January Market Report Shows Very Suitable Climate for Seasonal Sales
Naples, Fla. (March 1, 2024) – Data in the January 2024 Market Report showed invigorated confidence in the Naples area housing market for both sellers and buyers. Overall inventory continued to climb for the sixth straight month resulting in a 58.8 percent increase in homes for sale in January or 4,639 properties from 2,921 in January 2023. Fueled by a 29.1 percent increase in new listings year over year, January showings doubled compared to showings reported in December 2023. The first month of the year also saw serious sellers taking action to capture increased buyer attention with 1,804 price decreases, a 122.7 percent increase compared to December’s 810 price decreases.
“I’m getting more requests for pre-listing appraisals,” said Cindy Carroll of Carroll & Carroll Appraisers & Consultants, LLC. “This indicates to me that new sellers are taking their REALTOR®’s advice to heart and doing the work necessary to determine the value of their home in today’s market.”
The report showed 6.4 months of inventory for January compared to .9 months of inventory in January 2022, when frenzied pandemic buying began to simmer. Brokers reviewing the report said buyer intent has shifted from pandemic years of “I want a home in Naples,” to a more sensible climate today of “I want the right home in Naples.”
With more competition, brokers agree that REALTORS® who represent a buyer or seller must look at hyper-local factors such as location within a neighborhood, competition within each price range, and extenuating factors that may influence insurance coverage and affordability such as the age of the home or claim history. Additional factors that may influence list price include mortgage rates, association fees, potential or planned future assessments, ongoing maintenance and building repairs (common for condominiums) or repairs necessary to meet new building codes and flood/storm management requirements.
While pending sales in January decreased 7.5 percent to 1,010 pending sales from 1,092 pending sales in January 2023, pending sales activity for January increased 73.2 percent compared to pending sales activity reported in December 2023 (583).
“Days on market will continue to climb,” said a Broker. “There are buyers who purchased a home impulsively during the pandemic and now they are rethinking their decision. And because a lot of them are second-home buyers, they aren’t motivated in a way typical of other sellers, so they’ve been less likely to adjust their list prices or negotiate.”
The NABOR® January 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:
First-time homebuyers and those seeking homes under $500,000 will be pleased to hear that inventory in this price range increased 58.6 percent in January. In fact, inventory for condominiums priced under $300,000 increased 112 percent during the month. Notwithstanding, and because Naples is paradise, inventory for condominiums over $5 million increased 182.6 percent in January.
Find your home in southwest Florida! Contact David at David@DavidFlorida.com or 239-285-1086.
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
Heading into snowbird season, the new arrivals are going to see even higher prices for the most part on Southwest Florida homes.
And the sales of luxury properties are one of the drivers, as evidenced by a record Bonita Beach sale in Lee County.
What’s most expensive Lee home sold? Could that be topped?
October’s most expensive single-family dwelling in Lee sold for $12.3 million at 27586 Hickory Blvd. The 5,771-square-foot beachfront house built in 2016 that has five bedrooms and seven bathrooms had belonged to evangelist David Turner, who acquired it in 2021 for $7.5 million.
“We were thrilled to have the highest priced sale on the beach,” said Realtor Denise Quinn, who listed it as part of John R. Wood Christie’s International Real Estate’s The Grant Group. “As a personal accomplishment, it is my highest sale. I have been visiting Naples since 1996, homeowner in 2004 and full-time in 2018. I love the area and the small town feel that comes from the community.”
Read about the buyer and view the photos on naplesnews.com.
October Inventory Expands in Anticipation of Winter Buyers
Pre-Season Buyers Jump on New Inventory During September
Naples, Fla. (October 27, 2023) – New listings in Naples during September increased 27.3 percent to 937 new listings from 736 new listings in September 2022, making pre-season buyers very happy. According to the September 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 continues to inch upward at a steady pace. For September, inventory for the single family home and condominium markets increased 13.2 percent to 2,793 properties from 2,468 properties in September 2022. The report also demonstrated that pre-season homebuying is starting earlier every year as pending sales (homes under contract) in September increased 18.7 percent to 735 pending sales from 619 in September 2022 and 687 in September 2019 (pre-pandemic).
The overall median closed price in September increased 3 percent to $571,500 from $555,000 in September 2022. Interestingly, the September report indicated there were 723 price reductions compared to 80 price increases during the month. The combination of new listings plus price reductions on existing inventory made September a great month to purchase a home. Historical data in the report confirms prices and competition during autumn months are lower than the winter months.
“The report showed the average closed price increased over 13 percent (month over month) for September,” said Budge Huskey, CEO, Premier Sotheby’s International Realty. “While we are seeing appreciation rates decelerate across all markets, Naples continues to command top values for quality properties.”
Incidentally, during the September 27th NABOR® Economic Summit, Dr. Brad O’Connor, Florida Realtors®’ chief economist of its research department, spoke in length about home appreciation and said, “prices in Naples increased 88 percent from pre-COVID prices.” Following Dr. O’Connor’s presentation, Dr. Lawrence Yun, the chief economist for the National Association of REALTORS®, further commented that “Naples is at a $250,000 to $300,000 spike in wealth gain for its property owners.”
Overall closed sales increased 5.4 percent to 587 closed sales from 557 closed sales in September 2022; but – as pointed out by several broker analysts including Wes Kunkle, President and Managing Broker at Kunkle International Realty, “The last six to ten days of September 2022 were spent preparing for a hurricane, so fewer pending sales were able to close by the end of the month.” As a result, the hurricane limited the month’s potential for closed sales transactions.
While inventory in the $300,000 and below single-family market is limited to primarily manufactured homes, Huskey pointed out that “inventory in the $5 million and above market nearly doubled in the last year.”
The NABOR® September 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:
Even though nearly the same number of pending sales were reported in September for both the condominium and single-family home markets, Huskey remarked that “pending sales of condominiums during September [+38.9%] wildly outperformed pending sales of single family homes [+3.9%] as compared to September 2022.”
For homeowners who are still facing expensive repairs from Hurricane Ian damage, Huskey said, “Natural disasters causing damage losses not declared a special natural disaster may be claimed as a deduction on a homeowner’s income tax return. Ask your tax professional about this IRS relief opportunity as you may be entitled to a rebate or refund.”
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.
