Naples Property Preview Blog

 

Jan. 18, 2020

Decade Ends with Strongest Year in Home Sales!

Homes for Sale - Isles of Collier Preserve

Naples, Fla. (January 17, 2020) - According to the 2019 Year End Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), existing home sales through December 2019 are the highest in a decade. Overall closed sales in 2019 increased 5.6 percent to 10,244 closed sales compared to 9,704 closed sales in 2018. In comparison, the only other year that came close to reaching this stellar sales activity was 2015, which had 10,154 closed sales.

Overall pending sales in 2019 also broke a record during the last decade; resulting in 12,604 total pending sales, a 9.4 percent increase over 2018, which reported 11,520 pending sales.

The 2019 Year End Market Report showed closed sales in 2019 increased in all but the $2 million and above price category, which had a 4 percent decrease to 523 closed sales compared to 544 closed sales in 2018. Of those in this price category, 376 were for single-family homes, and according to Wes Kunkle, President and Managing Broker at Kunkle International Realty. "The MLS further revealed that 14 single-family homes priced above $4 million closed in December 2019 compared to just 7 in 2018."

Condominium closed sales held steady with a 1.9 percent increase in 2019 to 5,085 compared to 4,990 in 2018, but broker analysts reviewing the year-end report anticipate closed sales of condominiums in January will be much higher, especially since pending sales for condominiums increased 28.8 percent in December.

A breakdown of December's closed sales by area showed Naples Beach reported the highest increase in closed sales during December with a 59.1 percent increase to 140 closed sales compared to 88 closed sales in December 2018. Closed sales by zip code revealed 34113 and 34108 commanded impressive increases, 62.3 percent and 61.5 percent, respectively, in December 2019 compared to December 2018.

"Growth in the eastern part of the county, including the addition of many desirable amenities like restaurants, retail shopping centers, banking, and personal care, is redefining what is a desirable 'location' for Collier County," said Coco Amar, VP, Strategic Growth, South Florida, William Raveis Real Estate. "West of 41 was a location high point for many years, but I think buyers are finding beach proximity is less important than the lifestyle offered in and around new communities now." 

While inventory fell 21 percent in 2019 to 5,401 properties compared to 6,801 properties in 2018, the Collier County market is still commanding a much higher supply than the state's average levels (as reported by Florida Realtors®). As such, the Market Report showed Collier County enjoyed 6.2 months of supply in the single-family home market during December, while the state reported 3.6 months of supply for the month. Likewise, the report showed 6.4 months of supply in the condominium market for December compared to 5.5 months of supply statewide.

Interestingly, inventory levels dropped in all price categories except in the $2 million and above condominium market, which reported a 16.3 percent increase in inventory during December.

Broker analysts reviewing the Market Report like Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., agree that "the sales environment today is much different than it was in 2005 - when we also had low inventory and high sales. Back then, you might see the same home for sale multiple times [flipping] during the year. But it's a different market today. Last year we had a rolling inventory; we're not selling the same properties, there are fresh new listings every month."

The NABOR® YE 2019 Market Reports provide comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. NABOR® sales statistics are presented in chart format, including these overall (single-family and condominium) findings:

 

CATEGORIES
YE 2018 YE 2019 CHANGE
Total closed sales (year/year) 9,704 10,244 +5.6%
Total pending sales (homes under contract) (year/year) 11,520 12,604 +9.4
Median closed price (year/year) $338,000 $332,514 -1.6%
Total active listings (inventory) 6,801 5,401 -20.6%
Average days on market  95 101 +6.3%
Single-family closed sales (year/year) 4,714 5,159 +9.4%
Single-family median closed price (year/year) $425,000 $415,000 -2.4%
Single-family inventory 3,479 2,678 -23.0%
Condominium closed sales (year/year) 4,990 5,085 +1.9%
Condominium median closed price (year/year) $265,000 $260,000 -1.9%
Condominium inventory 3,322 2,723 -18.0%

 

 

Median closed prices in 2019 decreased 1.6 percent to $332,514 from $338,000 in 2018. Only the $2 million and above price category had a significant increase of 6.7 percent during the year. But, on a month to month comparison, median closed prices in December 2019 increased 6.7 percent to $348,000 compared to $326,000 in December 2018. However, the overall average closed price in Collier County during 2019 increased 19.3 percent to $772,380.
 
