Heightened Buyer Demand Influences Naples Real Estate Market

Naples, Florida. (June 19, 2020) – REALTORS® kept busy in May as pent-up demand for home buying resulted in a remarkable spike in buyer interest. As a result, showings in May increased 244 percent compared to showings in April.

As remarkable, showings in May outpaced showings a year ago, which increased 5.5 percent compared to May 2019. According to the May 2020 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), broker analysts reviewing the report found the data reflected the everlasting desirability of the Naples real estate market, even during the COVID-19 outbreak.

The Naples real estate market is extremely resilient as the report shows pending sales in May increased 90 percent compared to pending sales in April.

Buyers have seen inventory in the Naples area continues to decline. This shrinking inventory led to modest price increases in the single-family home market during May, which saw a 31.8 percent decrease in inventory and 3.7 percent increase in median closed prices compared to May 2019.

We have a 5.8-months’ supply of single-family homes in Naples. If a Buyer sees a home that works for them they should not hesitate to buy it.

The NABOR® May 2020 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 2019
May 2020
CHANGE
Total closed sales (month/month)
1,188 599 -49.6%
Total pending sales (homes under contract) (month/month) 1,218 1,167 -4.2%
Median closed price (month/month)
$354,450 $333,000 -6.1%
Total active listings (inventory)
7,023 5,116 -27.2%
Average days on market
107 91 -15%
Single-family closed sales (month/month)
595 314
-47.2%
Single-family median closed price (month/month)
$410,000 $425,000 +3.7%
Single-family inventory
3,608 2,461 -31.8%
Condominium closed sales (month/month)
593 285 -51.9%
Condominium median closed price (month/month)
$270,000 $260,000 -3.7%
Condominium inventory
3,415 2,655 -22.3%

 

Historically, some sellers in Naples take their homes off the market after season, and May inventory and pending sales activity always reflected this behavior. However, COVID-19 left many sellers uncertain about the real estate market. With the quarantine recommendations in place, fewer sellers listed homes during May. Despite an inventory drop, pent-up demand unleashed a new set of buyers in May, which changed history. May’s pending sales activity, a measure of signed contracts and not closings, increased 90 percent compared to April 2020, despite tight supply.

Heightened buyer demand is also evident in the number of Days on Market for May as reflected in a decrease of 15 percent to 91 days on market compared to May 2019, which reported 107 days on market.

There was a significant number of high-end pending sales in May. The stock market has come back from a low of 18,000 in late March to over 25,000 at the end of May. The impact of the stock market rebound renewed consumer confidence in May with a certain percentage of wealthy individuals looking to diversify their portfolio and invest in real estate again.

If you are looking to buy or sell a home in Naples contact 30+ year veteran Realtor Corey Cabral at (239) 963-6590 or via email through our online contact form.

Naples Real Estate Market April Report

April Report Shows Naples Real Estate Market Held Its Value During Pandemic

Naples, Florida (May 22, 2020) – Coronavirus slowed real estate market activity in April as expected during Florida’s safe-at-home restrictions. According to the April 2020 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), overall closed sales decreased 28.6 percent to 838 closed sales compared to 1,173 closed sales in April 2019. Inventory decreased as well in April by 29.1 percent to 5,394 homes compared to 7,605 homes in April 2019. The April report also confirms home values remain intact.

To encourage a safe path to home ownership, NABOR® implemented three new actions in April to assist members as they conduct business during the COVID-19 pandemic:

  1. NABOR® lobbied state and local governments to successfully recognize real estate services as an essential service, in accordance with the U.S. Department of Homeland Security;
  2. NABOR® created a COVID-19 addendum and amendment to sales contracts to protect buyers and sellers;
  3. NABOR® trained members on new COVID-19 related services including virtual open house tours, COVID-19 stimulus relief package benefits, and new lender requirements.

Our priority is the safety of Naples residents and our members, as we all continue to practice socially responsible distancing while we conduct business during this health crisis,” said NABOR® President Lauren Melo. “With the assistance of technology, creativity, and cooperation, real estate professionals are successfully completing transactions.

Median closed prices increased .3 percent in April to $340,000 from $339,000 in April 2019. Although there were slightly fewer price decreases in April than in March, still 1,654 or 31 percent of all listed properties experienced reductions in their offering price during April.

The good news is that – even during a pandemic – Naples home values are being maintained. The report shows April’s overall percent of current list price received increased .5 percent. This figure represents what the buyer paid for their home compared to the seller’s listed sale price. In April, the contract price averaged 95.9 percent of list price. In comparison, during April 2019, the contract price averaged 95.4 percent of list price. This statistic demonstrates that homes in the Naples area did not lose their values during April, the worst month of the pandemic to date.

Like many essential service businesses, REALTORS® in Naples focused on implementing new strategies and modifying their business models during April to comply with self-distancing practices and accommodate for the welfare and safety of their staff, clients and the community.

As people were urged to stay home in April, showings decreased to 9,420 from 22,862 in April 2019 (does not include virtual showings). As a result, pending sales in April decreased 53.6 percent, as was expected.

Given the amount of uncertainty right now, agents are quickly adding our special coronavirus addendum to new and existing contracts to provide some breathing room for delays in this fast-changing environment.

