Naples, Fla. (December 26, 2023) – Overall inventory of homes in Naples for November increased 38.8 percent to 3,795 properties from 2,734 properties in November 2022. Buyers have not enjoyed a level of choice since September 2020. The month also included 1,080 price decreases resulting in a 3.3 percent decrease in overall median closed price. According to the November 2023 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), data showed the housing market is poised to enjoy healthy winter sales, but it will depend on whether sellers continue to price their homes to sell and whether buyers feel the investment is right.

“A lot of the underlying foundation that drives the real estate market is in place,” said Budge Huskey, CEO, Premier Sotheby’s International Realty. “The primary obstacle to overcome is a residual feeling by buyers that things feel more expensive than they once were due to inflation, and this hesitancy is being translated to real estate.”

The November Report showed 1,080 price decreases, the highest in six months. Price deceleration may be happening in parts of Naples as the overall median closed price dropped to $580,000 from $600,000 in November 2022. As such, November was one of four months this year that reported a decrease in median closed prices. In fact, year-over-year price decreases have not been reported since 2019.

According to Mike Bone, Area Sales Manager with D.R. Horton, “Area builders have experienced a much slower fall sales market than what was budgeted for the fall months. Sales were lagging behind monthly budgets by approximately 25 percent, and cancellation rates on contracts have hovered around 20 percent due to the higher interest rates.”

Pending sales (homes under contract) in November decreased 13.8 percent to 661 pending sales from 767 pending sales in November 2022. Closed sales also decreased by 6.1 percent to 537 closed sales from 572 closed sales. Responding to this data, broker analysts reviewing the November report wonder if the Federal Reserve’s promise to lower rates in 2024 may be keeping some buyers on the fence.

The NABOR® November 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:

While monthly inventory levels for single family and condominiums typically increase and decrease in a similar manner, inventory in the condominium home market in November rose by 74.5 percent compared to a 17.4 percent increase in the single family home market. Brokers reviewing the report said the rise in condominium inventory was most likely due to obstacles that prohibited sellers from listing their condominiums if it or the property encountered hurricane damage last year.

In 2021 and 2022, when inventory and interest rates were incredibly low, there was more urgency to buy a home. In 2023, interest rates, property insurance rates, and property taxes rose, making the cost of maintaining or keeping a home in Florida prohibitive for many homeowners.

According to Jeff Jones, Broker at Keller Williams Naples, “This might be especially true for second-home buyers who, because of new law, will no longer enjoy the same insurance rate as their primary residence. To remedy this obstacle, NABOR® teaches its REALTOR® members to request the buyer check their homeowner’s and flood insurance rates prior to writing a contract.”

“Another obstacle facing buyers today are a handful of sellers who are holding onto the belief that they can obtain pandemic-level prices for their Florida homes,” said Molly Lane, Senior Vice President at William Raveis Real Estate.

Huskey responded to Lane stating that, “We have two levels of inventory on the market today: those with sellers that are positioned to sell, and those with sellers who are testing the market based on prior years’ perceived values. The upcoming winter season will show us who is more likely to sell because we have the inventory now and it will be reflected in the ultimate value buyers are willing to pay.”

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

Naples, Fla. (November 27, 2023) – Real estate brokers reviewing the October 2023 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), were encouraged to see a 31.8 percent increase in new listings to 1,231 new listings from 924 new listings in October 2022. The report also showed the median closed price of homes in Naples during October increased 4.5 percent to $580,000 from $555,000 in October 2022. According to broker analysts, these two factors indicate rumors of an extreme market correction were false. They also illustrate renewed seller confidence, which will be good news for buyers seeking more options in the coming months.

“October had the highest number of new listings added to the market compared to any October since the pandemic,” remarked Dominic Pallini, Broker at Vanderbilt Realty, Inc. Historically, and according to NABOR®’s monthly market reports, October and January have the highest number of new listings. New listings in October for the condominium market shot up 61.9 percent to 612 new condominium listings from 378 new condominium listings in October 2022. Single-family home new listings in October also increased at a healthy rate of 11.3 percent to 619 new single-family home listings from 556 new single-family homes listings in October 2022. Obviously though, one factor contributing to a rise in new listings this October was the need for many homeowners to postpone listing their properties for sale last October until damage from Hurricane Ian could be repaired. 

