Naples Property Preview Blog

 

June 23, 2019

Home Sales in May Shifted to the East

Isles of Collier Preserve Homes For Sale

Naples, Fla. (June 21, 2019) - In tempo with a recent shift in sales from high-end homes near the beach to homes under $500,000 in areas east of the beach, overall closed sales during May in the Naples area increased 9.8 percent to 1,165 closed sales compared to 1,061 closed sales in May 2018. Closed sales were highest in East Naples (34114, 34117, 34120, 34137), which reported a remarkable 21.7 percent increase.

While inventory levels decreased 13 percent to 5,905 homes in May 2019 from 6,785 homes in May 2018, over 2,000 homeowners reduced prices during May according to the May 2019 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island).

"Nearly 30 percent of active listings had a price decrease in May," said Coco Amar, a managing broker at John R. Wood Properties. "This was most apparent in the City of Naples [34102], which reported a 24.9 percent decrease in its overall median closed prices."

Broker analysts reviewing the May report noticed a shift in sales from the traditional high-end market to homes under $500,000 earlier this year. The trend continued to be reflected in the May report, which showed closed sales for homes between $1 million and $2 million decreased 8.9 percent in May, while closed sales of homes between $300,000 and $500,000 increased 10.8 percent. Incidentally, closed sales increased in every price category reported except the $1 million to $2 million price category.

The May 2019 report showed closed sales of single-family homes up 12.8 percent compared to a 7 percent increase in closed sales for the condominium market. Interestingly, the decrease in closed sales for the $1 million to $2 million price category appeared in its condominium market, which saw a 23.1 percent decrease, while its single-family homes closed sales actually increased 3.6 percent. In comparison, the $300,000 to $500,000 price category reported a 12.6 percent increase in sales of condominiums and a 9.6 percent increase in sales of single-family homes.

"Despite a shift in buyer interest, sales of properties over $2 million continue to perform well," said Jeff Jones, NABOR® President. This is reflected in a 1.2 percent increase in closed sales during May for homes over $2 million.

While the median closed price for May 2019 increased 6.9 percent to $355,000 from $332,000 in May 2018, Amar pointed out that the median closed price for single family homes in May 2019 actually decreased 3.5 percent to $415,000 from $430,000 in May 2018.

The NABOR® May 2019 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: 

CATEGORIES
MAY 2018 MAY 2019 CHANGE
Total closed sales (month/month) 1,061 1,165 +9.8%
Median closed price (month/month) $332,000 $355,000 +6.9%
Total active listings (inventory) 6,785 5,905 -13.0%
Average days on market  98 107 +9.2%
Single-family closed sales (month/month) 515 581 +12.8%
Single-family median closed price (month/month) $430,000 $415,000 -3.5%
Single-family inventory 3,355 2,986 -11.0%
Condominium closed sales (month/month) 546 584 +7.0%
Condominium median closed price (month/month) $268,000 $269,500 +0.6%
Condominium inventory 3,430 2,919 -14.9%

Geographically, closed sales in East Naples (34114, 34117, 34120, 34137) continued to expand as development in the Collier Boulevard and U.S. 41 corridor continues to grow. According to Wes Kunkle, President and Managing Broker at Kunkle International Realty, commercial interest is high in all areas off the east trail (i.e., property on U.S. 41 heading east from Naples to Everglades City). "This is an 'Opportunity Zone' area and its commercial footprint is getting bigger each year."

An Opportunity Zone provides businesses with permanent exclusion from taxable income of capital gains from the sale or exchange of an investment if it's held for at least 10 years. There are currently five Opportunity Zones in Collier County: three are located in Immokalee; one in the Naples Manor community west of Collier Boulevard, north of U.S. 41 East and south of Rattlesnake Hammock Road; and another is identified as land in Golden Gate, west of Collier Boulevard, south of Golden Gate Parkway and east of Santa Barbara Boulevard.

"I kind of see East Naples and South Naples as the last growth frontier for the Naples area," said Mike Hughes, Vice President and General Manager of Downing-Frye Realty, Inc. "A lot of our future growth will be in these two areas. It should be noted that the zip code 34114 saw a 56.2 percent increase in closed sales in May 2019 compared to the previous May."

Upon reviewing the report, Bill Coffey, Broker Manager of Amerivest Realty Naples, added that there were "over 4,000 more showings this May compared to showings in May 2018!" Not surprising, and according to the report, this represented an average of 641 showings each day during May.

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 or call Susan Sanderson at 239-821-2370.

Posted in Market Report
May 27, 2019

April Report Shows Market Resurgence Continues

Isles of Collier Preserve Homes For Sale

Naples, Fla. (May 24, 2019) - Closed sales during April in the Naples housing market increased 12.8 percent to 1,158 properties in April 2019 from 1,027 properties in April 2018. Broker analysts reviewing the April 2019 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), reported that April was a solid month with strong sales activity in both the single-family and condominium markets.

"I believe we have reason to be optimistic going into the summer," said Bill Coffey, Broker Manager of Amerivest Realty Naples who added, "The report showed overall sales were up 17 percent in April over March, and March's sales were higher than February."

According to Kathy Zorn, broker/owner, Better Homes and Gardens Real Estate Pristine, who analyzed April's Market Report and showing activity provided by ShowingTime, a REALTOR® resource that tracks agent listing appointments with potential buyers, it took an average of 15 showings for a property to secure a contract in April.

