The Naples luxury home market continues to show a solid upward trend. All sectors of the market show improvement, with a few specific market segments showing remarkable gains. If you are wondering if now is the time to get serious about your home search in Naples....market stats will tell you. “Don’t wait!”

Let’s look first at buyer demand. The key indicator of demand is the number of homes available. Overall, the local MultiList inventory shows a 16% reduction in the number of homes available for sale in the second quarter of 2013, compared to a year ago. Taking an historic view, today’s inventory is at the lowest point since the Naples Area Board of Realtors began tracking in January 2007. Available properties - especially those that are highly desirable - are being snapped up as fast as new listings hit the market. Properties in the $2 million + price range are moving much faster than a year ago, with the number of days on the market down by 1/3.

Simply put - options are scarce, and this situation produces a sense of urgency in buyers. Desirable homes are moving, and moving fast.

Now, let’s take a look at home prices for pending and closed sales. Single-family home prices in the second quarter of 2013 are up a striking 26% over the second quarter of 2012. Pricing jumped 18% in the $190-225,000 category, and 33% in the $300-500,000 price category. The jump in pricing for more affordable homes reflects a shrinking supply in these price brackets. In other words, I expect that a number of homes now in that $300-500,000 category will soon move into the $500,000 - 1 million price range.

Why the uptick in price? Increased buyer demand and limited inventory is certainly part of the equation. In addition, the notion that Florida’s real estate market is flooded with short sales and foreclosures simply does not bear weight in the current Naples Market. The distressed market now represents a negligible segment of Naples’ total sales. Those who come to Naples in search of a wide selection of distressed “bargain” properties are likely to be disappointed.


What about current trends in home sales? With inventory down and prices headed up, buyers need to be poised and ready to make an offer. Whether you are looking for a more modestly priced home, or something in the multi-million dollar range, sales trends are strong.
The following market segments showed striking upward movement:

  • Sales are up 30 percent in the $300,000 to $500,000 category 
  • Sales are up 26 percent in the $1 million to $2 million category, 
  • For the second quarter of 2013, the $2 million+ segment experienced a whopping 38 percent increase.

 

My goal in working with clients is to remain sharply attuned to new listings, pricing trends, and opportunities that will put clients into the best possible situation when presenting an offer on the home that is best for their needs. Whether you are an existing client, or just beginning your search for for a home in the beautiful Naples area, I am anxious to partner with you. Let’s talk soon - don’t let your dream home get away!