The NABOR® April 2020 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 2019
Apr 2020
CHANGE
Total closed sales (month/month)
1,173 838 -28.6%
Total pending sales (homes under contract) (month/month) 1,322 613 -53.6%
Median closed price (month/month)
$339,000 $340,000 +0.3%
Total active listings (inventory)
7,605 5,394 -29.1%
Average days on market
98 87 -11.2%
Single-family closed sales (month/month)
510 409
-19.8%
Single-family median closed price (month/month)
$464,500 $429,500 -7.5%
Single-family inventory
3,850 2,639 -31.5%
Condominium closed sales (month/month)
663 429 -35.3%
Condominium median closed price (month/month)
$272,500 $270,000 -0.9%
Condominium inventory
3,755 2,755 -26.6%

 

The fact that REALTORS® were able to process over 800 closed sales during a month when most of the world was on lockdown is a testament to our market’s desirability and how real estate professionals are quickly adapting and conducting business in new ways. REALTORS® are helping their customers buy and sell homes through this crisis.”

Not all geographic areas in Collier County reported a decrease in closed sales during April. Single family home sales in East Naples (34114, 34117, 34120, 34137) during April increased 7.2 percent.

Broker analysts reviewing the April Market Report are optimistic that activity in the Naples area real estate market will resume momentum in the coming months (barring a return to April’s restrictions). If you’re a seller who took your home off the market in April because you feared social distancing would prevent a sale, consider relisting your home in May. You could attract an eager buyer. Property values are holding steady with price increases in two price categories reported in April (i.e., the $300,000 and below price category and the $2 million and above price category reported median closed price increases in April). And the overall list to sales price has remained steady at about 95 percent (for April 2019 compared to April 2020).

If you are looking to buy or sell a home in Naples contact 30+ year veteran Realtor Corey Cabral at (239) 963-6590 or via email through our online contact form.

Real estate consultant Corey Cabral is the best!

When we were considering the purchase of a new golf community home in Naples Florida in Fall 2018, good friends, who had recently worked with Corey to buy their new home in Naples , highly recommended him.

His knowledge of the Naples home market, his sometimes brutal honesty and his integrity , his extensive background in construction, and his ability to keep us on-track facilitated our search.

We had not bought a house in 25 years so we needed all the information we could get. Corey helped us look beyond other people’s style and furnishings to see the beauty and value of the basic home.

We live in upstate NY and Corey kept us up to date on what was on the market, via computer. His guidance was invaluable. We traveled to FL four times over six months and looked at many homes. When we finally found what we wanted in a golf course estate section of Pelican Marsh, his advice and price-negotiating skills saved us thousands of dollars. All our contractual procedures and our closing went smoothly, thanks to Corey’s network of professionals. He recommended a contractor to do our renovations and we are thrilled with the contractor’s visions and work.

Corey has become a trusted friend we can rely on for advice and guidance, even after our closing. He always has our best interests at heart. He has gone above and beyond in all aspects of our dealings and we cannot thank him enough for all he has done.

We highly recommend him for all your real estate needs.

Trudy and John Potter

First Quarter Housing Market Activity Sets the Stage for Strong Year

Naples, Fla. (April 13, 2018) – Sales of homes above $1 million in Naples during the first quarter of 2018 drove the market. Their sales increased 61 percent compared to the same quarter of 2017 according to the First Quarter 2018 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island).

“January’s results led some to question expectations for the year when compared to last, yet in February the market gained its stride which accelerated in March with closed sales shooting ahead to end the first quarter on a very impressive note,” said Budge Huskey, President, Premier Sotheby’s International Realty. According to NABOR’s monthly reports, January had 672 closed sales, February reported 672 closed sales, but March kept agents very busy with 942 closed sales, driven by a strong high end which included a number of new construction condominiums just delivered.

Pending sales in the first quarter of 2018 increased 3 percent to 3,177 compared to 3,097 in the first quarter of 2017. Although pending sales for both single-family homes and condominiums over $1 million increased by double digits, it was the $2 million and above condominium market that raised eyebrows among brokers who reviewed the reports.

“Tourism was up in our area this season compared to last year so it is not surprising that we would end with strong pending sales for the quarter,” said Kathy Zorn, President/Owner, Better Homes and Gardens Real Estate Pristine. “But I wasn’t expecting to see a 109 percent increase during the quarter in pending sales for condominiums over $2 million!”

“There are very good investment opportunities in the condominium market, especially at both ends of the market,” added Coco Amar, a managing broker at John R. Wood Properties. “The top and bottom price categories are where both the inventory has grown and the prices have dropped.”

As reflected in the market’s year-ending statistics (12-months ending 1Q 2018 versus 12-months ending 1Q 2017), there was a 69 percent increase in closed sales of condominiums in the $2 million and above market, and a 17 percent decrease in its median closed price to $2,450,000 from $2,962,000 in 2017. Despite rocket sales in this high-end sector during the first quarter of 2018 (179 percent increase) and a drop in median closed prices for the first quarter (24 percent decrease), its inventory increased 5 percent! Similarly, median closed prices for condominiums in the $300,000 and below price category dropped 1 percent to $199,000 from $200,000 in the first quarter of 2017, but inventory increased 3 percent.

