June 9, 2017

April 2017 Review | Real Estate Market Update

April Market Report Shows Strong End-of-Season Activity
the following info is courtesy of the Naples Area Board of Realtors...
Naples, Fla. - Inventory decreased for the second consecutive month and prices continued to remain stable in April, setting into motion a burst in end-of-season sales for homes in the market's sweet spot - the $300,000 to $500,000 price category. Activity in that price category for both single-family and condominium homes in the resale market continued to outpace all other price categories during the month of April according to the April 2017 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). And while overall closed sales for the month decreased 5 percent, closed sales for homes in the sweet spot saw a 14 percent increase.
 
Phil Wood, of John R. Wood, pointed out that the April report showed a 41 percent increase in pending sales for homes in the $2 million and above price category. "There were 10 sales over $5 million in April," said Wood. "This was a good sign we had a very strong season. I think April's activity sets us up for a good summer."
 
Overall inventory in April increased 8 percent to 5,920 homes in April 2017 from 5,480 homes in April 2016. Most notable was a remarkable 35 percent increase in the $2 million and above condominium inventory for April. However, April's inventory decreased by 470 homes from March's level, which was 6,390 homes.
 
The group of brokers reviewing the April Market Report added that homes that are unrealistically priced influenced April's average days on market, which showed an increase of 35 percent to 97 days in April 2017 from 72 days in April 2016.
 
"There appears to be a number of sellers who, when pricing their homes, refuse to take into account the added competition from the new construction market," said Jeff Jones of Coldwell Banker®. Several other brokers collectively surmised that, in many cases, the selling price is typically 8 to 10 percent below the original asking price. Dominic Pallini, NABOR® President, said, "an influx of new homes onto the market creates additional competition that many sellers don't take into consideration when pricing their homes to sell."
 
In response, Jones said, "Prices overall have remained relatively flat over the last year. Only the homes in the $300,000 and below price category increased in median closed price in the 12-months ending April 2017 from $207,000 to $219,000. There were actually minor decreases in all other price categories above $300,000."
 
The last frontier of growth is eastern Collier County where buyers seeking single-family homes have more affordable options. This area, which includes 34114, 34117, 34120 and 34137, saw a 17 percent increase in closed sales to 122 single-family home closed sales in April 2017 from 104 single-family home closed sales in April 2016.
                              
The NABOR® April 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® April 2017 sales statistics are presented in chart format, including these overall (single-family and condominium) findings: 

CATEGORIES
April 2016 April 2017 CHANGE
Total homes under contract (pending sales)
1,084
1,075
-1%
Total closed sales 947 902 -5%
Median closed price $325,000 $355,000 9%
Median closed price >$300K $559,000 $525,000 -6%
Total active listings (inventory) 5,480 5,920 8%
Average days on market  72 97 35%
Single-family closed sales 429 404 -6%
Single-family median closed price $434,000 $419,000 -3%
Single-family inventory 2,877 2,986 4%
Condominium closed sales 512 498 -3%
Condominium median closed price $262,000 $296,000 13%
Condominium inventory 2,597 2,934 13%
 
Several brokers commented that financing has become more complex in the last year and may be one reason the days on market have increased. For the 902 homes that closed in April 2017, the majority (65.3 percent) were cash sales and only 34.7 percent were conventional (financed) sales, a statistic that signifies the seasonal wealth factor.
 
When you are ready to put your home on the market, contact Jeremy O'Guinn for the experience, negotiating skills, and local knowledge you need to ensure your experience is a success. 
April 24, 2017

March 2017 Review | Real Estate Market Update

 

NABOR® Market Report Posts Solid 1st Quarter

the following info is courtesy of the Naples Area Board of Realtors...
Naples, Fla.
 -
  It was a busy season for REALTORS® working in Naples as evidenced in the First Quarter 2017 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). As predicted by broker analysts at the beginning of the year, once sellers began to heed the advice of their agents and reset to reasonable list prices, buyers would react in stride with more solid offers. The statistics reflected this prognosis precisely, and resulted in an increase in overall pending and closed sales, making the first quarter of 2017 as solid as expected.
 
Noted by Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., "The first quarter was a bit of a bumpy ride but the trend line for sales moved upward throughout the quarter with March coming in as a pretty strong month for sales activity. Overall, we ended the first quarter better than last year and I think the local brokers are cautiously optimistic that we might have a decent summer for sales."
 
Quite a few broker analysts who reviewed the report agreed with Hughes and said the word on the street is that many buyers who didn't make a purchase during the first quarter have plans to return to the area during the summer as they anticipate home prices may decrease.
 
Quarter over quarter, the report showed overall median closed prices increased only 2 percent, driven by a narrow 3 percent increase in the $300,000 and below price category. Yet all other price categories tracked by NABOR® showed decreases or no change at all. One exception was single family homes in the $300,000 to $500,000 price category, which jumped 14 percent in median closed price to $387,000 in the 1st quarter of 2017 from $339,000 in the 1st quarter of 2016.
 
Collectively, broker analysts agreed that activity in the condominium market during the first quarter of 2017 was impressive. In fact, condominium inventory increased 19 percent, while the single-family home inventory saw an 8 percent increase. The report also showed five times the number of condominiums under $300,000 were available in the first quarter of 2017 than single-family homes in the same price category.
 
