Naples Property Preview Blog

 

Dec. 22, 2022

Naples Housing Inventory on the Rise


Isles of Collier Preserve Villas For Sale

Naples, Fla. (December 22, 2022) – According to the November 2022 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), there were 552 overall closed sales in November, which is a 41.4 percent decrease from 942 closed sales recorded in November 2021. The post-pandemic home buying surge that took place when mortgage rates were historically low has ended. Housing inventory in Naples is on the rise but remains low at just 2.8 months of inventory reported in November (a balanced market has a six-month supply of inventory). As expected, the limited inventory environment in Naples is restricting sales and increasing prices. Though broker analysts reviewing the report pointed out that cash sales accounted for 62.3 percent of closed sales in November; it is an indication that the Naples housing market remains a solid investment.

While optimistic, Budge Huskey, CEO, Premier Sotheby’s International Realty, said, “Things are moving in the right direction, but it will take time to return to what most would consider normal market conditions.”

Even new legislation passed last week to stabilize the property insurance market, reduce protracted litigation, and speed up the claims process will take time before it is enjoyed by Florida homeowners.

Huskey added, “Inventory in Naples is increasing, but there may be a bifurcation coming as newer homes are more insurable than older ones. This may begin to affect home prices next year because newer homes and their ability to obtain insurance will become more desirable and increase in price; whereas older homes that need attention will struggle to find a willing insurer and may become less desirable and decrease in price.”

The November report showed inventory rose in all price categories except the $300,000 and below category, which decreased 14.2 percent from 127 to 109 properties. Overall inventory in November rose 96.8 percent to 2,478 properties from 1,259 properties in November 2021. Comparatively, in November 2019 there were 5,563 properties in inventory, which was split between 2,771 single-family homes and 2,792 condominiums. Today, the inventory is single-family home heavy, which accounts for 63 percent of all homes for sale in Naples.

November’s overall median closed price increased 20.4 percent to $600,000 from $498,500 in November 2021. But “the season for aspirational pricing is over,” said Jillian Young, President of Premiere Plus Realty. “The economy is very different from where we were during the frenzied buying activity experienced in the year following the pandemic. Sellers can no longer expect multiple offers that are significantly over the listed price. We had less inventory then, which drove prices higher, and mortgage rates were at 2 and 3 percent, which gave buyers more room to make concessions.”

November’s report also showed sellers are more willing to negotiate again as the overall percent of list price received decreased 3.3 percent compared to last November. “A slowdown in sales started to occur during this past summer when COVID restrictions were lifted in foreign countries and people began to travel again,” said Jeff Jones, Broker at Keller Williams Naples. “The opportunity to travel safely means homeowners aren’t here to sell their homes.”

The NABOR® November 2022 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. NABOR® sales statistics are presented in chart format, including these overall (single-family and condominium) findings for 2022: 

 

As to whether Hurricane Ian impacted the Naples housing market, Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., said, “There’s a considerable number of homeowners tied up in insurance disputes right now. Once they are resolved, we may see a slight increase in new listings.” Young added that, “Many homeowners are still displaced from the storm as they weigh their options.” Huskey responded by adding, “There’s also a percentage of homeowners that don’t want to go through the renovation process, especially west of 41, and instead are selling their damaged homes to builders who are eager to buy and tear down a $2 million home to build a $6 million home.” Jones quipped, “Despite whether a homeowner spends the money to renovate or sells to a builder, the average list price of a home for sale in a desirable neighborhood west of 41 is likely to increase.”

If you're in the market to buy or sell your home in Southwest Florida, give me a call for assistance. I can do a market comparison and determine a fair and reasonable listing price, both with and without renovations. I can also identify properties best suited for your needs and negotiate a purchase price that fits your budget. Discover more at www.NaplesPropertyPreview.com or call Susan Sanderson at 239-821-2370

 

 

Posted in Market Report
Nov. 24, 2022

Housing Market Favorable for Preseason Buyers

Isles of Collier Preserve - Homes for sale

Naples, Fla. (November 23, 2022) – Speculation that home sales in October would drop dramatically in Collier County following Hurricane Ian was proven inaccurate as closed and pending sales for the month increased 23.7 and 8.7 percent, respectively, compared to closed and pending sales reported in September, according to the October 2022 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). And even though 525 listings were either terminated, expired or withdrawn from the Southwest Florida MLS during October, overall inventory for the month increased 72.7 percent to 2,325 properties from 1,346 properties in October 2021.

