Home sales in September would have been stronger if there was more inventory, say broker analysts reviewing the September 2021 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). Historically, September is the slowest month for home sales in Naples, but the area’s reputable natural beauty and home-value potential continue to increase its desirability to home buyers. Closed sales in September decreased 18.9 percent to 914 closed sales from 1,127 closed sales in September 2020, a result of low inventory.

 

A decrease of 213 homes sales might seem like home buying interest is waning but consider the inventory factor. In September 2020, there were 5,287 properties available. While in September 2021, the month ended with just 1,251 properties for sale (a 76.3 percent decrease). Comparing showing activity also sheds light on the situation. There were roughly 23 showings per home during September compared to under seven showings per home in September 2020. Basically, more buyers are looking at fewer properties this year.

“Unfortunately, the numbers can’t tell us the full story,” remarked Adam Vellano, a Naples Sales Manager at Compass Florida. “We know demand is strong, but at the current inventory level, it’s hard to sustain the level of sales we have done in previous years.”

But Budge Huskey, CEO, Premier Sotheby’s International Realty, says there are signs to be optimistic. “I’m seeing more and more development companies from around the country putting their money on Naples. They know Naples still represents a great value compared to other desirable locations around the country and investing at today’s prices shows they think Naples will only become even more desirable in the future. They are confident the level of demand and overall values have room to run.”

The NABOR® September 2021 Market Report provide comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. NABOR® sales statistics are presented in chart format, including these overall (single-family and condominium) findings: 

 

Since January, there has been a 48 percent increase in closed sales over the same nine months in 2020. Inventory of homes is suffering from the same supply chain issues as other commodities made in America, all due to the pandemic. But opportunities to invest in Naples real estate are still out there. According to Dominic Pallini, Broker at Vanderbilt Realty, “Developers are selling lots again. But most newly constructed homes don’t get added to the MLS until they sell so we don’t see them reflected in the report’s inventory numbers.”

Not surprisingly, the median closed price in September increased 18.9 percent to $455,000 from $382,744 in September 2020. “About 23 percent of the homes for sale had price decreases,” said Jeff Jones, Broker at Keller Williams Naples. “But only 12 percent reported price increases. As competition for inventory gets even more fierce and days on market continue to drop, we’ll likely see an increase in the number of homes that don’t even appear on the MLS until they are sold.”

The Market Report showed new listings in September decreased 28.4 percent to 961 from 1,342 new listings in September 2020. However, while new listings of condominiums decreased 2.7 percent during the first nine months of 2021, new listings of single-family homes increased 3.5 percent during the first nine months of 2021!

Having a REALTOR® during today’s low inventory environment is an essential partnership for buyers because REALTORS® are poised to hear about a home before it goes up for sale, they know exactly when new homes hit the MLS in real time, and they can share this valuable information to home buyers. Further, REALTORS® work closely with many other agents, have alerts set up when new homes are listed, and know how to maneuver the process so a buyer can act fast when a new listing meets a client’s purchasing criteria.

If you're 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 or call Susan Sanderson at 239-821-2370

 

Posted in Market Report