According to the April 2018 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), Collier County enjoys 7.76 months of inventory compared to a 4-month supply nationally. This is great news for Naples REALTORS® as they transition from a very busy high season to what broker analysts believe will be a very strong summer.
“Summer buyers are going to be very happy this year because there will be plenty of choices,” said a local Broker. “Inventory growth has been good across all price ranges and geographic territories.”
According to Cindy Carroll, SRA, with the real estate appraisal and consultancy firm Carroll & Carroll, Inc., the rate of inventory loss is declining and she predicts the Collier housing market will become even more stable before the end of the year. Carroll considers a 12-month supply of inventory a stable market for Collier County. Nationally, a stable market is reflected as having a 6-months supply of inventory.
Even though April’s inventory fell 2 percent to 5,793 from 5,920 in April 2017, it’s actually rebuilding from an annual low of 4,608 properties in inventory at the end of September 2017.
“The reality is, the real estate market is doing much better this year than in 2017,” said a local Broker, considering the 2018 statistics includes the period of time when Hurricane Irma stalled home sales activity for nearly six weeks starting in September (and as reflected in the 4Q 2017 Market Report).
Condominium inventory grew 2 percent in April to 3,003 units, over half the entire market, from 2,934 units in April 2017. The $300,000 and below price category experienced the highest increase in inventory (7 percent) to 1,472 units from 1,378 units in April 2017. Pending and closed sales of condominiums in this low-end price category were also strong, with a 17 and 14 percent increase, respectively. Interestingly, the median closed price of condominiums in April dropped 8 percent to $271,000 from $296,000 in April 2017.
Carroll agreed and added, “The market for homes above $1 million is hot. If we can maintain current inventory trend levels – and I think we can – then sales of properties in this price point will be strong for at least a couple of years.”
Overall closed sales increased 8 percent (month over month) in April to 978 properties from 902 properties in April 2017. And just like the first three months of the year, the high-end of the market continued to outpace other price categories tracked by NABOR® in April. As shown in the report, the number of closed sales of homes between $1 and $2 million increased 34 percent, while closed sales of homes over $2 million increased 15 percent in April.
“Closed sales of single-family homes in April were up 11 percent with an increase in every price category except the $300,000 and below range, where there are only 300 single-family homes on the market,” said Brenda Fioretti, Managing Broker at Berkshire Hathaway HomeServices Florida Realty.
The NABOR® April 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® April 2018 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:
CATEGORIES April 2017 April 2018 CHANGE (percentage) Total homes under contract (pending sales) (month/month) 1,075 1,126 +5 Total closed sales (month/month) 902 978 +8 Median closed price (month/month) $355,000 $365,000 +3 Median closed price >$300K (month/month) $525,000 $525,000 0 Total active listings (inventory) 5,920 5,793 -2 Average days on market 97 95 -2 Single-family closed sales (month/month) 404 450 +11 Single-family median closed price (month/month) $419,000 $455,000 +9 Single-family inventory 2,986 2,790 -7 Condominium closed sales (month/month) 498 528 +6 Condominium median closed price (month/month) $296,000 $271,000 -8 Condominium inventory 2,934 3,003 +2
Geographically, real estate activity was strong across the entire county, but closed sales of single-family homes in South Naples were most remarkable with a 51 percent increase to 62 closed sales in April 2018 from 41 in April 2017.
“North Naples was also a shining star in April,” said Fioretti. “Even though inventory was down 8 percent in this geographic area, its year over year pending sales increased 9 percent, the highest of all geographic areas tracked. And its closed sales increased 13 percent year over year too.”
April’s month over month activity was even more impressive in the North Naples area, as reflected in a 26 percent increase in closed sales. Similarly, the median closed price of condominiums in North Naples dropped 14 percent in April to $258,000 from $300,000 in April 2017.
Naples, Fla. (April 13, 2018) – 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 a Broker. 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.
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 a Broker. “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 a Broker. “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 a Broker, 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 a Broker. 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.
Several brokers who reviewed the reports, are 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 a Broker, 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.
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.
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 6,000 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.
Outdoor bar at Mystique Pelican Bay. Photo: mystiquepelicanbay.com
Collier County has a lot on its plate this year for growth and development, according to Collier County Planning Commission Chairman Mark Strain.
Strain delivered a data-packed presentation at a Wake Up Naples breakfast Wednesday with updates on hot topics including new development and roads.
“We’ve got so much growth going on in Collier County right now,” said Strain, the county’s hearing examiner. ““We have been busier (than) I’ve seen than all the years I’ve been here.
“Ironically I thought Hurricane Irma would have slowed things down. So we are doing surprisingly well in spite of the hurricane.”
Collier is geographically the largest county in Florida and has a permanent population of 365,000, with many thousands more during season, according to a census report. The county’s population is expected to reach more than 482,000 by 2040.
Strain emphasized that Collier will see a lot of density and urbanization but that it will never be like Miami, considering 77 percent of the 1.5 million acres in Collier are permanent preservation land and will not be developed.
The four multimillion-dollar residential tower projects Strain discussed at last year’s meeting have down-sized to three, he said, with the Ritz-Carlton deciding not to proceed with building another tower.
Updates on multimillion-dollar residential towers:
- Mystique, an 81-unit high rise in Pelican Bay, is under construction and will have a sister building.
- Last year developers of One Naples had a vision to build a mixed-use project that would include an 18-story luxury tower with 300 residences. However, their website says they are redefining the One Naples project to address the feedback received from the community.
- Kalea Bay, approved in 2000 for a five-building project with 590 units, now has one tower built, and the second is in the sales stage. They also have plans for a golf course across the street.
- As for affordable housing, Strain said Ave Maria and Orangetree are helping to fill that niche, but he noted that the more affordable housing is built to the east, the worse Collier’s roads and traffic will be.