 

“Our current market has created many new opportunities for redevelopment that have caught the attention of a much broader spectrum of buyer,” said Spencer Haynes, Vice President of Business Development and Broker with John R. Wood Properties. “It is an environment created out of tragedy that will prove beneficial for the Naples area in the long run.”

Budge Huskey, CEO, Premier Sotheby’s International Realty, responding to Haynes said, “This is a statement about the confidence of our market in the future. Many older homes that experienced severe flood damage during Ian are in desirable locations. And this is going to start a new building boom with higher quality product.”

Admittedly, compared to 2021 which was a standout year for real estate in Collier County, closed sales in October decreased 24.5 percent to 662 closed sales from 877 closed sales in October 2021. Pending sales (homes under contract) also decreased 43.3 percent to 673 pending sales from 1,186 pending sales in October 2021.

According to NABOR®’s statistics, October’s overall median closed price held fast at $555,000, the same as was reported in September. But compared to October 2021, the overall median closed price increased 23.3 percent from $450,000. Interestingly, the statistics showed a 1.6 percent decrease in median closed price for condominiums between September and October. Haynes added that, “While we saw a slight increase in new listings by condominium owners who had damage and decided to sell instead of rebuild, the hurricane is not going to spark a ‘fire sale’ trend.” 

There was a 26.1 percent increase in new listings in October compared to September, which broker analysts say is typical this time of year. Overall new listings in October decreased 13.9 percent to 908 from 1,054 in October 2021, but new listings for single family homes soared in October and were just 10 properties shy of the 548 new listings reported in October 2021. Preseason buyers will be pleased to find many more options than last year.

The NABOR® October 2022 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. NABOR® sales statistics are presented in chart format, including these overall (single-family and condominium) findings for 2022:

 

“Even though interest rates are set to increase again, it’s a good time to be a home buyer in Naples,” said Dominic Pallini, Broker at Vanderbilt Realty. “The overall percent of current list price received is 96.4 percent and has been declining since April. This means buyers today have more room for negotiation.” Haynes responded by explaining that “a successful negotiation could lower mortgage payments enough to offset the interest rate increase.”

According to Molly Lane, Senior Vice President at William Raveis Real Estate, “Whether a homeowner decides to rebuild or sell a property damaged by Ian has a lot to do with location and circumstance. Some retirees with an older damaged home west of 41 are choosing to sell as is and buy elsewhere in Naples, typically more inland and with a higher elevation, while newer homeowners in the affected areas are choosing to invest in a rebuild.”

Huskey responded that, “For every one homeowner that moves out of a neighborhood west of 41, there are two buyers looking to move in. We may see a short-lived variance occur within our market in the coming months as some discounting for homes with lower elevations may occur. But this also means there may be a premium set on those homes with a higher elevation.”

If you're in the market to buy or sell your home in Southwest Florida, give me a call for assistance. I can do a market comparison and determine a fair and reasonable listing price, both with and without renovations. I can also identify properties best suited for your needs and negotiate a purchase price that fits your budget. Discover more at www.NaplesPropertyPreview.com or call Susan Sanderson at 239-821-2370

Posted in Market Report
Oct. 21, 2022

Hurricane Ian Failed to Upset Naples Housing Market’s Resilience

Isles of Collier Preserve Homes For Sale

Naples, Fla. (October 21, 2022) – The impact of Hurricane Ian, as witnessed on the last two days of September, is not reflected in the September 2022 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). Given this, September’s data showed a predictable pattern of slow closed and pending sales with a slight increase in inventory, which is traditionally the case in historically stable Septembers. (The September 2022 infographic and chart are located at the end of this email.) While the report captured activity prior to Hurricane Ian’s arrival, broker analysts who reviewed the report on October 18th are confident Naples’ recovery will be swift and the resiliency of its home values will be protected.

“There is indeed significant loss, yet the full scope of [the hurricane’s] impact was limited to a specific area along the coast and tributaries [in Collier County],” said Budge Huskey, CEO, Premier Sotheby’s International Realty. “Such an event always brings with it a rebuilding boom, and most people will make the decision to restore and improve rather than exit the area. It’s remarkable how quickly progress is being made each and every day.”

Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., added that “Unlike Hurricane Irma, Hurricane Ian was not a severe wind event so roughly 80 percent of the county was unaffected. For buyers looking to purchase non-waterfront homes, the market is unchanged.”