"Inventory is up and prices have come down," said Budge Huskey, President of Premier Sotheby's International Realty. "This is an indication that some fundamental economic principles are taking effect in the Naples housing market."
 
But according to Cindy Carroll, SRA, with the real estate appraisal and consultancy firm Carroll and Carroll, Inc., monthly inventory levels have increased through March, but at a progressively lower rate each month of the quarter. For example, Carroll said, "In a year to year comparison, single family inventory was up 24 percent in December, 19 percent in January 2017, 9 percent in February, and 8 percent in March. The same trend is mirrored in the condominium market. In the long view, overall inventory increased 35 percent between March 2015 and March 2016, and 23 percent between March 2016 and March 2017."
 
However, Bill Coffey, Broker Manager of Amerivest Realty Naples, was quick to point out that a tempering of inventory levels does not mean fewer options for buyers in the coming months. "The condominium market was hot in the first quarter. Both inventory and closed sales increased 19 percent. And overall sales only lagged last quarter because properties were not priced properly, but now we are seeing price adjustments and the statistics are reflecting the correction. We currently have 8.89 months worth of inventory. In February we had over 9 months. This progressive reduction in inventory Cindy is talking about will not curb market activity greatly."
 
The NABOR® First 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® First Quarter 2017 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:
CATEGORIES
1Q 2016 1Q 2017 CHANGE
Total homes under contract (pending sales)
2,786
3,097
11%
Total closed sales 1,929 2,205 14%
Median closed price $325,000 $330,000 2%
Median closed price >$300K $545,000 $510,000 -6%
Total active listings (inventory) 5,651 6,389 13%
Average days on market  77 95 23%
Single-family closed sales 982 1,059 8%
Single-family median closed price $415,000 $410,000 -1%
Single-family inventory 2,996 3,236 8%
Condominium closed sales 967 1,146 19%
Condominium median closed price $262,000 $270,000 3%
Condominium inventory 2,655 3,154 19%
The Market Report also indicated a trend in how buyers are purchasing homes in Southwest Florida. "In March 2014, cash sales encompassed 74 percent of all sales for the month. In March 2015 it was 73 percent, then 67 percent for March 2016, and finally, in March 2017 cash sales accounted for 64 percent of all sales made in the month," said Hughes. "In the past few years cash sales have been decreasing and more buyers are financing home purchases."
 
Geographically, the market had some hot areas of action during the first quarter of 2017. Of note was Central Naples (34104, 34105, 34116), which saw a 74 percent increase in single-family home inventory to 634 single-family homes in the 1st quarter of 2017 from 364 single-family homes in the 1st quarter of 2016. And the median closed prices for single-family homes in South Naples (34112, 34113) increased 22 percent in the 1st quarter of 2017 to $386,000 from $317,000 in the 1st quarter of 2016.
When you are ready to put your home on the market, contact Jeremy O'Guinn for the experience, negotiating skills, and local knowledge you need to ensure your experience is a success. 
March 28, 2017

February 2017 Review | Real Estate Market Update

MORE CHOICES & BETTER PRICES

the following info is courtesy of the Naples Area Board of Realtors...

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. The NABOR® February 2017 sales statistics are presented in chart format, including these overall (single-family and condominium) findings: 
 
CATEGORIES
Feb 2016 Feb 2017 CHANGE
Total homes under contract (pending sales)
993
1,092
10%
Total closed sales 518 613 18%
Median closed price $323,000 $333,000 3%
Total active listings (inventory) 5,577 6,466 16%
Average days on market  79 99 25%
Single-family closed sales 261 294 13%
Single-family median closed price $425,000 $402,000 -5%
Single-family inventory 2,978 3,259 9%
Condominium closed sales 257 319 24%
Condominium median closed price $260,000 $270,000 4%
Condominium inventory 2,599 3,204 23%
 
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, contact Jeremy O'Guinn for the experience, negotiating skills, and local knowledge you need to ensure your experience is a success.  
Feb. 24, 2017

January 2017 Review | Real Estate Market Update

JANUARY HOME SALES STRONG 

the following info is courtesy of the Naples Area Board of Realtors...

Naples, Fla. 
(February 17, 2017) -
 The new year rebounded with a strong gust of activity in the Collier County real estate market. Increases in overall pending sales (homes under contract), overall closed sales and overall inventory indicate a strong season ahead. Broker analysts who reviewed the January 2017 Market Report, which tracks home listings and sales within Collier County (excluding Marco Island) using the Southwest Florida MLS, are confident that market indicators are favorable to support momentum through season.
 
"We are definitely in a buyer's market now, and home sales were strong in January," said Phil Wood, President & CEO of John R. Wood Properties, who pointed out that the 6 percent increase in overall closed sales for January was driven by an impressive 14 percent increase in closed sales of condominiums. He remarked, "Properties that are selling rapidly are those that are priced at true market value."
 
In response, Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., agreed with Wood adding that, "the increase in inventory is a positive opportunity, especially for buyers looking in the under $300,000 condominium market, which increased by over 400 units in January."
 