“The value of working with a REALTOR® in Naples is priceless,” said Jillian Young, President, Premiere Plus Realty. “Unlike housing markets in other areas of the country or Florida, Naples can be a bit of a tough nut. You might think your house is priced right based on a comparison of homes for sale nearby, but without a REALTOR® who understands the nuances of the existing home market or what planned new community developments are on the horizon, you might risk your home being overlooked by buyers if it lingers on the market too long because it wasn’t priced right.”

Pent up consumer travel during the summer distracted attention away from home sales as the report showed both pending sales (homes under contract) and closed sales activity were lower than pre-pandemic levels reported for an October. This can be traced to lower showing activity during the recent summer compared to summer 2022 levels. As such, overall pending sales in October decreased 1.2 percent to 665 pending sales from 673 pending sales; and overall closed sales in October decreased 12.8 percent to 594 closed sales from 681 closed sales in October 2022.

Higher days on the market also contributed to lower sales in October. For example, in the summer of 2022, days on market were below 20 days. Whereas, this past summer, days on market were over 50 days. For October, days on market increased 36.6 percent in October to 56 days from 41 days. Given this data, brokers anticipate healthy pending and closed sales activity in the coming months as showings during October increased 14 percent to 21,180 showings from 18,654 in October 2022.

The NABOR® October 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:

According to NABOR® President Nick Bobzien, a broker associate at Downing-Frye Realty, “Interest rates are not as much an obstacle in Naples as cash sales continue to exceed 50 percent of all our sales, but they are for many northern home sellers who rely on buyers that require financing. There’s talk that some buyers are also sitting on the fence waiting for rates to drop. But regardless of when and whether the rates drop next year, our area is still well below a balanced market level [4.5 months of supply in October].”

Sherry Stein, CRB, Managing Broker, Berkshire Hathaway HomeServices, responded to Bobzien’s comments by stating, “It’s also likely that when rates go down, prices will go up. So, delaying a home purchase until the Fed lowers the interest rate ignores the real possibility that the home you can finance today might increase in price beyond what you can afford to finance when the rate is eventually lowered. In any event, nothing is stopping a buyer today from refinancing when the rate drops down the road.”

Incidentally, and according to Cindy Carroll, of Carroll & Carroll Appraisers & Consultants, LLC, a balanced market for Naples is when there is a 12-month supply of homes in inventory. As noted by Young, “The Naples Beach area [34102, 34103, 34108] has a 10-month supply of single-family homes for sale, and that’s even with the average closed price for single family homes decreasing 12 percent in October.”

Sales of luxury properties continue to drive the metrics for the real estate market in Naples. Looking at October’s market report, Stein said, “The average closed price­ of all properties – year to date – in Naples is over $1 million. And compared to last October, there are now 275 homes for sale in the $5 million and above price category, a 55.4 percent increase.”

The good news for buyers is that the percent of list price received has decreased 2.7 percent and 3.5 percent in the single-family and condominium market over the past 12 months, respectively. Pallini commented that “there were also 1,004 price reductions in October, basically a third of all homes for sale. If inventory continues to rise at its current pace, there will likely be more opportunities for buyers to negotiate.”

If you're in the market to buy or sell a 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

Naples, Fla. (October 27, 2023) – New listings in Naples during September increased 27.3 percent to 937 new listings from 736 new listings in September 2022, making pre-season buyers very happy. According to the September 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 continues to inch upward at a steady pace. For September, inventory for the single family home and condominium markets increased 13.2 percent to 2,793 properties from 2,468 properties in September 2022. The report also demonstrated that pre-season homebuying is starting earlier every year as pending sales (homes under contract) in September increased 18.7 percent to 735 pending sales from 619 in September 2022 and 687 in September 2019 (pre-pandemic).

The overall median closed price in September increased 3 percent to $571,500 from $555,000 in September 2022. Interestingly, the September report indicated there were 723 price reductions compared to 80 price increases during the month. The combination of new listings plus price reductions on existing inventory made September a great month to purchase a home. Historical data in the report confirms prices and competition during autumn months are lower than the winter months.