Not surprising, several broker analysts said there has been an increase in buyer interest for homes in communities east of U.S. 41 since the storm. Adam Vellano, a Naples Sales Manager at Compass Florida, remarked that, “Some homes have been withdrawn from the MLS, some have been terminated, but there’s also been a steady flow of new listings in these last two weeks.”

Obviously, some properties in Naples that experienced damage from the hurricane will come off the market because they will need to be assessed by insurance adjusters and undergo repairs. But unlike harder hit Lee and Charlotte counties, very few properties in Collier County were destroyed.

A considerable number of businesses and properties that experienced the storm’s surge were swift to recover. Major area attractions like the Zoo, popular restaurants and golf courses have already reopened. Vellano added, “If you visit our popular shopping districts today, you’d be hard pressed to recognize we had a major hurricane event two weeks ago.” 

Indeed, 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. Additionally, drainage improvements to the City and County’s stormwater infrastructure and new flood prevention management ordinances attributed to Naples’ quick recovery efforts.

Molly Lane, Senior Vice President at William Raveis Real Estate, who lived in Connecticut during two major storm flooding events said we might see “FEMA change the base flood elevation on new builds.” Though many spec homes built west of 41 are already 10 feet above sea level and the vast majority appeared to avoid serious flooding during Hurricane Ian.

Broker analysts that reviewed the September 2022 Market Report are concerned national media’s portrayal of the storm’s destruction is influencing the public’s perception of the housing market in Collier County. Hughes said, “A lot of people who visit Naples are assessing their winter plans now. They are trying to figure out whether they should come down and it doesn’t help that our area is part of the media’s narrative when reporting on the hurricane’s destructive effects. It is simply not the case. Naples is well positioned to bounce back, and it will quickly.”

Spencer Haynes, Vice President of Business Development and Broker with John R. Wood Properties, assures the public and NABOR® members that September’s Market Report did not reveal any surprises and that instead of spending time analyzing the report you should spend the time helping human service organizations that provide direct recovery support.

 

The NABOR® September 2022 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. NABOR® sales statistics are presented in chart format, including these overall (single-family and condominium) findings for 2022: 

 

If you're in the market to buy or sell your home in Southwest Florida, give me a call for assistance. I can do a market comparison and determine a fair and reasonable listing price, both with and without renovations. I can also identify properties best suited for your needs and negotiate a purchase price that fits your budget. Discover more at www.NaplesPropertyPreview.com or call Susan Sanderson at 239-821-2370

Posted in Market Report
Sept. 24, 2022

August Report Shows a Healthy Housing Market

Homes For Sale in the Isles of Collier Preserve

Naples, FL (September 23, 2022) – Indications that the Naples area housing market is transitioning to a balanced market became more evident during August as both inventory and days on the market increased. According to the August 2022 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), overall inventory increased 71.3 percent to 2,140 properties from 1,249 properties in August 2021. Of the homes on the market during August, 35.8 percent of them (766) experienced a price decrease and the overall list price received for the month slipped slightly to 96.4 percent from 99.2 percent in August 2021. Broker analysts say these factors are attributed to seller and buyer behaviors that resemble a healthy market environment.

 

While overall closed sales for August decreased 36.7 percent to 669 from 1,057 in August 2021, it increased 5.6 percent compared to July’s closed sales. Historically, closed sales and pending sales (homes under contract) in August do not outperform July’s closed and pending sales. But this year is different. “Pending sales in August increased nearly 20 percent [19.2%] compared to July,” said Bill Coffey, Broker Manager of Amerivest Realty Naples. “This means that people wrote more contracts in August, but we will be tracking to see if this becomes a trend.”

Jeff Jones, Broker at Keller Williams Naples, commented, “There are many opportunities for buyers. The market is healthy, inventory is up, demand continues and prices are realistic. Also, with rents skyrocketing, the option to buy is more desirable.”

The overall median closed price continued to increase in August, up 30.7 percent to $575,000 from $440,000 in August 2021. “There were only 31 single-family homes and 79 condominiums under $300,000 on the market during August,” said Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc. In August 2019, there were over 1,400 properties on the market under $300,000. But with so few available in the lowest price category today, Hughes remarked that “we should expect the median closed price to continue to stay high as long as the high-end market continues to stay very active.”

While looking at new listings reported in August, Molly Lane, Senior Vice President at William Raveis Real Estate, commented that, “We are on par with new listings compared to pre-pandemic levels in August 2019.” There were 850 new listings in August, a 16.9 percent decrease compared to 1,023 in August 2021. Jones responded that “buyers should be aware that new listings don’t just come from new sellers entering the market, but also from existing inventory where the home’s list price was decreased or from sales that were pending but fell through and went back on the market.”