According to the January Market Report, overall pending sales increased 9 percent to 924 pending sales in January 2017 from 847 pending sales in January 2016. Broker analysts said they are most encouraged by pending sales activity in the middle range of the market; namely, homes between $300,000 and $2 million, which all experienced double digit increases in January.
 
Overall closed sales increased 6 percent to 603 closed sales in January 2017 from 571 closed sales in January 2016. Interestingly, January was the first time both overall pending sales and overall closed sales were on the upswing simultaneously since March 2015.
 
The report also showed that overall inventory for all price segments increased by double digits in January too. Comparatively, condominium inventory in the $2 million and above category had the highest gain with a 44 percent increase to 135 condominiums in January 2017 from 94 condominiums in January 2016.
 
Geographic proximity to the beach remains a driving force in the Naples real estate market. As such, properties located in the Naples Beach area experienced a 15 percent increase in overall median closed price to $784,000 in January 2017 from $680,000 in January 2016. Pending sales for the Naples Beach condo market for January 2017 increased by almost 40 percent compared to last year and closings were up 16 percent. This was mostly driven by a somewhat limited condominium market in the Naples Beach area, where inventory increased 34 percent and pending sales shot up 39 percent in January. 
 
The NABOR® January 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® January 2017 sales statistics are presented in chart format, including these overall (single-family and condominium) findings: 
 
CATEGORIES
Jan 2016 Jan 2017 CHANGE
Total homes under contract (pending sales)
847
924
9%
Total closed sales 571 603 6%
Median closed price $340,000 $314,000 -8%
Total active listings (inventory) 5,091 6,393 26%
Average days on market  75 91 21%
Single-family closed sales 291 284 -2%
Single-family median closed price $425,000 $397,000 -7%
Single-family inventory 2,715 3,219 19%
Condominium closed sales 280 319 14%
Condominium median closed price $278,000 $265,000 -5%
Condominium inventory 2,376 3,174 34%
 
Nationally, a balanced market (balanced equally between buyers and sellers) is considered to be six months of inventory. Yet, as observed by Adam Vellano, West Coast Sales Manager, BEX Realty - Florida, "Our report shows 8.91 months of inventory for January. The last time we had a supply of inventory like this was five years ago. I think it's time to remind sellers that 'price sells a home'."
 
Responding to these observations, Cindy Carroll, SRA, with the real estate appraisal and consultancy firm Carroll & Carroll, Inc., warned that sellers who are testing the market with high list prices may be disappointed in a few months as "these sellers see a reduction in list price as a reduction in value, when this is not the case at all. Working with a REALTOR® who closely monitors comparable listings will help them avoid months of waiting for a sale."
Dec. 23, 2016

November 2016 Review | Real Estate Market Update

Local Real Estate Brokers Predict Strong Season

the following info is courtesy of the Naples Area Board of Realtors...

Naples, Fla. 
(December 16, 2016) - 
 Consistent with historic activity in Southwest Florida, pending and closed sales in the greater Naples housing market continue to increase as the winter season approaches. The November 2016 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), showed a median closed price of $303,000 during November 2016; a 5 percent decrease from the November 2015 median closed price of $318,000. More sellers also entered the market in November, which resulted in a 40 percent increase in inventory to 5,733 properties in November 2016 from 4,095 properties in November 2015 (300 more properties than October 2016). Yet according to several broker analysts who examined the November 2016 Market Report, one obstacle agents continue to face is a market with pockets of improper valuations.

"One year ago we had 4.24 months of inventory market wide, said Cindy Carroll, SRA with the real estate appraisal and consultancy firm Carroll & Carroll, Inc. "The November 2016 statistics show an 8.02 month supply, that's a 60 percent increase in months of inventory year over year."  

Carroll believes that the local real estate market reached the top of the current economic cycle in the fall of 2015 and explained that, "rising inventories require properties to be appropriately and competitively priced in order to achieve a sale. Overpriced properties tend to languish on the market, contributing to an oversupply condition. To avoid this, sellers should seek guidance from a REALTOR® who can help price the home appropriately from the beginning so it gets sold quickly and at the best price."

Wes Kunkle, President and Managing Broker at Kunkle International Realty, said many of his investor clients are adding to the area's lower end inventory. "When investors who bought between 2009 and 2012 start to reenter the market, this is a sign that price appreciation is good and it's a great time to sell."

Interestingly and according to the report, over 50 percent of homes sold in the last year were in the $300,000 and below price category. This segment continues to see an increase in sales month over month. In November 2016 there was an 8 percent increase in overall closed sales to 285 closed sales from 264 closed sales in November 2015.

From a seller's perspective, Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., said it is important for homeowners on the fence to determine whether they want to be proactive or reactive sellers. "Proactive sellers work with REALTORS® who focus on market valuations that are real."

Jeff Jones, Managing Broker at the Naples-Park Shore office of Coldwell Banker®, said he also watches days on market closely. "The number of properties selling under 30 days is increasing, while those in the 30 to 90 day and 90 day and up segments are stagnant. This tells me that there are still properties improperly priced out there."

