Naples Property Preview Blog

 

Oct. 1, 2024

Naples Housing Market Remains Steady in August

Naples, Fla. (September 27, 2024) – The median closed price for homes in Naples during August was $600,000; the same price reported in July 2024 and August 2023. According to the August 2024 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), there were 1,096 price decreases during August. While this is the lowest number of price decreases reported for a month so far in 2024, it does indicate that sellers are continuing to adjust their prices to better reflect today’s housing market. And even though monthly inventory levels have risen compared to 2023 statistics (40.3 percent in August), they have been decreasing over the last five months; but broker analysts speculate this trend is short lived.

 

The Fallacy of Timing the Market

“There have been 1,861 units withdrawn from the MLS in the past 120 days,” said Adam Vellano, Managing Director of South and Southwest Florida at Compass Florida. “This is a common trend annually as some sellers pull down their listings because they don’t think they’ll get the highest price during off season months. Unfortunately, if inventory begins to rise in the coming months, in anticipation of our winter season visitors, the added competition will likely put pressure on sellers to lower their initial list prices or entertain below list offers.”

In March, Naples enjoyed 5,283 properties in inventory. Yet by the end of August, inventory had decreased 28 percent to 4,127 properties. Though compared to August 2023, inventory has increased 40.3 percent from 2,942 properties. As expected, new listings, which fuel overall inventory, have also been decreasing since March. But, while down 5.4 percent compared to last August, new listings increased 6.5 percent compared to July 2024. Overall closed sales in August decreased 27.8 percent to 524 closed sales from 726 closed sales in August 2023.

Setting the Cruise Control

According to Cindy Carroll of Carroll & Carroll Appraisers & Consultants, LLC, “Similar to the Naples housing market’s performance from 1992 through 1996, the current housing market is taking a much needed intermission from the harrowing ups and downs it experienced during the last few years.”

Carroll contends that it takes a long time for market participants to reset their minds after coming out of a series of crazy appreciation years. “The median closed price is holding steady, with no declines in the last year. This is the proof we finally need to see that people are gradually accepting today’s market reality.”

The NABOR® August 2024 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 2024:

A Few Market Standouts

Upon reviewing the August report, Jillian Young, President of Premiere Plus Realty, said, “Sales of properties over $5 million are performing better than other price categories NABOR® tracks. Though it’s taking longer for them to sell.”

Condominium sales in this top price category increased 28.1 percent to 41 condominiums over $5 million in August compared to 32 condominiums over $5 million in August 2023. Single family home sales in this price category for August increased 3.2 percent to 161 single family homes over $5 million from 156 single family homes over $5 million in August 2023. Incidentally, the median closed price in this price category decreased 13.5 percent in August to $6,095,000 from $7,050,000 in August 2023.

Jeff Jones, Broker at Keller Williams Naples, agreed with Young’s statement adding, “Days on market for properties over $1 million have risen to 97 days compared to our market average of 82 days. And while the report shows that we have six months of inventory; in the $1 million and above market, there is eight months of inventory.”

Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., responded by stating that, “Days on market may be up 51.9 percent, but historically, this is still low. The norm for our area is 90 to 110 days.”

Jones concluded by stating, “Buyers of condominiums should work closely with a REALTOR® to determine the full cost of ownership. Especially for condos three stories and higher that are 25 years or older, the costs of ownership may rise significantly due to flood disclosures and insurance costs, and the results of milestone structural inspections, which may require associations increase reserves or reveal some imminent and costly repair needs.”

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 31, 2024

Summer Buyers Enjoy More Options as Inventory Picks Up in June

Naples, Fla. (July 26, 2024) – Despite a 59 percent increase in overall inventory during June (compared to June 2023), overall closed sales during the month decreased 17.3 percent to 710 closed sales from 859 closed sales in June 2023. Data reflected in the June 2024 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), showed the overall median closed price decreased .8 percent to $595,000 from $600,000 in June 2023. Broker analysts say a steady number of list price reductions each month coupled with more realistic prices set by sellers will help the Naples market find its new “sweet spot” for home buying.

“I consider price reductions to be new listings because these homes become a new option for a larger pool of buyers,” said Jeff Jones, Broker at Keller Williams Naples. “This is helpful to buyers because June was the first month in 2024 where new listings were not above 1,200.”

Price reductions occur for many reasons: nearby comparative homes are priced lower, there have been no recent showings or offers on the home, the home has received a low appraisal, or to attract more buyers.