The NABOR® August 2022 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. NABOR® sales statistics are presented in chart format, including these overall (single-family and condominium) findings for 2022: 

 

While showings were down 13 percent compared to August 2021, they were higher than showings reported during June and July. And there were 5,000 more showings in August compared to showings reported during pre-pandemic August 2019. Incidentally, there were 4,917 properties in inventory during August 2019 compared to 2,140 properties in August 2022.

Hughes remarked that the pandemic influenced many people’s behaviors, which led to outstanding showing and sales activity starting in late 2020 and through 2021. “People pushed up their plans to either retire early and move to Florida or purchase a second home in Florida. Demand for homes in Florida continues to be strong despite the Fed raising rates and fears of a recession. For Southwest Florida in particular, we’ve always enjoyed either good years or great years.”

Brenda Fioretti, Broker Associate at Berkshire Hathaway HomeServices Florida Realty, mentioned that during NABOR®’s recent Economic Summit, all three economists who spoke at the event agreed on this message to buyers: “Don’t wait for prices or interest rates to go down.” Fioretti encourages buyers sitting on the fence to jump in the market now because interest rates are not expected to go back to previous levels. 

If you're in the market to buy or sell your home in Southwest Florida, give me a call for assistance. I can do a market comparison and determine a fair and reasonable listing price, both with and without renovations. I can also identify properties best suited for your needs and negotiate a purchase price that fits your budget. Discover more at www.NaplesPropertyPreview.com or call Susan Sanderson at 239-821-2370

 

Posted in Market Report
Aug. 25, 2022

July Home Sales Return to Prepandemic Levels

Isles of Collier Preserve Homes For Sale

Naples, FL (August 23, 2022) – Naples housing market experts reviewing the July 2022 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), confirm the data reflected familiar activity levels akin to pre-pandemic summer months. Historically, closed sales in Naples during summer months trend around 800 sales a month. But during the last two years, summer sales were well above 1,000 closed sales a month. This July, overall closed sales decreased 43.4 percent to 662 closed sales from 1,170 closed sales in July 2021. For perspective, in July 2018 and 2019, there were 774 and 829 closed sales, respectively. The current level of activity is what market experts expected in a post-pandemic summer and consider it a sign that we are on a path back to a balanced market.

 

Additional indications in the July report that support this shift is the number of pending sales. As such, overall pending sales decreased 33.8 percent to 751 pending sales from 1,135 pending sales in July 2021. The tempering of closed and pending sales, which began in June, is producing one very welcome result: an increase in inventory. In July, inventory rose 87.6 percent to 2,429 properties from 1,295 properties in July 2021 (there were 5,200 properties in inventory during July 2019).

“In a balanced housing market, buyers have more opportunities,” said Brenda Fioretti, Broker Associate at Berkshire Hathaway HomeServices Florida Realty. “They might look at five or six homes, maybe take a break for a couple of days, then go look at five or six more. That’s possible in a balanced market because homes aren’t flying off the shelf.”

Starting in the fall of 2020 and continuing into this past spring, the Naples housing market experienced remarkable sales activity that was fueled by a frenzy of home buying by those seeking the ideal Naples lifestyle. However, as pandemic pandemonium diminished, broker analysts predicted a slow, gradual return to a balanced market would occur in Naples.

Dominic Pallini, Broker at Vanderbilt Realty, remarked that, “We have a very resilient market. When sales went off the charts during the pandemic, our inventory plummeted, and this contributed to price increases. In July, there were 905 price reductions compared to 293 price reductions in July 2021. But demand is still very high. The difference is that today, buyers don’t feel the pressure to buy like they did during the pandemic. They are taking their time to find a home that they feel justifies the price.”

Adding his opinion that our market has shifted and is now on a trajectory to become balanced again, Budge Huskey, CEO, Premier Sotheby’s International Realty, said, “The report showed pending sales were off less than closed sales in July, which indicates we have likely reached the bottom and can expect to now turn the other way.”

Market experts reviewing the July report say buyers should not expect home values to drop dramatically. While year over year price growth is trimming, demand is still high, and inventory is still not at pre-pandemic 2019 levels. The median closed price in July increased 16 percent to $545,000 from $469,950 in July 2021; it decreased 9.8 percent from $604,000 in June.

