Market Shows Resilience at the End of Third Quarter

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

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

“The hurricane hit us in the right month,” said a Broker, 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.

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 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 Cindy Carroll, SRA, with the real estate appraisal and consultancy firm Carroll & Carroll, Inc. “This is going to be a very good history lesson for us because the hurricane hit during a time of stable market activity. By January though, I think our brush with Irma will be forgotten.”

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

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%

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