- “It’s kind of a dynamic we haven’t addressed yet,” he said.
- Stores like the new Publix at Neighborhood Shoppes at Orangetree have helped ease that traffic, Strain said.
- “What happens is when you put commercial out where the rooftops are, those people don’t drive all the way to urban area and crowd up the roads,” he said.
- In an effort to reduce the ongoing traffic issues, Strain said the county is working on building overpasses and flyovers.
- “I don’t like the roads, either,” he said. “It’s something we will work our way through, and we have plans to really resolve them, but all that takes is money and time.”
- Overpasses are planned at Collier Boulevard and U.S. 41 East and at Immokalee Road and Collier Boulevard, and a flyover at Davis Boulevard and Collier Boulevard.
- Job growth will come from businesses like Seed to Table, a 60,000-square-foot grocery store being finished where Albertsons use to be on the northeast corner of Livingston and Immokalee roads in North Naples.
- Strain said the developer and owner of Oakes Farms, Alfie Oakes, has been traveling the country visiting other grocery stores to find out what will attract people and will be unique to Collier.
- Seed to Table is expected to employ 400 people. Strain said it is projected to open at the end of 2018.
- Strain also touched base on what he finds to be a funny trend — storage facilities.
- There are 58 storage facilities in Collier, and 10 more have been approved.
- “I think it’s a conspiracy theory,” he said. “It’s a sign of the times that maybe we spend too much money on things that we store.”
- Strain also touched on the proposed Sports Park at Interstate 75 and Collier Boulevard, plans for more WaWa gas stations, more Arthrex projects and other plans for new development and redevelopment.
Online Views Spike in the Bonita Springs and Estero Real Estate Markets
Altaira, high-rise homes in Bonita Springs, Florida
Bonita Springs, FL | February 22, 2018 —— According to the Bonita Springs-Estero REALTORS® Media Committee, the overall number of pending sales have increased by 13 percent in January 2018 versus January 2017. Additionally, closed sales in the same time comparison have also increased by 10 percent. “The increase in demand for homes in this market is further corroborated by the number of online views in the market as reported by Realtor.com,” stated a local Broker. “Realtor.com showed 8.9 million active listing page views in Bonita Springs and Estero for January 2018 versus 5 million in December 2017,” he adds. “Buyers are actively looking in this market.”
In the luxury market, which are homes priced $1 million and above, area brokers have reported an oversupply of inventory with less activity than other price segments. “The slower activity in the luxury market may be due to larger scale storm damage, which takes longer to repair,” stated Julie Ross, Appraiser, Carroll & Carroll. Ross adds, “In all other price segments, appraisal activity has been steadily increasing since December 2017.” Overall inventory also saw an increase but was offset by the increase in pending sales.
The market continues to follow a stable path in both pricing and the days on market. Combined with the notable increase in online views, the Bonita Springs and Estero markets are a viable and desirable option for buyers, perhaps more so than surrounding markets. “Buyers are savvy enough to know that they can get the same gulfside lifestyle in this market, but with a better value than other neighboring cities”, stated a local Broker. “This makes Bonita Springs and Estero the top of the list for buyers.”
The Bonita Springs-Estero REALTORS® February 2018 Report shows these overall findings for both single family and condominiums combined for the month of January 2018.
|
Month overMonth1/2017 |
Month overMonth1/2018 |
% Change |
|
|
|
|
| Pending Sales Units |
295 |
332 |
13 |
| Closed Sales Units |
190 |
209 |
10 |
| Median Closed Price |
$310,000 |
$295,000 |
-5 |
|
|
|
|
|
12-Month Ending1/2017 |
12-Month Ending1/2018 |
% Change |
|
|
|
|
| Pending Sales Units |
2,980 |
3,013 |
1 |
| Closed Sales Units |
2,892 |
2,952 |
2 |
| Median Closed Price |
$304,000 |
$294,000 |
-3 |
| Average Days on Market |
93 |
96 |
3 |
| *Active Inventory |
1,810 |
1,784 |
-1 |
| *Avg Month’s Supply |
6.9 |
6.8 |
0.1 |
To ensure your next real estate transaction in the Bonita Springs or Estero market is a success, contact a Bonita Springs – Estero REALTOR® member by visiting BonitaSpringsRealtors.com.
*Inventory calculations are based on property listings that exist within the Southwest Florida MLS. Only properties in zip codes 33928, 34134 and 34135 are included. Single family homes are tabulated with the building design of single family, villa detached, or manufactured with land conveyed. Condo units are tabulated using properties with a building design of low-rise, mid-rise, high-rise or villa attached.
The Bonita Springs-Estero REALTORS’® Multiple Listing Service (MLS) syndicates to LISTHUB, which distributes to 2,000+ real estate search websites.
Founded in 1966, the Bonita Springs-Estero REALTORS® is a local trade organization of over 850 REALTORS® and more than 120 affiliated industry members. Bonita Springs-Estero REALTORS®is part of the National Association of REALTORS® and Florida REALTORS®, and provides its members with a wide range of services designed to educate and empower members and consumers alike through the opportunity to sell or purchase real property. It also provides the public with up-to-the-minute real estate reports, trends and information about the Bonita Springs and Estero real estate market.
Released by WBN Marketing LLC
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®). 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 economic factors,” said a local Broker. “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.”
Another Local Broker agrees 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 Cindy 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.”
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 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.
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 Brenda Fioretti, Managing Broker at Berkshire Hathaway HomeServices Florida Realty. “This category had a 28 percent increase in pending sales and a 14 percent increase in closed sales.”
Geographically, condominiums in North Naples were the biggest sellers in 2017. Closed sales in this neighborhood 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). “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.”
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.
