Price Climb Slows as Inventory Heats Up for Summer
Naples, Fla. (June 28, 2024) – As competition grows in the Naples housing market – overall inventory increased 67.1 percent in May to 5,019 properties from 3,004 properties in May 2023 – monthly closed sales for the month decreased 12.2 percent to 907 closed sales from 1,033 closed sales in May 2023. Broker analysts reviewing the May 2024 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), are closely monitoring the number of monthly price decreases to see whether it could turn the tide and improve sales this summer. One thing was certain in the May Market Report: summer buyers will have many more options than winter buyers.
In addition to 1,710 price decreases reported in May, the median closed price was $650,000, the same as the median closed price reported in April, which enjoyed 2,365 price decreases. Comparatively, the median closed price increased 8.3 percent to $650,000 from $600,000 in May 2023.
Another benefit of rising inventory and list price decreases has been the rise in the number of properties for sale in the lower end of the market. For May, properties in the $300,000 and below price category increased 104 percent to 308 from 151 in May 2023. Similarly, properties for sale in the $300,000 to $500,000 price category increased 90.1 percent to 1,032 from 543 in May 2023.
A Different Seller/Buyer Dynamic
Unlike other cities in the U.S. where home sales are driven by people relocating for work, Naples has always been a lifestyle destination. “People live here because they want to. People are not moving here for jobs,” said Kunkle. In response, Mike Hughes, Vice President and General Manager for Downing Frye Realty, Inc., added, “That means we have a different mix of sellers and buyer here. A majority of our sales are second homes. That said, these sellers don’t have an urgency to sell or won’t risk someone stealing it. On the other hand, second home buyers don’t have an urgency to buy because they have the time and cash to wait until they find exactly what they want.” Another challenge for buyers and sellers in Naples during 2024, and across Florida, will be condominium sales. As Jillian Young, President, Premiere Plus Realty, explained, “By December 31st, the structural integrity reserve law requires all Florida condominiums three stories and higher and 25 to 30 years old have a milestone inspection and use the results to guide them to maintain financial reserves that will pay for future maintenance, inspections and repairs. The burden to raise these funds will require mandatory assessments on current and future owners. Sellers will need to take into account the additional cost to maintain the reserves.”
Geographic Standouts
In May, the median closed price for a single family home in the Naples Beach area (34102, 34103, 34108) decreased 26.1 percent to $2,262,500 from $3,062,500. Conversely, the median closed price for a single family home in the South Naples area (34112, 34113) increased 43.6 percent to $930,000 from $647,500. The lowest median closed price reported during May was in the Central Naples (34104, 34105, 34116) condominium market, which increased only 1.4 percent to $355,000 from $350,000 in May 2023.
For more information about buying or selling a home in the Naples, Bonita Springs, Marco Island area contact David at 239-285-1086 or David@DavidFlorida.com.
Laura Layden | Naples Daily News
A luxury home in the much-sought-after Moorings community sold a few days before going to auction.
“The auction is now canceled. Our goal has been achieved,” said Randy Haddaway, founder and CEO of Elite Auctions in Naples.
The owners hired his company to do the auction, as a way to drum up more interest in a cooling market.
On Friday, they accepted an undisclosed offer. It’s “without contingencies” and will close in 30 days, Haddaway said.
At auction, the home, described as the “very epitome of fine Southwest Florida living,” would have gone to the highest bidder.
Located at 445 Putter Point Drive, minutes from downtown Naples, the nearly 5,000-square-foot home was “well maintained,” with “no distress whatsoever,” Haddaway said.
The sellers were just “ready to move on,” he said.
The home, with five ensuite bedrooms, includes a total of five-and-a-half bathrooms, and an office, with a three-car garage. It’s close to the beach and the Village Shops on Venetian Bay, a popular shopping and dining destination.
After word spread about the auction, more than 100 people toured the property – in just two weekends – and nearly 70 prospective buyers called in for more information about it.