The NABOR® July 2022 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. NABOR® sales statistics are presented in chart format, including these overall (single-family and condominium) findings 

 

“Pre-COVID, we were averaging 90 days on market,” said Adam Vellano, a Naples Sales Manager at Compass Florida. “We are currently at 26 days on market, so while we are moving in the right direction, we still have a long path back to being balanced.”

“For sellers who were sitting on the fence, it appears they might have missed the pandemic peak,” added Huskey. “The fact that we are no longer in nirvana is further supported by other data in the report including the number of listings withdrawn in last three months.”

Jeff Jones, Broker at Keller Williams Naples, responded by stating, “While down compared to July 2020 and July 2021, the number of new listings coming on to the market this July [944] was still slightly higher than it was in July 2019 [935].”

With regard to the 905 properties that had a price reduction in July, Jones repeated his message to buyers in June that, “Price reductions should be viewed as new listings because the newly lowered price is now attractive to a larger pool of buyers. Thus, these properties represent new opportunities for home buyers.”

Fioretti summed up the market experts’ analysis of the July report by stating, “In a balanced market, buyers tend to place reasonable offers on homes and sellers tend to accept them. Homes remain on the market for a moderate amount of time—neither lagging for months nor getting snapped up in mere hours or days. Home prices remain stable or grow at a steady pace. My advice to buyers is, ‘Don’t wait for prices to go down. Lower your expectations so you can jump into the home ownership arena now. Interest rates are still lower than what they may be in the future.

If you're in the market to buy or sell your home in Southwest Florida, give me a call for assistance. I can do a market comparison and determine a fair and reasonable listing price, both with and without renovations. I can also identify properties best suited for your needs and negotiate a purchase price that fits your budget. Discover more at www.NaplesPropertyPreview.com or call Susan Sanderson at 239-821-2370

Posted in Market Report
July 22, 2022

June Real Estate Market Shows Signs of Balancing

5827 Haiti Drive (Isles of Collier Preserve)

Naples, FL (July 22, 2022) – Data reflecting activity in the Naples area housing market during June showed signs of a return to pre-pandemic summer activity when market conditions were balanced. According to the June 2022 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), pending sales decreased 36.8 percent in June to 794 pending sales from 1,236 pending sales in June 2021, and closed sales decreased 38.4 percent in June to 952 closed sales from 1,545 closed in June 2021. On the positive side, an 80.5 percent increase in inventory during June to 2,294 properties from 1,271 properties in June 2021 is expected to spark sales.

 

“It appears the housing market in Florida is returning to a more traditional seasonal environment,” said Budge Huskey, CEO, Premier Sotheby’s International Realty. “We began to see a deceleration in sales during May and median closed prices for single family homes dropped in June compared to May as well.”

With 2.2 months of inventory available in June (up from .8 months in December 2021), the journey back to a balanced market is starting to take place. But broker analysts say it will be a slow climb. Huskey added that, “We will remain in a sustained low inventory environment this year, which will serve to insulate prices. In almost all segments of the market, it will prove a story of deceleration rather than depreciation.”

Upon reviewing the June 2022 Market Report, Mike Dodge, Director of Education and Market Research for John R. Wood Properties, commented that his agents tell him, “People want to list their homes but think they should wait for season because they think they’ll get more money for it. Although it remains to be seen where values will go from here, what we do know based on the report is that inventory is on the rise. Also, sellers who wait for season to list will likely have more competition than they would if they listed now.”

Adam Vellano, a Naples Sales Manager at Compass Florida responded that there has been an increase in international buyers traveling to America again this summer and that one in four of them are looking for homes in Florida. “Demand is still outpacing supply today, and our prices are still very attractive.” 

Seasonality is also on the mind of Jeff Jones, Broker at Keller Williams Naples, who remarked that “in June 2019 we had the same number of price reductions as this past June, but during June 2019 we had three times the number of properties in inventory. That said, nearly 50 percent of our inventory this past June had a price reduction. These price reductions should be viewed as new listings because the newly lowered price is now attractive to a larger pool of buyers. Thus, there are more opportunities available for home buyers.”

The June Market Report showed 1,169 new listings compared to 1,170 new listings in June 2021. Broker analysts reviewing the report predict sales activity will continue to mirror 2019 trends, which will naturally increase inventory levels and return us to a balanced market.