“The report showed the average closed price increased over 13 percent (month over month) for September,” said Budge Huskey, CEO, Premier Sotheby’s International Realty. “While we are seeing appreciation rates decelerate across all markets, Naples continues to command top values for quality properties.”

Incidentally, during the September 27th NABOR® Economic Summit, Dr. Brad O’Connor, Florida Realtors®’ chief economist of its research department, spoke in length about home appreciation and said, “prices in Naples increased 88 percent from pre-COVID prices.” Following Dr. O’Connor’s presentation, Dr. Lawrence Yun, the chief economist for the National Association of REALTORS®, further commented that “Naples is at a $250,000 to $300,000 spike in wealth gain for its property owners.”

Overall closed sales increased 5.4 percent to 587 closed sales from 557 closed sales in September 2022; but – as pointed out by several broker analysts including Wes Kunkle, President and Managing Broker at Kunkle International Realty, “The last six to ten days of September 2022 were spent preparing for a hurricane, so fewer pending sales were able to close by the end of the month.” As a result, the hurricane limited the month’s potential for closed sales transactions.

While inventory in the $300,000 and below single-family market is limited to primarily manufactured homes, Huskey pointed out that “inventory in the $5 million and above market nearly doubled in the last year.”

The NABOR® September 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:

Even though nearly the same number of pending sales were reported in September for both the condominium and single-family home markets, Huskey remarked that “pending sales of condominiums during September [+38.9%] wildly outperformed pending sales of single family homes [+3.9%] as compared to September 2022.”

For homeowners who are still facing expensive repairs from Hurricane Ian damage, Huskey said, “Natural disasters causing damage losses not declared a special natural disaster may be claimed as a deduction on a homeowner’s income tax return. Ask your tax professional about this IRS relief opportunity as you may be entitled to a rebate or refund.”

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

Naples, Fla. (September 22, 2023) – Inventory is selling quickly, and prices are stable in the Naples housing market. According to the August 2023 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), closed sales of homes in Naples during August increased 17 percent compared to July closed sales, and 1.9 percent to 702 closed sales from 689 closed sales in August 2022. Brokers who reviewed the Market Report are confident sales during the second half of 2023 could outperform sales during the second half of 2022, unless we experience another major disaster like a hurricane. Another promising factor that supports this expectation is the steady rate of new listings, which increased 2.6 percent in August, and contributed to the 7.2 percent increase in inventory for the month.

“I see the top of the last economic cycle occurring in the first quarter of 2022,” said Cindy Carroll of Carroll & Carroll Appraisers & Consultants, LLC. “This is when 18 months of rapid appreciation in most market sectors came to a halt. Historically, a period of correction follows a market peak. However, in most market areas, property values remain stable or have returned to our long-term historical trend of 8 percent per year appreciation. I am searching daily for evidence of wide-spread market decline but have yet to find it.”

The median closed price in August increased 5.2 percent to $605,000 from $575,000 in August 2022. Though according to the August report, activity in the condominium market fueled many of the increases reported. As such, there was a 7.7 percent increase in the median closed price in the condominium market compared to a 2.2 percent decrease in median closed price for the single-family home market; a 10.1 percent increase in new condominium listings compared to a 3 percent decrease in new single-family home listings; and a 25.5 percent increase in condominium inventory compared to a 3.7 percent decrease in single-family home inventory.

Typically, one of the slower months for activity, August’s showings decreased 19 percent to 21,269 showings from 26,191 showings in August 2022, which might also explain the 9.4 percent decrease in pending sales in August to 811 from 895 in August 2022.

“Days on market have been hovering around 50 since December 2022,” said Adam Vellano, a Naples Sales Manager at Compass Florida. “Before the pandemic, it was at 90-100 days.” For August, the report showed 54 days on market compared to 31 days on market in August 2022.

The NABOR® August 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:

“Even in a time of economic volatility and uncertainty, Florida still provides benefits as a tax haven compared to other states with high taxation and cost of living rates,” said Jillian Young, President, Premiere Plus Realty, who added that “sellers waiting until winter season to list their home may miss out on the buyers who want to purchase a home before the end of the year and before more anticipated rate hikes.”

Young also went on to say that “if the housing market’s activity continues to perform at the same steady rate we’ve enjoyed so far this year – and current market conditions show it has the potential – then it’s likely homeowners could enjoy a 7 percent increase in home value by year end. The fact that properties didn’t lose value during a year after a major hurricane will only strengthen the desirability of future homeownership in Naples.”