Showings remain on the rise as well. There were 10 showings for each listing reported in December 2019 compared to just 7 in December 2018.
Broker analysts agreed that new state actions, led by Governor Ron DeSantis, to address water quality issues during 2019 made a significant impact in local real estate activity during 2019, especially during the summer months.

On whether an election year is a good time to buy a home, broker analysts contend that stable pricing, great financing rates, and above state-level months of supply in inventory are three great reasons for Naples real estate agents to be optimistic in 2020. Of course, location shouldn't be overlooked, as well.

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

 

 
Posted in Market Report
Dec. 21, 2019

November Home Activity Shows Buyers Trying to Beat the Pack

View Isles of Collier Preserve Homes For Sale

Naples, Fla. (December 20, 2019) - An increase in traffic on roads and beaches, and in restaurants, hotels, and open houses during November was reflected in a 27 percent increase in overall pending sales (homes under contract), and a 46 percent increase in showings for the month compared to November 2018. Several broker analysts who reviewed the November 2019 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), said they saw a noticeable increase in buyer interest starting back in October. The presence of more eager buyers before our traditional high season has contributed to the depletion of inventory, which decreased 19.4 percent in November to 5,5

"We currently have a six-month supply of inventory," said Brenda Fioretti, Managing Broker at Berkshire Hathaway HomeServices Florida Realty, who added that there were price reductions in 28 percent of all homes on the market in November. But according to Budge Huskey, President, Premier Sotheby's International Realty, "Six months of inventory offers Naples a great advantage when compared to other popular Florida areas like Tampa and Orlando, which currently average two to three months of inventory, as buyers have more options."

"Naples is not a major business center where demand is driven by significant employment gains," added Huskey, "yet we continue to enjoy another solid year in real estate sales due to all the unique offerings which make Naples such as special destination to so many around the country."

But these inventory reductions aren't necessarily coming from just the resale market. "A portion of our inventory is made up of new listings available by builders,", "Many big, new home developments are now complete and just about sold out so there is less new product available, thus contributing to some of the decrease in overall home inventory."

Overall closed sales in November increased 2.4 percent, but it was the single-family home market that led the month's closed sales with a 5.3 percent increase compared to closed sales in the condominium market, which decreased 0.6 percent.

In response to slow sales in the condominium market, Coco Amar, a managing broker at John R. Wood Properties remarked, "We've had such huge activity in the condominium market over the last three years, it was bound to slow down a bit." But despite closed sales of condominiums being tepid in November, the report showed pending sales in the condominium market were up 26 percent compared to an increase in pending sales in the single-family homes market of 28 percent. This substantial increase is a direct result of the early influx of buyers.

Inventory levels for the single-family and condominium markets were about even in November; with 2,771 properties and 2,792 properties, respectively. Inventory declines during November were highest in the low end of the single-family home market (under $300,000), which saw a 35.4 percent decline in November. But inventory increased 19.6 percent in the $2 million and above condominium market.

"With overall inventory down and showings up, now is a great time to put your home on the market!" 

The NABOR® November 2019 Market Reports provide comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. NABOR® sales statistics are presented in chart format, including these overall (single-family and condominium) findings: 

CATEGORIES
NOV 2018 NOV 2019 CHANGE
Total closed sales (month/month) 671 687 +2.4%
Total pending sales (homes under contract) (month/month) 792 1006 +27.0
Median closed price (month/month) $330,000 $332,500 -0.8%
Total active listings (inventory) 6,896 5,563 -19.3%
Average days on market  94 91 -3.2%
Single-family closed sales (month/month) 340 358 +5.3%
Single-family median closed price (month/month) $413,000 $425,000 +2.9%
Single-family inventory 3,573 2,771 -22.4%
Condominium closed sales (month/month) 331 329 -0.6%
Condominium median closed price (month/month) $254,000 $260,000 +2.4%
Condominium inventory 3,323 2,792

-16.0%

"People who own homes in Naples are staying longer and more are staying year round," said Amar. "There has definitely been a shift in the market this year as we are seeing buyers more interested in homes under $500,000 than those priced over $2 million."

