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NABOR May 2017 Market Report

Naples, Fla. (June 16, 2017) – Overall closed sales of homes in May shined brighter than any other month previously reported in 2017, with an impressive 23 percent increase to 1,027 closed sales in May 2017 from 838 closed sales in May 2016. Likewise, overall pending sales (homes under contract) also outperformed activity reported in the last four months. Leading broker analysts who reviewed the May 2017 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), are quite confident that real estate agents will be very busy this summer.

“If May’s momentum continues, this year will turn out better than last year,” said Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc. “Home sales during the summer months have become stronger over the past few years. We are no longer seeing a huge disparity in activity between winter and summer like we once did.”

One familiar obstacle summer buyers will face again this year is a reduction in available inventory. Whereas the market saw a 26 percent increase in inventory in January 2017 to 6,393 homes from 5,091 in January 2016, the May report showed only a 4 percent increase to 5,404 homes in May 2017 from 5,207 homes in May 2016. Inventory increases are leveling off. Many broker analysts who track activity on a daily basis report that they have witnessed upwards of 900 listings disappear from the Southwest Florida MLS since May 1st.

“This type of behavior is short sighted,” said Hughes. “Those who let a listing expire at the end of our winter season are missing a huge opportunity to sell their property during the summer months.” Hughes added that our area attracts a variety of buyers during the summer such as international travelers, families from Northern states, and those relocating from other parts of Florida.

Comparatively, the overall median closed price decreased 8 percent in January, while the May report showed an increase of 5 percent to $355,000 in May 2017 from $338,000 in May 2016. Incidentally, January’s median closed price was $314,000. If the logic behind removing a listing at the end of season is based on old beliefs that a property will obtain a higher sale price during the winter months, then sellers need to examine the May statistics more closely. According to NABOR reports, there were 424 more closed sales during May than January.

“Buyers during the summer are more serious,” said Wes Kunkle, President and Managing Broker at Kunkle International Realty. “In season, we get a lot of traffic, but it’s mostly lookers. In the summer, people are ready to buy. They ask real buyer questions, and most often have financing in place.”

As noted by Coco Amar, a managing broker at John R. Wood Properties, activity in the $2 million and above price category has really picked up strength this year. As reflected in the report, overall pending sales in the $2 million and above price category increased 52 percent in May. There were also 78 closed sales of homes in this price category in May 2017, up from 36 closed sales in May 2016. And while the overall median closed price for homes above $300,000 increased 8 percent to $590,000 in May 2017 from $547,000 in May 2016, the overall median closed price for this top reported price category decreased 8 percent to $2,950,000 in May 2017 from $3,220,000 in May 2016.

The May report also showed overall inventory increased 4 percent to 5,404 homes in May 2017 from 5,207 homes in May 2016. Homes in the $300,000 and below price category had the highest inventory increase of all other price categories, reporting a 12 percent increase to 1,551 properties in May 2017 from 1,391 properties in May 2016. While still an increase over last year, the rate of the market’s overall inventory increase is tempering. In fact, brokers are concerned that housing options in some geographic areas, such as in the Central Naples single family market, may start to pinch sales as this area experienced a 50 percent increase in single-family closed sales during May, but had only an 8 percent decrease in inventory.

The NABOR® May 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® May 2017 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:

CATEGORIES May 2016 May 2017 CHANGE (percentage) Total homes under contract (pending sales) 921 1,027 12 Total closed sales 838 1,027 23 Median closed price (month/month) $338,000 $355,000 5 Median closed price >$300K (month/month) $547,000 $590,000 8 Total active listings (inventory) 5,207 5,404 4 Average days on market 73 98 34 Single-family closed sales 396 485 22 Single-family median closed price (month/month) $432,000 $435,000 1 Single-family inventory 2,744 2,734 0 Condominium closed sales 442 542 23 Condominium median closed price (month/month) $276,000 $289,000 5 Condominium inventory 2,463 2,670 8

According to Kathy Zorn, broker/owner of Better Homes and Gardens Real Estate Pristine, “Buyers who are looking for a condominium in the Naples Beach or North Naples area this summer may encounter some challenges as these areas are running low on inventory.” Zorn pointed out that in North Naples there was a 47 percent increase in closed sales of condominiums during May, a 26 percent increase in pending sales of condominiums during May, and only a 9 percent increase in inventory. The situation is even more alarming on the beach, as both pending and closed sales of condominiums increased by double digits, but its inventory rose only 1 percent in May.

If you currently have a home for sale in the Naples market, brokers recommend against terminating the listing during the summer. In fact, there were 875 closed sales in June 2015 and 832 closed sales in June 2016, both higher than the number of closed sales in January (603) and February (613) of 2017.

March 2017 NABOR Market Report

Naples, Fla.

(April 14, 2017) –

 It was a busy season for REALTORS® working in Naples as evidenced in 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). As predicted by broker analysts at the beginning of the year, once sellers began to heed the advice of their agents and reset to reasonable list prices, buyers would react in stride with more solid offers. The statistics reflected this prognosis precisely, and resulted in an increase in overall pending and closed sales, making the first quarter of 2017 as solid as expected.