"The uptick in showings during the last few months are a positive indicator of continued buyer interest in our area," said Zorn. And while April's overall median closed price decreased 5.6 percent to $340,000 in April 2019 from $360,000 in April 2018, April 2019's median closed price was higher than both January and February's median closed prices.

The Report also showed nearly 1,000 properties went from active to either terminated, expired, or withdrawn in the Southwest Florida MLS during April, which directly impacted April's ending inventory level as seen in an 11.1 percent decrease to 6,435 properties in April 2019 from 7,239 properties in April 2018. But Zorn also pointed out that April saw the number of new condominium listings increase by 9.2 percent; whereas there was a decrease of 3.2 percent for new listings in the single-family homes market.

"Despite old-fashioned beliefs that our area is predominately seasonal, the last few years of home sales activity after Easter are proof that this is just not the case anymore," said Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc.

In agreement, Brenda Fioretti, Managing Broker at Berkshire Hathaway HomeServices Florida Realty, added that "April and May have always been our strongest months for closings historically. But unlike last year, April's Report this year shows signs of a possible new trend: more closed sales for homes on the lower end of the price spectrum versus last year which had more closed sales in higher price points."

The Report supports Fioretti's theory as closed sales of single-family homes in April 2019 increased 4.4 percent, but closed sales of condominiums increased 20.1 percent in April 2019 compared to April 2018 market statistics. Further, the trend toward more sales of lower priced properties Fioretti mentioned is also visible in activity tracked over the last 12 months where there was a 4.3 percent increase or 2,727 closed sales of condominiums in the under $300,000 price category compared to a .8 percent decrease in this same price category for single-family homes (1,037 closed sales). The increase in condominium inventory Zorn mentioned is also a contributing factor to this new trend.

The NABOR® April 2019 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: 

 

CATEGORIES
APR 2018 APR 2019 CHANGE
Total closed sales (month/month) 1,027 1,158 +12.8%
Median closed price (month/month) $360,000 $340,000 -5.6%
Total active listings (inventory) 7,239 6,435 -11.1%
Average days on market  94 98 +4.3%
Single-family closed sales (month/month) 481 502 +4.4%
Single-family median closed price (month/month) $445,000 $469,000 +5.4%
Single-family inventory 3,554 3,228 -9.2%
Condominium closed sales (month/month) 546 656 +20.1%
Condominium median closed price (month/month) $269,750 $272,250 +.9%
Condominium inventory 3,685 3,207 -13%

 

Geographically, closed sales skyrocketed in April for the Naples Beach area (34102, 34103, 34108), which had a 44.6 percent increase in closed sales for its single-family homes market and a 12.5 percent increase in closed sales for its condominium market. Also remarkable, the Central Naples area (34104, 34105, 34116) had a 22 percent increase in closed sales of condominiums while the East Naples area had a 36.4 percent increase in condominium sales and the South Naples area (34112, 34113) topped them all with an impressive 49 percent increase in closed sales of condominiums during April.

Hughes added that - from a buyer's perspective - "the late spring and summer months are a great time to buy because there has always been a good selection of homes in all price ranges."

One trend that continues to be applauded by broker analysts is the adoption by sellers to price their homes appropriately - based on actual comparisons of recently sold homes - in order to gauge their home's estimated value rather than pricing their homes based on unvalidated values.

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 or call Susan Sanderson at 239-821-2370.

Posted in Market Report
April 23, 2019

Realistic Home Values Led to Strong Sales in March

For Sale: 2838 Coach House Way, Naples, FL

Naples, Fla. (April 18, 2019) - According to the March 2019 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), the median closed price of homes decreased 5.6 percent to $340,000 in March 2019 from $360,000 in March 2018. Broker analysts reviewing the report clarified that the median closed price decrease was due, in part, to an increase in the number of closed sales of homes priced under $500,000 during the last year.

Another reason for the decrease in median home price is due to sellers pricing their homes appropriately - based on actual comparisons of recently sold homes - to gauge their home's estimated value rather than pricing their homes based on unvalidated values.

The March 2019 Market Report showed overall closed sales decreased 1.7 percent to 973 in March 2019 compared to 990 in March 2018. This decrease was isolated to the single-family home market, whose sales in March 2019 fell by just 17 total sales compared to March 2018. The condominium market in March ended with 499 closed sales, the same number reported in March 2018.

However, as Bill Coffey, Broker Manager of Amerivest Realty Naples pointed out, the report also showed closed sales in March increased 64 percent compared to February 2019, which reported 595 closed sales; and it increased 65 percent compared to January 2019, which reported 588 closed sales.

"Sales activity in the first two months of the quarter was down compared to last year, but the March report showed a sales resurgence which I think will continue into April," said Budge Huskey, President, Premier Sotheby's International Realty. "Once a seller finds their realistic list price, the home tends to sell. The proof is in the report, which showed that sellers received 95.3 percent of the final list price in March."

Many brokers have reported an increase in contracts (pending sales) during March, which they feel contributed to the 10 percent decrease in overall inventory for March. It is important to remember that inventory during the first quarter of 2018 included many homes that were put back on the market after having been taken off the market for repairs following Hurricane Irma during the last quarter of 2017. As such, the report showed 8.7 months of inventory for March 2019, down 11 percent compared to March 2018.