The NABOR® First Quarter 2018 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. The NABOR® First Quarter 2018 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:

CATEGORIES 1Q 2017 1Q 2018 CHANGE (percentage) Total homes under contract (pending sales) (quarter/quarter) 3,097 3,177 +3 Total closed sales (quarter/quarter) 2,205 2,306 +5 Median closed price (quarter/quarter) $330,000 $370,000 +12 Median closed price >$300K (quarter/quarter) $510,000 $575,000 +13 Total active listings (inventory) 6,389 6,112 -4 Average days on market 95 95 0 Single-family closed sales (quarter/quarter) 1,059 1,050 -1 Single-family median closed price (quarter/quarter) $410,000 $448,000 +9 Single-family inventory 3,236 2,964 -8 Condominium closed sales (quarter/quarter) 1,146 1,256 +10 Condominium median closed price (quarter/quarter) $270,000 $299,000 +11 Condominium inventory 3,154 3,148 0

Broker experts analyzing the reports said most counties in Florida continue to see inventories decline, but the Naples area experienced a steady rise over the past few months. In fact, according to Jeff Jones, Managing Broker for Engel & Völkers Naples and Bonita Springs offices, there is currently 8.25 months of inventory available in Collier County. Months of inventory is a nationally accepted measurement of how fast all existing homes on the market would last assuming no additional listings are added and sales activity continues to remain the same as the previous 12 months of sales.

“There were 118 closed sales of condominiums between $1.4 million and just over $2 million in a new development located in North Naples during the last two months that impacted our median closed price statistics,” said Wes Kunkle, President and Managing Broker at Kunkle International Realty. These “one-day-on-the-market” closed sales are one reason why the report showed a 13 percent increase in the median closed price for condominiums in the $1 to $2 million price category and a 24 percent decrease in median closed prices for condominiums in the $2 million and above price category.

Kunkle, along with several brokers who reviewed the reports, is concerned sellers may misinterpret this statistical anomaly as a reflection of the area’s comparable pricing activity. “These sales were for new luxury condos that were secured over a two year period. When the project obtained its final Certificate of Occupancy, the closings were finalized and they all appeared as a one-day sale in the MLS.”

However, this was not the only new construction activity that influenced NABOR®’s first quarter statistics. According to Jones, many sellers of speculative single-family homes that have been on the market for over two years in neighborhoods like Park Shore and the Moorings began to set more realistic list prices this past quarter, which resulted in more sales in the high-end, single-family home market.

“Overpriced homes don’t sell,” said Jones. “In fact, I think sales during January and February could have been better had many of these sellers set their prices realistically earlier. It wasn’t until March that I began to see an uptick in price decreases in the MLS for many of these speculative homes, and then those sellers saw multiple offers from buyers who had been holding out.”

Naples Area November 2017 Market Report

Naples, Fla. (November 17, 2017) – The evidence that a hurricane hit the Naples area in September became less visible in October because residents were quick to address damages to their property and our county and utility service providers worked overtime to get the area back to normal as quickly as possible. The Naples area housing market finished on a positive note in October with closed sales increasing 1 percent over last October, according to the October 2017 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). October’s housing market activity was better than NABOR® expected.
 
October could have been better, but it did pretty well given the fact that we had no historic perspective of how the market would behave after a hurricane, Even though overall pending sales decreased 11 percent in October, some pockets of the market saw really good activity during the month. The drop in pending sales is most likely because many homes damaged by the hurricane are in need of repair before they can go back on the market.”
 
There were 57 closed sales of high-end, luxury properties priced above $1 million in October, a 36 percent increase over October 2016. Yet closed sales of properties priced below $300,000 dropped 12 percent, a loss of just 32 sales compared to October 2016. Also reflected in the October report, closed sales for single-family homes priced between $1-$2 million increased 50 percent in October, while closed sales of condominiums priced between $300,000-$500,000 increased 26 percent.
 
A lull in inventory following the hurricane was predicted by broker panelists at NABOR®’s Third Quarter Market Conference. Their prediction was spot on as the October report shows an 8 percent decrease in inventory, or about 400 fewer homes available compared to October 2016 levels.
 
Tradesmen and construction supplies are in high demand right now,”Reports of roofing companies and carpenters being booked several months out with hurricane repair jobs puts things in perspective when you look at our inventory. Homebuyers want move-in ready homes, and these delayed listings of homes needing repairs will create a higher demand for inventory moving into season.”
 
Inventory increased on the high and low end of the condominium market in October. While the report showed no increase or decrease in inventory overall, there were an additional 76 condominiums (a 7 percent increase) added to the $300,000 and below market in October, and 10 condominiums (a 10 percent increase) were added to the $2 million and above market.
 
Median closed prices in the single-family home market increased to $425,000 (13 percent) in October, while median closed prices in the condominium market increased to $250,000 (4 percent). Interestingly, the median closed price for condominiums in the $2 million and above price category dropped 42 percent in October to $2,545,000, while the median closed price for single-family homes in the same price category increased 22 percent to $2,237,000.
 
Evidence of bracket creep can be seen in the lower end of the market where some homes once priced below $300,000 have moved into the $300,000-$500,000 price category. “This may also account for some of the lost inventory in the $300,000 and below single-family home market, where demand has always been higher.”
 
The NABOR® October 2017 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. The NABOR® October 2017 sales statistics are presented in chart format, including these overall (single-family and condominium) findings: 

2017-market-report
 
Compared to closed sales in September, which dropped 30 percent month over month, October’s 1percent increase in closed sales is an indication that we recovered rather quickly from the hurricane, and buyer interest in our market is still very strong. 
 