The report showed overall median closed prices increased .8 percent in November to $332,500 from $330,000 in November 2018. Interestingly, median closed prices in the $2 million and above price category increased 4.6 percent in November, while the median closed price in the under $300,000 market decreased 5 percent.

Vellano also pointed out that the November Market Report showed "40 percent of the current inventory has been on the market for over 150 days, and 20 percent has been on the market for over 300 days." Amar responded that much of this entails two types of inventory: teardowns and those that require major renovations. "These sellers will need to reduce prices further if they want to attract buyers."

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. 22, 2019

Buyers are Back: Homes Under Contract Soar 24% in October

Isles Of Collier Preserve Home For Sale

Naples, Fla. (November 22, 2019) - As predicted by a group of Naples real estate brokers, buyer activity began to rise in October with a remarkable 23.7 percent increase in overall pending sales (homes under contract) to 987 pending sales during October 2019 compared to 798 pending sales in October 2018. Sellers also felt a surge in showings (up 40 percent compared to October 2018), and the number of price reductions slowed to just 15 percent of the properties available in October's overall inventory compared to September, which saw 26 percent of its inventory's prices reduced. Price reduction activity is an important behavior for buyers to watch as it is an indication of how eager sellers are to sell.

Closed sales during October increased 9.7 percent to 758 closed sales compared to 689 closed sales in October 2018, according to the October 2019 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island).

"These pre-season pending sales numbers are setting us up to have a good winter sales season," said Dominic Pallini, Broker at Vanderbilt Realty. "Inventory is also going up yet prices have been holding steady."

Even though October's overall inventory decreased 17.7 percent to 5,351 homes for sale from 6,500 homes for sale in October 2018, there were actually 362 more homes that came onto the market in October compared to September. According to Pallini, a fair amount of the new inventory is in the new construction market where builders are pricing homes aggressively and offering sweeteners to agents and buyers via incentives.

"A large majority of the new construction over the last year appears to be in the market's "sweet spot", which is the category of homes priced below $500,000," said Jeff Jones, Broker at Keller Williams Naples. "This influx of new construction is probably why the median closed price in that price range hasn't shifted much."

According to Tom Bringardner, Jr., President/CEO of Premier Commercial, "median closed prices in the upper end of the market [homes priced at $2 million and above] rose 8 percent" in October 2019 to $3,200,000 from $2,962,500 in October 2018. However, when 57 percent of the market's available inventory are homes priced under $500,000, and the majority of new listings every month are also in this range, it's easy to understand how the overall median closed price reported for the entire market appears to be decreasing.

The overall median closed price decreased 3 percent in October to $329,950 from $340,000 in October 2018. But it's important to remember that there are also three times as many properties for sale under $300,000 than properties for sale over $2 million in Naples.

"Inventory has kept prices attractive which drives demand," said Budge Huskey, President, Premier Sotheby's International Realty. "The under $500,000 market is driving our overall market today. This is naturally bringing the median closed price down."

The NABOR® October 2019 Market Reports provide comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. NABOR® sales statistics are presented in chart format, including these overall (single-family and condominium) findings:

CATEGORIES
OCT 2018 OCT 2019 CHANGE
Total closed sales (month/month) 689 756 +9.7%
Median closed price (month/month) $340,000 $329,950 -3.0%
Total active listings (inventory) 6,500 5,351 -17.7%
Average days on market  94 104 +10.6%
Single-family closed sales (month/month) 371 389 +4.9%
Single-family median closed price (month/month) $425,000 $395,000 -7.1%
Single-family inventory 3,376 2,675 -20.8%
Condominium closed sales (month/month) 318 367 +15.4%
Condominium median closed price (month/month) $265,000 $255,000 +3.8%
Condominium inventor 3,124 2,676

-14.3%

Jones noted that homes built prior to the current modern "coastal" era designs are lingering on the market due to the growing unpopularity of the older Tuscan and Mediterranean home designs and architecture. In response, several brokers wondered if this could explain why the days on market for homes in the Naples Beach area increased by a month in October since many of the homes are not amongst the more popular modern designs and architecture.