The NABOR® November 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® November 2016 sales statistics are presented in chart format, including these overall (single-family and condominium) findings: 
 
CATEGORIES
Nov 2016 Nov 2015 CHANGE
Total homes under contract (pending sales)
713
804
-11%
Total closed sales 572 558 3%
Median closed price $303,000 $318,000 -5%
Total active listings (inventory) 5,733 4,095 40%
Average days on market  88 77 14%
Single-family closed sales 268 261 3%
Single-family median closed price $397,000 $426,000 -7%
Single-family inventory 2,971 2,319 28%
Condominium closed sales 304 297 2%
Condominium median closed price $251,000 $258,000 -3%
Condominium inventory 2,762 1,776 56%
 
Phil Wood, President & CEO of John R. Wood Properties, remarked that the Market Report showed an increase in inventory of just over 1,600 units above last year, of which 900 were below $500,000. "Only 200 of these new properties were in the Central Naples area; most of the inventory growth appears to be happening in areas outside the city limits." 
 
"Now that we are past the election and the economy responded positively, we are looking forward to a strong and busy season," said Dominic Pallini, NABOR® President and Broker at Vanderbilt Realty.
 
Broker analysts agreed that factors that negatively impacted tourism and seasonal migration in 2016 like the February stock market slump, a low Canadian exchange rate, Brexit and Zika fears, and the presidential election are behind us now. The only obstacle left to overcome is irrational legacy pricing behaviors. With inventory expected to increase, buyers will have more options and sellers should seek guidance from a REALTOR® who knows the local market and can help price properties correctly.
 
If you are considering selling your home, ask a REALTOR® to help you do a market comparison and determine a fair and reasonable listing price. 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.
 
  

To view the entire report, visit www.NaplesArea.com
Nov. 23, 2016

October 2016 Real Estate Market Update

More Buyers Choosing Conventional Mortgage Loans to Purchase Their Home

the following info is courtesy of the Naples Area Board of Realtors...

Naples, Fla. (November 18, 2016) - Over 44 percent of homes purchased in October used conventional financing methods (e.g., mortgages), according to a report released by the Naples Area Board of REALTORS® (NABOR®) that detailed activity in the greater Naples housing market during October 2016. The October 2016 Market Report, which tracks home listings and sales within Collier County (excluding Marco Island), showed a gradual - but continuous - decline in cash sales with growth in conventional sales during the last 12 months.
 
In October 2015, cash sales accounted for nearly 65 percent of all homes sales in Naples, whereas in October 2016, cash sales accounted for only 56 percent of all homes sales in Naples. Interestingly, homes purchased in the $300,000 to $500,000 price category in October reflected the highest percentage of conventional sales (60 percent) of all the price categories reported.
 
"Increased use of conventional mortgages in October may be an indication of increased consumer confidence coupled with a better lending environment," said Rick Fioretti, NABOR® President and Broker Associate with Berkshire Hathaway Home Services Florida Realty. "In October 2014, only 32 percent of all home sales used conventional financing. In October 2015, conventional financing increased to 35 percent of overall sales."
 
Coco Waldenmayer, a managing broker at John R. Wood Properties, added that impending interest rate increases might create more urgency for people looking to finance a future home purchase.
 
The October 2016 Market Report showed overall pending sales decreased 13 percent to 702 pending sales in October 2016 from 807 pending sales in October 2015. Interestingly, overall pending sales in the $500,000 to $1 million price category actually increased 14 percent to 125 pending sales in October 2016 from 110 pending sales in October 2015. Likewise, pending sales of condominiums in the $500,000 to $1 million price category increased 30 percent to 57 condominiums in October 2016 from 44 condominiums in October 2015. The increase in pending sales extended to the single-family home market as well, in which both the $300,000 to $500,000 price category and $500,000 to $1 million price category increased 3 percent.
 
In the closed sales category, the October 2016 Market Report showed overall closed sales decreased 7 percent to 556 closed sales in October 2016 from 601 closed sales in October 2015. However, closed sales of condominiums in the $1 million to $2 million price category increased 80 percent to 9 condominiums in October 2016 from 5 condominiums in October 2015. And closed sales of single-family homes in the $300,000 to $500,000 price category increased 21 percent from 120 single-family homes in October 2016 from 99 single-family homes in October 2015.
 
For October, the overall median closed price increased 6 percent to $320,000 in the 12-months ending October 2016 from $302,000 in the 12-months ending October 2015. Conversely, the overall median closed price for homes above $300,000 did not reflect a recordable change. Homes in the $300,000 and below price segment, which experienced a 10 percent increase to $215,000 in the 12-months ending October 2016 from $195,000 in the 12-month ending October 2015, is once again responsible for driving the overall median closed price increase.
 
According to Jeff Jones, Managing Broker at the Naples-Park Shore office of Coldwell Banker®, the increase in days on market for October (15 percent) reflects a need to continue dialog about properly pricing homes in Naples. "Even though we are selling homes in a very desirable location, when days on market increase, one factor affecting this is overpriced properties. And because historically, inventory increases right before season, REALTORS® need to take a bold stance now and guide home sellers to a more realistic asking price based on today's market."
 
