Jan. 25, 2019

2018 Year End Real Estate Market Review | Naples Area

Naples, Fla. (January 18, 2019) – The Naples area housing market ended 2018 with impressive annual activity statistics in all areas of the residential real estate market including an 11 percent increase in total closed sales and a 14 percent increase in inventory compared to 2017. Sales of homes over $1 million continued to drive the market in 2018, especially in the condominium market where closed sales of condominiums over $1 million increased 37 percent! According to the Year End 2018 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), inventory at the end of 2018 was the highest on record in six years.

“Prices held steady in 2018 with just a 3 percent increase in median closed price,” said B. Fioretti, Managing Broker at Berkshire Hathaway HomeServices Florida Realty. “However, for homes over $300,000, the median closed price actually decreased 1 percent.”

Upon reviewing the YE 2018 Market Report, Fioretti concluded that there are many positive trends for both home buyers and sellers in 2019. The top 5 positive trends for home buyers and sellers are:

5 POSITIVE TRENDS FOR SELLERS

  • Colder winters up north are bringing more visitors to the Naples area
  • Naples area homes are selling faster (average days on market decreased 9 percent from list to closing)
  • Buyers interest in the Naples market is on the rise as a result of aggressive builder advertising in northern markets
  • More comparable home prices are available with the increase in inventory
  • Location, location, location continues to appeal to home buyers

5 POSITIVE TRENDS FOR BUYERS

  • Inventory is increasing which translates to more options for home buyers
  • There are as many condos for sale as there are single family homes which expands overall opportunities for home buyers (Total: 6,261)
  • The stability of the overall median closed price builds buyer confidence in the market
  • Mortgage interest rates are currently low (< 5%) spurring home buying decisions
  • Location, location, location continues to offer appeal!

Single-family homes in the Naples Beach area (34102, 34103, 34108) reported the highest median closed price increase (14 percent) in 2018 compared to 2017. But that’s most likely due to closed sales of a few multimillion homes that took place last year including a $48.8 million transaction in June for a home in Port Royal.

The median closed prices listed on NABOR®’s market reports do not reflect average sales prices. Rather, the median closed price demonstrates a rate wherein half the closed sales were purchased for amounts below the figure (median) and half the sales were purchased for prices above it. As such, of the 662 single-family homes located in the Naples Beach area that sold in 2018, the median closed price was $1,268,000 in 2018 compared to the 652 single-family homes that sold in 2017 where the median closed price was $1,117,000. Incidentally, closed sales in this area increased only 2 percent.

Conversely, closed sales of single-family homes in the Ave Maria/Immokalee area increased 233 percent to 143 homes in 2018 compared to 43 single-family homes in 2017. Median closed prices for single-family homes in the Ave Maria/Immokalee area decreased 4 percent to $245,000 in 2018 compared to $255,000 in 2017.

According to K. Zorn, broker/owner, Better Homes and Gardens Real Estate Pristine, many small builders are listing their newly constructed homes on the Southwest Florida MLS (multiple listing service), which is reflected in the increased inventory statistics in all price points and in all geographic locations. “Inventory for single-family homes under $500,000 increased the most in 2018, which is good news for buyers who don’t necessarily require a home within walking distance of the beach. In fact, the highest increase in inventory for 2018 was 34 percent, and it appeared in the under $300,000 single-family homes category.”

While the Ave Maria/Immokalee area also reported the highest increase in single-family inventory (40 percent) among all geographic areas tracked, the single-family home inventory in Central Naples (34104, 34105, 34116) increased 38 percent to 391 homes in 2018 from 283 homes in 2017.

As pointed out by NABOR® President J. Jones, Managing Broker for Engel & Völkers Naples and Bonita Springs offices, the 3 percent increase in overall pending sales for 2018 concerned him at first as it looked too low compared to activity in other areas of the report. However, after much discussion with several broker analysts also reviewing the annual market report including M. Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., it was determined that, according to Hughes, “the smaller-than-expected increase was because many closings for a large percentage of homes under contract in the 4th quarter of 2017 were delayed while repairs from Hurricane Irma damage took place.”