"When inventory was tight, there was more urgency to buy," said Wes Kunkle, President and Managing Broker at Kunkle International Realty. "But so far this year buyers have been spending time looking around more and at new construction too." Kunkle added that the Southwest Florida MLS showed "about 19 percent of the single-family closed sales in March were new construction."

The NABOR® March 2019 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: 

 

CATEGORIES
MAR 2018 MAR 2019 CHANGE
Total closed sales (month/month) 990 973 -1.7%
Median closed price (month/month) $360,000 $340,000 -5.6%
Total active listings (inventory) 7,593 6,829 -10.1%
Average days on market  96 107 +11.5%
Single-family closed sales (month/month) 491 474 -3.5%
Single-family median closed price (month/month) $450,000 $415,000 -7.8%
Single-family inventory 3,701 3,507 -5.2%
Condominium closed sales (month/month) 499 499 0%
Condominium median closed price (month/month) $287,000 $280,000 -2.4%
Condominium inventory 3,892 3,322 -14.6%

 

Geographically, the median closed price for condominiums in the Naples Beach area (34102, 34103, 34108) increased 13 percent to $805,0000 in March 2019 compared to $711,500 in March 2018, the highest increase of all areas reported. The median closed price for single-family homes increased the most in South Naples (34112, 34113) by 2.6 percent to $410,000 in March 2019 compared to $400,000 in March 2018. Inventory during March increased in only one segment and place: single-family homes in the Naples Beach area. This area's inventory increased by 4.1 percent and is where a large majority of "spec" home building is taking place.

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 or call Susan Sanderson at 239-821-2370.

Posted in Market Report
March 10, 2019

January Housing Market Shows Signs of Opportunity

 

For Sale: 2838 Coach House Way, Naples, FL

Naples, Fla. (March 8, 2019) - The year is off to a good start for homebuyers. Beyond escaping frigid temperatures up north, visitors looking to purchase a home in the Naples area during January were pleasantly surprised with their options as inventory levels increased 7 percent to 8,154 homes for sale in January 2019 from 7,605 homes for sale in January 2018. The good news didn't stop there for new homebuyers in January as median home prices increased by only 1 percent to $325,000 in January 2019 from $322,500 in January 2018, according to the January 2019 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). A new statistical reporting system with enhanced formats and data capture features was adopted by NABOR®. The January 2019 Market Report was prepared using the new system.

Broker analysts reviewing the new report were quick to point out that a rare occurrence in January 2018 contributed to a reduction in overall closed sales reported in January 2019. Namely, that a developer added 79 newly constructed high-end condominium closed sales to the MLS during the month of January 2018. To further clarify, the actual "sales" were made over a three-year period, but the sales data for all 79 units was input into the MLS over a three-week period in January 2018. Consequently, this data is reflected in the monthly statistics as a 160 percent decrease in overall closed sales for homes in the $1 million to $2 million price category. It is for this reason that the January 2019 Market Report has been clarified to also reflect the removal of these anomalous sales in order to show a truer comparative analysis of the data.

Many broker analysts reviewing the January 2019 Market Report felt the stock market tumble in late December may have contributed to potential homebuyers delaying purchasing decisions in January. This may be why there was a 6 percent decrease in overall closed sales reported for January 2019 compared to overall closed sales in January 2018. However, high-end homes increased 21 percent in the single-family home market and 18 percent in the condominium market in January 2019 compared to January 2018­.

According to Cindy Carroll, SRA, of Carroll & Carroll Appraisers & Consultants, LLC, new home construction is tempering price increases in many areas of the resale market. "More builders are using the MLS and reaching out to brokers and REALTORS® with purchase incentives, which will make it necessary for homeowners to price their homes more competitively."

The monthly statistics only capture a fraction of new construction product. NABOR® is working to engage more builders and encourage their use of the MLS. As such, it anticipates the ability to report broader data - like new construction, pending sales and list-to-closed sales - in future months with the new system.

"Fee heavy condominiums are hurting," said Adam Vellano, West Coast Sales Manager, BEX Realty - Florida. Even though inventory rose 6 percent in the under $300,000 condominium market in January, closed sales for this product in January dropped 25 percent.

"The good news is that prices have remained relatively flat in both the single-family and condominium markets over the last 12 months despite the increase in inventory, so this factor along with an increase in inventory means there are some very good deals out there. This is a positive for homebuyers," said Vellano.

"The housing market, while not markedly busy in January, remains healthy. The big news in January was inventory," said Jeff Jones, NABOR® President and Managing Broker for Engel & Völkers Naples and Bonita Springs offices, "especially in the single-family home market where inventory for single-family homes under $300,000 grew 8 percent, and inventory for single-family homes between $300,000 to $500,000 grew 12 percent. "We expect the supply of homes for sale to increase, giving buyers more homes to buy, but not so many that will negatively affect overall home prices."

Overall, there were 549 more homes for sale in January 2019 than in January 2018. The Naples area has seen its resale market inventory climb over the last few months. As such, there was 8.4 months of inventory in January 2019, typically indicating a buyer's market, up from 6.3 months of inventory in January 2018.