The NABOR® October 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® October 2016 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:
 
CATEGORIES
October 2016 October 2015 CHANGE
Total homes under contract (pending sales)
702
807
-13%
Total closed sales 556 601 -7%
Median closed price $315,000 $290,000 9%
Total active listings (inventory) 5,426 3,903 39%
Average days on market  85 74 15%
Single-family closed sales 295 310 -5%
Single-family median closed price $375,000 $385,000 -3%
Single-family inventory 2,849 2,210 29%
Condominium closed sales 261 291 -10%
Condominium median closed price $240,000 $230,000 4%
Condominium inventory 2,577 1,693 52%
 
"There is less than a three-months supply of single family homes under $300,000," remarked Bill Coffey, Broker Manager of Amerivest Realty Naples, who added that if home buyers are looking to stay within this price range they may be better served in the condominium market, which saw a 53 percent increase in inventory to 1,116 condominiums under $300,000 in October 2016 from 731 condominiums under $300,000 in October 2015.
 
According to Kathy Zorn, broker/owner, Florida Home Realty, "The report showed six months worth of inventory to sell. We have not seen this high a level of inventory in the month of October since 2013. So as we move into season with this healthy level of inventory, buyers will have more options, which is all the more reason sellers should seek guidance now from a REALTOR® who knows the local market and can help them price their properties right."
 
Geographically, inventory in the Naples Beach (34102, 34103, 34108) and North Naples (34109, 34110, 34119) areas increased the most in October. In the Naples Beach area, single-family home inventory rose 25 percent to 567 single-family homes in October 2016 from 454 single-family homes in October 2015, and condominiums increased 71 percent to 655 condominiums in October 2016 from 384 condominiums in October 2015. For North Naples, single-family home inventory rose 35 percent to 878 single-family homes in October 2016 from 650 single-family homes in October 2015, and condominiums increased 64 percent to 734 condominiums in October 2016 from 447 condominiums in October 2015.
 
"There are plenty of homes to buy and sell in Naples," said Fioretti, who ends his term as NABOR® President in December. "It's going to take some time to see how the market will react to the election and the changes in the government, but I believe the challenge we REALTORS® face in the short-term is educating the public on market pricing. The value of a home relates to local sale prices and a realistic price means a rapid sale."
  
To view the entire report, visit www.NaplesArea.com
Oct. 21, 2016

3rd Quarter 2016 Real Estate Market Update

3Q Prices Hold Steady with Inventory on the Rise

the following info is courtesy of the Naples Area Board of Realtors...

Naples, Fla. (October 20, 2016) - The Naples Area Board of REALTORS® (NABOR®) released its Third Quarter 2016 Market Report, which tracks home listings and sales within Collier County (excluding Marco Island), and it showed overall inventory increased 40 percent with little change in median closed prices. In fact, as reflected in the report, the overall median closed price for homes on the market increased only 4 percent to $312,000 in the 3Q of 2016 from $300,000 in the 3Q of 2015. This was predominately driven by a 9 percent increase in the $300,000 and below price category. Comparatively, all other price categories saw a zero or negative price adjustment.
 
Upon reviewing the report, NABOR® President and Broker Associate with Berkshire Hathaway Home Services Florida Realty Rick Fioretti said, "a quick analysis of price behavior since December of 2015 shows median closed prices leveled out." Several broker experts agreed with Fioretti, adding that the pricing trend is a natural reaction to the increase in inventory.
 
"I think we're seeing the completion of a cycle that began in 2013," said Cindy Carroll, SRA, with the real estate appraisal and consultancy firm Carroll & Carroll, Inc. "Prices have remained relatively stable for over a year, and now I'm noticing more competitive value-based pricing as the supply increases."
 
Carroll remarked that her business encounters a small herd of listings that are still not moving, and believes ongoing increases in inventory over the next six months will require these sellers to adjust their value perceptions. "The list to sale price ratio is shrinking and this needs to continue if we want to compete with new home construction."
 
"If it's overpriced, then the property sits," said Dominic Pallini, Broker at Vanderbilt Realty, who went on to say that days on market decreased 12 percent in the $2 million and above price category, but overall, there was a 10 percent increase in days on market. "Pricing is critical now more than ever."
 
While both pending and closed sales decreased 14 percent (quarter over quarter), inventory continued to rise in all areas of Collier County during the 3Q of 2016. Overall, inventory rose 40 percent to 5,044 homes in the 3Q of 2016 from 3,606 homes in the 3Q of 2015; with a marked increase in Central Naples, which rose 49 percent to 608 homes in the 3Q of 2016 from 408 homes in the 3Q of 2015.
 
Inventory increases in the condominium market were also remarkable during the third quarter of 2016. This home type experienced a 53 percent increase in inventory to 2,375 condominiums in the 3Q of 2016 from 1,557 condominiums in the 3Q of 2015.
 
