Luxury Home Sales Lead to a Strong Second Quarter Finish

Naples, Fla. (July 13, 2018) – Activity in the Naples area housing market during the Second Quarter of 2018 remained steady in comparison to activity during the Second Quarter of 2017. According to the 2Q 2018 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), overall closed sales increased 2 percent to 2,926 properties in the 2Q of 2018 from 2,880 in the 2Q of 2017. But in the $2 million and above single-family home market, closed sales rose 25 percent in the 2Q of 2018, which-along with other market indicators-leads many broker analysts to believe that interest in luxury homes will remain in high demand.

Available inventory at the end of the 2Q of 2018 was 5,165 properties, just 24 units behind the inventory level at the end of the 2Q of 2017 (5,189 properties). “This tells me that homes are coming onto the market at the same rate we are selling them,” said a Broker.

Inventory rose 15 percent in the $2 million and above condominium market during the 2Q of 2018, which may be a factor in the uptick of pending sales in the luxury condominium market as it rose 32 percent during the 2Q of 2018.

“Inventory in other parts of the state and nation are stretched thin, hovering between 3 and 4 months of inventory, but Naples enjoys almost 7 months of inventory,” said a Broker. “What’s even more impressive is that we have such a great selection of homes for buyers despite the recent increase in sales and still having some undergoing repairs from Hurricane Irma.”

“We are seeing a very different sales environment locally from that of 10 years ago when home sales in northern states stalled,” said another Broker. “But now that homes are moving fast up north, sales of high-end single-family homes in Naples are stronger than ever.”

“It’s hard to ignore the increase in interest for ultra-luxury properties,” said a Broker. “A $48.8 million sale for a home in Naples is impressive, but when you learn there was a second potential buyer who was considering the property you know what type of buyers are in the market.”

According to a Broker, there were four property sales over $10 million during the 2Q. “It’s possible the new tax laws are impacting people’s minds about residency and we’re benefiting from it.”

Brokers analyzing the market report agreed that multiple offers on luxury properties have risen. But whatever factor(s) is driving the increased interest, closed sales of luxury homes over $2 million are positioned to rise again as the stage has been set in the 2Q where pending sales in this price category increased 22 percent for single-family homes and 32 percent for condominiums.

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

The real estate market’s stability during the 2Q also extended to its median closed prices which increased only 1 percent to $345,000 in the 2Q of 2018 from $340,000 in the 2Q of 2017. However, despite increased sales in nearly every price category for properties priced above $300,000 during the 2Q of 2018, the median closed prices for properties above $300,000 decreased 5 percent!

As pointed out by a Broker, sales of single-family homes near Naples Beach and in the expanding North Naples area saw the greatest increase during the 2Q, and condominium sales in Central Naples outpaced all other home type sales during the 2Q. “According to the report, we averaged 30 transactions a day during the 2Q,” he said. “That’s good news for REALTORS® as we move into the summer months.”

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.

NABOR Market Report: Inventory Keeping Spring Market Active

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.

First Quarter Housing Market Activity Sets the Stage for Strong Year

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.

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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.

February 2018 Report: Bonita Springs and Estero Real Estate Markets

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.

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.

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