The NABOR® January 2019 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: 

 

CATEGORIES
JAN 2018 JAN 2019 CHANGE
Total closed sales (month/month) 625 588 -6%
Median closed price (month/month) $322,500 $325,000 +1%
Total active listings (inventory) 7,605 8,154 +7%
Average days on market  97 97 0%
Single-family closed sales (month/month) 295 314 +6%
Single-family median closed price (month/month) $422,000 $380,500 -11%
Single-family inventory 3,757 4,124 +9%
Condominium closed sales (month/month) 330 274 -20%
Condominium median closed price (month/month) $251,000 $260,000 +3%
Condominium inventory 3,848 4,030 +5%

 

Prices are expected to remain stable over the next 12 months according to Carroll, who also noted that some pockets of the market may begin to see value erosion while others continue to increase due to location and demand.

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 or call Susan Sanderson at 239-821-2370.

Posted in Market Report
Jan. 18, 2019

5 Positive Trends for Buyers & 5 Positive Trends for Sellers in 2019

2838 Coach House Way, Naples, FL

For Sale: 2838 Coach House Way

Naples, Fla. (January 18, 2019) - The Naples area housing market ended 2018 with impressive annual activity statistics in all areas of the residential real estate market including an 11 percent increase in total closed sales and a 14 percent increase in inventory compared to 2017. Sales of homes over $1 million continued to drive the market in 2018, especially in the condominium market where closed sales of condominiums over $1 million increased 37 percent! According to the Year End 2018 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), inventory at the end of 2018 was the highest on record in six years. 

"Prices held steady in 2018 with just a 3 percent increase in median closed price," said Brenda Fioretti, Managing Broker at Berkshire Hathaway HomeServices Florida Realty. "However, for homes over $300,000, the median closed price actually decreased 1 percent."

Upon reviewing the YE 2018 Market Report, Fioretti concluded that there are many positive trends for both home buyers and sellers in 2019. The top 5 positive trends for home buyers and sellers are:

 

5 POSITIVE TRENDS FOR SELLERS
5 POSITIVE TRENDS FOR BUYERS
  • Colder winters up north are bringing more visitors to the Naples area 
  • Naples area homes are selling faster (average days on market decreased 9 percent from list to closing)
  • Buyers interest in the Naples market is on the rise as a result of aggressive builder advertising in northern markets
  • More comparable home prices are available with the increase in inventory
  • Location, location, location continues to appeal to home buyers
  • Inventory is increasing which translates to more options for home buyers 
  • There are as many condos for sale as there are single family homes which expands overall opportunities for home buyers (Total: 6,261)
  • The stability of the overall median closed price builds buyer confidence in the market 
  • Mortgage interest rates are currently low (< 5%) spurring home buying decisions
  • Location, location, location continues to offer appeal!

 

Single-family homes in the Naples Beach area (34102, 34103, 34108) reported the highest median closed price increase (14 percent) in 2018 compared to 2017. But that's most likely due to closed sales of a few multimillion homes that took place last year including a $48.8 million transaction in June for a home in Port Royal.

The median closed prices listed on NABOR®'s market reports do not reflect average sales prices. Rather, the median closed price demonstrates a rate wherein half the closed sales were purchased for amounts below the figure (median) and half the sales were purchased for prices above it. As such, of the 662 single-family homes located in the Naples Beach area that sold in 2018, the median closed price was $1,268,000 in 2018 compared to the 652 single-family homes that sold in 2017 where the median closed price was $1,117,000. Incidentally, closed sales in this area increased only 2 percent.

Conversely, closed sales of single-family homes in the Ave Maria/Immokalee area increased 233 percent to 143 homes in 2018 compared to 43 single-family homes in 2017. Median closed prices for single-family homes in the Ave Maria/Immokalee area decreased 4 percent to $245,000 in 2018 compared to $255,000 in 2017.

According to Kathy Zorn, broker/owner, Better Homes and Gardens Real Estate Pristine, many small builders are listing their newly constructed homes on the Southwest Florida MLS (multiple listing service), which is reflected in the increased inventory statistics in all price points and in all geographic locations. "Inventory for single-family homes under $500,000 increased the most in 2018, which is good news for buyers who don't necessarily require a home within walking distance of the beach. In fact, the highest increase in inventory for 2018 was 34 percent, and it appeared in the under $300,000 single-family homes category."

While the Ave Maria/Immokalee area also reported the highest increase in single-family inventory (40 percent) among all geographic areas tracked, the single-family home inventory in Central Naples (34104, 34105, 34116) increased 38 percent to 391 homes in 2018 from 283 homes in 2017.

As pointed out by NABOR® President Jeff Jones, Managing Broker for Engel & VölkersNaples and Bonita Springs offices, the 3 percent increase in overall pending sales for 2018 concerned him at first as it looked too low compared to activity in other areas of the report. However, after much discussion with several broker analysts also reviewing the annual market report including Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., it was determined that, according to Hughes, "the smaller-than-expected increase was because many closings for a large percentage of homes under contract in the 4th quarter of 2017 were delayed while repairs from Hurricane Irma damage took place."