The NABOR® 3Q 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® 3Q 2016 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:
 
CATEGORIES
3Q 2016 3Q 2015 CHANGE
Total homes under contract (pending sales)
1,942
2,270
-14%
Total closed sales 1,889 2,187 -14%
Median closed price $312,000 $300,000 4%
Total active listings (inventory) 5,044 3,606 40%
Average days on market  86 78 10%
Single-family closed sales 1,001 1,123 -11%
Single-family median closed price $382,000 $379,000 1%
Single-family inventory 2,669 2,049 30%
Condominium closed sales 888 1,064 -17%
Condominium median closed price $241,000 $235,000 3%
Condominium inventory 2,375 1,557 53%
 
"Only 23 percent of homes for sale under $300,000 are single-family residences," said Brenda Fioretti, Managing Broker at Berkshire Hathaway HomeServices Florida Realty. "When it's priced right, it sells."
 
NABOR® also released its September 2016 Market Report, which showed activity in September 2016 compared to activity in September 2015 was a mixed bag. For example, while overall pending and closed sales decreased 12 and 19 percent, respectively, median closed prices held steady or decreased in 73 percent of the market in September. In fact, median closed prices for all homes above $500,000 decreased, with a 12 percent decrease occurring in the $2 million and over price category.
 
"While this year's summer activity at the high end was no match to last year's 'banner year' pace, we have started to experience a slight uptick in interest and inquiries this month when compared to last month," said Richard Prebish, II, Broker Associate at William Raveis Real Estate. "I anticipate there will be some more great opportunities at reasonable prices being introduced to the high end marketplace in the coming months."
 
The NABOR® September 2016 sales statistics are also presented in chart format, including these overall (single-family and condominium) findings:
CATEGORIES September 2016 September 2015 CHANGE
Total homes under contract (pending sales) 661 749 -12%
Total closed sales 566 703 -19%
Median closed price $318,000 $310,000 3%
Total active listings (inventory) 5,044 3,606 40%
Average days on market  92 79 16%
Single-family closed sales 301 381 -21%
Single-family median closed price $378,000 $375,000 1%
Single-family inventory 2,669 2,049 30%
Condominium closed sales 265 322 -18%
Condominium median closed price $245,000 $235,000 4%
Condominium inventory 2,375 1,557 53%
As inventory continues to rise, sellers can be in the best position to find the right buyer when they work closely with a REALTOR®. A REALTOR® can help you do a market comparison and determine a fair and reasonable listing price. A REALTOR® can also identify properties best suited for your needs and negotiate a purchase price that fits your budget. 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 5,000 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.
Sept. 19, 2016

August 2016 Real Estate Market Update

the following info is courtesy of the Naples Area Board of Realtors...

Summer Activity Indicates Promising Season

Naples, Fla. (September 16, 2016) - The housing market's momentum continues to remain strong heading into fall. Upon reviewing the August 2016 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), NABOR® broker analysts cited several reasons why buyers and sellers can expect a promising winter season such as the inventory is continuing to increase and the median closed prices are remaining virtually unchanged.
 
Overall activity of properties in the $2 million and above price category failed to perform as well in August compared to other price categories. However, condominium inventory in this luxury segment of the market increased 84 percent to 81 condominiums in August 2016 from 44 condominiums in August 2015, while its overall median closed price fell 19 percent (year over year) to $2,537,000 in August 2016 from $3,132,000 in August 2015. This behavior of increased inventory and lower prices primes the luxury segment of the market for a season where the number of properties priced right can certainly meet demand.
 
NABOR® broker analysts suspect some potential buyers of high-end properties may be reluctant to make big financial decisions because of the uncertainty of the economy after the Presidential election. However, as the report indicated, activity in this segment of the market is historically lower than it is during seasonal months. Brokers were quick to point out that this tapering is anticipated during the summer and expect sales in this segment to rise as we move into the next season.
 
The median closed price for condominiums in this entry-level price category was $193,000. August also saw a 50 percent increase in inventory for condominiums in the $300,000 and below price category to 974 condominiums in August 2016 from 648 condominiums in August 2015.
 
Overall inventory increased 36 percent for the second month in a row to 4,787 homes in August 2016 from 3,525 homes in August 2015. In fact, while inventory rose in all price categories for both home types, the overall median closed price remained flat in August, with the exception of homes in the $300,000 and below price category, which increased 9 percent to $210,000 in August 2016 from $192,000 in August 2015.
 
Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., pointed out that even though overall inventory decreased slightly over the last five months; historically, it's projected to swing upwards starting next month. If prices continue to remain stable as they have over the last year, then Hughes believes that more choices and reasonable prices will make for a good season.
 
The NABOR® August 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® August 2016 sales statistics are presented in chart format, including these overall (single-family and condominium) findings: 
 
CATEGORIES
August 2016
August 2015
CHANGE
Total homes under contract (pending sales)
734
811
-9%
Total closed sales 654 689 -5%
Median closed price $320,000 $306,000 5%
Total active listings (inventory) 4,787 3,525 36%
Average days on market  88 75 13%
Single-family closed sales 350 348 1%
Single-family median closed price $384,000 $388,000 -1%
Single-family inventory 2,554 2,025 26%
Condominium closed sales 304 341 -11%
Condominium median closed price $232,000 $235,000 -1%
Condominium inventory 2,233 1,500 49%
 
Geographically, overall closed sales in East Naples increased 10 percent to 136 homes in August 2016 from 124 homes in August 2015. Also impressive was the 12 percent increase in single family closed sales in the East Naples area to 91 homes in August 2016 from 81 homes in August 2015, and a 72 percent increase in condominium inventory in North Naples to 639 condominiums in August 2016 from 371 condominiums in August 2015.
 