The NABOR® Year End, 4th Quarter and December 2018 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 Year Ending 2018 (single-family and condominium) findings:

CATEGORIES
YE 2017 YE 2018 CHANGE
Total homes under contract (pending sales) (month/month)
9,121
9,365
+3%
Total closed sales (month/month) 8,815 9,771 +11%
Median closed price (month/month) $330,000 $339,000 +3%
Median closed price >$300K (month/month) $514,000 $510,000 -1%
Total active listings (inventory) 5,491 6,261 +14%
Average days on market  104 95 -9%
Single-family closed sales (month/month) 4,347 4,768 +10%
Single-family median closed price (month/month) $418,000 $425,000 +2%
Single-family inventory 2,685 3,131 +17%
Condominium closed sales (month/month) 4,468 5,003 +12%
Condominium median closed price (month/month) $263,000 $265,000 +1%
Condominium inventory 2,806 3,130 +12%

Even though the Southwest Florida MLS system is not as widely used by REALTORS® working in commercial real estate in Naples, the data collected does help agents gauge this sector of the market. According to W. Kunkle, President and Managing Broker at Kunkle International Realty, “Vacancy rates for commercial properties are low right now. I’m seeing most vacancy rates well under 5 percent.” Historically, commercial real estate activity is directly affected by the residential real estate market. When nearly 1,000 more homes are sold annually compared to a previous year, as was the case between 2017 and 2018, it is realistic to expect the number of businesses will increase to meet the needs of those new consumers. Dozens of new commercial properties are in various stages of development across Collier County, many of which have large grocery store anchors.

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.  Check out his booklet, Preparing Your Home for a Successful Sale.

Dec. 21, 2018

November 2018 Real Estate Market Review | Naples Area

November Housing Market Report Shows Activity Heating Up
the following info is courtesy of the Naples Area Board of Realtors...
Naples, Fla. (December 21, 2018) - Home sales in November increased by double digits across every price category resulting in an overall increase of 24 percent compared to November 2017. Median closed prices decreased for homes under $1 million in November and inventory rose 12 percent to 5,971 homes, according to the November 2018 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island).
 
"The November report shows greater balance in the market which is propelling strong performance," said B. Huskey, President, Premier Sotheby's International Realty, who added that the 24 percent increase in overall closed sales for November is "significant because it reflects our recovery from the hurricane last year."
 
The $0 to $300,000 single-family home market had the most impressive activity in November where inventory rose 38 percent and closed sales increased 30 percent compared to November 2017. This section of the market also saw its median closed price hold steady at $250,000. 
 
"New home construction in the lower price tiers is rushing to meet the needs of buyers and it's building our inventory in much needed areas within eastern Collier," said M. Hughes, Vice President and General Manager for Downing-Frye Realty, Inc. The November market report supports Hughes' claim as the East Naples area (34114, 34117, 34120 and 34137) saw the highest number of closed sales for single-family homes - 105 - with another 121 sales pending.
 
According to C. Carroll, SRA, of Carroll & Carroll Appraisers & Consultants, LLC, activity in the $0 to $300,000 price category is rallying in Collier. "Inventory under $300,000 consumes over half of the available condominium inventory. It had the highest inventory increase [38 percent] in the single-family home market too. The November report shows our inventory levels are just about even between condos and single-family homes now."
 
"We haven't seen this level of inventory going into season in six years," said NABOR® President J. Jones, Managing Broker for Engel & VölkersNaples and Bonita Springs offices. "Plus, days on market is cascading downward which is a sign of better pricing. The trend to price homes to sell is clearly taking hold and it's definitely making a difference in overall sales numbers. Visitors will be impressed at the choices and stable prices this season."
 
The NABOR® November 2018 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. The November 2018 NABOR® sales statistics are presented in chart format, including these overall 3Q (single-family and condominium) findings:
CATEGORIES
Nov 2017 Nov 2018 CHANGE
Total homes under contract (pending sales) (month/month)
728
700
-4%
Total closed sales (month/month) 521 645 +24%
Median closed price (month/month) $330,000 $334,000 +1%
Median closed price >$300K (month/month) $482,000 $485,000 +1%
Total active listings (inventory) 5,322 5,971 +12%
Average days on market  101 95 -6%
Single-family closed sales (month/month) 271 327 +21%
Single-family median closed price (month/month) $433,000 $420,000 -3%
Single-family inventory 2,606 3,033 +16%
Condominium closed sales (month/month) 250 318 +27%
Condominium median closed price (month/month) $250,000 $255,000 +2%
Condominium inventory 2,716 2,938 +8%
 