The June report showed 1,351 price reductions compared to 94 price increases. Coupled with a 95 percent list to sale price ratio, the data appears to indicate that sellers are making headway to adjust their initial asking prices to better reflect today’s market and, to some degree, are entertaining negotiations to secure a buyer.

A Bounty of Options

Summer buyers will enjoy more home options as the inventory of properties continues to rise compared to the last three years. In June, the 59 percent increase in inventory resulted in an available pool of 4,680 properties compared to only 2,943 properties during June 2023. Plus, confidence in the market remains steady with overall new listings in June increasing 1.5 percent to 896 new listings from 882 new listings in June 2023. Driving this influx of inventory was the number of new listings in the condominium market, which increased 9 percent compared to a 3.9 percent decrease in new listings for the single-family home market.

“The condominium market is challenging right now because fees are increasing to meet structural integrity reserve law requirements,” said Molly Lane, Senior Vice President at William Raveis Real Estate. “Condominium sellers and buyers should work with an experienced REALTOR® because they can help figure out pricing, given the future financial impact of these new reserve requirements to condominium values. On the other hand, this knowledge can also help during negotiations.”

Lane went on to note that the report showed closed and pending sales were at a five-year low for the month. Jones responded that “there are still a lot of homes lingering on the market with aspirational pricing, which is a disconnect between asking prices and market value.”

While inventory is nearly split between single-family homes and condominiums, the median close price in the single family home market decreased 3 percent in June to $730,000 from $752,500 in June 2023, while the median closed price in the condominium market increased .8 percent to $485,000 from $481,250.

The NABOR® June 2024 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 2024:

Geographic Standouts

The South Naples area (34112, 34113) reported the highest percentage of inventory increase in June (+80 percent) compared to other geographic areas tracked by NABOR®. The median closed price in South Naples increased 1.1 percent in June to $477,500 from $472,500 in June 2023. Alternately, the North Naples area (34109, 34110, 34119) showed the highest decrease in median closed price in June (-15.2 percent) to $627,500 from $740,000 in June 2023.

Sales activity in the Naples area housing market during the off-season summer months is historically lower than sales activity reported during its high-visitor winter season. The days on market in June increased 56 percent to 78 days from 50 days in June 2023. According to Adam Vellano, managing director of South and Southwest Florida at Compass Florida, “Before the pandemic, we were between 90 and 120 days on the market so we are still well below our traditional average.”

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 29, 2024

Price Climb Slows as Inventory Heats Up for Summer

Naples, Fla. (June 28, 2024) – As competition grows in the Naples housing market ­– overall inventory increased 67.1 percent in May to 5,019 properties from 3,004 properties in May 2023 – monthly closed sales for the month decreased 12.2 percent to 907 closed sales from 1,033 closed sales in May 2023. Broker analysts reviewing the May 2024 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), are closely monitoring the number of monthly price decreases to see whether it could turn the tide and improve sales this summer. One thing was certain in the May Market Report: summer buyers will have many more options than winter buyers.

New listings during May increased 18.4 percent to 1,201 new listings from 1,014 new listings in May 2023. “There were more price decreases than new listings in May,” Jeff Jones, Broker at Keller Williams Naples, pointed out. “Price reductions are good for our market. It tells us that sellers are finally realizing the market today won’t support aspirational pricing.”

In addition to 1,710 price decreases reported in May, the median closed price was $650,000, the same as the median closed price reported in April, which enjoyed 2,365 price decreases. Comparatively, the median closed price increased 8.3 percent to $650,000 from $600,000 in May 2023.

“The list price decreases are a signal that we are moving toward pricing that reflects today’s home values,” said Molly Lane, Senior Vice President at William Raveis Real Estate, who added, “This also indicates to us that local REALTORS® are doing a great amount of market research and using good salesmanship to get their sellers over the finish line.”

Another benefit of rising inventory and list price decreases has been the rise in the number of properties for sale in the lower end of the market. For May, properties in the $300,000 and below price category increased 104 percent to 308 from 151 in May 2023. Similarly, properties for sale in the $300,000 to $500,000 price category increased 90.1 percent to 1,032 from 543 in May 2023.

Qualifying Obstacles

Brokers, including Wes Kunkle, President and Managing Broker at Kunkle International Realty, recognize the many challenges facing home buyers today. In addition to record-high home prices, which have increased 83 percent (month/month) since 2019, Kunkle said “buyers are having a difficult time qualifying for loans. The demand is out there, it’s just that many people are either not able to come up with the down payment or realize the burden of additional high-item expenses like homeowners insurance and association fees prohibit them from purchasing a home.”