Broker analysts have long acknowledged that a small portion of new construction inventory appears in the Southwest Florida MLS data. To confirm such speculation, Wes Kunkle, President and Managing Broker at Kunkle International Realty, performed an independent analysis of the MLS in August and found that, "approximately 20 percent of active listings in select geographic areas of high development were new construction."

 

Feb. 5, 2016

Marco Island History - The Island's Real Estate Development

The following info is courtesy of the city of Marco Island...

Marco Island - History of the Island's Development

"The Marco Island visionaries were the Mackle Brothers -- Elliott, Robert, and Frank, Jr. They are responsible for the modern development of Marco Island, and acquired most of Marco Island for $7 million. Their company, The Deltona Corporation, developed a master plan for the Island. It was to be designed for a complete range of resort and leisure living -- hotels, motels, apartments, and extensive areas for homes. Today Marco Island is an upscale community consisting of more than 5,000 single-family residential homes, 10,000 condominium units, 2,000 hotel units, approximately 2,000 vacant residential lots, and a pleasant mix of restaurants, retail stores, and commercial services. With over 300 new homes constructed annually, the Island is expected to be substantially developed by 2010.

In 1962 the Mackle Brothers began to implement their vision to create a showcase island. They purchased most of Marco Island from the heirs of Barron Gift Collier. Excluded from the acquired property was the Old Marco and Highlands area, located in the center of the island. The Mackle Brothers paid $7 million for their initial interest. Later their company, The Deltona Corporation, acquired the remaining interest from the Collier heirs. The master plan called for 125 miles of paved roads and 90 miles of navigable bulkheaded waterways. Land was set aside for more than 12,000 homesites to be used for lot or housing sales; 425 acres was slated for resort hotels; 340 acres was set aside for future apartment construction; 275 for commercial development in planned business districts; 113 acres was designated for schools and churches; and 17 acres for medical facilities. They even set aside a half-mile of gulf beach for public park development under the auspices of Collier County.

In addition to a golf course, the master plan called for recreational amenities, yacht clubs, marine facilities, and a country club. The Mackles officially opened modern Marco Island January 31, 1965.

Following an extensive advertising campaign, particularly in Chicago, New York, Cleveland and Boston, and in western Europe, Latin America, and the Far East, people began to pour onto the island. Thirty days following the official opening, 50,000 inquiries would flood the tiny administration office on San Marco Road where the island police and fire department stands today.

The first waterways were constructed for opening day, as were the first twelve homes. Brochures listed the waterfront homes from $19,800 to $41,500 depending upon the size. Inland homes on Tahiti Road ranged in price from $14,900 to $23,500. Homesites were listed in the $2,550 range for inland lots and from $5,495 to $16,000 for waterfront sites.

By 1968 the island population had grown to an estimated 1,000 people and Deltona was continually adding new home models to the market.

At the end of the decade and on the eve of Marco Island’s fifth birthday there was enormous progress. Over 500 apartment units had been completed and another 172 were under construction. Emerald Beach, Sunset House, Southwind, Sea Breeze, and Sea Breeze South condominiums had been completed. Over 9,500 homesites had been sold and recreational facilities were under construction. A new bridge spanned the Marco River -- tolls were taken when it opened on December 13, 1969, the same year that the Marco Towne Center opened.

By the end of 1973 the population had jumped to an estimated 5,000 full and part-time residents. More than 700 single-family homes and 1,500 condominium units had been completed. By the mid-1970s the second bridge connecting the island with the mainland at Goodland was completed.

Serious problems developed for the Mackle Brothers in 1976. Previously approved dredge and fill permits to develop Barfield Bay and Big Key, the final two phases of development, were denied by the U.S. Army Corps of Engineers. Environmentalists and conservationists would soon take center stage and through years of litigation, compromise, and public meetings, Deltona would fight the denial all the way to the Supreme Court while teetering on the brink of bankruptcy. In an effort to raise funds for their court battles, the company proceeded to sell many undeveloped properties at bargain basement prices and began selling assets, including its prized possession, the Marco Beach Hotel and Villas, which was sold to the Marriott Corporation in 1979 for $35 million.

On March 22, 1982 the Supreme Court refused a Deltona petition to overturn the court decision. The Mackles virtually turned their undeveloped holdings into nature preserves. More than 7,000 people had contracts for homesites on property that now could not be developed. Deltona had used much of the down payment cash flow to develop other parts of the island. The company immediately offered cash refunds, alternative island property, and exchanges for property in other Deltona communities. Both residential and commercial development occurred at an astonishing pace through the 1980s thereafter. By 1998 about 80% of the total potential dwelling units had been completed."

Source - 'The Mackle Brothers' - City of Marco Island Government Website

Posted in Real Estate News
Feb. 1, 2016

2015 Annual Real Estate Market Report - Naples, FL

the following info is courtesy of the Naples Area Board of Realtors...

Market Confidence & Stability Reflected in 2015

Activity in the housing market for much of Collier County in 2015 looked like year-end activity in 2014, according to broker analysts who reviewed the Annual, 4th Quarter and December 2015 Market Reports released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). 