Geographically, closed sales in October were highest (64.4 percent) in areas located in the 34109 zip code (east of Goodlette Frank Rd., west of I-75, south of Immokalee Rd., and north of Pine Ridge Rd.). Other locations that experienced sales increases over 50 percent month/month in October were 34117 (south of Golden Gate Blvd., and east of Collier Blvd.), and 34112 (south of Davis Blvd., north of Rattle Snake Hammock Rd., east of U.S. 41, west of Collier Blvd.).

According to the October 2019 ShowingTime Report, a monthly supplemental report now released with monthly Market Reports, REALTORS® in Collier County reported over 5,000 more showing appointments in October 2019 - a total of 18,531 - compared to October 2018, which had 13,271 showing appointments, a statistic that indicates the heartbeat on overall real estate market activity.

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. 27, 2019

Home Showings Lead to Increased Sales

 

Isles of Collier home for sale

Isles Of Collier Preserve Home For Sale

Naples, Fla. (October 25, 2019) - The Naples area housing market enjoyed another 7 percent increase in overall closed home sales for the third month in a row. This trend leads broker analyst Adam Vellano to suggest that the consistent uptick in summer home sales illustrates that Collier County is becoming less seasonal.

According to the September 2019 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), showings in September 2019 were up 31 percent over September 2018. This translated into a 13.7 percent increase in pending sales (written contracts) or 823 pending sales in September 2019 compared to 724 pending sales in September 2018. Strong showing activity during the summer resulted in 698 closed sales during September 2019.

"With an average of 17.4 showings per listing, agents stayed busy this summer," said Jeff Jones, Broker at Keller Williams Naples, which, according to Vellano, means "inventory was coming to the buyer." Jones noted that 28 percent of the available inventory experienced a price decrease in September.

Broker analysts warn consumers that this market behavior won't last long as they anticipate inventory to increase before the end of the year. "Decreases in inventory are customary this time of year," said Phil Wood, President & CEO of John R. Wood Properties. "And increases in inventory preceding winter season are customary too. But the low inventory is not because there was a deficit of buyers. This is apparent in the consistently high number of showings during the summer and better closed sales numbers compared to last year."

The September report showed median closed prices remained stable during the third quarter (July, August & September). In July, the median closed price was $326,400. By September, the median closed price had dropped slightly to $325,000, which is only a .7 percent decrease from September 2018, which reported a median closed price of $327,408. Interestingly, the median closed price in January 2019 was $325,000.

With over 500 listings pulled from the MLS in September, it is no surprise that overall inventory for the month fell. However, even though it decreased 17.8 percent to 4,989 homes compared to 6,070 homes in September 2018, inventory for September was higher than August by 72 homes.

The NABOR® September 2019 Market Reports provide comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. NABOR® sales statistics are presented in chart format, including these overall (single-family and condominium) findings: 

 

CATEGORIES
SEPT 2018 SEPT 2019 CHANGE
Total closed sales (month/month) 651 698 +7.2%
Median closed price (month/month) $327,408 $325,000 -0.7%
Total active listings (inventory) 6,070 4,989 -17.8%
Average days on market  93 102 +9.7%
Single-family closed sales (month/month) 321 359 +11.8%
Single-family median closed price (month/month) $395,000 $405,000 +2.5%
Single-family inventory 3,208 2,567 -20.0%
Condominium closed sales (month/month) 330 339 +2.7%
Condominium median closed price (month/month) $242,250 $245,000 +1.1%
Condominium inventory 2,862 2,422 -15.4%

 

As noted by brokers reviewing the housing data, September had a 6-month supply of inventory. "Inventory levels are always low in September," said Bill Coffey, Broker Manager of Amerivest Realty Naples. "You're going to see those homes that were pulled off the MLS on the market again in the next few months. But it's too bad because buyers who don't have options in the resale market in Naples now are not waiting for more homes to come onto the market, but instead are buying resale homes in Lee County or even further north."

