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NABOR October 2018 Market Report

Naples, Fla. (November 16, 2018) – Closed sales of homes in the Naples market grew 20 percent to 674 sales in October 2018 compared to 561 sales in October 2017. The last few months have seen not only a return to a steady housing market for Naples since Hurricane Irma, but also an increased buyer appetite for homes in Collier County. We are pleased to report that inventory during October jumped 20 percent to 5,992 homes – the highest October inventory level since 2012 – which is good news for buyers according to leading broker analysts who reviewed the October 2018 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island).

While buyers struggle to find inventory in other highly desirable locations across the country, this is not the case in Naples. “We have almost 7.5 months of inventory,” said Bill Coffey, Broker Manager of Amerivest Realty Naples. “In fact, inventory for single-family homes under $300,000 grew by 79 percent to 483 homes in October!”
Cindy Carroll, SRA, of Carroll & Carroll Appraisers & Consultants, LLC, believes the spike in inventory during October is a reflection of the market’s recovery after Hurricane Irma in September 2017. “There are some neighborhoods where I still see an oversupply in the spec home market, but I’m also seeing inventory begin to tighten in very desirable areas west of U.S. 41.”
Historically, inventory begins to increase in October in preparation of seasonal visitors entering Naples’ prime home-selling season. According to Jeff Jones, Managing Broker for Engel & Völkers Naples and Bonita Springs offices, “About 10 percent of the new inventory in our MLS during October was new construction. A good portion of this building is taking place in East Naples [Eastern Collier County], which had the highest single-family home inventory reported in October. Builders also tell me that over 80 percent of their inventory is sold by REALTORS® rather than the builders’ sales staff.”
Overall pending sales for October were up 17 percent with the $1 to $2 million price category reporting the highest increase (39 percent) for the month compared to October 2017.
The October report also showed the overall median closed price increased 1 percent to $344,000 from $342,000 in October 2017; but went down 1 percent for homes priced over $300,000 to $475,000 from $480,000 in October 2017. Interestingly, the median closed price in the Naples Beach area decreased 13 percent in October to $595,000 in October 2018 from $682,000 in October 2017. However, in the 12-months ending October 2018, the median closed price rose 4 percent to $344,000 from $330,000 in the 12-months ending October 2017. In the Naples Beach area, the median price rose 4 percent in the 12-months ending October 2018 to $790,000 from $763,000 in 12 months-ending October 2017.

The NABOR® October 2018 Market Reports provide 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 October 2018 NABOR® sales statistics are presented in chart format, including these overall 3Q (single-family and condominium) findings:

CATEGORIES
Oct 2017
Oct 2018
CHANGE
Total homes under contract (pending sales) (month/month)
623
730
+17%
Total closed sales (month/month)
561 674 +20%
Median closed price (month/month)
$342,000 $344,000 +1%
Median closed price >$300K (month/month)
$480,000 $475,000 -1%
Total active listings (inventory)
5,010 5,992 +20%
Average days on market
104 93 -11%
Single-family closed sales (month/month)
301 366
+22%
Single-family median closed price (month/month)
$425,000 $426,000 0%
Single-family inventory
2,432 3,177 +31%
Condominium closed sales (month/month)
260 308 +18%
Condominium median closed price (month/month)
$250,000 $265,000 +6%
Condominium inventory
2,578 2,815 +9%
Added Carroll, “In addition to predictions that our inventory will continue to increase as we approach the winter season, giving home buyers more choices, we also saw the passing of Amendment 2, which put a permanent cap of 10 percent on annual non-homestead property assessment increase, keeping a reasonable protection for home owners in place. Along with a trend for home sellers to price properties realistically, these factors should inspire even more buyers of second-home properties in the coming months to make their purchase decision this season while all these factors work in their favor.”
Increased inventory is expected to lead to increased sales. Higher volume sales during our peak selling months during season is important for both homebuyers and sellers. For home buyers, it means a higher likelihood of finding the right property. For home sellers, it means shorter marketing time and a higher likelihood of finding a buyer.

NABOR September 2018 Market Report

Naples, Fla. (October 19, 2018) – One year after Hurricane Irma, overall closed sales in Naples increased 62 percent to 644 homes in September of 2018 compared to 398 closed sales of homes in September of 2017. According to broker analysts, this impressive increase in month over month sales is a result of the effect of the hurricane when homes sales halted following the massive storm.