The NABOR® Year End, 4th Quarter and December 2018 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 Year Ending 2018 (single-family and condominium) findings: 

 

CATEGORIES
YE 2017 YE 2018 CHANGE
Total homes under contract (pending sales) (year/year)
9,121
9,365
+3%
Total closed sales (year/year) 8,815 9,771 +11%
Median closed price (year/year) $330,000 $339,000 +3%
Median closed price >$300K (year/year) $514,000 $510,000 -1%
Total active listings (inventory) 5,491 6,261 +14%
Average days on market  104 95 -9%
Single-family closed sales (year/year) 4,347 4,768 +10%
Single-family median closed price (year/year) $418,000 $425,000 +2%
Single-family inventory 2,685 3,131 +17%
Condominium closed sales (year/year) 4,468 5,003 +12%
Condominium median closed price (year/year) $263,000 $265,000 +1%
Condominium inventory 2,806 3,130 +12%

 

Even though the Southwest Florida MLS system is not as widely used by REALTORS® working in commercial real estate in Naples, the data collected does help agents gauge this sector of the market. According to Wes Kunkle, President and Managing Broker at Kunkle International Realty, "Vacancy rates for commercial properties are low right now. I'm seeing most vacancy rates well under 5 percent."

Historically, commercial real estate activity is directly affected by the residential real estate market. When nearly 1,000 more homes are sold annually compared to a previous year, as was the case between 2017 and 2018, it is realistic to expect the number of businesses will increase to meet the needs of those new consumers.

Dozens of new commercial properties are in various stages of development across Collier County, many of which have large grocery store anchors.

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 or call me at 239-821-2370.

Posted in Market Report
Dec. 21, 2018

November Housing Market Report Shows Activity Heating Up

ISLES OF COLLIER PRESERVE HOMES FOR SALE

Naples, Fla. (December 21, 2018) - Home sales in November increased by double digits across every price category resulting in an overall increase of 24 percent compared to November 2017. Median closed prices decreased for homes under $1 million in November and inventory rose 12 percent to 5,971 homes, according to the November 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 November report shows greater balance in the market which is propelling strong performance," said Budge Huskey, President, Premier Sotheby's International Realty, who added that the 24 percent increase in overall closed sales for November is "significant because it reflects our recovery from the hurricane last year."

The $0 to $300,000 single-family home market had the most impressive activity in November where inventory rose 38 percent and closed sales increased 30 percent compared to November 2017. This section of the market also saw its median closed price hold steady at $250,000.

"New home construction in the lower price tiers is rushing to meet the needs of buyers and it's building our inventory in much needed areas within eastern Collier," said Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc. The November market report supports Hughes' claim as the East Naples area (34114, 34117, 34120 and 34137) saw the highest number of closed sales for single-family homes - 105 - with another 121 sales pending.

According to Cindy Carroll, SRA, of Carroll & Carroll Appraisers & Consultants, LLC, activity in the $0 to $300,000 price category is rallying in Collier. "Inventory under $300,000 consumes over half of the available condominium inventory. It had the highest inventory increase [38 percent] in the single-family home market too. The November report shows our inventory levels are just about even between condos and single-family homes now."

"We haven't seen this level of inventory going into season in six years," said NABOR® President Jeff Jones, Managing Broker for Engel & VölkersNaples and Bonita Springs offices. "Plus, days on market is cascading downward which is a sign of better pricing. The trend to price homes to sell is clearly taking hold and it's definitely making a difference in overall sales numbers. Visitors will be impressed at the choices and stable prices this season."

The NABOR® November 2018 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. The November 2018 NABOR® sales statistics are presented in chart format, including these overall 3Q (single-family and condominium) findings:

 

CATEGORIES
Nov 2017 Nov 2018 CHANGE
Total homes under contract (pending sales) (month/month)
728
700
-4%
Total closed sales (month/month) 521 645 +24%
Median closed price (month/month) $330,000 $334,000 +1%
Median closed price >$300K (month/month) $482,000 $485,000 +1%
Total active listings (inventory) 5,322 5,971 +12%
Average days on market  101 95 -6%
Single-family closed sales (month/month) 271 327 +21%
Single-family median closed price (month/month) $433,000 $420,000 -3%
Single-family inventory 2,606 3,033 +16%
Condominium closed sales (month/month) 250 318 +27%
Condominium median closed price (month/month) $250,000 $255,000 +2%
Condominium inventory 2,716 2,938 +8%

 

Broken down geographically, Collier's housing market in November had some interesting pockets of activity. For example, median closed prices decreased 19 percent in the Naples Beach area (34102, 34103, 34108); but increased 12 percent in the North Naples area (34109, 34110, 34119). There was a 90 percent increase in closed sales of condominiums in East Naples (34114, 34117, 34120, 34137), which brokers attribute to an increase in new construction of townhome developments east of Collier Boulevard. And single-family homes in Central Naples (34104, 34105, 34116) sold the fastest with an average 66 days on the market from listing to closing.

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 or call me at 239-821-2370.

Posted in Market Report
Nov. 18, 2018

October Housing Market Activity is Strong

For Sale: Isles of Collier Preserve

Naples, Fla. (November 16, 2018) - Closed sales of homes in the Naples market grew 20 percent to 674 sales in October 2018 compared to 561 sales in October 2017. The last few months have seen not only a return to a steady housing market for Naples since Hurricane Irma, but also an increased buyer appetite for homes in Collier County. We are pleased to report that inventory during October jumped 20 percent to 5,992 homes - the highest October inventory level since 2012 - which is good news for buyers according to leading broker analysts who reviewed the October 2018 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island).

