Naples Housing Inventory on the Rise
Naples, Fla. (December 22, 2022) – According to the November 2022 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), there were 552 overall closed sales in November, which is a 41.4 percent decrease from 942 closed sales recorded in November 2021. The post-pandemic home buying surge that took place when mortgage rates were historically low has ended. Housing inventory in Naples is on the rise but remains low at just 2.8 months of inventory reported in November (a balanced market has a six-month supply of inventory). As expected, the limited inventory environment in Naples is restricting sales and increasing prices. Though broker analysts reviewing the report pointed out that cash sales accounted for 62.3 percent of closed sales in November; it is an indication that the Naples housing market remains a solid investment.
A Broker said, “Things are moving in the right direction, but it will take time to return to what most would consider normal market conditions.”
Even new legislation passed last week to stabilize the property insurance market, reduce protracted litigation, and speed up the claims process will take time before it is enjoyed by Florida homeowners.
The Broker added, “Inventory in Naples is increasing, but there may be a bifurcation coming as newer homes are more insurable than older ones. This may begin to affect home prices next year because newer homes and their ability to obtain insurance will become more desirable and increase in price; whereas older homes that need attention will struggle to find a willing insurer and may become less desirable and decrease in price.”
The November report showed inventory rose in all price categories except the $300,000 and below category, which decreased 14.2 percent from 127 to 109 properties. Overall inventory in November rose 96.8 percent to 2,478 properties from 1,259 properties in November 2021. Comparatively, in November 2019 there were 5,563 properties in inventory, which was split between 2,771 single-family homes and 2,792 condominiums. Today, the inventory is single-family home heavy, which accounts for 63 percent of all homes for sale in Naples.
November’s overall median closed price increased 20.4 percent to $600,000 from $498,500 in November 2021. But “the season for aspirational pricing is over,” said a Broker. “The economy is very different from where we were during the frenzied buying activity experienced in the year following the pandemic. Sellers can no longer expect multiple offers that are significantly over the listed price. We had less inventory then, which drove prices higher, and mortgage rates were at 2 and 3 percent, which gave buyers more room to make concessions.”
The NABOR® November 2022 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 2022:
As to whether Hurricane Ian impacted the Naples housing market, Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., said, “There’s a considerable number of homeowners tied up in insurance disputes right now. Once they are resolved, we may see a slight increase in new listings.” Young added that, “Many homeowners are still displaced from the storm as they weigh their options.” west of 41 is likely to increase.”
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