Mike Bone, Area Sales Manager, D.R. Horton, agreed with Kunkle, “About 40 percent of the buyers we see at our new home developments in Southwest Florida are unable to qualify for loans. Even with rate buydown programs and cash incentives, we are seeing enormous financing challenges.”

The NABOR® May 2024 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 2024:

A Different Seller/Buyer Dynamic

Unlike other cities in the U.S. where home sales are driven by people relocating for work, Naples has always been a lifestyle destination. “People live here because they want to. People are not moving here for jobs,” said Kunkle. In response, Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., added, “That means we have a different mix of sellers and buyer here. A majority of our sales are second homes. That said, these sellers don’t have an urgency to sell or won’t risk someone stealing it. On the other hand, second home buyers don’t have an urgency to buy because they have the time and cash to wait until they find exactly what they want.”

Another challenge for buyers and sellers in Naples during 2024, and across Florida, will be condominium sales. As Jillian Young, President, Premiere Plus Realty, explained, “By December 31st, the structural integrity reserve law requires all Florida condominiums three stories and higher and 25 to 30 years old have a milestone inspection and use the results to guide them to maintain financial reserves that will pay for future maintenance, inspections and repairs. The burden to raise these funds will require mandatory assessments on current and future owners. Sellers will need to take into account the additional cost to maintain the reserves.”

Geographic Standouts

In May, the median closed price for a single family home in the Naples Beach area (34102, 34103, 34108) decreased 26.1 percent to $2,262,500 from $3,062,500. Conversely, the median closed price for a single family home in the South Naples area (34112, 34113) increased 43.6 percent to $930,000 from $647,500. The lowest median closed price reported during May was in the Central Naples (34104, 34105, 34116) condominium market, which increased only 1.4 percent to $355,000 from $350,000 in May 2023.

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 12, 2024

The Crucial Role of Insurance in Florida Real Estate Transactions

When it comes to buying or selling a home in Florida, the details of the contract often take center stage. However, there’s another critical element that can significantly impact both buyers and sellers: Insurance. The NABOR (Naples Area Board of Realtors) contract advises buyers to consult with insurance professionals prior to executing a contract, but do they? It’s equally important for sellers to check with their insurance agents to minimize risks caused by contractual maintenance obligations.

Why Both Parties Need to Review Insurance Before Signing an Offer

The bottom line is simple: both parties need to review their insurance options before signing an offer or during their due-diligence period. Below are some of the most common insurance issues that buyers and sellers should be aware of:

1. Roof Age

The age of the roof can significantly limit insurance options. In some cases, insurance may be unavailable or much more expensive. The current considerations regarding roof age are:

  • Tile roof: 20 years
  • Shingle roof: 10 years
  • Metal roof: 25 years

It’s important to note that these age limits are subject to change without notice. Buyers and sellers should stay informed about the latest requirements to avoid surprises.

2. Polybutylene Pipes

Homes with polybutylene pipes are limited to two or three insurance options that will either exclude or limit water coverage. The caveat is that the underwriter will only write the policy if all other details of the home and the buyer meet their guidelines. This can be a significant issue for homes built during the period when polybutylene pipes were commonly used.

3. Prior Claims

Prior claims within the last five years can limit the buyer’s insurance options depending on the age, circumstances, or repairs related to those claims. These can be claims on the property being purchased or the buyer’s own claims made on other properties. Furthermore, the failure to disclose a prior claim can create an issue of fact regarding “latent material defects,” as highlighted by the case of Lorber vs. Passick, 327 So 3d 297 (2021).

4. Hot Water Heater

Insurance carriers typically want hot water heaters to be under 15 years old. In fact, carriers are now doing inspections prior to renewals, not just when you first buy the property. This means that a seemingly small detail like the age of a hot water heater can have a significant impact on insurance availability and cost.

What Buyers and Sellers Need to Know

Notably, these issues are NOT considered defects under NABOR and FR/BAR contracts. There is often a significant difference between what the contract covers and what the insurance underwriter requires. For example, limited roof life is considered a cosmetic issue under both contracts.

By looking into insurance coverages, you can avoid unpleasant surprises and ensure that buyers and sellers are fully informed about the potential insurance implications of their purchase or sale.

Conclusion

In the complex world of real estate transactions, insurance considerations are often overlooked but are incredibly important. Both buyers and sellers should review their insurance options and requirements before signing a contract. By doing so, they can avoid potential pitfalls and ensure a smoother, more informed transaction. As a real estate professional, my customers rely on my guidance, so we make sure to highlight these issues early in the process.