“The September Market Report shows how resilient and desirable our market is,” said Lauren U. Melo, PA, Licensed Real Estate Broker with Florida’s Realty Specialists. “A three percent increase in pending and closed sales, year over year, is strong considering the reduced sales activity during the troubled period following the hurricane. This was when many sellers were making repairs caused by the hurricane. The September statistics show that our market is in a good position to see positive activity for the fourth quarter.”

Overall pending sales in the third quarter are up 20 percent, closed sales are up 13 percent, the median closed price is up 3 percent, inventory is up 4 percent, and the days on market decreased 1 percent; all indicators that the third quarter real estate market in Naples remains strong.
“Luxury properties are driving the market in the third quarter,” remarked Coco Amar, Managing Broker of John R. Wood Properties. “Third quarter pending sales in the $1 million to $2 million price category are up 18 percent and in the $2 million+ category they are up 50 percent compared to the pending sales in the third quarter of 2017.”
According to the 3Q 2018 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), closed sales of homes between $300,000 and $500,000 increased at a higher rate (24 percent) than other price categories during the third quarter. Sales of homes between $1 million and $2 million increased 18 percent to 122 homes for the third quarter of 2018 from 103 homes for the third quarter of 2017. Overall closed sales in the $2 million price category increased 20 percent in the third quarter of 2018 to 79 properties from 66 properties sold in the third quarter of 2017.
Most remarkable in the 3Q Market Report was the strong activity in the condominium market where pending sales increased 21 percent and closed sales increased 20 percent compared to the third quarter of 2017. The single-family home market also saw a strong increase in overall pending sales activity which was up 20 percent and its closed sales activity was up 6 percent.
“Even though the overall median closed price for the 12-months ending September 2018 increased 5 percent to $344,000 from $329,000, median closed prices for homes below $1 million saw no change in price, compared to 12-months ending September 2017,” said Brenda Fioretti, Managing Broker at Berkshire Hathaway HomeServices Florida Realty. “In fact, only homes priced between $1 million and $2 million in the 12-months ending September 2018 saw an increase, which was 3 percent to $1,375,000 from $1,340,000. The median closed prices for homes over $2 million decreased 4 percent year over year to $2,991,00 from $3,100,000.”

The NABOR® September and 3Q 2018 Market Reports provide 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® sales statistics are presented in chart format, including these overall 3Q (single-family and condominium) findings:

CATEGORIES
3Q 2017
3Q 2018
CHANGE
Total homes under contract (pending sales) (quarter/quarter)
1,675
2,014
+20%
Total homes under contract (pending sales) (year/year)
9,146
9,424 +3%
Total closed sales (quarter/quarter)
1,803 2,032 +13%
Total closed sales (year/year) 8,885 9,130 +3%
Median closed price (quarter/quarter)
$320,000 $330,000 +3%
Median closed price (year/year)
$329,000
$344,000
+5%
Median closed price >$300K (quarter/quarter)
$498,000 $478,000 -4%
Median closed price >$300K (year/year) $512,000 $517,000 +1%
Total active listings (inventory)
4,608 4,776 +4%
Average days on market
99 98 -1%
Single-family closed sales (quarter/quarter)
927 979
+6%
Single-family closed sales (year/year) 4,351 4,409 +1%
Single-family median closed price (quarter/quarter)
$418,000 $419,000 0%
Single-family median closed price (year/year)
$410,000
$435,000
+6%
Single-family inventory
2,314 2,495 +8%
Condominium closed sales (quarter/quarter)
876 1,053 +20%
Condominium closed sales (year/year) 4,534 4,721 +4%
Condominium median closed price (quarter/quarter)
$248,000 $251,000 +1%
Condominium median closed price (year/year)
$265,000
$265,000
0%
Condominium inventory
2,294 2,281 -1%
According to Jeff Jones, Managing Broker for Engel & VölkersNaples and Bonita Springs offices, “Sales activity in East Naples was impressive during the third quarter. This geographic area saw an increase of 21 percent in its closed sales and an increase of 16 percent in its inventory compared to the third quarter of 2017!”

NABOR August 2018 Market Report

Naples, Fla. (September 14, 2018) – Closed sales of properties during August increased 5 percent to 719 homes from 685 homes in August 2017 according to the August 2018 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). Inventory during August also rose by 2 percent and was driven by a surge of 218 more properties added to the market in the two lowest price categories reported, compared to August 2017.

“I’m really encouraged by activity in the lower end of the market during August,” said Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., who, along with several broker analysts reviewing the August Market Report, thinks we’ll continue to see an uptick in inventory through the end of the year. “Historically, August is where we begin to see an increase in inventory as sellers get ready for our busy winter season.”

