Unlike national figures for home sales in January which, according to the National Association of Realtors®, dropped 4.8 percent compared to sales in January 2017, home sales in Collier County rose 11 percent in January to 671 home sales in January 2018 from 603 home sales in January 2017. In fact, closed sales of luxury properties (homes above $1 million) were quite remarkable in January with a 123 percent increase over the number of closed sales of luxury properties in January 2017, according to the January 2018 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island).
“Thank goodness for the luxury properties for sale; they are driving the market,” said a local Broker, who added, “Pending sales of homes priced above $1 million increased 67 percent in January compared to last year.”
Broker analysts reviewing the report agreed that many of the high-end speculative homes that had been on the market for over two years, especially in desirable locations like the Naples Beach area, were sold in January.
Another local Broker said, “An increase in motivated sellers is demonstrated by January’s overall pending sales, which increased 11 percent.”
“I think we had a lot of pent up demand from wealthy buyers who waited to see how the new tax laws would affect them,” said another local Broker . “Once they understood the law, they obviously felt confident in making a big purchasing decision.”
As such, January’s median closed price decreased 19 percent in the $2 million and above price category. For the entire market, the overall median closed price increased 19 percent in January.
“The storm blew in a lot of business,” remarked a local Broker, who added, “I believe that some buyers who would have purchased in the fourth quarter of 2017 delayed their decision until the first quarter of 2018. It looks like we are off to a good start this year with respect to sales.”
Overall median prices in January decreased for homes up to $1 million compared to last year. For example, median closed prices for properties in the $300,000 and below price category decreased 6 percent in January to $205,000 from $219,000 in January 2017.
“For a long time we saw double digit increases in median closed prices for single-family homes in the $300,000 and below market,” said Cindy Carroll, SRA of Carroll & Carroll Appraisers and Consultants LLC. “But for January, the report showed only a 4 percent increase [year over year (or a 5 percent increase month over month)].”
Overall inventory in Collier County decreased 5 percent in January to 6,071 homes from 6,393 homes in January 2017. However, inventory has been on the rise over the past few months and while the nation continues to experience declining inventory levels that resulted in a 3.4 months supply for January, the Naples area market is seeing its inventory levels increase to 8.2 months of inventory for January.
However, the report also showed a 21 percent decline in inventory for single-family homes in the Naples Beach area, which Carroll says can be attributed to a rush of speculative homes sales in that area.
According to Carroll, the South Naples (34112, 34113) and East Naples (34114, 34117, 34120, 34137) single-family home markets continued to see the strongest increases in value in January, as reflected in 8 and 9 percent increases in median closed prices, respectively.
Interestingly, and as confirmed by several broker analysts reviewing the January report, an unusual closed sales anomaly transpired in January that, while impacting figures for the month, does not influence the market’s activity trend on a 12-month ending basis.
Basically, and as explained by analysts, “The newly constructed luxury high rise condominium in North Naples delayed the closings for 79 of its units that were previously pending until January. This in turn, influenced NABOR®’s closed sales, median closed price, and days on market statistics for the month.”
As reflected in the report, there were 150 closed sales of condominiums in the North Naples area in January (a 150 percent increase over January 2017). By the same token, because the 79 condominiums sold between $1.8 million and $2.5 million, the median closed price in this geographic area increased by 428 percent. The data also showed 0 days on the market for the 79 units. The closings were apparently postponed as a result of the hurricane disruption and not completed until January.
“This type of anomaly is why it’s best for REALTORS® to also review the 12-months ending data that accompanies each monthly report,” said Brenda Fioretti, Managing Broker at Berkshire Hathaway HomeServices Florida Realty. “We feel a long-view of the statistics reflects the market’s true behavior better and will help REALTORS® educate both buyers and sellers on how the market is really performing.”
It would be my honor to assist you and your family and friends with your real estate needs.
Best,
David
(239) 285-1086
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.
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:
|
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% |
Canal-front home in Naples, Florida
REALTORS® in Naples sold more existing homes in July (682) than they did in January (603) or February (613), a statistical reality that busts an old myth that home sales stall in the summer. In fact, overall closed sales in the market’s sweet spot (homes priced between $300,000 and $500,000) increased 32 percent in July. Broker analysts reviewing the July 2017 Market Report, said a 9 percent increase in closed sales during July was very good, but the continued reduction of inventory, especially in the single-family home market, is cause for concern as it limits choices for buyers.