Geographically, condominiums in South Naples (34112, 34113) saw a 22.1 percent spike in its median closed prices to $213,000 in September 2019 from $174,500 in September 2018. Alternately, condominiums in North Naples saw a 16.4 percent decrease in median closed prices to $242,500 in September 2019 from $290,000 in September 2018.

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. 23, 2019

August Home Sales Strong as Prices Hold Steady

Closed sales of homes in Collier County increased 7.4 percent in August, but overall inventory fell 17.8 percent to 4,917 properties compared to 5,980 in August 2018, according to the August 2019 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). This reduction in inventory - which included 616 homes that were either terminated, expired or withdrawn from the Southwest Florida MLS in August - resulted in a six-month supply of inventory for Collier County at the end of August.

"We know that traditionally, inventory will begin to creep up in September, October and November as many sellers try to get a jump on the competition that might list their properties closer to our winter season," said Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc. "But the pre-season months (September through November) can be a great time for buyers as well. Buyers will find less competition [from other buyers] in the pre-season months. They will also get an early peek at properties that will probably sell during season."

The August ShowingTime report indicated that local REALTORS® scheduled 16,878 appointments during August. This is an increase of 16 percent compared to showings in August 2018. On average, a home in the Naples area is shown 16 times before it secures a contract.

Incidentally, the $300,000 to $500,000 price category led closed sales in August with a 10.1 percent increase followed by closed sales of properties under $300,000, which increased 6.5 percent. 

Sales of single-family homes were up almost 10 percent this August, despite the reduced inventory overall, new listings coming on the market were up 4 percent in August and builder inventory is up as well. 

The median closed price in August decreased just 0.2 percent to $317,918, which is only $582 lower than the median closed price in August 2018 ($318,500). In fact, price increases have only been reported in two of the last 12 months (October 2018, 3.7%; and April 2019, 3.4%).

The August Report showed median closed prices for homes below $300,000 and homes between $1 million and $2 million decreased 4 percent in August, while homes between $300,000 and $1 million showed no change in median closed prices.

The August 2019 Market Reports provide comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. NABOR® sales statistics are presented in chart format, including these overall (single-family and condominium) findings: 

 

CATEGORIES
AUG 2018 AUG 2019 CHANGE
Total closed sales (month/month) 741 796 +7.4%
Median closed price (month/month) $318,500 $317,918 -0.2%
Total active listings (inventory) 5,980 4,917 -17.8%
Average days on market  99 103 +4.0%
Single-family closed sales (month/month) 356 417 +17.1%
Single-family median closed price (month/month) $405,000 $399,000 -1.5%
Single-family inventory 3,147 2,523 -19.8%
Condominium closed sales (month/month) 385 379 -1.6%
Condominium median closed price (month/month) $250,000 $245,000 -2.0%
Condominium inventory 2,833 2,394 -15.5%

 

We have an entire generation of first-time homebuyers who have never seen interest rates over 6 percent. With the recent quarter percentage point cut in interest rates, there isn't been a better time to lock in and buy then now!

Geographically, closed sales of single-family homes in the East Naples area increased the most in August by 35.6 percent followed by closed sales of single-family homes in North Naples, which increased 15.6 percent.

There were 1,443 price reductions made during August [29 percent of the total homes listed], which is important for buyers as this is an indication that many sellers are eager 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
July 28, 2019

June Market Report Shows Strong Showing Activity

Isles of Collier Preserve Homes For Sale

Naples, Fla. (July 2019) - Naples was recently voted the number one southern "boomtown", which might be one reason showings were up during June. The June 2019 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), revealed that 500 potential buyers were shown homes for sale in the Naples area every day during June. Closed sales in the Naples area during June decreased 10.3 percent compared to closed sales in June 2018, but closed sales since January have only decreased .7 percent. In fact, closed sales over the last 12 months are up in all price categories below $1 million.