Hughes went on to point out that the majority of the new inventory in August appeared in the single-family home market for properties below $500,000. Yet interestingly, closed sales during August were driven by activity in the condominium market, which experienced a 21 percent increase.

According to Jeff Jones, Managing Broker for Engel & Völkers Naples and Bonita Springs offices, “If you look at year over year numbers, the upper end continues to drive our market.” As such, pending and closed sales of properties above $1 million increased by double digits, year over year ending August 2018.
As to whether heightened Red Tide activity affected the Naples housing market in August, Bill Coffey, Broker Manager of Amerivest Realty Naples, responded by stating, “There were only 14 fewer pending sales in August compared to last year. And remember, we are still working with only 11 months of data since Hurricane Irma essentially halted activity for nearly a month last year.”
Overall pending sales in August fell 3 percent; but pending sales of condominiums in the $500,000 to $1 million price range soared 28 percent in August. And pending sales for single family homes above $300,000 increased as well, with an impressive 62 percent increase for single family homes in the $2 million and above price category.

The NABOR® August 2018 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® August 2018 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:

CATEGORIES
August 
2017
August 2018
CHANGE
Total homes under contract (pending sales) (month/month)
829
806
-3%
Total closed sales (month/month)
685 719 +5%
Median closed price (month/month)
$328,000 $319,000 -3%
Median closed price >$300K (month/month)
$510,000 $446,000 -13%
Total active listings (inventory)
4,807 4,913 +2%
Average days on market
95 120 +26%
Single-family closed sales (month/month)
378 348
-8%
Single-family median closed price (month/month)
$422,000 $405,000 -4%
Single-family inventory
2,446 2,560 +5%
Condominium closed sales (month/month)
307 371 +21%
Condominium median closed price (month/month)
$250,000 $250,000 0%
Condominium inventory
2,361 2,353 0%
Overall median closed prices fell 3 percent in August to $319,000 from $328,000 in August 2017, and it fell 13 percent for properties above $300,000 to $446,000 from $510,000 in August 2017. The only place prices increased was in the $500,00 to $1 million condominium market, which saw a 13 percent increase to $672,000 from $595,000 in August 2017.
Geographically, the median closed price increased 16 percent for homes in the South Naples area. This increase was reflected in a combined 37 percent increase in the single-family home market and 21 percent increase in the condominium market.
According to Adam Vellano, West Coast Sales Manager, BEX Realty – Florida, “One indication that homeowners were pricing homes to sell in August was apparent in the MLS as 50 percent of the inventory that sold during the month had been on the market for over 100 days.

July 2018 NABOR Market Report

Naples, Fla. (August 24, 2018) – According to the National Association of REALTORS July market report, existing home sales in America decreased for the third straight month as a result of the severe housing shortage that is not releasing its grip on the nation’s housing market.