Broker analysts are not optimistic that inventory will rise above 3,000 properties in the next year. According to Jeff Jones, Broker at Keller Williams Naples, “The report showed 731 price decreases in August. I tell my agents that these should be considered ‘new listings’ as the new lower list price will be attractive to a set of new buyers seeking homes in that new lower price range.”

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

Naples, Fla. (August 25, 2023) – While much of America grapples with unfamiliarly high interest rates that have stalemated the resale home market, broker analysts reviewing the July 2023 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), point to data that shows home sales activity in Naples has remained steady for the past year despite several interest rate increases. Yet, even as cash sales for homes in Naples decreased from 66.7 percent in January to 53.5 percent in July, the overall median closed price of homes in the first seven months of 2023 has continued to increase compared to most months in the first seven months of 2022.

“Activity for our area has flatlined compared to last year, but it is still trending higher than before the pandemic,” said Molly Lane, Senior Vice President at William Raveis Real Estate. “While there might be fewer homes to show buyers right now, a significant number of sales are still occurring, and there’s nothing to indicate that home prices will drop suddenly.”

The July Market Report’s total sales data showed 81 fewer homes sold in July compared to July 2022, an 11.9 percent decrease to 600 closed sales from 681 closed sales. On the other side of the spectrum, pending listings (homes under contract) in July increased 6.3 percent to 798 pending listings from 751 pending listings in July 2022, which illustrates our market’s steadiness. Also, the percent of list price received this July is steady at 96.1 percent compared to 97.9 percent in July 2022. In July, days on market increased 115.4 percent to 56 days from 26 days in July 2022, the lowest reported in the history of NABOR®’s Market Reports. Incidentally, before the pandemic, days on market averaged over 100 days (104 days in July 2019).

“Fortunately, new listings continue to be steady each month,” said Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc. “But they aren’t replenishing inventory at the rate we need, and so inventory has been dropping for each of the last four months.”

New listings in July decreased 15.4 percent to 810 new listings from 957 new listings in July 2022. Before the pandemic, new listings supplemented an already very healthy inventory level. Data showed there were 5,200 properties for sale in Naples in July 2019 compared to 2,583 properties listed for sale in July 2023. But while new listings, closed sales, and pending sales activity have almost returned to 2019 levels, overall inventory has not.

As inventory faded away during the homebuying frenzy of the pandemic years, median closed prices rose by over 50 percent. In July 2019, the median closed price in Naples was $325,000. But in July 2023, the median closed price increased 9.2 percent to $595,000 from $545,000 in July 2022.

“I don’t think sales in our area have stalemated,” said Hughes. “Looking at the data, we’re no better and no worse than we were a year ago. In fact, historically speaking, we’re only 500 sales off from the number of closed sales reported in the first seven months of 2019. And that’s with half the inventory. This says so much about resiliency and the desirability of homeownership in our area.”

The NABOR® July 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: 

The report also showed 199 pending listings went back on the market in July. According to Jillian Young, President, Premiere Plus Realty, “Just because your offer is not chosen doesn’t necessarily mean that the home you want is off the table. It may come back onto the market. If you can afford to buy a home do it because prices may not decline and if interest rates drop, then you will face more competition when it happens.”

Brokers like Hughes recommend working with a REALTOR® who can assist you in putting in back up offers and exploring your financing options. “You can always consider refinancing if interest rates drop. Plus, adjustable rate and hybrid loans are another good option today.”

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.

Naples, Fla. (July 21, 2023) – Broker analysts reviewing the June 2023 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), believe a surge in summer travel contributed to the reduction in home sales in Naples during June. The report showed a 13.6 percent decrease in overall closed sales for the month to 837 closed sales from 969 closed sales in June 2022. Though the dip in closed sales appears temporary and may not linger into July’s closed sales data as overall pending sales (homes under contract) in June increased 0.8 percent to 800 pending sales from 794 pending sales, and June’s showings increased slightly from showings reported in June 2022. Fortunately, slow sales in June did not impact home prices as the median closed price reported in June increased 0.4 percent to $602,494 from $600,000 in June 2022.