Broken down geographically, Collier's housing market in November had some interesting pockets of activity. For example, median closed prices decreased 19 percent in the Naples Beach area (34102, 34103, 34108); but increased 12 percent in the North Naples area (34109, 34110, 34119). There was a 90 percent increase in closed sales of condominiums in East Naples (34114, 34117, 34120, 34137), which brokers attribute to an increase in new construction of townhome developments east of Collier Boulevard. And single-family homes in Central Naples (34104, 34105, 34116) sold the fastest with an average 66 days on the market from listing to closing.
 
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.  Check out his booklet, Preparing Your Home for a Successful Sale.

Nov. 16, 2018

October 2018 Real Estate Market Review | Naples Area

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

Naples, FL - Closed sales of homes in the Naples market grew 20 percent to 674 sales in October 2018 compared to 561 sales in October 2017. The last few months have seen not only a return to a steady housing market for Naples since Hurricane Irma, but also an increased buyer appetite for homes in Collier County. We are pleased to report that inventory during October jumped 20 percent to 5,992 homes - the highest October inventory level since 2012 - which is good news for buyers according to leading broker analysts who reviewed the October 2018 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island).

While buyers struggle to find inventory in other highly desirable locations across the country, this is not the case in Naples. "We have almost 7.5 months of inventory," said Bill C. "In fact, inventory for single-family homes under $300,000 grew by 79 percent to 483 homes in October!"

 

Cindy Carroll, SRA, of Carroll & Carroll Appraisers & Consultants, LLC, believes the spike in inventory during October is a reflection of the market's recovery after Hurricane Irma in September 2017. "There are some neighborhoods where I still see an oversupply in the spec home market, but I'm also seeing inventory begin to tighten in very desirable areas west of U.S. 41."

 

Historically, inventory begins to increase in October in preparation of seasonal visitors entering Naples' prime home-selling season. According to Jeff J., "About 10 percent of the new inventory in our MLS during October was new construction. A good portion of this building is taking place in East Naples [Eastern Collier County], which had the highest single-family home inventory reported in October. Builders also tell me that over 80 percent of their inventory is sold by REALTORS® rather than the builders' sales staff."

 

Overall pending sales for October were up 17 percent with the $1 to $2 million price category reporting the highest increase (39 percent) for the month compared to October 2017.

 

The October report also showed the overall median closed price increased 1 percent to $344,000 from $342,000 in October 2017; but went down 1 percent for homes priced over $300,000 to $475,000 from $480,000 in October 2017. Interestingly, the median closed price in the Naples Beach area decreased 13 percent in October to $595,000 in October 2018 from $682,000 in October 2017. However, in the 12-months ending October 2018, the median closed price rose 4 percent to $344,000 from $330,000 in the 12-months ending October 2017. In the Naples Beach area, the median price rose 4 percent in the 12-months ending October 2018 to $790,000 from $763,000 in 12 months-ending October 2017.

 

The NABOR® October 2018 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. The October 2018 NABOR® sales statistics are presented in chart format, including these overall 3Q (single-family and condominium) findings: 

 

CATEGORIES

Oct 2017

Oct 2018

CHANGE

Total homes under contract (pending sales) (month/month)

623

730

+17%

Total closed sales (month/month)

561

674

+20%

Median closed price (month/month)

$342,000

$344,000

+1%

Median closed price >$300K (month/month)

$480,000

$475,000

-1%

Total active listings (inventory)

5,010

5,992

+20%

Average days on market 

104

93

-11%

Single-family closed sales (month/month)

301

366

+22%

Single-family median closed price (month/month)

$425,000

$426,000

0%

Single-family inventory

2,432

3,177

+31%

Condominium closed sales (month/month)

260

308

+18%

Condominium median closed price (month/month)

$250,000

$265,000

+6%

Condominium inventory

2,578

2,815

+9%

 

View October 2018 Market Stats

Added Carroll, "In addition to predictions that our inventory will continue to increase as we approach the winter season, giving home buyers more choices, we also saw the passing of Amendment 2, which put a permanent cap of 10 percent on annual non-homestead property assessment increase, keeping a reasonable protection for home owners in place. Along with a trend for home sellers to price properties realistically, these factors should inspire even more buyers of second-home properties in the coming months to make their purchase decision this season while all these factors work in their favor."