"Now is the time to enter the market," said Mike Hughes, Vice President and General Manager of Downing-Frye Realty, Inc., who added that only homes in the $1 million to $2 million had a median closed price decrease in June. "Even though inventory in June dropped almost 12 percent, values are holding steady and the reduced competition provides great opportunities for sellers."

Bill Coffey, Broker Manager of Amerivest Realty Naples, added that despite the inventory decrease "there is still 6.9 months of inventory available, which is well above the Florida average of 4-months supply."

Broker analysts reviewing the June 2019 Market Report recommend sellers consult a REALTOR® before listing a home for sale. A REALTOR® can help a seller price a home competitively. They can also maximize the home's marketing and help the seller or buyer every step of the way.

A shift in buyer interest to single family homes in lower price categories during the second quarter of the year was confirmed by broker analysts. During June, new listings for single family homes decreased 7.1 percent, while new listings for condominiums decreased 4.2 percent.

According to the report, there were 798 price decreases in June. Yet the month's overall median closed price increased 1.4 percent to $335,000 from $330,400 in June 2018. The single-family home median closed price decreased 8 percent in June, while the condominium market median closed price increased 1.9 percent.

The NABOR® June 2019 Market Reports provide comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. NABOR® sales statistics are presented in chart format, including these overall (single-family and condominium) findings: 

CATEGORIES
JUNE 2018 JUNE 2019 CHANGE
Total closed sales (month/month) 996 893 -10.6%
Median closed price (month/month) $330,400 $335,000 +1.4%
Total active listings (inventory) 6,353 5,531 -12.9%
Average days on market  94 104 +10.6%
Single-family closed sales (month/month) 487 464 -4.7%
Single-family median closed price (month/month) $435,000 $400,000 -8.0%
Single-family inventory 3,223 2,852 -11.5%
Condominium closed sales (month/month) 509 429 -15.7%
Condominium median closed price (month/month) $260,000 $265,000 +1.9%
Condominium inventory 3,130 2,679 -14.4%

"Year over year only properties above $2 million have had price increases," said Kathy Zorn, broker/owner, Better Homes and Gardens Real Estate Pristine. "In fact, the report shows condominiums under $300,000 have experienced a year over year decrease of 7.6 percent."

According to Wes Kunkle, President and Managing Broker at Kunkle International Realty, "the commercial market in Naples is seeing some new investor activity but not nearly as much as what Lee County is experiencing."

"Loan modifications coming due for some homeowners could be one reason there is an increase in foreclosures recently," said Lauren Melo, Broker at Florida's Realty Specialists. "But the number of HELOCs are also on the rise, which could also indicate increased equity and an improving market."

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

Posted in Market Report
June 23, 2019

Home Sales in May Shifted to the East

Isles of Collier Preserve Homes For Sale

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

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

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

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

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

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

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

The NABOR® May 2019 Market Reports provide comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. NABOR® sales statistics are presented in chart format, including these overall (single-family and condominium) findings: 

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

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

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

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

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

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

Posted in Market Report
May 27, 2019

April Report Shows Market Resurgence Continues

Isles of Collier Preserve Homes For Sale

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

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

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

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

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

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

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

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

The NABOR® April 2019 Market Reports provide comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. NABOR® sales statistics are presented in chart format, including these overall (single-family and condominium) findings: 

 

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

 

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

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

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

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

Posted in Market Report
April 23, 2019

Realistic Home Values Led to Strong Sales in March

For Sale: 2838 Coach House Way, Naples, FL

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

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

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

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

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

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

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

The NABOR® March 2019 Market Reports provide comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. NABOR® sales statistics are presented in chart format, including these overall (single-family and condominium) findings: 

 

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

 

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

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

Posted in Market Report
March 10, 2019

January Housing Market Shows Signs of Opportunity

 

For Sale: 2838 Coach House Way, Naples, FL

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

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

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

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

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

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

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

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

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

The NABOR® January 2019 Market Reports provide comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. NABOR® sales statistics are presented in chart format, including these overall (single-family and condominium) findings: 

 

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

 

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

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

Posted in Market Report