Noted by Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., and the 2016 REALTOR® of the Year, “The first quarter was a bit of a bumpy ride but the trend line for sales moved upward throughout the quarter with March coming in as a pretty strong month for sales activity. Overall, we ended the first quarter better than last year and I think the local brokers are cautiously optimistic that we might have a decent summer for sales.”
Quite a few broker analysts who reviewed the report agreed with Hughes and said the word on the street is that many buyers who didn’t make a purchase during the first quarter have plans to return to the area during the summer as they anticipate home prices may decrease.
Quarter over quarter, the report showed overall median closed prices increased only 2 percent, driven by a narrow 3 percent increase in the $300,000 and below price category. Yet all other price categories tracked by NABOR® showed decreases or no change at all. One exception was single family homes in the $300,000 to $500,000 price category, which jumped 14 percent in median closed price to $387,000 in the 1st quarter of 2017 from $339,000 in the 1st quarter of 2016.
Collectively, broker analysts agreed that activity in the condominium market during the first quarter of 2017 was impressive. In fact, condominium inventory increased 19 percent, while the single-family home inventory saw an 8 percent increase. The report also showed five times the number of condominiums under $300,000 were available in the first quarter of 2017 than single-family homes in the same price category.
“Inventory is up and prices have come down,” said Budge Huskey, President of Premier Sotheby’s International Realty. “This is an indication that some fundamental economic principles are taking effect in the Naples housing market.”
But according to Cindy Carroll, SRA, with the real estate appraisal and consultancy firm Carroll and Carroll, Inc., monthly inventory levels have increased through March, but at a progressively lower rate each month of the quarter. For example, Carroll said, “In a year to year comparison, single family inventory was up 24 percent in December, 19 percent in January 2017, 9 percent in February, and 8 percent in March. The same trend is mirrored in the condominium market. In the long view, overall inventory increased 35 percent between March 2015 and March 2016, and 23 percent between March 2016 and March 2017.”
However, Bill Coffey, Broker Manager of Amerivest Realty Naples, was quick to point out that a tempering of inventory levels does not mean fewer options for buyers in the coming months. “The condominium market was hot in the first quarter. Both inventory and closed sales increased 19 percent. And overall sales only lagged last quarter because properties were not priced properly, but now we are seeing price adjustments and the statistics are reflecting the correction. We currently have 8.89 months worth of inventory. In February we had over 9 months. This progressive reduction in inventory Cindy is talking about will not curb market activity greatly.”
The NABOR® First 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® First Quarter 2017 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:
CATEGORIES
1Q 2016
1Q 2017
CHANGE
Total homes under contract (pending sales)
2,786
3,097
11%
Total closed sales 518 613 14%
Median closed price $323,000 $333,000 2%
Median closed price >$300K $545,000 $510,000 -6
Total active listings (inventory) 5,577 6,466 13%
Average days on market 79 99 23%
Single-family closed sales 261 294 8%
Single-family median closed price $425,000 $402,000 -1%
Single-family inventory 2,978 3,259 8%
Condominium closed sales 257 319 19%
Condominium median closed price $260,000 $270,000 3%
Condominium inventory 2,599 3,204 19%
The Market Report also indicated a trend in how buyers are purchasing homes in Southwest Florida. “In March 2014, cash sales encompassed 74 percent of all sales for the month. In March 2015 it was 73 percent, then 67 percent for March 2016, and finally, in March 2017 cash sales accounted for 64 percent of all sales made in the month,” said Hughes. “In the past few years cash sales have been decreasing and more buyers are financing home purchases.”
Geographically, the market had some hot areas of action during the first quarter of 2017. Of note was Central Naples (34104, 34105, 34116), which saw a 74 percent increase in single-family home inventory to 634 single-family homes in the 1st quarter of 2017 from 364 single-family homes in the 1st quarter of 2016. And the median closed prices for single-family homes in South Naples (34112, 34113) increased 22 percent in the 1st quarter of 2017 to $386,000 from $317,000 in the 1st quarter of 2016.

February 2017 NABOR Market Report

Naples, Fla.

(March 17, 2017) –

 Overall inventory rose yet prices remained stable in February according to broker analysts who reviewed the February 2017 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island) using the Southwest Florida MLS. Overall pending sales (homes under contract) and overall closed sales also increased in February keeping REALTORS® out in the field and busy with showings and closings.