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

June 8, 2024

Discover the Best Rated Restaurants in Naples, FL

Nestled along Florida's picturesque Gulf Coast, Naples is a haven for food enthusiasts. From upscale dining to cozy bistros, this charming city offers an array of culinary delights that cater to all tastes. Whether you’re a resident or a visitor, here’s a guide to the best-rated restaurants in Naples, FL that promise an unforgettable dining experience.

1. The French Brasserie Rustique

Located in the heart of downtown Naples, The French Brasserie Rustique transports diners to a Parisian café. Renowned for its classic French cuisine, the restaurant offers a variety of dishes including escargot, duck confit, and an extensive wine list. The ambiance, with its warm, inviting décor, makes it perfect for both casual meals and special occasions.

Must-Try: Coq au Vin, Crème Brûlée

2. Truluck’s Ocean’s Finest Seafood & Crab

For seafood lovers, Truluck’s is a must-visit. Known for its fresh, sustainably sourced seafood, this upscale eatery specializes in crab dishes and other ocean delicacies. The elegant setting, complete with live piano music, creates a refined dining atmosphere.

Must-Try: Florida Stone Crab Claws, Miso-Glazed Sea Bass

3. Osteria Tulia

Osteria Tulia brings the rustic charm of an Italian farmhouse to Naples. Chef Vincenzo Betulia, a James Beard nominee, crafts authentic Italian dishes using locally sourced ingredients. The pasta is homemade, and the flavors are robust, making every bite a journey to Italy.

Must-Try: Pappardelle Bolognese, Wood-Fired Pizza

4. Sea Salt

Situated on Third Street South, Sea Salt offers a contemporary twist on seafood. Chef Fabrizio Aielli blends his Italian roots with fresh local ingredients, resulting in innovative dishes that are as visually stunning as they are delicious. The restaurant’s namesake reflects its use of over 130 different types of sea salt from around the world.

Must-Try: Octopus Carpaccio, Black Grouper

5. The Turtle Club

For beachfront dining, The Turtle Club is unparalleled. Located directly on the sands of Vanderbilt Beach, it offers breathtaking sunset views alongside a menu of fresh seafood and steak. The relaxed, yet elegant atmosphere makes it a popular spot for both locals and tourists.

Must-Try: Lobster Bisque, Filet Mignon

6. Sails Restaurant

Sails Restaurant is a culinary gem offering a fusion of French, Italian, and Greek cuisines. With a focus on fresh, locally sourced seafood, the menu is diverse and sophisticated. The chic, nautical-themed décor enhances the coastal dining experience.

Must-Try: Seafood Tower, Dover Sole Meunière

7. Mediterrano

Mediterrano brings the flavors of the Mediterranean to Naples. This family-owned restaurant is celebrated for its vibrant dishes inspired by the culinary traditions of Greece, Spain, Italy, and Morocco. The cozy and colorful interior creates a warm and inviting atmosphere.

Must-Try: Paella Valenciana, Moroccan Lamb Tagine

8. Campiello

Housed in a historic building in Old Naples, Campiello offers a lively and stylish dining experience. The menu features inventive Italian cuisine, with wood-fired pizzas and house-made pastas. The outdoor courtyard is a popular spot for enjoying a meal under the stars.

Must-Try: Spaghetti alla Chitarra, Braised Short Ribs

9. Baleen Naples

Located at the LaPlaya Beach & Golf Resort, Baleen Naples combines fine dining with spectacular beachfront views. The menu offers a blend of seafood and American cuisine, crafted with precision and flair. Dining on the terrace, with the sound of waves in the background, is a serene experience.

Must-Try: Jumbo Lump Crab Cake, Wagyu Beef

10. Fuse Global Cuisine

Fuse Global Cuisine takes diners on a culinary adventure around the world. Chef Greg Scarlatos infuses international flavors into every dish, creating a menu that’s eclectic and exciting. The restaurant’s modern décor and vibrant atmosphere add to the dining experience.

Must-Try: Korean BBQ Short Ribs, Tuna Tacos

Conclusion

Naples, FL, boasts a vibrant food scene with restaurants that offer something for every palate. From luxurious seafood spots to intimate Italian eateries, the best-rated restaurants in Naples promise culinary experiences that are both diverse and delightful. Whether you’re celebrating a special occasion or simply indulging in a great meal, these establishments ensure that your dining experience will be memorable.

Ready to embark on a culinary journey? Book your reservations and treat yourself to the finest flavors Naples has to offer!