 

Increased inventory is expected to lead to increased sales. Higher volume sales during our peak selling months during season is important for both homebuyers and sellers. For home buyers, it means a higher likelihood of finding the right property. For home sellers, it means shorter marketing time and a higher likelihood of finding a buyer.

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Oct. 22, 2018

3rd Quarter 2018 Real Estate Market Review | Naples Area

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

Naples, Fla. - One year after Hurricane Irma, overall closed sales in Naples increased 62 percent to 644 homes in September of 2018 compared to 398 closed sales of homes in September of 2017. According to broker analysts, this impressive increase in month over month sales is a result of the effect of the hurricane when homes sales halted following the massive storm.
 
"The September Market Report shows how resilient and desirable our market is," said Lauren M. "A three percent increase in pending and closed sales, year over year, is strong considering the reduced sales activity during the troubled period following the hurricane. This was when many sellers were making repairs caused by the hurricane. The September statistics show that our market is in a good position to see positive activity for the fourth quarter."
Overall pending sales in the third quarter are up 20 percent, closed sales are up 13 percent, the median closed price is up 3 percent, inventory is up 4 percent, and the days on market decreased 1 percent; all indicators that the third quarter real estate market in Naples remains strong.
 
"Luxury properties are driving the market in the third quarter," remarked Coco A. "Third quarter pending sales in the $1 million to $2 million price category are up 18 percent and in the $2 million+ category they are up 50 percent compared to the pending sales in the third quarter of 2017."
 
According to the 3Q 2018 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), closed sales of homes between $300,000 and $500,000 increased at a higher rate (24 percent) than other price categories during the third quarter. Sales of homes between $1 million and $2 million increased 18 percent to 122 homes for the third quarter of 2018 from 103 homes for the third quarter of 2017. Overall closed sales in the $2 million price category increased 20 percent in the third quarter of 2018 to 79 properties from 66 properties sold in the third quarter of 2017.
 
Most remarkable in the 3Q Market Report was the strong activity in the condominium market where pending sales increased 21 percent and closed sales increased 20 percent compared to the third quarter of 2017. The single-family home market also saw a strong increase in overall pending sales activity which was up 20 percent and its closed sales activity was up 6 percent.
 
"Even though the overall median closed price for the 12-months ending September 2018 increased 5 percent to $344,000 from $329,000, median closed prices for homes below $1 million saw no change in price, compared to 12-months ending September 2017," said Brenda F. "In fact, only homes priced between $1 million and $2 million in the 12-months ending September 2018 saw an increase, which was 3 percent to $1,375,000 from $1,340,000. The median closed prices for homes over $2 million decreased 4 percent year over year to $2,991,00 from $3,100,000."
 
The NABOR® September and 3Q 2018 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. The NABOR® sales statistics are presented in chart format, including these overall 3Q (single-family and condominium) findings: 

 

CATEGORIES
3Q 2017 3Q 2018 CHANGE
Total homes under contract (pending sales) (quarter/quarter)
1,675
2,014
+20%
Total homes under contract (pending sales) (year/year)
9,146
9,424 +3%
Total closed sales (quarter/quarter) 1,803 2,032 +13%
Total closed sales (year/year) 8,885 9,130 +3%
Median closed price (quarter/quarter) $320,000 $330,000 +3%
Median closed price (year/year) $329,000 $344,000 +5%
Median closed price >$300K (quarter/quarter) $498,000 $478,000 -4%
Median closed price >$300K (year/year) $512,000 $517,000 +1%
Total active listings (inventory) 4,608 4,776 +4%
Average days on market  99 98 -1%
Single-family closed sales (quarter/quarter) 927 979 +6%
Single-family closed sales (year/year) 4,351 4,409 +1%
Single-family median closed price (quarter/quarter) $418,000 $419,000 0%
Single-family median closed price (year/year) $410,000 $435,000 +6%
Single-family inventory 2,314 2,495 +8%
Condominium closed sales (quarter/quarter) 876 1,053 +20%
Condominium closed sales (year/year) 4,534 4,721 +4%
Condominium median closed price (quarter/quarter) $248,000 $251,000 +1%
Condominium median closed price (year/year) $265,000 $265,000 0%
Condominium inventory 2,294 2,281 -1%
 
According to Jeff J., "Sales activity in East Naples was impressive during the third quarter. This geographic area saw an increase of 21 percent in its closed sales and an increase of 16 percent in its inventory compared to the third quarter of 2017!"
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.

