November Housing Market Returns to Normal

Bonita Lakes Executive Collection by Toll Brothers – photo: tollbrothers.com

Home sales in the Naples area increased 3 percent in November year over year, according to the November 2017 Market Report released by the Naples Area Board of REALTORS®. The report also showed heightened activity in the single-family home market in November where sales of properties priced above $300,000 increased by double digits. Local brokers analyzing the Market Report said they were pleased with the high-end market’s closed sales activity in November, which experienced a 21 percent increase in single-family home sales and a 22 percent increase in condominium sales in the $2 million and above price category.

“November was a good month for both buyers and sellers,” said a local Broker. “Sellers are pricing homes to sell and there were 521 homes sold in the month of November despite the effects of Hurricane Irma. This is only 51 fewer homes than sold in November 2016.”

These observations were also recognized by other Brokers who said, “Buyers and sellers have good reason to be confident as there are many positives on both sides of the fence. Sellers should get their properties on the market now and buyers should move quickly as multiple offers could occur as a result of the tight inventory.”

The November Market Report showed the overall median closed price rose 9 percent to $330,000 compared to $303,000 in November 2016, and overall pending sales in November increased 2 percent to 728 compared to 713 last year. More impressively, pending sales for homes valued at $1 to $2 million increased by 30 percent in November to 61 from 47 last November.

There were 116 cash transactions for properties below $300,000 in November. This was higher than expected and may indicate the return of investors to the market.

The report also showed that a 12 percent decrease in single-family inventory during November led to a subsequent 9 percent increase in the market value of single-family homes. The Naples Beach area saw a 28 percent increase in its median closed price to $975,000 from $762,000 in November 2016.

The luxury market has gone wild. November had a 63 percent increase in pending sales for single-family homes over $1 million. This is a clear indication that high-end buyers continue to find Naples a desirable location for investment.

As pointed out by Cindy Carroll, SRA, with the real estate appraisal and consultancy firm Carroll & Carroll, Inc., the November report showed a high concentration of condominiums available in the $300,000 and below price category (1,228). “Even though they appear to be a more affordable option, condominiums often have obstacles during the buying process like 55 and older age restrictions or high annual fees.”

Despite these challenges and a 2 percent decrease in inventory in November, condominiums in both the $300,000 and below and the $2 million and above price categories saw inventory rise by 4 percent.

Geographically, sales activity for single-family homes in the North Naples market is heating up as evidenced in the 21 percent increase in pending sales during November. Also hot are condominiums in the Naples Beach area, which saw an 11 percent increase in pending sales during November.

The tax reform proposals coming out of Washington, D.C., appear to present negative tax consequences for many people living in states with high state income tax burdens. This may make relocation to Florida even more attractive in 2018, especially to the wealthy since Florida does not impose an individual income tax.

Contact David at 239-285-1086 or David@DavidFlorida.com for additional information, to find a home in Naples, Bonita Springs, Marco Island.

Market Shows Resilience at the End of Third Quarter

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

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

“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:

“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: