Naples Property Preview Blog

 

July 14, 2018

Luxury Home Sales Lead to a Strong Second Quarter Finish

For Sale: 2175 Crayton Rd., Naples, FL


Naples, Fla. (July 13, 2018) - Activity in the Naples area housing market during the Second Quarter of 2018 remained steady in comparison to activity during the Second Quarter of 2017. According to the 2Q 2018 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 increased 2 percent to 2,926 properties in the 2Q of 2018 from 2,880 in the 2Q of 2017. But in the $2 million and above single-family home market, closed sales rose 25 percent in the 2Q of 2018, which-along with other market indicators-leads many broker analysts to believe that interest in luxury homes will remain in high demand.

Available inventory at the end of the 2Q of 2018 was 5,165 properties, just 24 units behind the inventory level at the end of the 2Q of 2017 (5,189 properties). "This tells me that homes are coming onto the market at the same rate we are selling them," said Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc.

Inventory rose 15 percent in the $2 million and above condominium market during the 2Q of 2018, which may be a factor in the uptick of pending sales in the luxury condominium market as it rose 32 percent during the 2Q of 2018.

"Inventory in other parts of the state and nation are stretched thin, hovering between 3 and 4 months of inventory, but Naples enjoys almost 7 months of inventory," said Budge Huskey, President, Premier Sotheby's International Realty. "What's even more impressive is that we have such a great selection of homes for buyers despite the recent increase in sales and still having some undergoing repairs from Hurricane Irma."

"We are seeing a very different sales environment locally from that of 10 years ago when home sales in northern states stalled," said Coco Amar, a managing broker at John R. Wood Properties. "But now that homes are moving fast up north, sales of high-end single-family homes in Naples are stronger than ever."

"It's hard to ignore the increase in interest for ultra-luxury properties," said Huskey. "A $48.8 million sale for a home in Naples is impressive, but when you learn there was a second potential buyer who was considering the property you know what type of buyers are in the market." 

According to Adam Vellano, West Coast Sales Manager, BEX Realty - Florida, there were four property sales over $10 million during the 2Q. "It's possible the new tax laws are impacting people's minds about residency and we're benefiting from it."

Brokers analyzing the market report agreed that multiple offers on luxury properties have risen. But whatever factor(s) is driving the increased interest, closed sales of luxury homes over $2 million are positioned to rise again as the stage has been set in the 2Q where pending sales in this price category increased 22 percent for single-family homes and 32 percent for condominiums.

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

 

CATEGORIES
2Q 2017 2Q 2018 CHANGE
Total homes under contract (pending sales) (quarter/quarter)
2,770
2,733
-1%
Total closed sales (quarter/quarter) 2,880 2,926 +2%
Median closed price (quarter/quarter) $340,000 $345,000 +1%
Median closed price >$300K (quarter/quarter) $535,000 $510,000 -5%
Total active listings (inventory) 5,189 5,165 0%
Average days on market  97 96 -1%
Single-family closed sales (quarter/quarter) 1,349 1,395 +3%
Single-family median closed price (quarter/quarter) $418,000 $449,000 +7%
Single-family inventory 2,654 2,601 -2%
Condominium closed sales (quarter/quarter) 1,531 1,531 0%
Condominium median closed price (quarter/quarter) $282,000 $270,000 -4%
Condominium inventory 2,535 2,564 +1%

The real estate market's stability during the 2Q also extended to its median closed prices which increased only 1 percent to $345,000 in the 2Q of 2018 from $340,000 in the 2Q of 2017. However, despite increased sales in nearly every price category for properties priced above $300,000 during the 2Q of 2018, the median closed prices for properties above $300,000 decreased 5 percent!

As pointed out by Vellano, sales of single-family homes near Naples Beach and in the expanding North Naples area saw the greatest increase during the 2Q, and condominium sales in Central Naples outpaced all other home type sales during the 2Q. "According to the report, we averaged 30 transactions a day during the 2Q," said Vellano. "That's good news for REALTORS® as we move into the summer months."

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
June 17, 2018

Housing Activity in May Yields Solid Market

For Sale: 365 Banyan Blvd, Naples, FL

Naples, Fla. (June 16, 2018) - For a second consecutive year, housing activity during May demonstrated to broker analysts that May remained a standout month. Overall closed sales were remarkable with 1,024 closed sales during May 2018 compared to 1,027 closed sales in May 2017. Closed sales in May 2018 were higher than all months following May 2017. May also saw inventory levels continue to stabilize, according to the May 2018 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County

"In 2017, May's sales increased 23 percent over sales in May 2016," said Phil Wood, President & CEO of John R. Wood Properties. "The fact that we are keeping the same pace this year and inventory is holding steady is good news as we move into summer."