“Compared to this time last year when we were challenged to find properties for customers, the February report showed inventory is up by nearly 1,000 new listings, giving us almost nine months of inventory to show eager buyers,” said Dominic Pallini, NABOR® President, and President and Broker at Vanderbilt Realty. “Buyers have more choices now. This trend is promising.”
Overall inventory rose 16 percent to 6,466 homes in February 2017 from 5,577 homes in February 2016. The largest increase in inventory during February was in the condominium market, which saw a 23 percent increase to 3,207 condominiums in February 2017 from 2,599 condominiums in February 2016. In fact, condominiums in the $1 million to $2 million price category increased the most of all housing types with a 43 percent jump in inventory to 284 condominiums in February 2017 from 198 condominiums in February 2016. Also reflected in the report, the North Naples area experienced the highest increase in condominium inventory, with a 40 percent increase to 989 condominiums in February 2017 from 704 condominiums in February 2016.
The February report also showed overall pending sales increased 10 percent to 1,092 pending sales in February 2017 from 993 pending sales in February 2016; and overall closed sales increased 18 percent to 613 closed sales in February 2017 from 518 closed sales in February 2016. But the condominium market also held the record in February for highest increases in both of these areas too. For example, pending sales of condominiums in the $300,000 to $500,000 price category had the highest increase of all other home types and price points in February with a 53 percent increase, and closed sales of condominiums in the $500,000 to $1 million price category had the highest increase of all other home types and price points in February with a 75 percent increase.
Overall median closed prices increased just 3 percent to $333,000 in February 2017 from $323,000 in February 2016. Interestingly, the median closed price for single-family homes decreased 5 percent to $402,000 in February 2017 from $425,000 in February 2016. Geographically, the Naples Beach area saw a 29 percent decrease in median closed price to $650,000 in February 2017 from $917,000 in February 2016, while the Ave Maria/Immokalee area saw a 29 percent increase in median closed price to $287,000 in February 2017 from $222,000 in February 2016.
The NABOR® February 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® February 2017 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:
CATEGORIES
Feb 2016
Feb 2017
CHANGE
Total homes under contract (pending sales)
993
1,092
10%
Total closed sales 518 613 18%
Median closed price $323,000 $333,000 3%
Total active listings (inventory) 5,577 6,466 16%
Average days on market 79 99 25%
Single-family closed sales 261 294 13%
Single-family median closed price $425,000 $402,000 -5%
Single-family inventory 2,978 3,259 9%
Condominium closed sales 257 319 24%
Condominium median closed price $260,000 $270,000 4%
Condominium inventory 2,599 3,204 23%
Broker analysts Coco Amar, Managing Broker at John R. Wood Properties, and Jeff Jones, Managing Broker at the Naples-Park Shore office of Coldwell Banker®, pointed out that economic factors may begin to delay baby boomers’ decisions to sell their northern homes and buy in Florida.
“I’m finding buyers are taking their time making a purchase decision because it’s still unclear how some of the President’s reform policies will play out over the next few years. And with the stock market performing as well as it is right now, it’s hard for them to replant those funds into a second home should they need it liquid quickly,” said Amar.
“Many baby boomers are also facing very different life circumstances than retirees from previous generations, said Jones. “As the number of adult children and aging parents living with baby boomers increases, permanent relocation for them is not yet an option. Also, the recession seems to have reduced impulsive buying behaviors. Consumers are more educated about home values today and they are taking more time to look for the right home.”
Buyer hesitation doesn’t seem to be a factor with the real estate market in Naples just yet. In fact, cash sales increased to 68 percent of the closed sales made in February. And for good reason: according to Jones, “There were 400 price reductions in one week in the Southwest Florida MLS during February, which motivated buyers to make a purchase decision. Along with being named the happiest place to live in America, Naples continues to have a very healthy and balanced real estate market.”

NABOR January 2017 Market Report

STRONG START TO 2017
Naples, Fla.

(February 17, 2017) –

The new year rebounded with a strong gust of activity in the Collier County real estate market. Increases in overall pending sales (homes under contract), overall closed sales and overall inventory indicate a strong season ahead. Broker analysts who reviewed the January 2017 Market Report, which tracks home listings and sales within Collier County (excluding Marco Island) using the Southwest Florida MLS, are confident that market indicators are favorable to support momentum through season.

“We are definitely in a buyer’s market now, and home sales were strong in January,” said Phil Wood, President & CEO of John R. Wood Properties, who pointed out that the 6 percent increase in overall closed sales for January was driven by an impressive 14 percent increase in closed sales of condominiums. He remarked, “Properties that are selling rapidly are those that are priced at true market value.”
In response, Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., agreed with Wood adding that, “the increase in inventory is a positive opportunity, especially for buyers looking in the under $300,000 condominium market, which increased by over 400 units in January.”
According to the January Market Report, overall pending sales increased 9 percent to 924 pending sales in January 2017 from 847 pending sales in January 2016. Broker analysts said they are most encouraged by pending sales activity in the middle range of the market; namely, homes between $300,000 and $2 million, which all experienced double digit increases in January.
Overall closed sales increased 6 percent to 603 closed sales in January 2017 from 571 closed sales in January 2016. Interestingly, January was the first time both overall pending sales and overall closed sales were on the upswing simultaneously since March 2015.
The report also showed that overall inventory for all price segments increased by double digits in January too. Comparatively, condominium inventory in the $2 million and above category had the highest gain with a 44 percent increase to 135 condominiums in January 2017 from 94 condominiums in January 2016.
“Increases in inventory typically drive prices down,” said Kathy Zorn, broker/owner, Florida Home Realty. “And yet, with a 28 percent increase in inventory in the $500,000 to $1,000,000 condominium price range, we show an increase in the median price of 9 percent compared to last year.”
Zorn added that geographic proximity to the beach remains a driving force in the Naples real estate market. As such, properties located in the Naples Beach area experienced a 15 percent increase in overall median closed price to $784,000 in January 2017 from $680,000 in January 2016. Pending sales for the Naples Beach condo market for January 2017 increased by almost 40 percent compared to last year and closings were up 16 percent. This was mostly driven by a somewhat limited condominium market in the Naples Beach area, where inventory increased 34 percent and pending sales shot up 39 percent in January.

