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.

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.


Naples Ranks as #1 Community for well-being in the U.S.!  

naples-sunsetsNaples, Florida receives the number one spot for being home to a community with the highest scores for overall well-being for 2016. This is the second year in a row that Naples, Immokalee and Marco Island received high scores in this category! The new Gallup-Healthways poll on community well-being ranked communities based on their responses to five key elements of well-being including positive social relationships, financial management, and sense of purpose, physical health and community pride. Research Director for the Gallup-Healthways well-being index, Dan Witters told Today that “Naples does a lot of things right.” Residents of the Naples area take care of themselves physically, mentally and emotionally. Their community boasts the highest rates for eating healthy and low rates for depression and low rates for the stresses of daily life. Sunshine is said to aid in depression and Naples enjoys plenty of that.

The Naples area community also encourages an active lifestyle with many parks, walking, jogging and biking trails, as well as community basketball, volleyball and tennis courts. There are plenty of great choices for fresh local produce and many eateries cater to the health conscious. All of these contribute to enjoying a high quality of life in a tranquil setting. Naples is also an affluent community located on the gorgeous Gulf of Mexico which provides close proximity to the relaxing sandy white beaches and the stunning turquoise blue waters synonymous with this area.

naples-well-being

In 2015, The Blue Zones Project was launched in Naples and throughout Southwestern Florida. This wellness project was aimed at improving community well-being as well as optimizing its residents’ longevity by bringing together citizens, schools, business owners and community leaders to work together. It makes small, incremental changes that make astounding long lasting impacts. It makes the healthy choice the easy choice and models itself off of areas around the world notorious for healthy, happy living and their long living citizens. This project aims to improve health and lower healthcare costs, as well as improving the infrastructure of a community overall. Naples completed a redevelopment project which brought sidewalks, bicycle lanes and roundabouts to the city.

Some other places mentioned on the Gallup-Healthways poll were Honolulu, Hawaii as number four, Boulder, Colorado as number ten and Fort Smith, Arkansas came in last place out of the 189 communities that were included on the list.

If you are an American worrying about the country’s turbulent times, charged political climate and other uncertainties, you don’t have to leave your beloved country for Canada anymore. Simply head down South to Florida’s southwestern coast and enjoy all that Naples, Immokalee and Marco Island have to offer. Relish in year round sunshine, a sub-tropical climate with gorgeous blue skies and sun drenched days, followed by mild nights filled with cooling ocean breezes and stunning sunsets. Enjoy all of the waterfront activities, walk through nature preserves surrounded by palm trees, tropical foliage and beautiful flora and know that you have chosen to live in paradise.

 

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

(239) 963-6590
Call Now Button