Much like 2014, and as evidenced in the Annual 2015 Market Report, overall pending sales (homes under contract) and closed sales in 2015 were steady in all price segments above $300,000, with the $300,000 - $500,000 price category experiencing the most dramatic increase. The median closed price for homes on both ends of the price spectrum rose the sharpest in 2015, while all remaining price categories in the middle of the market stayed relatively balanced. And inventory for all price categories grew in 2015, with the exception of the $300,000 and below price segment, which saw a reduction of 261 homes. 

Review the 2015 Sales Statistics - See the numbers

“The year-end report indicates that we just had back-to-back great years for real estate sales in the Naples area,” said Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc. “While it is tough to make predictions for the future, the Naples area continues to be desirable for buyers that are looking to make a purchase in the state of Florida.” 

According to the 2015 year-end report, overall pending sales decreased 1 percent in 2015 from 10,494 homes in 2014 to 10,366 homes in 2015. However, pending sales in all price categories above $300,000 increased. Of note, pending sales in the $300,000 - $500,000 price category rose 21 percent from 2,137 homes in 2014 to 2,580 homes in 2015. Likewise, overall closed sales decreased 2 percent from 9,902 homes in 2014 to 9,751 homes in 2015. And similar to pending sales, overall closed sales in all price categories above $300,000 increased, with the $300,000 - $500,000 price category experiencing the largest increase (20 percent) going from 1,978 homes in 2014 to 2,382 homes in 2015. 

The median closed price rose 14 percent from $270,000 in 2014 to $308,000 in 2015. Driven mostly by homes $300,000 and below (which rose 12 percent from $179,000 in 2014 to $200,000 in 2015), and homes $2 million and above (which rose 9 percent from $2,950,000 in 2014 to $3,212,000 in 2015), the overall median closed price for price segments in the middle of the market remained temperate. 

According to the managing broker at John R. Wood Realtors, the report showed a significant price increase in the $2 million and above single-family home market in 2015. She explained, “This category experienced a 12 percent increase in price from $3,000,000 in 2014 to $3,350,000 in 2015, despite also having a 13 percent increase in its inventory.” 

Hughes echoed similar surprise in closed sales activity within the single-family home market, adding that the report also showed “the number of closed sales in the lowest reported price category [$300,000 and below] dropped by 364 homes, yet closed sales for single-family homes in the next category increased by only 205 homes.” 

Hughes said the shortage in inventory on the low end continued to affect closed sales activity in every geographic location in 2015. For example, South Naples (34112, 34113), East Naples (34114, 34117, 34120, 34137) and the Immokalee/Ave Maria area (34142) were the only geographic areas reported to see overall pending and closed sales growth. In fact, overall closed sales in the Immokalee/Ave Maria geographic area increased by 70 percent in 2015. Even more noteworthy about this area is that the median closed price for single-family homes increased by 84 percent in 2015. 

The NABOR® 2015 Annual 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 2015 sales statistics are presented in chart format, including these overall (single-family and condominium) findings: 

• Overall pending sales decreased 1 percent from 10,494 homes in 2014 to 10,366 homes in 2015. 
• Pending sales for single-family homes in the $300,000 and below price category decreased 30 percent from 2,394 single-family homes in 2014 to 1,686 single-family homes in 2015. 
• Overall closed sales decreased 2 percent from 9,902 homes in 2014 to 9,751 homes in 2015. 
• Closed sales for condominiums in the $300,000 to $500,000 price category increased 26 percent from 773 condominiums in 2014 to 972 condominiums in 2015. 
• Overall median closed price increased 14 percent from $270,000 in 2014 to $308,000 in 2015. 
• Overall median closed price for homes over $300,000 decreased 3 percent from $536,000 in 2014 to $520,000 in 2015. 
• Overall median closed price for homes in the Immokalee/Ave Maria geographic area increased 42 percent from $151,000 in 2014 to $215,000 in 2015. 
• Overall inventory increased 2 percent from 4,351 in 2014 to 4,426 in 2015. 
• Overall inventory in Central Naples (34104, 34105, 34116) decreased 37 percent from 853 homes in 2014 to 540 homes in 2015. 
• There is a 5.42 months supply of inventory. 
• Average days on market decreased 10 percent from 87 days in 2014 to 78 days in 2015. 
• Average days on market for condominiums in the $2 million and above price category decreased 40 percent from 136 days in 2014 to 82 days in 2015. 

Many brokers believe uncommonly warm weather in northern states delayed buyer migration to Naples in the fourth quarter 2015, contributing to the 12 percent decrease in closed sales for the fourth quarter of 2015. However, overall activity in 2015 made great strides.

The report also showed traditional sales (versus short sale and foreclosed property sales) held steady at 92 percent of all transactions in the last three months of 2015. And conventional sales (properties that obtained financing) increased 3 percent to consume 35.7 percent of the market in December 2015 compared to 32.6 percent in December 2014. 

In January 2015, broker analysts predicted a self-correcting housing market based on activity in 2014. Today, broker analysts assessing overall activity in 2015 say they remain confident that the local housing market will continue to perform in a steady manner.

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 5,000 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.