“Today, buyers have more choices,” Zorn said.

The NABOR® January 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® January 2017 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:
CATEGORIES
Jan 2016
Jan 2017
CHANGE
Total homes under contract (pending sales)
847
924
9%
Total closed sales 571 603 6%
Median closed price $340,000 $314,000 -8%
Total active listings (inventory) 5,091 6,393 26%
Average days on market 75 91 21%
Single-family closed sales 291 284 -2%
Single-family median closed price $425,000 $397,000 -7%
Single-family inventory 2,715 3,219 19%
Condominium closed sales 280 319 14%
Condominium median closed price $278,000 $265,000 -5%
Condominium inventory 2,376 3,174 34%
“We are in a different market than we were a year ago,” said Jeff Jones. “The stock market is now performing very well, home sales are now very strong in northern states, and winter came early up north so people fled to Florida’s warm weather early too.”
Nationally, a balanced market (balanced equally between buyers and sellers) is considered to be six months of inventory. Yet, as observed by Adam Vellano, West Coast Sales Manager, BEX Realty – Florida, “Our report shows 8.91 months of inventory for January. The last time we had a supply of inventory like this was five years ago. I think it’s time to remind sellers that ‘price sells a home’.”
Many broker analysts including Zorn, Vellano, and Wes Kunkle, President and Managing Broker at Kunkle International Realty, said they have observed a large increase in investor held single-family homes being added to the inventory mix in recent weeks. Zorn pointed to signs of bracket creep in the report, such as a 23 percent increase in inventory for single family homes in the $300,000 to $500,000 price category, while its median closed price fell 4 percent. Jones also cited that days on market for single-family homes in the $500,000 to $1 million price category had doubled in January, while this price category’s median closed price actually rose 4 percent.
Responding to these observations, Cindy Carroll, SRA, with the real estate appraisal and consultancy firm Carroll & Carroll, Inc., warned that sellers who are testing the market with high list prices may be disappointed in a few months as “these sellers see a reduction in list price as a reduction in value, when this is not the case at all. Working with a REALTOR® who closely monitors comparable listings will help them avoid months of waiting for a sale.”
Zorn agreed and added that the cost of holding out for a higher price in many cases – especially for investors – could result in a loss of revenue from both rental income and unavoidable costs like taxes and insurance.

2016 Annual & 4th Quarter NABOR Market Report

Naples, Fla.

(January 20, 2017) –

Broker analysts who analyzed the Annual, 4th Quarter and December 2016 Market Reports released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island) concluded that the local real estate market performed well in 2016 despite several unpredictable market influencers that impacted the housing market such as the February stock market slump, a low Canadian exchange rate, Brexit and Zika fears, and the presidential election. Brokers agree that factors appear to be in place for a good market in 2017.

“The 2016 year-end report indicated that we started the year with an inventory shortage but ended at a level that positions us to see sales escalate in 2017,” said Bill Poteet, owner and broker at Poteet Properties.
Overall inventory increased 34 percent to 5,946 homes in year ending 2016 from 4,426 homes in year ending 2015. The Naples Beach area experienced the highest number of new listings with 437 homes added to its inventory during 2016. However, and according to the Report, the Naples Beach area also saw the largest decrease in overall closed sales during 2016 of all other geographic areas reported. Overall closed sales in this highly desired location decreased 21 percent to 1,525 homes in year ending 2016 from 1,922 homes in year ending 2015.
Closed sales of condominiums in the East Naples area and single family homes in the $500,000 to $1 million price category increased in 2016, despite overall closed sales decreasing 13 percent to 8,510 homes in year ending 2016 from 9,751 homes in year ending 2015.
According to Coco Waldenmayer, a managing broker at John R. Wood Properties, competition from new home developments in 2016 played a role resulting in fewer sales of existing homes in 2016 compared to 2015, which was a very strong year. “The report showed the highest number of closed sales in 2016 occurred in the North Naples area, which is also where a rash of new home development is taking place.”
“With a surge in inventory from new construction, buyers had more options in 2016,” said Adam Vellano, West Coast Sales Manager for BEX Realty Florida. “Unfortunately, developers and builders of newly constructed homes in Collier County do not fully utilize NABOR®’s MLS [Multiple Listing Service]; and therefore, the Market Report, while useful as a tool to track resale market performance, does not capture or reflect a clear picture of what’s happening in new construction.”
Of note, the annual Market Report showed that the overall median closed prices for homes above $300,000 did not change during 2016. In fact, homes in the $500,000 to $1 million price category experienced only a 3 percent decrease in their overall median closed price to $650,000 in year ending 2016 from $667,000 in year ending 2015. Brokers attribute this reduction in median closed price, and the 2 percent decrease in overall median closed price for the $1 million to $2 million price category in 2016, to better informed and motivated sellers.
The NABOR® Annual 2016 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® Annual 2016 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:
CATEGORIES
YE 2016
YE 2015
CHANGE
Total homes under contract (pending sales)
8,903
10,366
-14%
Total closed sales 8,510 9,751 -13%
Median closed price $320,000 $308,000 4%
Total active listings (inventory) 5,946 4,426 34%
Average days on market 89 78 14%
Single-family closed sales 4,268 4,640 -8%
Single-family median closed price $400,000 $385,000 4%
Single-family inventory 3,015 2,434 24%
Condominium closed sales 4,242 5,111 -17%
Condominium median closed price $253,000 $250,000 1%
Condominium inventory 2,931 1,992 47%
As noted by Jeff Jones, Managing Broker at the Naples-Park Shore office of Coldwell Banker®, the Report showed a 14 percent increase in days on market for year ending 2016. He went on to explain that “the number of days on market is influenced by median closed prices and closed sales activity. By the last month of the year, the overall days on market decreased 8 percent [to 88 days in December 2016 from 96 days in December 2015], and we didn’t see a rise in median closed prices during December either. I think this shows us that sellers are beginning to heed their REALTOR’s recommendation to list their property at a reasonable market price initially rather than to start high and then go through two or three price reductions. Priced correctly, properties will move in a reasonable length of time.”
“As pointed out by Tom Bringardner, Jr., President/CEO of Premier Commercial, “The first wave of Baby Boomers to hit 70 years old will take place in 2017, and Southwest Florida has traditionally been a very desirable place for those people to retire or purchase a second home. There are over 75 million boomers and that group represents a lot of potential housing demand.”
Brokers who analyzed NABOR®’s Market Reports in 2016 predicted that inventory would rise and they believe our inventory of existing homes will continue to increase in 2017. These knowledgeable brokers advise homeowners who plan to sell in 2017 to seek guidance from a Naples REALTOR® who knows the local market and can help you price your property correctly. A REALTOR® can also identify properties best suited for buyers and negotiate a purchase price that fits any budget. Discover more at www.naplesarea.com.