One segment of the market that brokers are watching closely is the $300,000 and below single-family home market, which saw pending sales decrease 24 percent, closed sales decrease 19 percent, and inventory decrease 2 percent in July. In fact, the entire single-family home market is getting stretched thin as inventory tightens. In July, inventory rose just 3 percent overall, but single family home inventory decreased 1 percent.
One local Broker noted, “The July report showed the median closed price for homes under $300,000 was the highest since 2008. However, the median closed price for homes over $300,000 was the lowest reported in 9 years!”
According to the report, overall median closed prices in July increased 6 percent to $319,000 from $300,000 in July 2016. For homes in the $300,000 and below price category, the median closed price increased only 3 percent to $225,000 from $219,000 in July 2016. And for homes above $300,000, the median closed price decreased 7 percent to $485,000 from $524,000 in July 2016.
Brokers are optimistic that the third quarter closed sales will finish ahead of the second quarter, and pointed to activity in the $500,000 to $1 million price category, which saw the overall pending sales increase 44 percent in July from July 2016.
For months, broker analysts and NABOR® have warned against setting unrealistic pricing, a strategy that can hurt a homebuyer because a home is often overlooked if it’s overpriced.
High prices are a strategy that can work in an accelerating market, but it’s risky. A home might sit for months without an offer and sellers typically end up marking the price down, perhaps lower than it should have sold for in the first place. A licensed REALTOR® uses real-time MLS data that can help a seller hit the sweet spot when setting the listing price: a price that’s high enough to reflect the home’s value, but attractive enough to gain buyer attention and get it sold quickly.
Another segment that brokers are watching closely is the number of days on the market it takes for a property to sell, which is on the rise and hit 105 days in July. One reason for this could be cosmetic. According to Brenda Fioretti, Managing Broker at Berkshire Hathaway HomeServices Florida Realty, “Many homebuyers are looking for a coastal, contemporary look, not the Mediterranean or Tuscan look that dominates much of the existing home market and appears dated. Sellers must either consider making renovations to meet the light, coastal look buyers want or reducing the home’s price in order to stay competitive with the new construction product that reflects this new coastal, contemporary style.”
“Because inventory dropped 1 percent in the single-family home market in July, this may be the first sign that we are not far from a shift in the market,” said Cindy Carroll, SRA, with the real estate appraisal and consultancy firm Carroll & Carroll, Inc., who went on to add, “the housing market is cyclical, and the rate of inventory increase has been trending down since December. If this behavior continues and we go below our lowest inventory point (3,563), which was in July 2014, I predict we’ll shift from a buyer’s to a seller’s market and probably start to see prices increase again.”
If you are weighing the pros and cons of buying or selling a home in the coming months, let me be your guide. I can help you do a market comparison and determine a fair and reasonable listing price. I can also identify properties best suited for your needs and negotiate a purchase price that fits your budget. I would be my honor to assist you and your friends and family with your real estate needs. Please contact me at (239) 285-1086 or email David@davidforida.com
Naples Area Board of REALTORS® Economic Summit Experts Predict Naples Area Market Prime for Growth
Naples, Fla. (May 11, 2017) – More than 400 REALTORS® and real estate professionals interested in the economic health of Collier County attended the Naples Area Board of REALTORS® (NABOR®) 2017 Economic Summit, “The New Future: A View from the Top,” on Wednesday, April 26, 2017 at the Hilton Naples. Three industry experts provided national, state, and local analysis of recent and future growth projections in home sales and business growth activity as well as predictions on what to anticipate from lending institutions and federal regulators in the next 12 months. (see gallery of photos below)
“It looks like we turned a corner,” said Cindy Carroll, SRA, with the real estate appraisal and consultancy firm Carroll & Carroll, Inc., who presented a detailed analysis and comparative review of local housing sales activity. “In the last 12 months we’ve seen inventory increase 23 percent, but that is lower than the previous year, which saw a 35 percent increase. Our inventory may be slowing, but we still have an eight month supply of homes for sale.” Carroll considers a 12-month supply of homes in Collier County a balanced market.