While buyers struggle to find inventory in other highly desirable locations across the country, this is not the case in Naples. "We have almost 7.5 months of inventory," said Bill Coffey, Broker Manager of Amerivest Realty Naples. "In fact, inventory for single-family homes under $300,000 grew by 79 percent to 483 homes in October!"

Cindy Carroll, SRA, of Carroll & Carroll Appraisers & Consultants, LLC, believes the spike in inventory during October is a reflection of the market's recovery after Hurricane Irma in September 2017. "There are some neighborhoods where I still see an oversupply in the spec home market, but I'm also seeing inventory begin to tighten in very desirable areas west of U.S. 41."

Historically, inventory begins to increase in October in preparation of seasonal visitors entering Naples' prime home-selling season. According to Jeff Jones, Managing Broker for Engel & Völkers Naples and Bonita Springs offices, "About 10 percent of the new inventory in our MLS during October was new construction. A good portion of this building is taking place in East Naples [Eastern Collier County], which had the highest single-family home inventory reported in October. Builders also tell me that over 80 percent of their inventory is sold by REALTORS® rather than the builders' sales staff."

Overall pending sales for October were up 17 percent with the $1 to $2 million price category reporting the highest increase (39 percent) for the month compared to October 2017.

The October report also showed the overall median closed price increased 1 percent to $344,000 from $342,000 in October 2017; but went down 1 percent for homes priced over $300,000 to $475,000 from $480,000 in October 2017. Interestingly, the median closed price in the Naples Beach area decreased 13 percent in October to $595,000 in October 2018 from $682,000 in October 2017. However, in the 12-months ending October 2018, the median closed price rose 4 percent to $344,000 from $330,000 in the 12-months ending October 2017. In the Naples Beach area, the median price rose 4 percent in the 12-months ending October 2018 to $790,000 from $763,000 in 12 months-ending October 2017.

The NABOR® October 2018 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. The October 2018 NABOR® sales statistics are presented in chart format, including these overall 3Q (single-family and condominium) findings: 

CATEGORIES
Oct 2017 Oct 2018 CHANGE
Total homes under contract (pending sales) (month/month)
623
730
+17%
Total closed sales (month/month) 561 674 +20%
Median closed price (month/month) $342,000 $344,000 +1%
Median closed price >$300K (month/month) $480,000 $475,000 -1%
Total active listings (inventory) 5,010 5,992 +20%
Average days on market  104 93 -11%
Single-family closed sales (month/month) 301 366 +22%
Single-family median closed price (month/month) $425,000 $426,000 0%
Single-family inventory 2,432 3,177 +31%
Condominium closed sales (month/month) 260 308 +18%
Condominium median closed price (month/month) $250,000 $265,000 +6%
Condominium inventory 2,578 2,815 +9%

Added Carroll, "In addition to predictions that our inventory will continue to increase as we approach the winter season, giving home buyers more choices, we also saw the passing of Amendment 2, which put a permanent cap of 10 percent on annual non-homestead property assessment increase, keeping a reasonable protection for home owners in place. Along with a trend for home sellers to price properties realistically, these factors should inspire even more buyers of second-home properties in the coming months to make their purchase decision this season while all these factors work in their favor."

Increased inventory is expected to lead to increased sales. Higher volume sales during our peak selling months during season is important for both homebuyers and sellers. For home buyers, it means a higher likelihood of finding the right property. For home sellers, it means shorter marketing time and a higher likelihood of finding a buyer.

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 or call me at 239-821-2370.

Posted in Market Report
Oct. 21, 2018

Naples 3Q Housing Market Remains Strong

For Sale: Isles of Collier Preserve

Naples, Fla. (October 19, 2018) - One year after Hurricane Irma, overall closed sales in Naples increased 62 percent to 644 homes in September of 2018 compared to 398 closed sales of homes in September of 2017. According to broker analysts, this impressive increase in month over month sales is a result of the effect of the hurricane when homes sales halted following the massive storm.

"The September Market Report shows how resilient and desirable our market is," said Lauren U. Melo, PA, Licensed Real Estate Broker with Florida's Realty Specialists. "A three percent increase in pending and closed sales, year over year, is strong considering the reduced sales activity during the troubled period following the hurricane. This was when many sellers were making repairs caused by the hurricane. The September statistics show that our market is in a good position to see positive activity for the fourth quarter."

Overall pending sales in the third quarter are up 20 percent, closed sales are up 13 percent, the median closed price is up 3 percent, inventory is up 4 percent, and the days on market decreased 1 percent; all indicators that the third quarter real estate market in Naples remains strong.

"Luxury properties are driving the market in the third quarter," remarked Coco Amar, Managing Broker of John R. Wood Properties. "Third quarter pending sales in the $1 million to $2 million price category are up 18 percent and in the $2 million+ category they are up 50 percent compared to the pending sales in the third quarter of 2017."

According to the 3Q 2018 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), closed sales of homes between $300,000 and $500,000 increased at a higher rate (24 percent) than other price categories during the third quarter. Sales of homes between $1 million and $2 million increased 18 percent to 122 homes for the third quarter of 2018 from 103 homes for the third quarter of 2017. Overall closed sales in the $2 million price category increased 20 percent in the third quarter of 2018 to 79 properties from 66 properties sold in the third quarter of 2017.