Foreign Investors Remain Bullish on US Real Estate Despite Increasing Caution

 

Jan 3, 2017 – CoStar News

Reflecting a lack of suitable global alternatives and a proven track record of steady returns generated by US real estate, the latest annual survey of overseas investors by the Association of Foreign Investors in Real Estate (AFIRE) confirmed once again that the United States remains by far the world’s most popular destination for foreign real estate capital.

An overwhelming 95% of respondents to the AFIRE survey said they planned to increase or maintain their level of U.S. investment, and 66% said their sentiment was unchanged or more optimistic about the prospect for US real estate.

However, the survey results also indicate investor caution about U.S. real estate is rising. One-third of those surveyed in fourth-quarter 2016 by the James A. Graaskamp Center for Real Estate at the Wisconsin School of Business said they felt more pessimistic about U.S. property markets, up from 8% in the late-2015 survey.

AFIRE CEO James Fetgatter noted that, with the uncertainty over the policies and legislative agenda of a new administration, interest rates on the rise and narrowing spreads between interest and capitalization rates, “it is no surprise that investors have signaled a note of caution.”

New York City Rated Top Investment Market for 7th Consecutive Year

In addition to securing its status as the leading U.S. city for foreign capital for a seventh consecutive year, New York City ranked as the world’s top city for foreign capital for the third year in a row. Los Angeles again ranked #2 among U.S. cities for the second straight year, followed by Boston, Seattle and San Francisco.

Berlin placed a somewhat surprising second among global cities, followed by London, Los Angeles and San Francisco.

Also notable was the falling stature of Washington DC. For the first time since the survey’s inception in 1992, Washington, DC dropped out of the top 5 U.S. cities as a preferred global destination for foreign commercial real estate investment, coming in at #6 after ranking #4 in the late 2015 survey. DC alos fell to #15 globally after rising to eighth place in the previous survey.

Fetgatter tells CoStar that the continued decline of DC, as well as the continued ascension of Berlin, were both unexpected results in the latest survey.

DC ranked as the top destination for global capital among the world’s cities several times during the early 2000s, but has not been ranked among the top five global cities in terms of investment attractiveness. It has ranked no higher than #8 since 2013, following an extended period of budget disputes and lower federal spending.

Despite the shift in ranking, Catherine Pfeiffenberger, AFIRE chairman and senior vice president of Skanska USA Commercial Development, noted that the District’s stable fundamentals will continue to attract capital from around the world, adding that the incoming Trump administration’s expected increased spending on defense and aerospace may also benefit the market’s muted leasing activity over the past several years.

London, ranked either first or second among global cities for the last five years, took a hit from the Brexit shock, slipping to third place, and fifth overall in terms of its potential for stable and secure real estate returns.

In other survey highlights:

* Industrial property edged out multifamily to take first place among property types while hotels remained the least favored property type;

* More than half of survey respondents reported plans to increase both value-added and opportunistic allocations in the coming year, though core properties remain the prime investment targets of cross-border capital;

November 2016 NABOR Market Report

Naples, Fla.
(December 16, 2016) –

Consistent with historic activity in Southwest Florida, pending and closed sales in the greater Naples housing market continue to increase as the winter season approaches. The November 2016 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), showed a median closed price of $303,000 during November 2016; a 5 percent decrease from the November 2015 median closed price of $318,000. More sellers also entered the market in November, which resulted in a 40 percent increase in inventory to 5,733 properties in November 2016 from 4,095 properties in November 2015 (300 more properties than October 2016). Yet according to several broker analysts who examined the November 2016 Market Report, one obstacle agents continue to face is a market with pockets of improper valuations.