Posted in Dining in Naples
June 2, 2024

Inventory Hike Helps April Home Sales Swell

Naples, Fla. (May 31, 2024) – The payoff of months of rising inventory was finally realized in April as closed sales increased 3.8 percent to 999 closed sales from 962 closed sales in April 2023. This is the first month closed sales have exceeded past years’ monthly comparable sales since June 2021. According to the April 2024 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), the 2,365 price reductions in April stimulated sales in the right direction. Growth in inventory does not appear to be slowing down either, as new listings in April increased 16.3 percent to 1,335 new listings from 1,148 new listings in April 2023.

“There are three things that could really help our market if they trended in the right direction: mother nature, insurance and interest rates,” said Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc. “But those are out of our control.”

Broker analysts including Dominic Pallini, Broker at Vanderbilt Realty, Inc., believe, “Interest rates are likely to stay above 5 percent for a long time.” But Jeff Jones, Broker at Keller Williams Naples, added that there is good news on the insurance front as “nine new companies have recently entered the Florida market, and 19 others have said they will lower rates or at least not increase them in 2025.”

The New Average

Demand for the Naples lifestyle increased during the pandemic, which depleted inventory for homes in the under $300,000 market – there were 315 homes for sale under $300,000 in April. Conversely, demand for luxury properties have soared, especially in the $500,000 to $1.5 million price category, which increased 68.1 percent compared to April 2023 and occupy the highest number of properties available (2,410) in the current inventory.

“The average closed price in Naples is over $1 million,” remarked Budge Huskey, CEO, Premier Sotheby’s International Realty.

However, according to the report, closed sales influencing the overall average price growth was in the Naples Beach area. For April, the average closed price of single family homes in communities located in the Naples Beach area (34102, 34103, 34108) increased 61.6 percent to $4,309,475 from $2,666,512 in April 2023. That said, this area was also where a large majority of properties sold for less than original list price as the percent of list price received decreased to 93.3 percent for single family homes and 94.8 percent for condominiums. This indicates sellers are reducing prices to meet the market.

Future Fit & Forward

According to the April report, the average monthly inventory in Naples is back to its familiar pre-pandemic level. April’s inventory increased 68.1 percent to 5,240 properties from 3,118 properties in April 2023. And the months supply of homes is up to 7.3 months. Huskey commented, “Typically, we begin to see prices slide once the months supply gets above 6 months, but we’re not seeing this in our market today. Inventory is growing, and prices remain stable.”

“Home values have doubled since 2019,” said Cindy Carroll of Carroll & Carroll Appraisers & Consultants, LLC. “And there’s no indication that homeowners are at risk of losing this growth in value.”

Carroll went on to say that there will be spots in the county that will experience a slight loss in value, but nothing on a large scale or that would take us back to pre-pandemic prices. “I am unable to find anything in my research that is alarming. The thing we have to focus on now is re-educating our sellers on home prices today. Their home’s value has likely increased, but the number of price reductions each month tells me that prices are still starting out too high. If a home is not priced competitively when it’s listed, sellers will likely need to lower the price to meet the market.”

“It’s time to shake off the COVID years,” said Sherry Stein, CRB, Managing Broker, Berkshire Hathaway HomeServices. “Compared to 2019, we are doing great today with higher inventory, low days on market, and remarkable increases in overall home values.”

As more high-end buyers discover the allure of Naples, broker analysts do not foresee the median closed price decreasing dramatically. For April, the overall median closed price increased 4 percent to $450,000 from $425,000 in April 2023. Though price adjustments are moving the needle in certain markets. April reported 2,365 price decreases, which decreased the median closed price 3.2 percent in the single family home market to $793,750 from $820,000 in April 2023.

The NABOR® April 2024 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 2024:

Busting Assumptions

The cost to build is higher than before the pandemic too. According to Mike Bone, Area Sales Manager, D.R. Horton, “The average new construction entry level price today is around $450,000 in Southwest Florida.”

The heightened cost to repair or rebuild is a primary factor in rising insurance rates. Yet, with more buyers in Naples paying cash – 65.4 percent of all transactions recorded in April – insurance and interest rates may not be as great an obstacle as some assume.

Growth in overall closed sales in April is a positive omen that the Naples real estate market is on track to outperform sales in 2023. “Historically, May has the highest number of closings,” said Huskey. Molly Lane, Senior Vice President at William Raveis Real Estate remarked, “If we can continue the growth we saw in April closed sales in May, this portends good things to come for our market.”