If the hurricane hadn’t happened and the market had kept the same pace as it did last September and October, we would have seen 400 more sales and been on track for a 6 percent increase in total closed sales year-to-date.

Market Shows Resilience at the End of Third Quarter

Naples, Fla. (October 27, 2017) – The Naples area housing market maintained positive traction during the Third Quarter of 2017 despite enduring a hurricane that impeded activity for three weeks in September. According to the September 2017 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which track home listings and sales within Collier County (excluding Marco Island), there were 398 closed sales during the month of September, a 30 percent decrease compared to September 2016.

September proved challenging for the real estate market as homeowners and agents were forced to wait while public and utility services rebuilt or repaired infrastructure damaged by the hurricane. This was reflected in statistics released for September, which affected total outcomes for the Third Quarter of 2017. However, year-to-date numbers tell a different story as activity in pending, closed and median price categories were up year over year at the end of the quarter!

“To withstand a hurricane and still outperform last year’s activity is a clear sign of market resilience,” said Budge Huskey, President, Premier Sotheby’s International Realty. Broker analysts who reviewed both reports agreed that our county’s hurricane building code standards and quality craftsmanship by local builders helped to greatly reduce the amount of major structural damage in the area.

“The hurricane hit us in the right month,” said Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., who went on to explain that September is typically when the housing market takes a breath before it begins to intensify again. Yet despite a direct hit by a major hurricane, overall closed sales for the third quarter increased 3 percent (year over year). Not surprisingly, the storm’s short-term impact on the housing market in September only tempered sales slightly in the third quarter by 5 percent (quarter over quarter), which translated to just 86 fewer closed sales than in the third quarter of 2016.

Hughes added that activity in July and August outperformed the same months last year. If the hurricane had not hit the area in September, the third quarter of 2017 would have shown much more impressive activity.

“A 55 percent decrease in pending sales for September is equivalent to three weeks of inactivity,” said Coco Amar, a managing broker at John R. Wood Properties. “These sales didn’t disappear, they are just delayed.”

“That’s true. Our office saw more closings in the first week of October than it did for the entire month of September,” said Bill Coffey, Broker Manager of Amerivest Realty Naples.

The hurricane’s force slowed inventory in September, which resulted in a third quarter decrease of 9 percent. Jeff Jones, Managing Broker at the Naples-Park Shore office of Coldwell Banker® said this was most likely a result of homeowners either delaying to list because they evacuated or removing a listing because they needed time to clean up and make minor repairs to properties following the storm.

“The hurricane created big concerns and delays from banks too,” said Jones. “Most lenders are requiring re-inspections and re-appraisals of properties after the hurricane.”

One element the hurricane failed to harm was the continued growth in property value for Naples. Overall median closed prices in the third quarter of 2017 increased 3 percent to $320,000 compared to $312,000 in the third quarter of 2016.

“The integrity of our real estate market has been renewed now that it survived a direct hit from a major storm like Hurricane Irma,” said Lauren Melo, PA, Licensed Real Estate Broker with Florida’s Realty Specialists, adding, “Even homes built over 50 years ago withstood damage. Our survival actually strengthened buyer confidence.”

The NABOR® Third Quarter 2017 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. The NABOR® Third Quarter 2017 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:

CATEGORIES 3Q 2016 3Q 2017 CHANGE (percentage) Total homes under contract (pending sales) (quarter/quarter) 1,952 1,675 -14 Total homes under contract (pending sales) (year/year) 9,045 9,146 +1 Total closed sales (quarter/quarter) 1,889 1,803 -5 Total closed sales (year/year) 8,627 8,885 +3 Median closed price (quarter/quarter) $312,000 $320,000 +3 Median closed price (year/year) $318,000 $329,000 +3 Median closed price >$300K (quarter/quarter) $485,000 $498,000 +3 Median closed price >$300K (year/year) $525,000 $512,000 -2 Total active listings (inventory) 5,044 4,608 -9 Average days on market 86 99 +15 Single-family closed sales (quarter/quarter) 1,001 927 -7 Single-family median closed price (quarter/quarter) $382,000 $418,000 +9 Single-family inventory 2,669 2,314 -13 Condominium closed sales (quarter/quarter) 888 876 -1 Condominium median closed price (quarter/quarter) $241,000 $248,000 +3 Condominium inventory 2,375 2,294 -3

“Fortunately, media in most of the core areas where our buyers come from didn’t overhype the storm, which helped obscure fears,” said Cindy Carroll, SRA, with the real estate appraisal and consultancy firm Carroll & Carroll, Inc. “This is going to be a very good history lesson for us because the hurricane hit during a time of stable market activity. By January though, I think our brush with Irma will be forgotten.”

Carroll added that sales of existing homes are poised to increase in the coming months too because much of the labor force stepped away from new construction to work for companies that provide a variety of property maintenance, including tree removal and lawn debris cleanup.

Wes Kunkel, President and Managing Broker at Kunkle International Realty, added that material costs for new construction may increase too as there will be shortages across the country due to the hurricanes and fires. Carroll responded that delays in new home construction might spur increases in existing home values, especially if inventory does not keep up with the pace of sales.