“One year ago we had 4.24 months of inventory market wide, said Cindy Carroll, SRA with the real estate appraisal and consultancy firm Carroll & Carroll, Inc. “The November 2016 statistics show an 8.02 month supply, that’s a 60 percent increase in months of inventory year over year.”
Carroll believes that the local real estate market reached the top of the current economic cycle in the fall of 2015 and explained that, “rising inventories require properties to be appropriately and competitively priced in order to achieve a sale. Overpriced properties tend to languish on the market, contributing to an oversupply condition. To avoid this, sellers should seek guidance from a REALTOR® who can help price the home appropriately from the beginning so it gets sold quickly and at the best price.”
Wes Kunkle, President and Managing Broker at Kunkle International Realty, said many of his investor clients are adding to the area’s lower end inventory. “When investors who bought between 2009 and 2012 start to reenter the market, this is a sign that price appreciation is good and it’s a great time to sell.”
Interestingly and according to the report, over 50 percent of homes sold in the last year were in the $300,000 and below price category. This segment continues to see an increase in sales month over month. In November 2016 there was an 8 percent increase in overall closed sales to 285 closed sales from 264 closed sales in November 2015.
From a seller’s perspective, Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., said it is important for homeowners on the fence to determine whether they want to be proactive or reactive sellers. “Proactive sellers work with REALTORS® who focus on market valuations that are real.”
Jeff Jones, Managing Broker at the Naples-Park Shore office of Coldwell Banker®, said he also watches days on market closely. “The number of properties selling under 30 days is increasing, while those in the 30 to 90 day and 90 day and up segments are stagnant. This tells me that there are still properties improperly priced out there.”

The NABOR® November 2016 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® November 2016 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:

CATEGORIES
Nov 2016
Nov 2015
CHANGE
Total homes under contract (pending sales)
713
804
-11%
Total closed sales 572 558 3%
Median closed price $303,000 $318,000 -5%
Total active listings (inventory) 5,733 4,095 40%
Average days on market 88 77 14%
Single-family closed sales 268 261 3%
Single-family median closed price $397,000 $426,000 -7%
Single-family inventory 2,971 2,319 28%
Condominium closed sales 304 297 2%
Condominium median closed price $251,000 $258,000 -3%
Condominium inventory 2,762 1,776 56%
Phil Wood, President & CEO of John R. Wood Properties, remarked that the Market Report showed an increase in inventory of just over 1,600 units above last year, of which 900 were below $500,000. “Only 200 of these new properties were in the Central Naples area; most of the inventory growth appears to be happening in areas outside the city limits.”
“Now that we are past the election and the economy responded positively, we are looking forward to a strong and busy season,” said Dominic Pallini, NABOR® President and Broker at Vanderbilt Realty.
Broker analysts agreed that factors that negatively impacted tourism and seasonal migration in 2016 like the February stock market slump, a low Canadian exchange rate, Brexit and Zika fears, and the presidential election are behind us now. The only obstacle left to overcome is irrational legacy pricing behaviors. With inventory expected to increase, buyers will have more options and sellers should seek guidance from a REALTOR® who knows the local market and can help price properties correctly.

NABOR October 2016 Market Report

Naples, Fla. (November 18, 2016) – Over 44 percent of homes purchased in October used conventional financing methods (e.g., mortgages), according to a report released by the Naples Area Board of REALTORS® (NABOR®) that detailed activity in the greater Naples housing market during October 2016. The October 2016 Market Report, which tracks home listings and sales within Collier County (excluding Marco Island), showed a gradual – but continuous – decline in cash sales with growth in conventional sales during the last 12 months.