Most remarkable in the 3Q Market Report was the strong activity in the condominium market where pending sales increased 21 percent and closed sales increased 20 percent compared to the third quarter of 2017. The single-family home market also saw a strong increase in overall pending sales activity which was up 20 percent and its closed sales activity was up 6 percent.

"Even though the overall median closed price for the 12-months ending September 2018 increased 5 percent to $344,000 from $329,000, median closed prices for homes below $1 million saw no change in price, compared to 12-months ending September 2017," said Brenda Fioretti, Managing Broker at Berkshire Hathaway HomeServices Florida Realty. "In fact, only homes priced between $1 million and $2 million in the 12-months ending September 2018 saw an increase, which was 3 percent to $1,375,000 from $1,340,000. The median closed prices for homes over $2 million decreased 4 percent year over year to $2,991,00 from $3,100,000."

The NABOR® September and 3Q 2018 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. The NABOR® sales statistics are presented in chart format, including these overall 3Q (single-family and condominium) findings: 

 

CATEGORIES
3Q 2017 3Q 2018 CHANGE
Total homes under contract (pending sales) (quarter/quarter)
1,675
2,014
+20%
Total homes under contract (pending sales) (year/year)
9,146
9,424 +3%
Total closed sales (quarter/quarter) 1,803 2,032 +13%
Total closed sales (year/year) 8,885 9,130 +3%
Median closed price (quarter/quarter) $320,000 $330,000 +3%
Median closed price (year/year) $329,000 $344,000 +5%
Median closed price >$300K (quarter/quarter) $498,000 $478,000 -4%
Median closed price >$300K (year/year) $512,000 $517,000 +1%
Total active listings (inventory) 4,608 4,776 +4%
Average days on market  99 98 -1%
Single-family closed sales (quarter/quarter) 927 979 +6%
Single-family closed sales (year/year) 4,351 4,409 +1%
Single-family median closed price (quarter/quarter) $418,000 $419,000 0%
Single-family median closed price (year/year) $410,000 $435,000 +6%
Single-family inventory 2,314 2,495 +8%
Condominium closed sales (quarter/quarter) 876 1,053 +20%
Condominium closed sales (year/year) 4,534 4,721 +4%
Condominium median closed price (quarter/quarter) $248,000 $251,000 +1%
Condominium median closed price (year/year) $265,000 $265,000 0%
Condominium inventory 2,294 2,281 -1%

 

According to Jeff Jones, Managing Broker for Engel & VölkersNaples and Bonita Springs offices, "Sales activity in East Naples was impressive during the third quarter. This geographic area saw an increase of 21 percent in its closed sales and an increase of 16 percent in its inventory compared to the third quarter of 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 or call me at 239-821-2370.

Posted in Market Report
Sept. 15, 2018

August Housing Market in Naples Continues to Show Strength

Fiddler's Creek Homes For Sale

Naples, Fla. (September 14, 2018) - Closed sales of properties during August increased 5 percent to 719 homes from 685 homes in August 2017 according to the August 2018 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). Inventory during August also rose by 2 percent and was driven by a surge of 218 more properties added to the market in the two lowest price categories reported, compared to August 2017.

"I'm really encouraged by activity in the lower end of the market during August," said Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., who, along with several broker analysts reviewing the August Market Report, thinks we'll continue to see an uptick in inventory through the end of the year. "Historically, August is where we begin to see an increase in inventory as sellers get ready for our busy winter season."

Hughes went on to point out that the majority of the new inventory in August appeared in the single-family home market for properties below $500,000. Yet interestingly, closed sales during August were driven by activity in the condominium market, which experienced a 21 percent increase.

According to Jeff Jones, Managing Broker for Engel & Völkers Naples and Bonita Springs offices, "If you look at year over year numbers, the upper end continues to drive our market." As such, pending and closed sales of properties above $1 million increased by double digits, year over year ending August 2018.

As to whether heightened Red Tide activity affected the Naples housing market in August, Bill Coffey, Broker Manager of Amerivest Realty Naples, responded by stating, "There were only 14 fewer pending sales in August compared to last year. And remember, we are still working with only 11 months of data since Hurricane Irma essentially halted activity for nearly a month last year."

Overall pending sales in August fell 3 percent; but pending sales of condominiums in the $500,000 to $1 million price range soared 28 percent in August. And pending sales for single family homes above $300,000 increased as well, with an impressive 62 percent increase for single family homes in the $2 million and above price category.

The NABOR® August 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® August 2018 sales statistics are presented in chart format, including these overall (single-family and condominium) findings: 

CATEGORIES
August 
2017
August 2018 CHANGE
Total homes under contract (pending sales) (month/month)
829
806
-3%
Total closed sales (month/month) 685 719 +5%
Median closed price (month/month) $328,000 $319,000 -3%
Median closed price >$300K (month/month) $510,000 $446,000 -13%
Total active listings (inventory) 4,807 4,913 +2%
Average days on market  95 120 +26%
Single-family closed sales (month/month) 378 348 -8%
Single-family median closed price (month/month) $422,000 $405,000 -4%
Single-family inventory 2,446 2,560 +5%
Condominium closed sales (month/month) 307 371 +21%
Condominium median closed price (month/month) $250,000 $250,000 0%
Condominium inventory 2,361 2,353 0%

Overall median closed prices fell 3 percent in August to $319,000 from $328,000 in August 2017, and it fell 13 percent for properties above $300,000 to $446,000 from $510,000 in August 2017. The only place prices increased was in the $500,00 to $1 million condominium market, which saw a 13 percent increase to $672,000 from $595,000 in August 2017.