The NABOR® September 2017 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. The NABOR® September 2017 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:

CATEGORIES September 2016 September 2017 CHANGE (percentage) Total homes under contract (pending sales) 661 299 -55 Total closed sales 566 398 -30 Median closed price (month/month) $318,000 $310,000 -3 Median closed price >$300K (month/month) $452,000 $492,000 +9 Total active listings (inventory) 5,044 4,608 -9 Average days on market 92 96 +4 Single-family closed sales 301 173 -43 Single-family median closed price (month/month) $378,000 $448,000 +19 Single-family inventory 2,669 2,314 -13 Condominium closed sales 265 225 -15 Condominium median closed price (month/month) $245,000 $238,000 -3 Condominium inventory 2,375 2,294 -3

Compared to other tropical second-home destinations like Puerto Rico, the Southwest Florida housing market fared quite well after it faced a hurricane. Broker analysts including Hughes and Kunkel beelieve our area may see an uptick in sales from buyers who had their eyes set on an island home in the Caribbean.

Information About The Current 2017 Naples / Marco Island Real Estate Market

naples-real-estate

I have had requests from a number of people to give my thought on the current market. With that in mind, I will share with you some of my thoughts in conjunction with the recent NABOR release of their second quarter 2017 numbers.

Let’s start with inventory…

In March of 2007, when our market was in tough shape, NABOR had an inventory of 12,440 properties for sale. As of June 30,2017, NABOR has 5,189 properties for sale. Obviously, we have come a long way from the tough days in 2007 and 2008. Of the 5,189 properties that are currently for sale, 2,927 are single family homes and the balance are condos. Our overall inventory has come up a bit since 2014. At the end of June 2014, we had 3,723 properties for sales. At the end of June 2015, we had 3,698 properties for sale. The increase in inventory is not alarming as, to be quite frank, we needed more inventory for sale. In 2014 and 2015, buyers were struggling with a lack of choices in the market.

One interesting inventory observation is that we saw the overall inventory reduced by over 1,000 properties from March 31,2017 to June 30, 2017. At the end of March 2017, we had 6,407 overall properties for sale. At the end of June, we had below 5,400 overall properties for sale. It is not unusual to see the inventory decline over the second quarter as many of the contracts that were written “ in season “ actually close in the second quarter. What is interesting is that the reduction in inventory over the second quarter of 2017 was much larger than we saw in the three previous year’s second quarters. In 2014, we saw an inventory reduction of 682 properties over the second quarter. This was followed by a reduction of 555 properties at the end of the 2015 second quarter and a reduction of 603 properties at the end of the 2016 second quarter.

At the end of June 2017, we have 7.86 months of inventory. At the end of April 2007, NABOR had 34.78 months of inventory. Once again, quite a change.

Now, let’s move to Pending Sales…

The second quarter of 2017 saw 2,770 overall pending sales in the Naples area. For the same quarter in 2008, we had 1,558 pending sales. Once again, we have come a long way. Our pending sales activity is not as good as it was in the second quarter of 2013,2014 and 2015. For these three years, we had over 3,100 pending sales each second quarter. Last year’s pending sales were held down by the stock market and the presidential election among other factors. This year, we have seen pending sales improve over what we saw last year.

The June 2017 pending sales were up 16% over the previous June. Hopefully this is an indication of a strong summer for sales.

One interesting trend that I have observed with pending sales was the amount of increase that we have seen when we compare the monthly pending sales to what we saw the previous year. Please see the below chart.

2017 2016

——- ——-

January 924 847 pending sales up 9%

February 1,092 993 pending sales up 10%

March 1,262 1,136 pending sales up 11%

June 837 720 pending sales up 16%

The second quarter pending sales were up 9% in 2017 when compared to the second quarter for 2016. For the six months ended June 30,2017, our pending sales are up 10% over the six months ended June 30,2016.

One minor point…. Most pending sales are closing. Every now and then you will see one get hung up over an appraisal issue or other financing requirement.

Looking at Closings for the second quarter, we see that NABOR had a 7% increase in closings. At the end of the second quarter of 2016, there were 2,704 closings where the second quarter of 2017 saw 2,880 closings. North Naples saw an 11% increase in closings ( comparing the second quarter of this year to the same period last year ). The Naples Beach area also saw an 11% increase in closings.

One of the big stories with respect to closings was the 43% increase in closings over $2 million dollars. For the second quarter of 2016, there were 113 closings above $2,000,000. For the second quarter of 2017, there were 162 closings above $2,000,000. This represented a 43% increase in this sector of the market.

One number that is perplexing me a bit is the Average Days on Market reported at the end of the second quarter Overall, the average days on market for a property was 97 days which represented a 28% increase compared to what was reported a year earlier. NABOR reported that properties in the $1,000,000 – $2,000,000 range had an average days on market of 140 days. The market above $2,000,000 fared a little worse with an average days on market of 145 days. I should point out that the properties below $300,000 showed an average days on market of just 75 days at the end of June 2017. Why the average days on market has climbed is still being analyzed. Unrealistic pricing certainly can be an issue. Maybe CFPB is also a factor as closings might be taking a bit longer to wrap up.

Our overall Median Closed Price has gone up 3% over the last year. The overall Median Closed Price is $325,000 as of June 30,2017. The Median Closed Price for properties above $300,000 is $511,000 as of June 30,2017.