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 26, 2024

Home Values Remain Strong and Inventory Expands in March

Naples, Fla. (April 26, 2024) – Positive shifts and trends in the Naples area housing market during March continued to attract buyers and sellers. The March 2024 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), reported a 67.6 percent increase in inventory to 5,283 properties from 3,153 properties in March 2023. While home prices continue to appreciate steadily, up 6 percent in March to $649,000 from $612,000 in March 2023, there were also 2,667 price decreases during March, the highest number of decreased reported in over five years. According to broker analysts, these decreases are not placing downward pressure on prices; they are an indication that sellers are taking steps to stay competitive.

Familiarity Fuels Optimism

“March’s data shows a familiar trend that we haven’t enjoyed for some years,” said Sherry Stein, CRB, Managing Broker, Berkshire Hathaway HomeServices. “Compared to activity in the years leading up to the pandemic, March’s data reflects behavior that we would consider normal. Visitors get familiar with our real estate market during winter season to make certain they like the area well enough to purchase a residence here and to identify the communities that will meet their lifestyle needs. Then, they return during the summer to look for the right home, in the right location, at the right price and make a purchase.”

Closed sales in March decreased 14.2 percent to 893 from 1,041 closed sales in March 2023. While some analysts point to interest rates as the primary factor home sales have simmered recently, Budge Huskey, CEO, Premier Sotheby’s International Realty, remarked that “total price increases of homes over recent years are far more financially impactful than interest rates to a home buyer considering our average lower loan-to-value ratios and amount of cash.”

“Despite rising home prices and an increase in insurance rates, cash offers on homes have surged,” said Adam Vellano, Managing Director of South and Southwest Florida at Compass Florida, “The report shows 63 percent of transactions reported in March were cash sales. Naples has a very high cash market.”

Luxury Sales on the Rise

The enduring appeal of Naples to the affluent home buyer, coupled with lower luxury home prices in the Naples area compared to other luxury markets and the steady growth in Naples area property values is driving sales now more than ever. There were 32 homes sold in the $5 million and above price range and 126 homes sold in the $1.5 to $5 million price range in March 2024.

“People were buying anything during the pandemic,” said Stein. “But today they are looking for homes they desire and in locations or communities that can offer the lifestyle they prefer. Buyers are now finding more homes to choose from. For example, in the $500,000 to $1.5 million price range, there were 2,404 homes for sale in March 2024, an increase of 71 percent from March 2023 when there were 1,406 for sale in that price category. Pre-sale activity for the new, ultra-high end properties like the Ritz Carlton Residences and Rosewood Residences have been remarkable, a reflection of the strong demand for luxury residences.”

The NABOR® March 2024 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 2024:

 

Market Report Standouts

Closed sales of single-family homes in East Naples (east of Collier Boulevard or 34114, 34117, 34120, 34137) continues to outpace single-family home closed sales reported in all other areas in Naples. There were 206 single-family home closed sales in this area during March, with another 249 single-family homes that came on the market (new listings) during the month.

The Naples Beach area ( 34102, 34103, 34108) reported the highest number of condominium new listings in March (188) and the highest inventory of condominiums (859); but the North Naples area (34109, 34110, 34119) reported the highest closed sales of condominiums in March (130).

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 1, 2024

Rising Inventory and Competitive Pricing are Favorable for Home Sales

Naples, Fla. (March 29, 2024) – The overall median closed price in Naples increased 5 percent to $625,000 in February from $595,188 in February 2023, but there were also 2,264 price decreases reported. Brokers contend that price decreases may be one indication that sellers are shifting from aspirational pricing to realistic market pricing. According to the February 2024 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), closed sales decreased 9.3 percent in February despite a 66.6 percent increase in inventory to 5,139 properties from 3,085 properties in February 2023.

 

Rising Inventory Brings Patience

February’s price decreases demonstrate that REALTORS® are counseling sellers about realistic market pricing. Although some sellers are still struggling to accept the fact that the pandemic buying frenzy years with climbing price increases are over. As more new sellers enter the market (up 24.6 percent to 1,668 new listings from 1,336 new listings in February 2023), those sellers with overpriced properties risk missing an opportunity to attract and sell to eager buyers.

According to the report, in February 2019 the median closed price was $335,000. Cindy Carroll of Carroll & Carroll Appraisers & Consultants, LLC., and broker analysts like Budge Huskey, CEO, Premier Sotheby’s International Realty, agree that “in the face of far more inventory and opportunity, home values are holding steady in Naples today. People are being highly selective and will wait until they find the right property.”

“There are currently two types of sellers: those who need to sell, and those that are aspirational,” said Adam Vellano, Managing Director of South and Southwest Florida at Compass Florida. “If sellers were to get aggressive, then we might begin to see some price compression.”