In October 2015, cash sales accounted for nearly 65 percent of all homes sales in Naples, whereas in October 2016, cash sales accounted for only 56 percent of all homes sales in Naples. Interestingly, homes purchased in the $300,000 to $500,000 price category in October reflected the highest percentage of conventional sales (60 percent) of all the price categories reported.
“Increased use of conventional mortgages in October may be an indication of increased consumer confidence coupled with a better lending environment,” said Rick Fioretti, NABOR® President and Broker Associate with Berkshire Hathaway Home Services Florida Realty. “In October 2014, only 32 percent of all home sales used conventional financing. In October 2015, conventional financing increased to 35 percent of overall sales.”
Coco Waldenmayer, a managing broker at John R. Wood Properties, added that impending interest rate increases might create more urgency for people looking to finance a future home purchase.
The October 2016 Market Report showed overall pending sales decreased 13 percent to 702 pending sales in October 2016 from 807 pending sales in October 2015. Interestingly, overall pending sales in the $500,000 to $1 million price category actually increased 14 percent to 125 pending sales in October 2016 from 110 pending sales in October 2015. Likewise, pending sales of condominiums in the $500,000 to $1 million price category increased 30 percent to 57 condominiums in October 2016 from 44 condominiums in October 2015. The increase in pending sales extended to the single-family home market as well, in which both the $300,000 to $500,000 price category and $500,000 to $1 million price category increased 3 percent.
In the closed sales category, the October 2016 Market Report showed overall closed sales decreased 7 percent to 556 closed sales in October 2016 from 601 closed sales in October 2015. However, closed sales of condominiums in the $1 million to $2 million price category increased 80 percent to 9 condominiums in October 2016 from 5 condominiums in October 2015. And closed sales of single-family homes in the $300,000 to $500,000 price category increased 21 percent from 120 single-family homes in October 2016 from 99 single-family homes in October 2015.
For October, the overall median closed price increased 6 percent to $320,000 in the 12-months ending October 2016 from $302,000 in the 12-months ending October 2015. Conversely, the overall median closed price for homes above $300,000 did not reflect a recordable change. Homes in the $300,000 and below price segment, which experienced a 10 percent increase to $215,000 in the 12-months ending October 2016 from $195,000 in the 12-month ending October 2015, is once again responsible for driving the overall median closed price increase.
According to Jeff Jones, Managing Broker at the Naples-Park Shore office of Coldwell Banker®, the increase in days on market for October (15 percent) reflects a need to continue dialog about properly pricing homes in Naples. “Even though we are selling homes in a very desirable location, when days on market increase, one factor affecting this is overpriced properties. And because historically, inventory increases right before season, REALTORS® need to take a bold stance now and guide home sellers to a more realistic asking price based on today’s market.”

The NABOR® October 2016 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® October 2016 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:

CATEGORIES
October 2016
October 2015
CHANGE
Total homes under contract (pending sales)
702
807
-13%
Total closed sales 556 601 -7%
Median closed price $315,000 $290,000 9%
Total active listings (inventory) 5,426 3,903 39%
Average days on market 85 74 15%
Single-family closed sales 295 310 -5%
Single-family median closed price $375,000 $385,000 -3%
Single-family inventory 2,849 2,210 29%
Condominium closed sales 261 291 -10%
Condominium median closed price $240,000 $230,000 4%
Condominium inventory 2,577 1,693 52%
“There is less than a three-months supply of single family homes under $300,000,” remarked Bill Coffey, Broker Manager of Amerivest Realty Naples, who added that if home buyers are looking to stay within this price range they may be better served in the condominium market, which saw a 53 percent increase in inventory to 1,116 condominiums under $300,000 in October 2016 from 731 condominiums under $300,000 in October 2015.
According to Kathy Zorn, broker/owner, Florida Home Realty, “The report showed six months worth of inventory to sell. We have not seen this high a level of inventory in the month of October since 2013. So as we move into season with this healthy level of inventory, buyers will have more options, which is all the more reason sellers should seek guidance now from a REALTOR® who knows the local market and can help them price their properties right.”
Geographically, inventory in the Naples Beach (34102, 34103, 34108) and North Naples (34109, 34110, 34119) areas increased the most in October. In the Naples Beach area, single-family home inventory rose 25 percent to 567 single-family homes in October 2016 from 454 single-family homes in October 2015, and condominiums increased 71 percent to 655 condominiums in October 2016 from 384 condominiums in October 2015. For North Naples, single-family home inventory rose 35 percent to 878 single-family homes in October 2016 from 650 single-family homes in October 2015, and condominiums increased 64 percent to 734 condominiums in October 2016 from 447 condominiums in October 2015.
“There are plenty of homes to buy and sell in Naples,” said Fioretti, who ends his term as NABOR® President in December. “It’s going to take some time to see how the market will react to the election and the changes in the government, but I believe the challenge we REALTORS® face in the short-term is educating the public on market pricing. The value of a home relates to local sale prices and a realistic price means a rapid sale.”

Collier/Lee Counties Real Estate News

November 4, 2016

 

Down but by no means out

Permits are down in Lee, Collier and Charlotte counties for a variety of reasons, none of them ominous, Thibaut said. “We’ll end the year at around 11,000 permits, versus the 13,000 to 15,000 the business likes to see.”

The reason: Bold moves by Lee County commissioners in 2014 and 2015 to lower impact fees led to major growth in apartment permits, he said. “That inflated the 2015 permit numbers, which leveled off in 2016. It’s nothing to be alarmed. Steady as she goes.”

Top real estate headlines

Far and away the top news of the year was the merger of WCI and Lennar, “a huge transaction,” Thibaut said.

If the deal closes, it will make Lennar the biggest Southwest Florida builder by far, instantly adding 14,000 lots to its books.

“To put it in perspective, last year we pulled 11,500 permits as a total of all development,” he said. “That’s years of inventory.”

Another one for the record book: “We’re going to have a Whole Foods in Fort Myers. It was zoned a month ago and it will be under construction the first quarter of 2017, with a $327 million Gulf Coast Hospital expansion starting right up the street.”

The pendulum has swung

Value is the watchword going forward, Thibaut said. At this time last year, the top five builders in the three-county area were commercial contractors. The apartment market was on fire.