In summary, it looks like this year will be better than last year with respect to sales. I would keep an eye on inventory. If inventory continues to decline, if you subscribe to the economic concept of supply and demand, this could certainly put upward pressure on pricing. I don’t think inventory will continue to go down at the same rate as we saw in the second quarter of this year. However, you never know. Properly priced homes are selling. There have been a lot of price decreases this year. I am certainly seeing a lot more price decreases than price increases.

Sometime in the next two weeks, Downing-Frye Realty, Inc. will have closed over one billion in sales volume for the year.


MAY MARKET REPORT SHINES FOR NAPLES

Naples, Fla. (June 16, 2017) – Overall closed sales of homes in May shined brighter than any other month previously reported in 2017, with an impressive 23 percent increase to 1,027 closed sales in May 2017 from 838 closed sales in May 2016. Likewise, overall pending sales (homes under contract) also outperformed activity reported in the last four months. Leading broker analysts who reviewed the May 2017 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), are quite confident that real estate agents will be very busy this summer.

“If May’s momentum continues, this year will turn out better than last year,” said Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc. “Home sales during the summer months have become stronger over the past few years. We are no longer seeing a huge disparity in activity between winter and summer like we once did.”

One familiar obstacle summer buyers will face again this year is a reduction in available inventory. Whereas the market saw a 26 percent increase in inventory in January 2017 to 6,393 homes from 5,091 in January 2016, the May report showed only a 4 percent increase to 5,404 homes in May 2017 from 5,207 homes in May 2016. Inventory increases are leveling off. Many broker analysts who track activity on a daily basis report that they have witnessed upwards of 900 listings disappear from the Southwest Florida MLS since May 1st.

“This type of behavior is short sighted,” said Hughes. “Those who let a listing expire at the end of our winter season are missing a huge opportunity to sell their property during the summer months.” Hughes added that our area attracts a variety of buyers during the summer such as international travelers, families from Northern states, and those relocating from other parts of Florida.

Comparatively, the overall median closed price decreased 8 percent in January, while the May report showed an increase of 5 percent to $355,000 in May 2017 from $338,000 in May 2016. Incidentally, January’s median closed price was $314,000. If the logic behind removing a listing at the end of season is based on old beliefs that a property will obtain a higher sale price during the winter months, then sellers need to examine the May statistics more closely. According to NABOR reports, there were 424 more closed sales during May than January.

“Buyers during the summer are more serious,” said Wes Kunkle, President and Managing Broker at Kunkle International Realty. “In season, we get a lot of traffic, but it’s mostly lookers. In the summer, people are ready to buy. They ask real buyer questions, and most often have financing in place.”

As noted by Coco Amar, a managing broker at John R. Wood Properties, activity in the $2 million and above price category has really picked up strength this year. As reflected in the report, overall pending sales in the $2 million and above price category increased 52 percent in May. There were also 78 closed sales of homes in this price category in May 2017, up from 36 closed sales in May 2016. And while the overall median closed price for homes above $300,000 increased 8 percent to $590,000 in May 2017 from $547,000 in May 2016, the overall median closed price for this top reported price category decreased 8 percent to $2,950,000 in May 2017 from $3,220,000 in May 2016.

The May report also showed overall inventory increased 4 percent to 5,404 homes in May 2017 from 5,207 homes in May 2016. Homes in the $300,000 and below price category had the highest inventory increase of all other price categories, reporting a 12 percent increase to 1,551 properties in May 2017 from 1,391 properties in May 2016. While still an increase over last year, the rate of the market’s overall inventory increase is tempering. In fact, brokers are concerned that housing options in some geographic areas, such as in the Central Naples single family market, may start to pinch sales as this area experienced a 50 percent increase in single-family closed sales during May, but had only an 8 percent decrease in inventory.

The NABOR® May 2017 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. The NABOR® May 2017 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:

CATEGORIES May 2016 May 2017 CHANGE (percentage) Total homes under contract (pending sales) 921 1,027 12 Total closed sales 838 1,027 23 Median closed price (month/month) $338,000 $355,000 5 Median closed price >$300K (month/month) $547,000 $590,000 8 Total active listings (inventory) 5,207 5,404 4 Average days on market 73 98 34 Single-family closed sales 396 485 22 Single-family median closed price (month/month) $432,000 $435,000 1 Single-family inventory 2,744 2,734 0 Condominium closed sales 442 542 23 Condominium median closed price (month/month) $276,000 $289,000 5 Condominium inventory 2,463 2,670 8

According to Kathy Zorn, broker/owner of Better Homes and Gardens Real Estate Pristine, “Buyers who are looking for a condominium in the Naples Beach or North Naples area this summer may encounter some challenges as these areas are running low on inventory.” Zorn pointed out that in North Naples there was a 47 percent increase in closed sales of condominiums during May, a 26 percent increase in pending sales of condominiums during May, and only a 9 percent increase in inventory. The situation is even more alarming on the beach, as both pending and closed sales of condominiums increased by double digits, but its inventory rose only 1 percent in May.

If you currently have a home for sale in the Naples market, brokers recommend against terminating the listing during the summer. In fact, there were 875 closed sales in June 2015 and 832 closed sales in June 2016, both higher than the number of closed sales in January (603) and February (613) of 2017.

