December Market Report: Home Inventory is Rising
Naples, Fla. (January 30, 2023) – According to the December 2023 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), overall inventory increased 45.9 percent to 3,949 properties from 2,706 properties in December 2022. The report showed consistent monthly increases in inventory during the year, which means more options for buyers in 2024; especially in the condominium market, which reported a 78.7 percent increase in inventory. However, according to broker analysts reviewing the December report, the housing market faced several challenges in 2023: rising interest rates, rising insurance rates, and rising inflation. Brokers also point to increased personal travel in 2023 as another reason home sales lagged in 2023. As a result, closed sales in 2023 decreased 13.6 percent to 8,816 closed sales from 10,206 closed sales in 2022.
Despite the challenges, there were seven months in 2023 when new listings increased more than new listings reported in comparative months in 2022. For December, new listings increased 12.1 percent to 892 new listings from 796 new listings in December 2022. Interestingly, unlike other industries that experience a reduction in price when supply increases, the Naples area housing market enjoyed a 9.7 percent increase in overall median closed price in December to $631,000 from $575,000 in December 2022. In comparison, according to the National Association of Realtors, the median existing-home price in the U.S. increased 4.4 percent in December to $382,000 from $366,000 in December 2022.
“Migration is booming in eastern Collier County,” said Cindy Carroll, of Carroll & Carroll Appraisers & Consultants, LLC, who added that it is one of the “last vestiges of affordable housing in our county”. Not surprising, in 2023, the Immokalee/Ave Maria area was the only geographic area tracked by NABOR® that reported an increase in single family home closed sales (+34.1 percent). Conversely, the report indicated a 24.8 percent decrease in closed sales for single family homes nearest the beach.
Carroll added that according to her records, “Rapid market advancement stopped in early 2022. On average, it takes 12 to 24 months for the market to readjust. What we are seeing now are more sellers accepting that this phase is over. And that’s why there was a 29.6 percent increase in the number of price decreases reported in 2023.”
The NABOR® December 2023 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. NABOR® sales statistics are presented in chart format, including these overall (single-family and condominium) findings for 2023:
In response, Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., commented, “More choices don’t seem to outweigh the other factors facing buyers right now, and so buyer sense of urgency has diminished. It isn’t like 2021 when a home would be listed and sold in the same day. Plus, many people today are hoping the Fed will drop rates again. But I always remind people that ‘if you see a property you like, there are likely many others who will like it too.’ As we say in the business, ‘marry the house and date the rate’ as you can always look into refinancing if rates go down.”
Laura Layden | Naples Daily News
In the aftermath of Hurricane Ian, Naples saw trophy mansions list at never-before-seen prices.
In March, a sprawling waterfront estate hit the market for more than $174 million in the posh neighborhood of Port Royal.
It’s still for sale.
So, too are other rare luxury properties that had the potential to break Collier County’s record home price of $62 million – set in 2022.
That record broke the previous one by $10 million.
“That’s a testament to the property, and to the market at the time,” said Paul Arpin, the listing agent, with Premier Sotheby’s International Realty. “It’s still the top sale.”
With six bedrooms and 11 bathrooms, the resort-style, Gulf-front retreat, with a living area of more than 11,800 square feet under air, in Aqualane Shores, one of the most coveted neighborhoods in Naples, sold at its asking price.
Admittedly, the uber-luxury home market wasn’t as hot in 2023, Arpin said.
“It’s probably fair to say that the market has taken a break, and it has leveled off,” he remarked. However, 2023 still brought a few whopping sales. In fact, Arpin sold one of the two highest money-getters in Collier County last year, for $32.5 million, no chump change.
Read the full article and view photos on naplesnews.com.
Phil Fernandez | Naples Daily News
If you’re wanting to track the next hot retail corridor in Southwest Florida, you can pretty much follow wherever Sunshine Ace sets up shop.
Like this year’s official summer landing at the 50-acre Founders Square complex at Collier Boulevard and Immokalee Road in Naples.
“Northeastern Collier County is among the fastest-growing regions in all of Southwest Florida,” said Sunshine Ace President Michael Wynn. His grandfather founded the original store in 1958 in downtown Naples, following the family starting a grocery in 1938. “The Immokalee Road corridor is poised for explosive growth over the next decade. (This) new store will serve the thousands of residents and businesses coming to this region over the next few decades.”
While growth is everywhere, here’s what to know about that spot and a few other newer sizzling corners of Southwest Florida as we close in on 2024. What kind of retail is coming to areas beyond the traditional, long-established malls, Tamiami Trail, Cape Coral’s Pine Island Road and Collier’s Fifth Avenue South?
What’s another clue on where retail emerges in SW Florida?
Increased residential growth leads to more stores, said LSI Companies President and CEO Justin Thibaut.
Commercial, retail and industrial development always lags new rooftops coming in, and given the last three years of increased permitting activity in the residential world, Thibaut said this was expected.
Of the types of developments and industries moving into these areas, he said many are anchored by multifamily residential, but some are remaining parcels that have sat idle while major residential developments were completed nearby.
Find out what is happening at Immokalee Road and Collier Boulevard, and what’s causing the growth in Collier County corridors; new retail coming to Ave Maria, and more – read the full article on naplesnews.com.