This year, the region’s top builder with 1,200 permits pulled is D.R. Horton, especially it’s economical Express Homes product line.

“Look for single-family homes to dominate in the real estate year ahead,” Thibaut said.

Value also made Ave Maria the top selling community in the entire market for a second year running, but don’t expect that to continue, said Thibaut.

“The Collier family lowered lot prices way below the cost of the lot to get the development going coming out of the bust,” he said. “So expect prices to rise so they can make up costs.”

 

Many thanks to The Naples Daily News for this article

Third Quarter 2016 NABOR Market Report

Naples, Fla. (October 20, 2016) – The Naples Area Board of REALTORS® (NABOR®) released its Third Quarter 2016 Market Report, which tracks home listings and sales within Collier County (excluding Marco Island), and it showed overall inventory increased 40 percent with little change in median closed prices. In fact, as reflected in the report, the overall median closed price for homes on the market increased only 4 percent to $312,000 in the 3Q of 2016 from $300,000 in the 3Q of 2015. This was predominately driven by a 9 percent increase in the $300,000 and below price category. Comparatively, all other price categories saw a zero or negative price adjustment.

Upon reviewing the report, NABOR® President and Broker Associate with Berkshire Hathaway Home Services Florida Realty Rick Fioretti said, “a quick analysis of price behavior since December of 2015 shows median closed prices leveled out.” Several broker experts agreed with Fioretti, adding that the pricing trend is a natural reaction to the increase in inventory.
“I think we’re seeing the completion of a cycle that began in 2013,” said Cindy Carroll, SRA, with the real estate appraisal and consultancy firm Carroll & Carroll, Inc. “Prices have remained relatively stable for over a year, and now I’m noticing more competitive value-based pricing as the supply increases.”
Carroll remarked that her business encounters a small herd of listings that are still not moving, and believes ongoing increases in inventory over the next six months will require these sellers to adjust their value perceptions. “The list to sale price ratio is shrinking and this needs to continue if we want to compete with new home construction.”
“If it’s overpriced, then the property sits,” said Dominic Pallini, Broker at Vanderbilt Realty, who went on to say that days on market decreased 12 percent in the $2 million and above price category, but overall, there was a 10 percent increase in days on market. “Pricing is critical now more than ever.”
While both pending and closed sales decreased 14 percent (quarter over quarter), inventory continued to rise in all areas of Collier County during the 3Q of 2016. Overall, inventory rose 40 percent to 5,044 homes in the 3Q of 2016 from 3,606 homes in the 3Q of 2015; with a marked increase in Central Naples, which rose 49 percent to 608 homes in the 3Q of 2016 from 408 homes in the 3Q of 2015.
Inventory increases in the condominium market were also remarkable during the third quarter of 2016. This home type experienced a 53 percent increase in inventory to 2,375 condominiums in the 3Q of 2016 from 1,557 condominiums in the 3Q of 2015.

The NABOR® 3Q 2016 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® 3Q 2016 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:

CATEGORIES
3Q 2016
3Q 2015
CHANGE
Total homes under contract (pending sales)
1,942
2,270
-14%
Total closed sales 1,889 2,187 -14%
Median closed price $312,000 $300,000 4%
Total active listings (inventory) 5,044 3,606 40%
Average days on market 86 78 10%
Single-family closed sales 1,001 1,123 -11%
Single-family median closed price $382,000 $379,000 1%
Single-family inventory 2,669 2,049 30%
Condominium closed sales 888 1,064 -17%
Condominium median closed price $241,000 $235,000 3%
Condominium inventory 2,375 1,557 53%
“Only 23 percent of homes for sale under $300,000 are single-family residences,” said Brenda Fioretti, Managing Broker at Berkshire Hathaway HomeServices Florida Realty. “When it’s priced right, it sells.”
NABOR® also released its September 2016 Market Report, which showed activity in September 2016 compared to activity in September 2015 was a mixed bag. For example, while overall pending and closed sales decreased 12 and 19 percent, respectively, median closed prices held steady or decreased in 73 percent of the market in September. In fact, median closed prices for all homes above $500,000 decreased, with a 12 percent decrease occurring in the $2 million and over price category.
“While this year’s summer activity at the high end was no match to last year’s ‘banner year’ pace, we have started to experience a slight uptick in interest and inquiries this month when compared to last month,” said Richard Prebish, II, Broker Associate at William Raveis Real Estate. “I anticipate there will be some more great opportunities at reasonable prices being introduced to the high end marketplace in the coming months.”

The NABOR® September 2016 sales statistics are also presented in chart format, including these overall (single-family and condominium) findings:

CATEGORIES
September 2016
September 2015
CHANGE
Total homes under contract (pending sales) 661 749 -12%
Total closed sales 566 703 -19%
Median closed price $318,000 $310,000 3%
Total active listings (inventory) 5,044 3,606 40%
Average days on market 92 79 16%
Single-family closed sales 301 381 -21%
Single-family median closed price $378,000 $375,000 1%
Single-family inventory 2,669 2,049 30%
Condominium closed sales 265 322 -18%
Condominium median closed price $245,000 $235,000 4%
Condominium inventory 2,375 1,557 53%