As a highly desirable second-home location that rarely falls below 70 degrees, Naples will always increase in population during the winter months and then decrease during the summer. But according to county growth reports, the permanent residential population in Naples is also growing steadily. When asked, several brokers say that a large majority of the next season’s part-time residents, along with a host of new permanent transplants, prefer to do their home buying during the summer. So before you pull your home off the market, seek guidance from your Naples REALTOR® who can help you market your property correctly to appeal to summer buyers. A REALTOR® can also locate properties that match summer buyer needs and negotiate a purchase price that reflects the market. Discover more at www.naplesarea.com.

The Naples Area Board of REALTORS® (NABOR®) is an established organization (Chartered in 1949) whose members have a positive and progressive impact on the Naples Community. NABOR® is a local board of REALTORS® and real estate professionals with a legacy of nearly 60 years serving 6,000 plus members. NABOR® is a member of the Florida Realtors and the National Association of REALTORS®, which is the largest association in the United States with more than 1.3 million members and over 1,400 local board of REALTORS® nationwide. NABOR® is structured to provide programs and services to its meembership through various committees and the NABOR® Board of Directors, all of whose members are non-paid volunteers.

The term REALTOR® is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribe to its strict Code of Ethics.

February Market Report Shows More Choices & Better Prices

Contacts: Dominic Pallini, President, (239) 597-1666,
Marcia Albert, NABOR® Director of Marketing, (239) 597-1666

Naples, Fla. (March 17, 2017) – Overall inventory rose yet prices remained stable in February according to broker analysts who reviewed the February 2017 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island) using the Southwest Florida MLS. Overall pending sales (homes under contract) and overall closed sales also increased in February keeping REALTORS® out in the field and busy with showings and closings.

“Compared to this time last year when we were challenged to find properties for customers, the February report showed inventory is up by nearly 1,000 new listings, giving us almost nine months of inventory to show eager buyers,” said Dominic Pallini, NABOR® President, and President and Broker at Vanderbilt Realty. “Buyers have more choices now. This trend is promising.”

Overall inventory rose 16 percent to 6,466 homes in February 2017 from 5,577 homes in February 2016. The largest increase in inventory during February was in the condominium market, which saw a 23 percent increase to 3,207 condominiums in February 2017 from 2,599 condominiums in February 2016. In fact, condominiums in the $1 million to $2 million price category increased the most of all housing types with a 43 percent jump in inventory to 284 condominiums in February 2017 from 198 condominiums in February 2016. Also reflected in the report, the North Naples area experienced the highest increase in condominium inventory, with a 40 percent increase to 989 condominiums in February 2017 from 704 condominiums in February 2016.

The February report also showed overall pending sales increased 10 percent to 1,092 pending sales in February 2017 from 993 pending sales in February 2016; and overall closed sales increased 18 percent to 613 closed sales in February 2017 from 518 closed sales in February 2016. But the condominium market also held the record in February for highest increases in both of these areas too. For example, pending sales of condominiums in the $300,000 to $500,000 price category had the highest increase of all other home types and price points in February with a 53 percent increase, and closed sales of condominiums in the $500,000 to $1 million price category had the highest increase of all other home types and price points in February with a 75 percent increase.

Overall median closed prices increased just 3 percent to $333,000 in February 2017 from $323,000 in February 2016. Interestingly, the median closed price for single-family homes decreased 5 percent to $402,000 in February 2017 from $425,000 in February 2016. Geographically, the Naples Beach area saw a 29 percent decrease in median closed price to $650,000 in February 2017 from $917,000 in February 2016, while the Ave Maria/Immokalee area saw a 29 percent increase in median closed price to $287,000 in February 2017 from $222,000 in February 2016.

The NABOR® February 2017 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.

Broker analysts Coco Amar, Managing Broker at John R. Wood Properties, and Jeff Jones, Managing Broker at the Naples-Park Shore office of Coldwell Banker®, pointed out that economic factors may begin to delay baby boomers’ decisions to sell their northern homes and buy in Florida.

“I’m finding buyers are taking their time making a purchase decision because it’s still unclear how some of the President’s reform policies will play out over the next few years. And with the stock market performing as well as it is right now, it’s hard for them to replant those funds into a second home should they need it liquid quickly,” said Amar.

“Many baby boomers are also facing very different life circumstances than retirees from previous generations, said Jones. “As the number of adult children and aging parents living with baby boomers increases, permanent relocation for them is not yet an option. Also, the recession seems to have reduced impulsive buying behaviors. Consumers are more educated about home values today and they are taking more time to look for the right home.”

Buyer hesitation doesn’t seem to be a factor with the real estate market in Naples just yet. In fact, cash sales increased to 68 percent of the closed sales made in February. And for good reason: according to Jones, “There were 400 price reductions in one week in the Southwest Florida MLS during February, which motivated buyers to make a purchase decision. Along with being named the happiest place to live in America, Naples continues to have a very healthy and balanced real estate market.”

When you are ready to put your home on the market, look to a Naples REALTOR® for the experience and local knowledge you need to ensure your sale in the Naples area is a success. A REALTOR® can also help you negotiate the best price for your new Naples area home. Find a local REALTOR® on NaplesArea.com.