Geographically, the median closed price increased 16 percent for homes in the South Naples area. This increase was reflected in a combined 37 percent increase in the single-family home market and 21 percent increase in the condominium market.

According to Adam Vellano, West Coast Sales Manager, BEX Realty - Florida, "One indication that homeowners were pricing homes to sell in August was apparent in the MLS as 50 percent of the inventory that sold during the month had been on the market for over 100 days."

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
Aug. 26, 2018

July Housing Market in Naples Defies National Trends

Naples, Fla. (August 24, 2018) - According to the National Association of REALTORS July market report, existing home sales in America decreased for the third straight month as a result of the severe housing shortage that is not releasing its grip on the nation's housing market.

Conversely, homes sales in the Naples area were up 8 percent in July according to the July 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 nation has only a 4.3-month supply of home inventory, while Naples has a healthier 6.25-month supply of inventory.

"The Naples area overall median home price increase in July 2018 seems to be the only statistical category where we match national trends," said Kathy Zorn, broker/owner, Better Homes and Gardens Real Estate Pristine, "Naples saw an 8 percent increase in its overall median closed price in July 2018 compared to July 2017; whereas nationally, median closed prices went up just 4 percent. But median closed prices for properties over $300,000 in the Naples area decreased 2 percent in July 2018 compared to July 2017."

Interestingly, while July's overall inventory fell 1 percent to 4,871 properties from 4,928 properties in July 2017, inventory increased 5 percent in the $300,000 and below price category. In fact, inventory for single-family homes in this price category jumped 21 percent in July to 345 from 286 in July 2017.

"There are 1,154 single family homes and 1,722 condos for sale under $500,000 currently," said Brenda Fioretti, Managing Broker at Berkshire Hathaway HomeServices Florida Realty. "Economists predict home sales in America during 2018 will not be as good as 2017. However, we're seeing the opposite in the Naples area. Granted our sales were hampered by a hurricane in 2017, but there are no signs that interest in buying a home in Naples this year might drop because of temporary climate or environmental phenomena. We have a healthy inventory, an increase in closed sales, price stability and a decrease in the days on the market compared to July 2017."

July also saw a huge 39 percent jump in condominium closings in the Naples Beach area. Closed sales for August look strong too in this segment as pending sales for condominiums in the Naples Beach area increased 55 percent in July 2018 over July 2017!

Overall pending sales in Naples were up 11 percent in July, with only one price segment ($500k-$1M) reporting a decrease compared to July 2017.

"Pending sales for luxury condominiums [$2 million and above] in July were up 150 percent," said Budge Huskey, President, Premier Sotheby's International Realty. "The strength of the luxury market segment for both single family and condos continued into the summer months, a reflection of sustained confidence among the affluent witnessing the longest economic expansion cycle in the nation's history and record corporate earnings."

How buyers are purchasing homes in Naples is very different than the national average home buyer, as well. Cash sales accounted for only 20 percent of home purchases in July nationally. But in Naples, cash sales accounted for 50 percent of all home sales in July.

The NABOR® July 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® July 2018 sales statistics are presented in chart format, including these overall (single-family and condominium) findings: 

CATEGORIES
July 
2017
July 2018 CHANGE
Total homes under contract (pending sales) (month/month)
720
796
+11%
Total closed sales (month/month) 682 738 +8%
Median closed price (month/month) $319,000 $345,000 +8%
Median closed price >$300K (month/month) $485,000 $474,000 -2%
Total active listings (inventory) 4,928 4,871 -1%
Average days on market  105 93 -11%
Single-family closed sales (month/month) 354 372 +5%
Single-family median closed price (month/month) $409,000 $435,000 +6%
Single-family inventory 2,552 2,542 0%
Condominium closed sales (month/month) 328 366 +12%
Condominium median closed price (month/month) $248,000 $255,000 +3%
Condominium inventory 2,376 2,329 -2%

According to Cindy Carroll, SRA, with the real estate appraisal and consultancy firm Carroll & Carroll, Inc., inventory in neighborhoods west of US 41 are beginning to tighten. "I think we can expect some upward price pressure in areas where the inventory supply level is below 4 months, like Pelican Bay."

Carroll also noted that the number of affordable homes in areas like Golden Gate City and South Naples is growing. "In April 2018, Golden Gate City had a 1.3-month supply of inventory; today it's at a 3.7-month supply. While a majority are priced on the high end of the $0-$300,000 price category, it might still provide some new opportunities for first-time homebuyers."

In response to the question of whether home sales will be affected by a longer-than-average red tide occurrence, Huskey responded, "Clearly it's a situation we are all watching closely, yet currently there's no reflection in the pace of home sales. While impossible to ignore if at the beach on a day in which it's more prominent, a block or two east you wouldn't be aware of any issue and inland sales represent the vast majority of all activity in the market."

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