Closed sales of properties in the $300,000 to $500,000 price category during May increased 21 percent over May 2017, while closed sales in the $300,000 and below price category were just one sale short of the number of closed sales in May 2017.

There was very good news for buyers in the report as May's overall median closed price dropped 5 percent to $337,000 from $355,000 in May 2017. Moreover, the overall median closed price for homes priced above $500,000 decreased 14 percent to $507,000 from $590,000 in May 2017.

On the high-end side of the market, despite an 11 percent increase in median closed prices, pending sales of properties in the $2 million and above price category increased 23 percent in May 2018 compared to May 2017.

"We haven't seen inventory levels in May this high since 2013," said Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc. "I was concerned that the low end of the market would start shrinking after season, but the May report showed inventory increased 6 percent for homes under $300,000."

Overall inventory in May rose by 15 properties compared to May 2017. The report also showed inventory rose in May for both single family homes and condominiums priced below $500,000, which accounted for 58 percent of the available market in Collier County at the end of the month.

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

 

CATEGORIES
May 2017 May 2018 CHANGE
Total homes under contract (pending sales) (month/month)
1,027
970
-6%
Total closed sales (month/month) 1,027 1,024 0%
Median closed price (month/month) $355,000 $337,000 -5%
Median closed price >$300K (month/month) $590,000 $507,000 -14%
Total active listings (inventory) 5,404 5,419 0%
Average days on market  98 97 -1%
Single-family closed sales (month/month) 485 497 +2%
Single-family median closed price (month/month) $435,000 $440,000 +1%
Single-family inventory 2,734 2,680 -2%
Condominium closed sales (month/month) 542 527 -3%
Condominium median closed price (month/month) $289,000 $270,000 -7%
Condominium inventory 2,670 2,739 +3%

 

According to Dominic Pallini, Broker at Vanderbilt Realty, "both median closed prices and days on market for single family homes above $300,000 decreased in May, which may indicate sellers are pricing homes to sell."

As broker analysts discussed the inherent necessity for REALTORS® to work with a seller to help them price a home properly the first time, veteran broker Bill Coffey, Broker Manager of Amerivest Realty Naples, added that "When I was trained, they told us that 50 percent of our listings won't sell because they are overpriced. But things look better today because REALTORS® are better trained and can provide more accurate market comparisons to sellers. As a result, sellers can make more informed decisions."

Geographically, North Naples continues to be a shining star as the only coastal area in Collier County to report an increase in closed sales for May. Activity in the rural Ave Maria area has increased steadily over the last year; but in May, this area saw its single-family home closed sales skyrocket to 40 percent.

"Inventory levels in other areas of the nation and Florida are very tight right now, but Naples is enjoying some renewed momentum in our inventory," said Brenda Fioretti, Managing Broker at Berkshire Hathaway HomeServices Florida Realty. "When the market is good in other areas of the country, our home sales activity is driven up as out-of-staters relocate to the Naples area. I think we'll see a very strong summer."

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.

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Posted in Market Report
May 27, 2018

Inventory Keeping Spring Market Active

For Sale: 818 Briarwood Blvd, Naples, FL 

 

Naples, Fla. (May 25, 2018) - According to the April 2018 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), Collier County enjoys a 7.76 month supply of inventory compared to a 4-month supply nationally. This is great news for Naples REALTORS® as they transition from a very busy high season to what broker analysts believe will be a very strong summer.

"Summer buyers are going to be very happy this year because there will be plenty of choices," said Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc. "Inventory growth has been good across all price ranges and geographic territories."

According to Cindy Carroll, SRA, with the real estate appraisal and consultancy firm Carroll & Carroll, Inc., the rate of inventory loss is declining and she predicts the Collier housing market will become even more stable before the end of the year. Carroll considers a 12-month supply of inventory a stable market for Collier County. Nationally, a stable market is reflected as having a 6-month supply of inventory.

Even though April's inventory fell 2 percent to 5,793 from 5,920 in April 2017, it's actually rebuilding from an annual low of 4,608 properties in inventory at the end of September 2017.

"The reality is, the real estate market is doing much better this year than in 2017," said Hughes, considering the 2018 statistics includes the period of time when Hurricane Irma stalled home sales activity for nearly six weeks starting in September (and as reflected in the 4Q 2017 Market Report).