The Naples Area Board of REALTORS® (NABOR®) is an established organization (Chartered in 1949) whose members have a positive and progressive impact on the Naples Community. NABOR® is a local board of REALTORS® and real estate professionals with a legacy of nearly 60 years serving 6,000 plus members. NABOR® is a member of the Florida Realtors and the National Association of REALTORS®, which is the largest association in the United States with more than 1.3 million members and over 1,400 local board of REALTORS® nationwide. NABOR® is structured to provide programs and services to its membership through various committees and the NABOR® Board of Directors, all of whose members are non-paid volunteers.

The term REALTOR® is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribe to its strict Code of Ethics.

View February 2017 Market Statistics

To view the entire report, visit www.NaplesArea.com

Naples Area Real Estate Inventory Outpaced Sales in 2016

Naples, Fla. (January 20, 2017) – Broker analysts who analyzed the Annual, 4th Quarter and December 2016 Market Reports released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island) concluded that the local real estate market performed well in 2016 despite several unpredictable market influencers that impacted the housing market such as the February stock market slump, a low Canadian exchange rate, Brexit and Zika fears, and the presidential election. Brokers agree that factors appear to be in place for a good market in 2017.

“The 2016 year-end report indicated that we started the year with an inventory shortage but ended at a level that positions us to see sales escalate in 2017,” said Bill Poteet, owner and broker at Poteet Properties.

Overall inventory increased 34 percent to 5,946 homes in year ending 2016 from 4,426 homes in year ending 2015. The Naples Beach area experienced the highest number of new listings with 437 homes added to its inventory during 2016. However, and according to the Report, the Naples Beach area also saw the largest decrease in overall closed sales during 2016 of all other geographic areas reported. Overall closed sales in this highly desired location decreased 21 percent to 1,525 homes in year ending 2016 from 1,922 homes in year ending 2015.

Closed sales of condominiums in the East Naples area and single family homes in the $500,000 to $1 million price category increased in 2016, despite overall closed sales decreasing 13 percent to 8,510 homes in year ending 2016 from 9,751 homes in year ending 2015.

According to Coco Waldenmayer, a managing broker at John R. Wood Properties, competition from new home developments in 2016 played a role resulting in fewer sales of existing homes in 2016 compared to 2015, which was a very strong year. “The report showed the highest number of closed sales in 2016 occurred in the North Naples area, which is also where a rash of new home development is taking place.”

“With a surge in inventory from new construction, buyers had more options in 2016,” said Adam Vellano, West Coast Sales Manager for BEX Realty Florida. “Unfortunately, developers and builders of newly constructed homes in Collier County do not fully utilize NABOR®’s MLS [Multiple Listing Service]; and therefore, the Market Report, while useful as a tool to track resale market performance, does not capture or reflect a clear picture of what’s happening in new construction.”

Of note, the annual Market Report showed that the overall median closed prices for homes above $300,000 did not change during 2016. In fact, homes in the $500,000 to $1 million price category experienced only a 3 percent decrease in their overall median closed price to $650,000 in year ending 2016 from $667,000 in year ending 2015. Brokers attribute this reduction in median closed price, and the 2 percent decrease in overall median closed price for the $1 million to $2 million price category in 2016, to better informed and motivated sellers.

The NABOR® Annual 2016 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. The NABOR® Annual 2016 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:

CATEGORIES 2016 2015 CHANGE Total homes under contract (pending sales) 8,903 10,366 -14% Total closed sales 8,510 9,751 -13% Median closed price (month/month) $320,000 $308,000 4% Total active listings (inventory) 5,946 4,426 34% Average days on market 89 78 14% Single-family closed sales 4,268 4,640 -8% Single-family median closed price (month/month) $400,000 $385,000 4% Single-family inventory 3,015 2,434 24% Condominium closed sales 4,242 5,111 -17% Condominium median closed price (month/month) $253,000 $250,000 1% Condominium inventory 2,931 1,992 47%

As noted by Jeff Jones, Managing Broker at the Naples-Park Shore office of Coldwell Banker®, the Report showed a 14 percent increase in days on market for year ending 2016. He went on to explain that “the number of days on market is influenced by median closed prices and closed sales activity. By the last month of the year, the overall days on market decreased 8 percent [to 88 days in December 2016 from 96 days in December 2015], and we didn’t see a rise in median closed prices during December either. I think this shows us that sellers are beginning to heed their REALTOR’s recommendation to list their property at a reasonable market price initially rather than to start high and then go through two or three price reductions. Priced correctly, properties will move in a reasonable length of time.”

“As pointed out by Tom Bringardner, Jr., President/CEO of
Premier Commercial, “The first wave of Baby Boomers to hit 70 years old will take place in 2017, and Southwest Florida has traditionally been a very desirable place for those people to retire or purchase a second home. There are over 75 million boomers and that group represents a lot of potential housing demand.”

Brokers who analyzed NABOR®’s Market Reports in 2016 predicted that inventory would rise and they believe our inventory of existing homes will continue to increase in 2017. These knowledgeable brokers advise homeowners who plan to sell in 2017 to seek guidance from a Naples REALTOR® who knows the local market and can help you price your property correctly. A REALTOR® can also identify properties best suited for buyers and negotiate a purchase price that fits any budget. Discover more at www.naplesarea.com.

“For discrete and professional service, please call us to schedule a private viewing of any one of these Marco Island listings.”

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