View 3Q 2018 Market Statistics

View September 2018 Market Statistics

 

 

April 13, 2018

1st Quarter 2018 Real Estate Market Review | Naples Area

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

Naples, Fla. - 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 B. Huskey. 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. 

View 1Q 2018 Market Stats  |  View March 2018 Market Stats

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 K. Zorn. "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 C. Amar. "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
Q1 2017 Q1 2018 CHANGE
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 J.Jones, 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 W. Kunkle. 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."
 
If you are looking to sell a home in Naples, contact a REALTOR® who has the experience and knowledge to provide an accurate market comparison so you can determine the right asking price. A REALTOR® can also ensure your next purchase in the Naples area is a success. Find our more at Naplesarea.com.

View 1Q 2018 Market Statistics

View March 2018 Market Statistics

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. 

Jan. 29, 2018

2017 Year End Real Estate Market Review | Naples Area

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

Naples, Fla. - Home sales increased 4 percent in 2017 and the median closed price increased 3 percent, according to the Year End 2017 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). The report also showed heightened activity in the high-end market, with closed sales of homes in the $2 million and above price category skyrocketing 20 percent in 2017. 

 

"Real estate sales are based on many other economic factors," said T. Bringardner, Jr,. "In 2017, we saw above average employment rates, low inflation, record stock market activity, and increased consumer confidence. Looking into 2018, there are additional reasons for buyers to be optimistic including new tax cuts on the horizon and continued growth of their investment portfolios."
 
A. Vellano, agrees with Bringardner and also points to the unusually frigid weather in northern states recently, which he says will encourage more people to head south and buy homes. "Now is a great time to diversify and invest in property because there's still plenty of inventory and prices have remained stable."
 
This may not always be the case as indicated by C. Carroll, SRA of Carroll & Carroll Appraisers and Consultants LLC, who advises real estate agents to start watching closely for pockets that may soon show an increase in value. "Overall we had a solid year, but there are hints that change is coming with opportunities for increasing values in market sectors with tightening inventories."
 
According to Vellano, pending sales during the 3rd Quarter increased 5 percent (12-months ending August 2017), while pending sales at the end of the 4th Quarter increased 2 percent (12-months ending December 31, 2017). "We can only imagine how much more activity the statistics would reflect if the market had not been shut down for nearly five weeks because of a major hurricane in 2017."
 
The year-end report showed a 4 percent increase in closed sales to 8,815 in 2017 compared to 8,510 in 2016. Many brokers, including B. Huskey, think, "4 percent growth is great considering we had a hurricane and we lost over a month of real estate activity."
 
"Between December of 2015 and December of 2016, overall market inventory increased 54 percent; between December of 2016 and December of 2017 overall inventory has decreased 11 percent. The single family and condominium markets are well positioned with about 7.5 months of supply in each," said Carroll.
 
"Other areas in Florida, like Tampa Bay, have less than 2 months worth of inventory," said Vellano.
 
Properties priced below $300,000 experienced the fewest days on market in 2017. Some broker analysts reported that they saw many of these properties go from list to close in less than 10 days. Inventory continued to struggle in the low end of the market making options difficult for buyers looking for single-family homes in this price range. In fact, 1,265 of the 1,554 available properties in the $300,000 and below price category were condominiums.
 
"The shining star in 2017 was condominiums in the $1 to $2 million price category," said B.Fioretti. "This category had a 28 percent increase in pending sales and a 14 percent increase in closed sales."   
 