Upon reviewing the report, Dominic Pallini, Broker at Vanderbilt Realty, Inc., remarked that he believes “a change in consumer sentiment is coming as people get more comfortable with higher interest rates. I think they went up too fast and it frightened a large segment of home buyers. But we’re starting to see more price negotiations and realistic list prices.”

The percent of list price received during June decreased 2.9 percent to 96.2 percent from 99.1 percent in June 2022. “Last year, sellers were immobile on prices,” said Wes Kunkle, President and Managing Broker at Kunkle International Realty. “But I haven’t heard of any bidding wars this year, and the drop in list price received indicates more price negotiations.”

“Buyer hesitation today is fueled by the three horsemen of the homebuying apocalypse: insurance, property taxes and interest rates,” said Jillian Young, President, Premiere Plus Realty. “Despite these challenges, the Naples area remains a highly desirable lifestyle destination for high-net worth individuals. In the last year, there have been 193 home sales over $5 million.”

Overall inventory continues to rise compared to 2022 levels. June had an 8.2 percent increase in overall inventory to 2,659 homes from 2,457 homes. But according to the area’s top brokers, this increase was due to low sales for the month and not because of new listings, which decreased 28.2 percent to 860 new listings from 1,198 new listings in June 2022.

The NABOR® June 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:

“Travel is the elixir that will make people feel inspired to buy again once they return home from summer vacations,” said Cindy Carroll of Carroll & Carroll Appraisers & Consultants, LLC. “It’s been 15 months since the market peaked [December 2021]. We’ve been through a pandemic and hurricane and still the monthly reports fail to indicate a market correction will happen anytime soon as median and average closed prices continue to hold steady.”

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

Thank you for your continued use of “NaplesPropertyPreview.com” as your primary resource for Real Estate and property information in SW Florida.  

A recent article in the Naples Daily News stated, “Hurricane Ian couldn’t dampen property values in Collier County:  In fact, values have increased 20% since last year”.  The article goes on to say that some of the biggest factors that led to the value increases in 2023 were tight inventory, increasing land values and higher construction costs.  The city of Naples saw property value increases of 19.4% since last November with new construction valued at $488.5 million.

Property values in Lee County increased 6.4% compared to 2022.  The value of real estate in the heavily damaged Ft Myers Beach and Sanibel Island went down substantially but they are making vast progress as more and more restaurants, stores and tourist destinations reopen.

The city of Marco Island experienced a 22% increase in value from the year prior.

Overall, worries that Hurricane Ian would dampen values along coastal Collier County did not materialize, according to the above numbers.

In our offices, we are seeing an uptick in Sellers accepting financing.  Additionally, some of the New Home Builders are offering more desirable interest rates which is incentivizing Buyers of newly built homes.

We are here to help with any of your home buying or selling needs.  Feel free to reach out should you have any questions about SW Florida real estate.  We look forward to helping you find your next “PIECE OF PARADISE”.

Susan Sanderson, Downing-Frye Realty, Inc.

239-821-2370

NaplesPropertyPreview.com

Naples, Fla. (June 23, 2023) – A slight reduction in overall median closed price along with fewer new listings during May indicates a window of opportunity for both buyers and sellers this summer. According to the May 2023 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), overall median closed price decreased 1.2 percent to $600,000 from $607,500 in May 2022. There were also 1,045 price decreases and a 31.2 percent decrease in new listings reported during the month.

“More and more sellers in Naples are starting to adopt a mindset that they need to be open to negotiate on price,” said Jillian Young, President, Premiere Plus Realty, whose comment is supported by data in the May report showing a 3.8 percent decrease in the percent of list price received to 96.3 percent compared to 100.1 percent reported in May 2022.

Though broker analysts reviewing the report pointed out that an increase in negotiations does not mean home prices in Naples are dropping. In fact, according to Molly Lane, Senior Vice President at William Raveis Real Estate, “Many people thought home prices were going to decrease after Hurricane Ian. But the fact is, prices are holding steady.” The report showed no month over month median closed price decrease for condominiums in May; only a 6.5 percent decrease (month over month) was reported in the single family home market.