Educating the public about what the Market Reports illustrate will help buyers and sellers in 2022. According to Vellano, “As we get back to normal and days on market continues to rise, [as they did in June to 18 days from 16 days in May], we need to make it clear to people that the frenzy is over and 10-day home sales and selling above list price are not going to occur often anymore. During pre-pandemic years when things were more balanced, days on market for the Naples area was around 70 to 100 days, so we still have a way to go.”

The NABOR® June 2022 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. NABOR® sales statistics are presented in chart format, including these overall (single-family and condominium) findings for 2022: 

 

Median closed prices in June increased 31.8 percent to $604,000 from $458,281 in June 2021, but median closed prices for single family homes in June decreased 7.7 percent to $750,000 from $812,500 in May. Conversely, median closed prices for condominiums in June increased 2.5 percent to $497,000 from $485,000 in May.
 
Huskey’s observation of the return of seasonality this year is supported by a recent member survey by the American Automobile Association (AAA) which – despite rising costs for gasoline, hotel rooms and airline tickets – reports, “consumer confidence regarding travel is the highest it’s been since the pandemic first began.” But Florida faces more competition this summer as other popular summer travel destinations that were previously off limits due to COVID-19 restrictions are now receiving visitors.
 
“Rising mortgage rates and fears of an economic downturn might also be influencing some home buying decisions today,” said Molly Lane, Senior Vice President at William Raveis Real Estate. “Rates right now are rising but still lower than the historic average.”
 
Despite the cooling of sales in June, cash sales during the month commanded 60.3 percent of all closed sales compared to 63.3 percent in May.
If you're in the market to buy or sell your home in Southwest Florida, give me a call for assistance. I can do a market comparison and determine a fair and reasonable listing price, both with and without renovations. I can also identify properties best suited for your needs and negotiate a purchase price that fits your budget. Discover more at www.NaplesPropertyPreview.com or call Susan Sanderson at 239-821-2370
Posted in Market Report
June 25, 2022

Inventory Heating Up is Good News for Summer Buyers

Downtown Naples Condos For Sale

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

 

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

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

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

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

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

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

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

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

The NABOR® May 2022 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. NABOR® sales statistics are presented in chart format, including these overall (single-family and condominium) findings for 2022:

 

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

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

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

If you're in the market to buy or sell your home in Southwest Florida, give me a call for assistance. I can do a market comparison and determine a fair and reasonable listing price, both with and without renovations. I can also identify properties best suited for your needs and negotiate a purchase price that fits your budget. Discover more at www.NaplesPropertyPreview.com or call Susan Sanderson at 239-821-2370

 

Posted in Market Report
May 25, 2022

Signs Show Naples Housing Market is Regaining Balance

North Naples Homes For Sale

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

 

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

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

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

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

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

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

The NABOR® April 2022 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. NABOR® sales statistics are presented in chart format, including these overall (single-family and condominium) findings for 2022:

 

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

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

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

If you're in the market to buy or sell your home in Southwest Florida, give me a call for assistance. I can do a market comparison and determine a fair and reasonable listing price, both with and without renovations. I can also identify properties best suited for your needs and negotiate a purchase price that fits your budget. Discover more at www.NaplesPropertyPreview.com or call Susan Sanderson at 239-821-2370

Posted in Market Report
April 27, 2022

Rising Inventory Encouraging

Park Shore Properties For Sale

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

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

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

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

The NABOR® March 2022 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. NABOR® sales statistics are presented in chart format, including these overall (single-family and condominium) findings for 2022:

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

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

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

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

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

If you're in the market to buy or sell your home in Southwest Florida, give me a call for assistance. I can do a market comparison and determine a fair and reasonable listing price, both with and without renovations. I can also identify properties best suited for your needs and negotiate a purchase price that fits your budget. Discover more at www.NaplesPropertyPreview.com or call Susan Sanderson at 239-821-2370

Posted in Market Report
March 26, 2022

Sellers are Taking Advantage of Home Values ?Hitting Record Highs

Isles of Collier Preserve Homes For Sale

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

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

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

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

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

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

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

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

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

The NABOR® February 2022 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. NABOR® sales statistics are presented in chart format, including these overall (single-family and condominium) findings for 2022:

 

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

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

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

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

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

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

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

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

If you're in the market to buy or sell your home in Southwest Florida, give me a call for assistance. I can do a market comparison and determine a fair and reasonable listing price, both with and without renovations. I can also identify properties best suited for your needs and negotiate a purchase price that fits your budget. Discover more at www.NaplesPropertyPreview.com or call Susan Sanderson at 239-821-2370

Posted in Market Report