With decades of experience that builds on a family legacy in the real estate appraisal business, Carroll combined her earned wisdom with data collection from the First Quarter 2017 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), and reports generated from the Southwest Florida Multiple Listing Service (MLS), to ascertain a long-view of market behaviors. During her presentation, she shared a surplus of data from these reports and her own conclusions including:
- The Crayton/Moorings Park/Coquina/Park Shore area is saturated with new construction speculative home projects that have resulted in a 2.94 years supply of this type of home in this area;
- The $0 to $300,000 segment of the condominium market makes up 47% of the total condominium inventory. Overall condominium inventory is up across the board geographically with the greatest increase showing up in the North, Central and South regions; and
- That 58 percent of the active listings located in the Golden Gate Estates area off Everglades Boulevard and north and south of Golden Gate Boulevard are priced at or below $300,000.
Next to take the stage was Mark Strain, Chairman of the Collier County Planning Commission, who immediately engulfed the audience with county growth projections and proposed redevelopment and housing expansion plans. Strain’s data was extrapolated from government databases and provided an overarching look at the county’s framework for growth.
“We are wealthiest county in Florida with an average per capita income of $78,000,” said Strain. “Our population has increased over 10.7 percent between the years 2010 to 2016. At this rate, we will reach maturation in the year 2030.”
An audible gasp was heard from the audience when he revealed that 32 residential developments were approved in the last year, amounting to an additional 4,182 new lots for sale. He also reported 76 new commercial developments approved in 2016, and 56 senior living facilities currently existing with an additional 13 planned but not yet built.
“The Immokalee Road/I-75 and Collier/US 41 corridors are the fastest growing areas in the county,” added Strain. “And a recent request to change the building height limits at the entry to the City of Naples may produce some rapid new construction, as laid out in an ambitious redevelopment plan for the Gateway Triangle area.”
Rounding out his presentation, Strain shared with the audience that Collier County has one of the lowest crime rates in the state despite its rapid population growth (Collier saw a 5 percent reduction in crime in 2015 followed by a 7.8 percent reduction in 2016). Also, as we continue to grow there are over a dozen additional schools planned at all grade levels throughout the critical growth areas of the county.
NAPLES PENTHOUSE CONDO FETCHES RECORD PRICE
LAURA LAYDEN
An exclusive top floor condo in Naples Cay has sold for a record price. Spanning nearly 11,700 square feet under air and overlooking the Gulf of Mexico, the penthouse at Seasons has fetched the highest price paid for a condo in Naples — at $14.75 million, according to the listing agent.
Naples Cay, nestled between Park Shore and Pelican Bay, is within walking distance of Waterside Shops and the Artis—Naples performing arts center.
Built by Bonita Springs-based WCI Communities, the Seasons tower sits at 81 Seagate Drive, on the northern end of Gulfshore Boulevard North.
The penthouse sold Monday. Perched on the 22nd floor, it offers wide views of the Gulf and other waterways.
The residence recently got a major face lift. It was gutted and remade by Steven G., known as one of the top high-end interior design firms in the country. I
Upgrades include Italian porcelain 31-by-72-inch slabs for flooring, custom millwork and state-of-the-art lighting. Other features include Gaggenau and Sub-Zero appliances, white quartz countertops, high-end plumbing fixtures, a private elevator with a mirrored nickel finish, oversized dual closets and a fitness room. It came completely furnished.
Including the outdoor lanai, the units stretches more than 13,600 square feet.
Collier County property records show the condo last sold for $6.975 million in 2006.
Interest in high-end real estate in the Naples area has picked up since the U.S. presidency was decided, local Realtors say.
In 2016 the most expensive home sold in Naples went for $15.15 million. Built in 1981, the Port Royal estate on Fort Charles Drive has 6-plus bedrooms and 13 bathrooms on land originally platted for two houses. It includes 303 feet of waterfront with east, south and west water views.
The previous high paid for a condo in Naples was $11.7 million. It was for a 4-bedroom penthouse with five bathrooms and a den at the Regent, a high-rise tower at 4101 Gulfshore Blvd. N. in Park Shore. With a living area of 12,050 square feet, it sold at a then-record price on May 7, 2012
Contact David at 239-285-1086 to view resale condos at Naples Cay, and for information on new construction luxury condos in Naples, new construction floor plan variations, more custom luxury homes by WCI Communities, and to arrange a visit to Naples Cay, or Altaira at Naples, Florida.