Condominium inventory grew 2 percent in April to 3,003 units, over half the entire market, from 2,934 units in April 2017. The $300,000 and below price category experienced the highest increase in inventory (7 percent) to 1,472 units from 1,378 units in April 2017. Pending and closed sales of condominiums in this low-end price category were also strong, with a 17 and 14 percent increase, respectively. Interestingly, the median closed price of condominiums in April dropped 8 percent to $271,000 from $296,000 in April 2017.

"Sellers are pricing properties to sell and it shows," said Adam Vellano, West Coast Sales Manager, BEX Realty - Florida.

Carroll agreed and added, "The market for homes above $1 million is hot. If we can maintain current inventory trend levels - and I think we can - then sales of properties in this price point will be strong for at least a couple of years."

Overall closed sales increased 8 percent (month over month) in April to 978 properties from 902 properties in April 2017. And just like the first three months of the year, the high-end of the market continued to outpace other price categories tracked by NABOR® in April. As shown in the report, the number of closed sales of homes between $1 and $2 million increased 34 percent, while closed sales of homes over $2 million increased 15 percent in April.

"Closed sales of single-family homes in April were up 11 percent with an increase in every price category except the $300,000 and below range, where there are only 300 single-family homes on the market," said Brenda Fioretti, Managing Broker at Berkshire Hathaway HomeServices Florida Realty.

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

 

CATEGORIES
April 2017 April 2018 CHANGE
Total homes under contract (pending sales) (month/month)
1,075
1,126
+5%
Total closed sales (month/month) 902 978 +8%
Median closed price (month/month) $355,000 $365,000 +3%
Median closed price >$300K (month/month) $525,000 $525,000 0%
Total active listings (inventory) 5,920 5,793 -2%
Average days on market  97 95 -2%
Single-family closed sales (month/month) 404 450 -11%
Single-family median closed price (month/month) $419,000 $455,000 +9%
Single-family inventory 2,986 2,790 -7%
Condominium closed sales (month/month) 498 528 +6%
Condominium median closed price (month/month) $296,000 $271,000 -8%
Condominium inventory 2,934 3,003 +2%

Geographically, real estate activity was strong across the entire county, but closed sales of single-family homes in South Naples were most remarkable with a 51 percent increase to 62 closed sales in April 2018 from 41 in April 2017.
 
"North Naples was also a shining star in April," said Fioretti. "Even though inventory was down 8 percent in this geographic area, its year over year pending sales increased 9 percent, the highest of all geographic areas tracked. And its closed sales increased 13 percent year over year too."
 
April's month over month activity was even more impressive in the North Naples area, as reflected in a 26 percent increase in closed sales. Similarly, the median closed price of condominiums in North Naples dropped 14 percent in April to $258,000 from $300,000 in April 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.

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Posted in Market Report
April 13, 2018

First Quarter Housing Market Activity Sets the Stage for Strong Year

FOR SALE: 516 Portside Dr, Naples, FL  34103

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

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

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

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

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

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

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

 

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

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

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

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

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

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

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

Posted in Market Report
March 19, 2018

February Market Report Shows High End Properties in High Demand

2175 Crayton Rd Naples, FL 34103 

FOR SALE - 2175 Crayton Rd, Naples, FL 34103

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

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

 

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

 

Posted in Market Report
Feb. 26, 2018

Luxury Market Surges in January

FOR SALE: 9459 CAMPANILE CIR, NAPLES, FL  34114

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

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

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

Naples Real Estate Market Showed Resilience & Strength in 2017

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

 

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

November Housing Market Returns to Normal

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

 

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

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

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

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

 

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

 

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

 

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

Posted in Market Report
Nov. 20, 2017

October Housing Market Rebounds After Hurricane Irma

 Ocean Sunset

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

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

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

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

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

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

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

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

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

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

 

CATEGORIES

Oct 2016

Oct 2017

CHANGE

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

702

623

-11%

Total closed sales (month/month)

556

561

1%

Median closed price (month/month)

$315,000

$342,000

9%

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

$459,000

$480,000

5%

Total active listings (inventory)

5,426

5,010

-8%

Average days on market

85

104

22%

Single-family closed sales (month/month)

295

301

2%

Single-family median closed price (month/month)

$375,000

$425,000

13%

Single-family inventory

2,849

2,432

-15%

Condominium closed sales (month/month)

261

260

0%

Condominium median closed price (month/month)

$240,000

$250,000

4%

Condominium inventory

2,577

2,578

0%

 

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

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

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

Posted in Market Report
Oct. 28, 2017

Naples FL Market Shows Resilience

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

 

 

 

Posted in Market Report