New listings decreased 31.2 percent in May to 990 new listings from 1,438 new listings in May 2022. Fewer new listings are putting a strain on overall inventory of homes, which is still recovering from frenzied buying during the pandemic. Young added, “New home construction is not keeping up with demand this year and a handful of homes on the resale market have lingered for a few months because they are not move-in ready. We’re finding fewer buyers are willing to purchase a fixer upper these days.”

Inventory has been increasing at a snail’s pace over the last year, averaging 100 new homes a month. For May, overall inventory increased 27.6 percent to 2,749 homes from 2,155 homes in May 2022. Broker analysts reviewing the May report said listing a home for sale this summer has numerous advantages including the fact that there are historically fewer homes on the market compared to winter season so there is less competition. Most homeowners who purchased a home in Naples in the last five years have seen a remarkable increase in equity so the profit they enjoy from a sale will likely offset any increase they may pay for a new mortgage on a higher priced home with a higher interest rate.

Pending and closed sales during May decreased 4.4 percent and 20 percent, respectively, compared to last year. Sherry Stein, CRB, Managing Broker, Berkshire Hathaway HomeServices, remarked that “Many buyers are waiting for interest rates to go down, but purchasing a home this summer might be an opportune time because when rates go down, buyer demand will go up and so, likely, will home prices.”

The NABOR® May 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:

The report also showed that we were 150 closed sales short of what sold in May 2019, but with half the inventory. Demand for homes in Naples has not diminished and as Lane pointed out, “On average, summer buyers are more serious.”

Based on market conditions reflected in the May report, brokers recommend sellers keep their listings active during the summer. Additionally, since 2021, closed sales of high-end properties have increased during summer months. As such, during May, the median closed price of single family homes in close proximity to the beach (34102, 34103, 34108) increased 20.2 percent to $3,125,000 from $2,600,000 in May 2022.

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

Browse Homes For Sale in the Isles of Collier Preserve

Naples, Fla. (May 26, 2023) – The Naples real estate market enjoyed another month of increased home values driven mainly by another month of below typical inventory levels. According to the area’s top real estate brokers, resale home inventory in Naples this year will unlikely spike to levels we enjoyed before the pandemic. However, since 2019, the number of new listings each month has remained fairly consistent, with most months enjoying an average of between 1,100 and 1,300 new listings. According to the April 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 64.4 percent in April to 2,868 homes for sale from 1,745 homes for sale in April 2022.

“One factor holding back home sales right now is interest rates,” said Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc. “Even though a majority of our sales in Naples are cash transactions, many buyers who own a home up north and want to purchase a home in Naples are having a hard time selling their northern home because the pool of potential buyers that can afford a mortgage at today’s rates is limited.”

Interest rates may also be influencing prospective sellers in Naples who currently enjoy a low interest rate on their mortgage too. In April, new listings decreased 25 percent to 1,116 new listings from 1,488 new listings in April 2022. Though many homes in Naples have doubled in value since 2019, providing sellers with a nice profit to use toward their next home purchase. With a hefty down payment, these sellers can minimize their next home’s mortgage obligation to make monthly payments affordable, even at a higher interest rate.

Interestingly, and according to Cindy Carroll of Carroll & Carroll Appraisers & Consultants, LLC, months of inventory is decreasing in communities off the water and east of I-75; a telltale sign that living in close proximity to the beach is not always a required factor of homeownership in Naples anymore. “In January 2019, Port Royal had 1.3 years of inventory; and today it has 1.3 years of inventory. But in January 2019, the Vineyards had 10 months of inventory; and today it has less than a month.” Carroll went on to add that in some areas east of Collier Boulevard (SR 951) there is less than four months of inventory.

As a result of slow inventory gains this year, pending and closed sales activity simmered slightly in April compared to March. Pending sales decreased 18.4 percent to 1,123 pending sales from 1,377 pending sales in April 2022, and closed sales in April decreased 24.2 percent to 947 closed sales from 1,250 closed sales in April 2022.

While the April report revealed 1,128 price decreases occurred during the month, Hughes said, “some price negotiating is happening, though low ball offers are not a good strategy in today’s tight inventory market.”

The report also showed the area’s overall median closed price is not increasing by double-digits each month anymore. In April, the median closed price for single family homes increased 3.1 percent to $825,000 from $800,000 in April 2022. But it’s a different story in the condominium market, where the median closed price increased 14.3 percent in April to $526,000 from $460,000 in April 2022.