Jillian Young, President, Premiere Plus Realty, added that “listing agreements that limit terms to three or even six months and reflect aspirational home prices are impeding sales. A deep dive into NABOR®’s market stats show us that these properties remain unsold longer and, in some cases, take two or three agent cycles to finally convince the seller that the home is overpriced for today’s market. This factor is also causing our days on market [DOM] to increase.”

Insurance vs. Interest Rates

The February Market Report showed a 103.4 percent increase in inventory for properties under $300,000. Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., said that this might be because “investors are offloading rental property units to capitalize on the winter selling season. Also, the carrying costs on some of these properties has climbed in recent years. This increase in inventory, for buyers looking in this price range, is encouraging as their selection was quite limited a year ago.”

Vellano believes “property insurance rates are influencing home buying decisions as much as interest rates.”

As many Naples residents are discovering, when home values increase, the replacement cost to insure them also increases. Insurance rates and association fees could increase for condominium owners by the end of 2024 as mandatory milestone inspections must be completed by year end. Inventory for condominiums increased 104.2 percent in February to 2,614 condominiums from 1,280 condominiums in February 2023.

Dominic Pallini, Broker at Vanderbilt Realty, Inc., said the shock of rising interest rates has subsided and regardless of Federal Reserve promises to drop the rate later this year “new homeowners are showing acceptance of 6.5 or 7 percent interest rates.”

The NABOR® February 2024 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 2024:

 

Market Report Standouts

Upon observation, the February Market Report shows median closed price decreased for condominiums located in the Naples Beach (34102, 34103, 34108); Central Naples (34104, 34105, 34116); and Immokalee/Ave Maria areas. And the area with most closed sales of single family homes in February was East Naples (34114, 34117, 34120 and 34137), which also reported the highest inventory of available properties (1,125).

While February’s report showed an average of 69 days on market, it is nowhere near the 101 DOM reported in February 2019. Interestingly, average days on market during February was highest in the $5 million and over condominium market (99 DOM). According to Carroll, months of inventory for neighborhoods west of US 41 tend to be higher as these communities are oversaturated with spec homes and aspirational sellers. “Inventory of homes in Aqualane Shores is 3.5 years; and in Port Royal is 2.9 years.”

Broker analysts reviewing the report recommend that homebuyers discuss getting a prelisting appraisal with their REALTOR® so they can compare prices of homes currently listed along with a comparison of recently sold properties to help them determine a realistic market price. This offers the advantage of positioning their listing price accurately to sell successfully.

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 3, 2024

January Market Report Shows Very Suitable Climate for Seasonal Sales

Naples, Fla. (March 1, 2024) – Data in the January 2024 Market Report showed invigorated confidence in the Naples area housing market for both sellers and buyers. Overall inventory continued to climb for the sixth straight month resulting in a 58.8 percent increase in homes for sale in January or 4,639 properties from 2,921 in January 2023. Fueled by a 29.1 percent increase in new listings year over year, January showings doubled compared to showings reported in December 2023. The first month of the year also saw serious sellers taking action to capture increased buyer attention with 1,804 price decreases, a 122.7 percent increase compared to December’s 810 price decreases.

“I’m getting more requests for pre-listing appraisals,” said Cindy Carroll of Carroll & Carroll Appraisers & Consultants, LLC. “This indicates to me that new sellers are taking their REALTOR®’s advice to heart and doing the work necessary to determine the value of their home in today’s market.”

The report showed 6.4 months of inventory for January compared to .9 months of inventory in January 2022, when frenzied pandemic buying began to simmer. Brokers reviewing the report said buyer intent has shifted from pandemic years of “I want a home in Naples,” to a more sensible climate today of “I want the right home in Naples.”

With more competition, brokers agree that REALTORS® who represent a buyer or seller must look at hyper-local factors such as location within a neighborhood, competition within each price range, and extenuating factors that may influence insurance coverage and affordability such as the age of the home or claim history. Additional factors that may influence list price include mortgage rates, association fees, potential or planned future assessments, ongoing maintenance and building repairs (common for condominiums) or repairs necessary to meet new building codes and flood/storm management requirements.

While pending sales in January decreased 7.5 percent to 1,010 pending sales from 1,092 pending sales in January 2023, pending sales activity for January increased 73.2 percent compared to pending sales activity reported in December 2023 (583).

“Days on market will continue to climb,” said Jillian Young, President, Premiere Plus Realty. “There are buyers who purchased a home impulsively during the pandemic and now they are rethinking their decision. And because a lot of them are second-home buyers, they aren’t motivated in a way typical of other sellers, so they’ve been less likely to adjust their list prices or negotiate.”