The NABOR® Year End 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® Year End 2017 sales statistics are presented in chart format, including these overall (single-family and condominium) findings: 
CATEGORIES
2016 2017 CHANGE
Total homes under contract (pending sales) (year/year)
8,903
9,121
2%
Total closed sales (year/year) 8,510 8,815 4%
Median closed price ((year/year) $320,000 $330,000 3%
Median closed price >$300K (year/year) $520,000 $514,000 -1%
Total active listings (inventory) 5,946 5,491 -8%
Average days on market  89 104 17%
Single-family closed sales (year/year) 4,268 4,347 2%
Single-family median closed price (year/year) $400,000 $418,000 4%
Single-family inventory 3,015 2,685 -11%
Condominium closed sales (year/year) 4,242 4,468 5%
Condominium median closed price (year/year) $253,000 $263,000 4%
Condominium inventory 2,931 2,806 -4%

 Geographically, condominiums in North Naples were the biggest sellers in 2017. Closed sales in this region increased 17 percent, while pending sales increased 15 percent.

How homes are purchased continued to shift in 2017 with an increase in conventional sales (properties with a mortgage). According to M. Hughes, "Only 54 percent of home sales in Naples were cash buys in 2017 compared to 69 percent in 2013. Many factors play into this trend including the fact that we have more end users and fewer investors. Also, a buyer's ability to lock in a low interest rate allows them to continue to enjoy the high performing stock market, which had a 25 percent increase in 2017." 

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. 

Oct. 30, 2017

3rd Quarter 2017 (& September) Review | Naples Area Real Estate Market Update

Market Shows Resilience at the End of 3rd Quarter
the following info is courtesy of the Naples Area Board of Realtors...

Naples, Fla. 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.

View 3Q 2017 Market Statistics   |   View September 2017 Market Statistics

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 B. Huskey. 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 M. Hughes, VP 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 C. Amar. "These sales didn't disappear, they are just delayed. The hurricane's force slowed inventory in September, which resulted in a third quarter decrease of 9 percent. J. Jones, 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 L. Melo, 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
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 C. Carroll, a real estate appraiser. "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. W Kunkel, 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
Sept 2016
Sept 2017
CHANGE
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 believe our area may see an uptick in sales from buyers who had their eyes set on an island home in the Caribbean.

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. 

July 27, 2017

2nd Quarter 2017 (& June) Review | Naples Area Real Estate Market Update

2Q 2017 Market Report Shows Home Sales Activity is Hotter than 2Q 2016
the following info is courtesy of the Naples Area Board of Realtors...
Naples, Fla. - Record-breaking rain fall in June did not dampen buyer interest in the Naples housing market as evidenced in the Second Quarter and June 2017 Market Reports released by the Naples Area Board of REALTORS® (NABOR®), which track home listings and sales within Collier County (excluding Marco Island). The 2Q report showed strong and steady sales activity leading into summer with a 7 percent increase in overall closed sales to 2,880 closed sales in 2Q 2017 from 2,704 closed sales in 2Q 2016, and a 9 percent increase in overall closed sales for the month of June to 907 closed sales from 832 closed sales in June 2016.
 
There were many remarkable areas of activity in the 2Q Market Report. For example, condominiums in the $2 million and above price category saw an 86 percent increase in closed sales and a 38 percent decrease in median closed price in 2Q 2017 from 2Q 2016. Similarly, pending sales (homes under contract) in the North Naples market increased 20 percent during 2Q 2017 from 2Q 2016, and was the only geographic area that reported a decrease in median closed price (-1 percent).
 
As reflected in the 2Q Market Report, pending sales of condominiums in North Naples increased 30 percent to 428 condominiums in 2Q 2017 from 329 condominiums in 2Q 2016. Closed sales of condominiums in North Naples increased 29 percent to 463 condominiums in 2Q 2017 from 358 condominiums in 2Q 2016. Condominium sales moving into summer look very good for North Naples too as June's Market Report showed a 30 percent increase in pending sales.
 
Overall inventory during the 2Q of 2017 rose a respectable 4 percent to 5,189 homes in 2Q 2017 from 4,983 homes in 2Q 2016. According to B.Coffey of Amerivest Realty Naples, inventory during the 2Q was "getting eaten up by sales." This is very evident in the Report for homes in the $2 million and above price category, which only saw a 1 percent increase in inventory, yet a 43 percent increase in closed sales.
 
