This week, we saw significant news about the overall business climate in Naples. The area added some 4,000 new jobs over the past year, and unemployment dropped to 5.2% locally. Where is the growth? Education, health, leisure, and hospitality industries lead the pack.
And a good business climate leads to a strong market for housing. We’re ramping up for what we expect to be a strong winter sales season where real estate is concerned.
Let’s take a look at what’s happening right now.
We know that inventory of homes on the market has been skimpy over recent months - but that trend seems to be moderating to some degree as we head toward the holidays and set the stage for the winter season. Across most of the area, the inventory of single family homes is on the upswing. What a relief for home shoppers! You’ll find more choices right now, especially in North Naples, and in the $500,000 to $1 million price bracket.
The condo market is a slightly different story. Overall, the inventory of condos for sale is down slightly over last year at this time. Condo shoppers will find selection is still snug, and we will need to keep a close eye out for the unit that is right for your needs!
Often, we look at the simple law of supply and demand to explain pricing trends in real estate. Typically, as supply goes down, prices increase. Surprisingly, some segments of our Naples real estate market don’t follow that time tested law. For example, the median closed price of single-family homes in the $2 million and above price segment rose 15%, yet the inventory in that same price segment rose 17 percent in the same time period. As baby boomers continue to retire and cast an eye toward the Gulf Coast, we can expect demand to remain strong for Naples luxury properties.
It’s a complex market, and our local Board of Realtors recommends that buyers listen closely to advice from their Realtor, who knows how to interpret these market trends. I am eager to work with you as “Season” begins here in Naples, whether you are beginning your home search or feel that the time is finally right for you to make the big move!