Budge Huskey, CEO, Premier Sotheby’s International Realty, responded to Young’s comments by stating, “We are in the type of market today that will differentiate between those who are realistic about selling and those who are still dabbling based on past perceptions.”

The NABOR® January 2024 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 2024:

The January 2024 Market Report also showed that average sales prices decreased 7.8 percent compared to January 2023, partially attributable to the slower pace of luxury sales. “We will not witness a significant reduction in values this year overall,” said Huskey. “But the increased inventory is motivating sellers to pay more attention to pricing the home competitively for today’s market and buyer. Values increased approximately 60 percent over the last three and a half years in our market so if a small amount is given back, most sellers will still enjoy a very healthy profit at time of sale.”

First-time homebuyers and those seeking homes under $500,000 will be pleased to hear that inventory in this price range increased 58.6 percent in January. In fact, inventory for condominiums priced under $300,000 increased 112 percent during the month. Notwithstanding, and because Naples is paradise, inventory for condominiums over $5 million increased 182.6 percent in January.

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

Posted in Market Report
Feb. 1, 2024

December Market Report: Home Inventory is Rising

Naples, Fla. (January 30, 2023) – According to the December 2023 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 45.9 percent to 3,949 properties from 2,706 properties in December 2022. The report showed consistent monthly increases in inventory during the year, which means more options for buyers in 2024; especially in the condominium market, which reported a 78.7 percent increase in inventory. However, according to broker analysts reviewing the December report, the housing market faced several challenges in 2023: rising interest rates, rising insurance rates, and rising inflation. Brokers also point to increased personal travel in 2023 as another reason home sales lagged in 2023. As a result, closed sales in 2023 decreased 13.6 percent to 8,816 closed sales from 10,206 closed sales in 2022.

Despite the challenges, there were seven months in 2023 when new listings increased more than new listings reported in comparative months in 2022. For December, new listings increased 12.1 percent to 892 new listings from 796 new listings in December 2022. Interestingly, unlike other industries that experience a reduction in price when supply increases, the Naples area housing market enjoyed a 9.7 percent increase in overall median closed price in December to $631,000 from $575,000 in December 2022. In comparison, according to the National Association of Realtors, the median existing-home price in the U.S. increased 4.4 percent in December to $382,000 from $366,000 in December 2022.

“Migration is booming in eastern Collier County,” said Cindy Carroll, of Carroll & Carroll Appraisers & Consultants, LLC, who added that it is one of the “last vestiges of affordable housing in our county”. Not surprising, in 2023, the Immokalee/Ave Maria area was the only geographic area tracked by NABOR® that reported an increase in single family home closed sales (+34.1 percent). Conversely, the report indicated a 24.8 percent decrease in closed sales for single family homes nearest the beach.

“The total cost of homeownership includes a lot more than just the home price,” quipped Jeff Jones, Broker at Keller Williams Naples. “Depending on the type and location of the property, a buyer will appreciate the benefit of working with an experienced local REALTOR® because they can help determine various contributing costs like property and flood insurance, association fees, and potential future assessments or property value adjustments when planned infrastructure projects like road expansions, rezoning, and storm water improvements happen.”

On reviewing the report, Adam Vellano, Managing Director of South and Southwest Florida at Compass Florida, said, “One big reason we didn’t outperform last year’s sales is because buyers who had plans to eventually relocate to Florida moved up their timeline. The pandemic convinced a lot of people to buy sooner so the high sales numbers we enjoyed in 2021 and 2022 were stolen sales from what would have taken place in 2023.”

Carroll added that according to her records, “Rapid market advancement stopped in early 2022. On average, it takes 12 to 24 months for the market to readjust. What we are seeing now are more sellers accepting that this phase is over. And that’s why there was a 29.6 percent increase in the number of price decreases reported in 2023.”

The NABOR® December 2023 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 2023:

“Intermarket sales ­– like downsizing or upsizing – by current homeowners in Naples didn’t occur at the same rate we once enjoyed in pre-pandemic years,” added Vellano. “People who are locked into a mortgage at 3 percent are very reluctant to let it go.”

In response, Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., commented, “More choices don’t seem to outweigh the other factors facing buyers right now, and so buyer sense of urgency has diminished. It isn’t like 2021 when a home would be listed and sold in the same day. Plus, many people today are hoping the Fed will drop rates again. But I always remind people that ‘if you see a property you like, there are likely many others who will like it too.’ As we say in the business, ‘marry the house and date the rate’ as you can always look into refinancing if rates go down.”

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