For more details about this luxury property read on naplesnews.com.
To view luxury homes in Naples, Bonita Springs & Marco Island, Florida contact David at 239-285-1086 or David@DavidFlorida.com
Inventory Hike Helps April Home Sales Swell
Naples, Fla. (May 31, 2024) – The payoff of months of rising inventory was finally realized in April as closed sales increased 3.8 percent to 999 closed sales from 962 closed sales in April 2023. This is the first month closed sales have exceeded past years’ monthly comparable sales since June 2021. According to the April 2024 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), the 2,365 price reductions in April stimulated sales in the right direction. Growth in inventory does not appear to be slowing down either, as new listings in April increased 16.3 percent to 1,335 new listings from 1,148 new listings in April 2023.
The New Average
Demand for the Naples lifestyle increased during the pandemic, which depleted inventory for homes in the under $300,000 market – there were 315 homes for sale under $300,000 in April. Conversely, demand for luxury properties have soared, especially in the $500,000 to $1.5 million price category, which increased 68.1 percent compared to April 2023 and occupy the highest number of properties available (2,410) in the current inventory.
However, according to the report, closed sales influencing the overall average price growth was in the Naples Beach area. For April, the average closed price of single family homes in communities located in the Naples Beach area (34102, 34103, 34108) increased 61.6 percent to $4,309,475 from $2,666,512 in April 2023. That said, this area was also where a large majority of properties sold for less than original list price as the percent of list price received decreased to 93.3 percent for single family homes and 94.8 percent for condominiums. This indicates sellers are reducing prices to meet the market.
Future Fit & Forward
According to the April report, the average monthly inventory in Naples is back to its familiar pre-pandemic level. April’s inventory increased 68.1 percent to 5,240 properties from 3,118 properties in April 2023. And the months supply of homes is up to 7.3 months. Huskey commented, “Typically, we begin to see prices slide once the months supply gets above 6 months, but we’re not seeing this in our market today. Inventory is growing, and prices remain stable.”
“Home values have doubled since 2019,” said Cindy Carroll of Carroll & Carroll Appraisers & Consultants, LLC. “And there’s no indication that homeowners are at risk of losing this growth in value.”
Carroll went on to say that there will be spots in the county that will experience a slight loss in value, but nothing on a large scale or that would take us back to pre-pandemic prices. “I am unable to find anything in my research that is alarming. The thing we have to focus on now is re-educating our sellers on home prices today. Their home’s value has likely increased, but the number of price reductions each month tells me that prices are still starting out too high. If a home is not priced competitively when it’s listed, sellers will likely need to lower the price to meet the market.”
As more high-end buyers discover the allure of Naples, broker analysts do not foresee the median closed price decreasing dramatically. For April, the overall median closed price increased 4 percent to $450,000 from $425,000 in April 2023. Though price adjustments are moving the needle in certain markets. April reported 2,365 price decreases, which decreased the median closed price 3.2 percent in the single family home market to $793,750 from $820,000 in April 2023.
The NABOR® April 2024 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 2024:
Looking for a home in Naples – Bonita Springs – Marco Island areas? Contact David at 239-285-1086 or David@DavidFlorida.com.
Phil Fernandez | Naples Daily News
Most of the time we have folks bragging to us about the most expensive this, the priciest that. We are in Collier County after all.
And these days, a $6 million abode directly on the Gulf of Mexico is a bargain. Really, truly.
That happened to be Collier’s cheapest single-family gulf house for sale this month after it was listed by Sue Black and Kathryn Tout of Premier Sotheby’s International Realty’s Village office, according to the firm. A total of $5.95 million to be exact.
Built in 1987, 4720 Villa Mare Lane features 3 bedrooms, 4.5 bathrooms ― never know where you’ll be within its 2,877 square feet when nature calls ― and a two-car garage..
What are five most expensive beach spots for sale in Naples right now? What are the priciest homes in Lee County at the moment? Read on naplesnews.com to find out.