Follow the retail in Collier County, to find a home contact David at David@DavidFlorida.com or 239-285-1086.
…remains committed to SWFL
Steve McQuilkin and Laura Layden | Fort Myers News-Press
In a strategic move, Hoffmann Commercial Real Estate has sold virtually all of its real estate holdings in downtown Naples.
The company confirmed the sale of 27 properties in its portfolio to M Development, a high-end developer headquartered in Aspen, Colorado, on Friday, as rumors swirled about the pending deal.
The historic sale is expected to close Monday. The purchase price wasn’t disclosed, but it’s sure to be huge, with some observers speculating the deal could be valued at upwards of $250 million.
“We made a lot of money. The company was well capitalized before. We don’t have any immediate plans for the capital. We’ll probably put it in a treasury bond,” commented David Hoffmann, the founder of Hoffmann Commercial Real Estate, and the Hoffmann Family of Cos., headquartered in Naples.
The Hoffmanns, however, do plan to continue their investments in Naples and Southwest Florida, and in other parts of Florida, and the rest of the country and world. The focus has shifted more toward buying up businesses, which often come with real estate – sometimes significant real estate.
The family still has significant real estate and business holdings in Southwest Florida, from the Hertz Arena in Estero to the Old Collier Golf Club in Naples.
Read the full article on naplesnews.com.
Find a home in Southwest Florida. Contact David at David@DavidFlorida.com or 239-285-1086.
Home Prices Hold Steady in July
Naples, Fla. (August 25, 2023) – While much of America grapples with unfamiliarly high interest rates that have stalemated the resale home market, broker analysts reviewing the July 2023 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), point to data that shows home sales activity in Naples has remained steady for the past year despite several interest rate increases. Yet, even as cash sales for homes in Naples decreased from 66.7 percent in January to 53.5 percent in July, the overall median closed price of homes in the first seven months of 2023 has continued to increase compared to most months in the first seven months of 2022.
The July Market Report’s total sales data showed 81 fewer homes sold in July compared to July 2022, an 11.9 percent decrease to 600 closed sales from 681 closed sales. On the other side of the spectrum, pending listings (homes under contract) in July increased 6.3 percent to 798 pending listings from 751 pending listings in July 2022, which illustrates our market’s steadiness. Also, the percent of list price received this July is steady at 96.1 percent compared to 97.9 percent in July 2022. In July, days on market increased 115.4 percent to 56 days from 26 days in July 2022, the lowest reported in the history of NABOR®’s Market Reports. Incidentally, before the pandemic, days on market averaged over 100 days (104 days in July 2019).
“Fortunately, new listings continue to be steady each month,” said Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc. “But they aren’t replenishing inventory at the rate we need, and so inventory has been dropping for each of the last four months.”
New listings in July decreased 15.4 percent to 810 new listings from 957 new listings in July 2022. Before the pandemic, new listings supplemented an already very healthy inventory level. Data showed there were 5,200 properties for sale in Naples in July 2019 compared to 2,583 properties listed for sale in July 2023. But while new listings, closed sales, and pending sales activity have almost returned to 2019 levels, overall inventory has not.
As inventory faded away during the homebuying frenzy of the pandemic years, median closed prices rose by over 50 percent. In July 2019, the median closed price in Naples was $325,000. But in July 2023, the median closed price increased 9.2 percent to $595,000 from $545,000 in July 2022.
“I don’t think sales in our area have stalemated,” said Hughes. “Looking at the data, we’re no better and no worse than we were a year ago. In fact, historically speaking, we’re only 500 sales off from the number of closed sales reported in the first seven months of 2019. And that’s with half the inventory. This says so much about resiliency and the desirability of homeownership in our area.”
Find a home in Southwest Florida. Contact David at David@DavidFlorida.com or 239-285-1086.
Naples Housing Market Prime for Summer Buyers
Naples, Fla. (July 21, 2023) – Broker analysts reviewing the June 2023 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), believe a surge in summer travel contributed to the reduction in home sales in Naples during June. The report showed a 13.6 percent decrease in overall closed sales for the month to 837 closed sales from 969 closed sales in June 2022. Though the dip in closed sales appears temporary and may not linger into July’s closed sales data as overall pending sales (homes under contract) in June increased 0.8 percent to 800 pending sales from 794 pending sales, and June’s showings increased slightly from showings reported in June 2022. Fortunately, slow sales in June did not impact home prices as the median closed price reported in June increased 0.4 percent to $602,494 from $600,000 in June 2022.
Overall inventory continues to rise compared to 2022 levels. June had an 8.2 percent increase in overall inventory to 2,659 homes from 2,457 homes. But according to the area’s top brokers, this increase was due to low sales for the month and not because of new listings, which decreased 28.2 percent to 860 new listings from 1,198 new listings in June 2022.
The NABOR® June 2023 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. NABOR® sales statistics are presented in chart format, including these overall (single-family and condominium) findings for 2023:
“Travel is the elixir that will make people feel inspired to buy again once they return home from summer vacations,” said Cindy Carroll of Carroll & Carroll Appraisers & Consultants, LLC. “It’s been 15 months since the market peaked [December 2021]. We’ve been through a pandemic and hurricane and still the monthly reports fail to indicate a market correction will happen anytime soon as median and average closed prices continue to hold steady.”