Despite a 12 percent increase in inventory for the $300,000 and below price category, there was a 4 percent decline in overall closed sales in this low-end price category. Interestingly, while inventory for condominiums in the $300,000 and below price category saw the highest increase (17 percent) in the 2Q of 2017, the number of closed sales for condominiums in this category did not change quarter over quarter.
 
"Buyers struggling to find homes under $300,000 in the single family market are turning to condominiums or coach homes as an alternative," said S. Barker of Equity Realty. "Even so, as it stands today, there is only 2.4 months worth of inventory available in the under $300,000 single-family home market, and 4.2 months worth of inventory available in the under $300,000 condominium market." In response, many broker analysts remarked that slack sales in the low end of the market might be due to the imminent burden of additional costs beyond the sale price such as high condominium association and/or club membership fees.
 
The NABOR® Second 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® 2Q 2017 sales statistics are presented in chart format, including these overall (single-family and condominium) findings: 
CATEGORIES
2Q 2016 2Q 2017 CHANGE
Total homes under contract (pending sales)
2,541
2,770
9%
Total closed sales 2,704 2,880 7%
Median closed price $325,000 $340,000 5%
Median closed price >$300K $540,000 $535,000 -1%
Total active listings (inventory) 4,983 5,189 4%
Average days on market  76 97 28%
Single-family closed sales 1,263 1,349 7%
Single-family median closed price $421,000 $418,000 -1%
Single-family inventory 2,674 2,654 -1%
Condominium closed sales 1,399 1,531 9%
Condominium median closed price $259,000 $282,000 9%
Condominium inventory 2,309 2,535 10%
 
Closed sales in the $2 million and above price category are poised to remain strong through the summer as this category experienced a 30 percent increase in pending sales during the 2Q of 2017. One explanation for the burst in closed sales activity for the $2 million and above condominium market was given by Amar, "It appears sellers in the high end of the market are coming around to the idea that a realistic price will sell a property faster. The 38 percent reduction in median closed price for this category during the second quarter shows we are not only seeing more negotiations, but also that sellers are more willing to accept real market offers."
 
Broker analysts reviewing the June 2017 Market Report acknowledged that the first two weeks of June started out a little slow, but the month ended strong with 907 closed sales, up 9 percent from 832 in June 2016. Sales of condominiums on the Naples Beach took center stage in June with a 50 percent increase over June 2016. June's pending sales activity may set the tempo for a promising summer, as pending sales increased 16 percent in June 2017 from June 2016.
 
The NABOR® June 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® June 2017 sales statistics are presented in chart format, including these overall (single-family and condominium) findings: 
CATEGORIES
JUNE 2016
JUNE 2017
CHANGE
Total homes under contract (pending sales)
720 837 16%
Total closed sales 832 907 9%
Median closed price $315,000 $325,000 3%
Median closed price >$300K $521,000 $499,000 -4%
Total active listings (inventory) 4,983 5,189 4%
Average days on market  82 97 18%
Single-family closed sales 421 434 5%
Single-family median closed price $400,000 $404,000 1%
Single-family inventory 2,674 2,654 -1%
Condominium closed sales 420 473 13%
Condominium median closed price $243,000 $263,000 8%
Condominium inventory 2,309 2,535 10%
At the end of June 2017, the Naples market contained 7.86 months of inventory, which is considered to be normal, indicating that the June market is neither a sellers' nor a buyers' market. Inventory has not been this robust for the month of June since 2011.
 
Mike Hughes, General Manager for Downing-Frye Realty, Inc., remarked that the Days on Market increase of 18 percent could be due to overpriced listings. 
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. 
June 27, 2017

May 2017 Review | Naples Area Real Estate Market Update

May Market Report Shines for Naples 
the following info is courtesy of the Naples Area Board of Realtors...
Naples, Fla. 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 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
Total homes under contract (pending sales)
921
1,027
12%
Total closed sales 838 1,027 23%
Median closed price $338,000 $355,000 5%
Median closed price >$300K $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 $432,000 $435,000 1%
Single-family inventory 2,744 2,734 0%
Condominium closed sales 442 542 23%
Condominium median closed price $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. 
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. 
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.