After Ian, when do bookings begin at Lani Kai?
Is it true Lani Kai has set a date for when it is to reopen? Find out on naplesnews.com.
Are you dreaming of a beachfront home in Naples and the surrounding Southwest Florida areas of Bonita Springs and Marco Island? Contact David to find a home that suits your needs, Call 239-285-1086 or David@DavidFlorida.com
Mark H. Bickel | Naples Daily News
A Naples home is No. 1 on the list for most expensive single-family property transfers in Collier County from March 1-31, 2024.
This home is located at 900 Spyglass Lane in the Port Royal neighborhood. It has five bedrooms and eight bathrooms. It sold for for $22,000,000.
The house previously sold for $4,300,000 in 2005.
See the Top 10 real estate sales in Collier County recorded for March 2024 on naplesnews.com.
To view luxury homes currently for sale in Port Royal contact David at 239-285-1086 or David@DavidFlorida.com
Rising Inventory and Competitive Pricing are Favorable for Home Sales
Naples, Fla. (March 29, 2024) – The overall median closed price in Naples increased 5 percent to $625,000 in February from $595,188 in February 2023, but there were also 2,264 price decreases reported. Brokers contend that price decreases may be one indication that sellers are shifting from aspirational pricing to realistic market pricing. According to the February 2024 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), closed sales decreased 9.3 percent in February despite a 66.6 percent increase in inventory to 5,139 properties from 3,085 properties in February 2023.
Rising Inventory Brings Patience
February’s price decreases demonstrate that REALTORS® are counseling sellers about realistic market pricing. Although some sellers are still struggling to accept the fact that the pandemic buying frenzy years with climbing price increases are over. As more new sellers enter the market (up 24.6 percent to 1,668 new listings from 1,336 new listings in February 2023), those sellers with overpriced properties risk missing an opportunity to attract and sell to eager buyers.
According to the report, in February 2019 the median closed price was $335,000. Cindy Carroll of Carroll & Carroll Appraisers & Consultants, LLC., and broker analysts like Budge Huskey, CEO, Premier Sotheby’s International Realty, agree that “in the face of far more inventory and opportunity, home values are holding steady in Naples today. People are being highly selective and will wait until they find the right property.”
Insurance vs. Interest Rates
The February Market Report showed a 103.4 percent increase in inventory for properties under $300,000. Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., said that this might be because “investors are offloading rental property units to capitalize on the winter selling season. Also, the carrying costs on some of these properties has climbed in recent years. This increase in inventory, for buyers looking in this price range, is encouraging as their selection was quite limited a year ago.”
As many Naples residents are discovering, when home values increase, the replacement cost to insure them also increases. Insurance rates and association fees could increase for condominium owners by the end of 2024 as mandatory milestone inspections must be completed by year end. Inventory for condominiums increased 104.2 percent in February to 2,614 condominiums from 1,280 condominiums in February 2023.
The NABOR® February 2024 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 2024:
Market Report Standouts
Upon observation, the February Market Report shows median closed price decreased for condominiums located in the Naples Beach (34102, 34103, 34108); Central Naples (34104, 34105, 34116); and Immokalee/Ave Maria areas. And the area with most closed sales of single family homes in February was East Naples (34114, 34117, 34120 and 34137), which also reported the highest inventory of available properties (1,125).
While February’s report showed an average of 69 days on market, it is nowhere near the 101 DOM reported in February 2019. Interestingly, average days on market during February was highest in the $5 million and over condominium market (99 DOM). According to Carroll, months of inventory for neighborhoods west of US 41 tend to be higher as these communities are oversaturated with spec homes and aspirational sellers. “Inventory of homes in Aqualane Shores is 3.5 years; and in Port Royal is 2.9 years.”
If you are considering buying or selling your home, contact David at David@DavidFlorida.com or 239-285-1086. As a Naples REALTOR® he will give you expert advice on how to make the best of today’s market conditions.