The NABOR® April 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:

Buyers in Naples today need to be aware of their insurance cost obligation before negotiations. Jeff Jones, Broker at Keller Williams Naples, recommends each buyer “check with their insurer before contract negotiations to make sure the home meets current coverage requirements, and the cost doesn’t sabotage the sale. In all cases, the buyer can assume the seller’s flood insurance policy, but not a homeowner’s policy.”

Another interesting observation about activity in April came from Molly Lane, Senior Vice President at William Raveis Real Estate, who remarked, “Homes in luxury, gated communities that include a golf membership are highly desirable and selling quickly these days because a majority of private courses in Naples have a two-year or more waiting list.”

Understanding a home’s true market value can be a complicated process when there is great market dispersion and many factors influencing list price determination. Sherry Stein, CRB, Managing Broker, Berkshire Hathaway HomeServices, said, “Working with an experienced REALTOR® in Naples who has the skills and marketing expertise to navigate the process will be an asset for both a buyer and seller today.” 

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

Homes For Sale in the Isles of Collier Preserve

Naples, Fla. (April 26, 2023) – Closed sales of homes in Naples during the first quarter of 2023 exceeded closed sales reported in the first quarter of 2019 (pre-COVID) when inventory levels were nearly three times the current level. According to the March 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 in March increased 92.4 percent to 2,900 properties from 1,507 properties in March 2022. While still historically low at 3.6 months of inventory, overall inventory in Naples has continued to increase ever since it bottomed out at 0.8 months of inventory in December 2021.

Broker analysts reviewing the report like Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., speculate that “even though buyers today are facing headwinds like high interest rates, rising property and flood insurance rates, and low inventory levels, these factors are not diminishing people’s desire to live in Naples.”

Cindy Carroll, SRA, of Carroll & Carroll Appraisers & Consultants, LLC, who advocates against comparing activity today to activity during the COVID-boom years (2020-2022), said she is “comforted by the fact that our area shows resilience to 2019. Homebuyers shouldn’t get too hung up on the months of inventory number reported because it fluctuates wildly depending on where you want to buy a home in Naples. For example, the Port Royal area has a 1.3 year supply today. The truth is we are heading back to 2019; a time when the housing market was stable, foundational, and logical. That is what should be happening, and it is.”

With this more accurate comparative method in mind, closed sales decreased 16.5 percent to 1,017 closed sales from 1,218 closed sales in March 2022; but compared to March 2019, closed sales increased 2.6 percent. Pending sales in March decreased 14.5 percent to 1,377 pending sales from 1,611 pending sales in March 2022; but compared to March 2019, pending sales increased 22 percent.

While new listing growth was relatively static in the first quarter of 2023, Wes Kunkle, President and Managing Broker at Kunkle International Realty, believes some potential sellers in Naples are sitting on the fence because they fear a possible recession may impact their home’s value and/or want to wait and see whether interest rates drop. New listings during March decreased 17.9 percent to 1,369 new listings from 1,667 new listings in March 2022; but compared to March 2019, new listings for the month decreased only 2.5 percent. Yet according to Adam Vellano, a Naples Sales Manager at Compass Florida, “the price decreases reported in March were by sellers who failed to price their homes competitively when they originally listed them, but very few of these decreases were below today’s comps.”

The NABOR® March 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:

The overall median closed price in March increased 7.3 percent to $615,000 from $573,000 in March 2022. This increase was driven by the condominium market, which had a 5.9 percent increase in its median closed price. Interestingly, the median closed price for single-family homes in March reported no increase compared to March 2022.

Iterated by top brokers who review the market report each month, it’s impossible to categorize the Naples area housing market as either a buyers or sellers market today. However, an experienced Naples REALTOR® understands the comparative market differences of each unique neighborhood.

Kunkle added that it’s become a “hard decision to sell a home if you have a mortgage at a 3 percent interest rate when today’s rates are over 6 percent.” However, according to Freddie Mac, the average 30-year fixed rate mortgage since 1971 is 7.75 percent. Further, Sherry Stein, CRB, Managing Broker, Berkshire Hathaway HomeServices, was quick to point out that “the average sales price in Naples in March 2019 was $597,081, but today it’s $1,018,469.”

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