Conversely, homes sales in the Naples area were up 8 percent in July according to the July 2018 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). The nation has only a 4.3-month supply of home inventory, while Naples has a healthier 6.25-month supply of inventory.
“The Naples area overall median home price increase in July 2018 seems to be the only statistical category where we match national trends,” said Kathy Zorn, broker/owner, Better Homes and Gardens Real Estate Pristine, “Naples saw an 8 percent increase in its overall median closed price in July 2018 compared to July 2017; whereas nationally, median closed prices went up just 4 percent. But median closed prices for properties over $300,000 in the Naples area decreased 2 percent in July 2018 compared to July 2017.”
Interestingly, while July’s overall inventory fell 1 percent to 4,871 properties from 4,928 properties in July 2017, inventory increased 5 percent in the $300,000 and below price category. In fact, inventory for single-family homes in this price category jumped 21 percent in July to 345 from 286 in July 2017.
“There are 1,154 single family homes and 1,722 condos for sale under $500,000 currently,” said Brenda Fioretti, Managing Broker at Berkshire Hathaway HomeServices Florida Realty. “Economists predict home sales in America during 2018 will not be as good as 2017. However, we’re seeing the opposite in the Naples area. Granted our sales were hampered by a hurricane in 2017, but there are no signs that interest in buying a home in Naples this year might drop because of temporary climate or environmental phenomena. We have a healthy inventory, an increase in closed sales, price stability and a decrease in the days on the market compared to July 2017.”
July also saw a huge 39 percent jump in condominium closings in the Naples Beach area. Closed sales for August look strong too in this segment as pending sales for condominiums in the Naples Beach area increased 55 percent in July 2018 over July 2017!
Overall pending sales in Naples were up 11 percent in July, with only one price segment ($500k-$1M) reporting a decrease compared to July 2017.
“Pending sales for luxury condominiums [$2 million and above] in July were up 150 percent,” said Budge Huskey, President, Premier Sotheby’s International Realty. “The strength of the luxury market segment for both single family and condos continued into the summer months, a reflection of sustained confidence among the affluent witnessing the longest economic expansion cycle in the nation’s history and record corporate earnings.”
How buyers are purchasing homes in Naples is very different than the national average home buyer, as well. Cash sales accounted for only 20 percent of home purchases in July nationally. But in Naples, cash sales accounted for 50 percent of all home sales in July.
The NABOR® July 2018 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® July 2018 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:
CATEGORIES
July 
2017
July 2018
CHANGE
Total homes under contract (pending sales) (month/month)
720
796
+11%
Total closed sales (month/month)
682 738 +8%
Median closed price (month/month)
$319,000 $345,000 +8%
Median closed price >$300K (month/month)
$485,000 $474,000 -2%
Total active listings (inventory)
4,928 4,871 -1%
Average days on market
105 93 -11%
Single-family closed sales (month/month)
354 372
+5%
Single-family median closed price (month/month)
$409,000 $435,000 +6%
Single-family inventory
2,552 2,542 0%
Condominium closed sales (month/month)
328 366 +12%
Condominium median closed price (month/month)
$248,000 $255,000 +3%
Condominium inventory
2,376 2,329 -2%
According to Cindy Carroll, SRA, with the real estate appraisal and consultancy firm Carroll & Carroll, Inc., inventory in neighborhoods west of US 41 are beginning to tighten. “I think we can expect some upward price pressure in areas where the inventory supply level is below 4 months, like Pelican Bay.”
Carroll also noted that the number of affordable homes in areas like Golden Gate City and South Naples is growing. “In April 2018, Golden Gate City had a 1.3-month supply of inventory; today it’s at a 3.7-month supply. While a majority are priced on the high end of the $0-$300,000 price category, it might still provide some new opportunities for first-time homebuyers.”
In response to the question of whether home sales will be affected by a longer-than-average red tide occurrence, Huskey responded, “Clearly it’s a situation we are all watching closely, yet currently there’s no reflection in the pace of home sales. While impossible to ignore if at the beach on a day in which it’s more prominent, a block or two east you wouldn’t be aware of any issue and inland sales represent the vast majority of all activity in the market.”

NABOR June 2018 Market Report

Naples, Fla. (July 13, 2018) – Activity in the Naples area housing market during the Second Quarter of 2018 remained steady in comparison to activity during the Second Quarter of 2017. According to the 2Q 2018 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), overall closed sales increased 2 percent to 2,926 properties in the 2Q of 2018 from 2,880 in the 2Q of 2017. But in the $2 million and above single-family home market, closed sales rose 25 percent in the 2Q of 2018, which-along with other market indicators-leads many broker analysts to believe that interest in luxury homes will remain in high demand.

Available inventory at the end of the 2Q of 2018 was 5,165 properties, just 24 units behind the inventory level at the end of the 2Q of 2017 (5,189 properties). “This tells me that homes are coming onto the market at the same rate we are selling them,” said Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc.
Inventory rose 15 percent in the $2 million and above condominium market during the 2Q of 2018, which may be a factor in the uptick of pending sales in the luxury condominium market as it rose 32 percent during the 2Q of 2018.
“Inventory in other parts of the state and nation are stretched thin, hovering between 3 and 4 months of inventory, but Naples enjoys almost 7 months of inventory,” said Budge Huskey, President, Premier Sotheby’s International Realty. “What’s even more impressive is that we have such a great selection of homes for buyers despite the recent increase in sales and still having some undergoing repairs from Hurricane Irma.”
“We are seeing a very different sales environment locally from that of 10 years ago when home sales in northern states stalled,” said Coco Amar, a managing broker at John R. Wood Properties. “But now that homes are moving fast up north, sales of high-end single-family homes in Naples are stronger than ever.”
“It’s hard to ignore the increase in interest for ultra-luxury properties,” said Huskey. “A $48.8 million sale for a home in Naples is impressive, but when you learn there was a second potential buyer who was considering the property you know what type of buyers are in the market.”
According to Adam Vellano, West Coast Sales Manager, BEX Realty – Florida, there were four property sales over $10 million during the 2Q. “It’s possible the new tax laws are impacting people’s minds about residency and we’re benefiting from it.”
Brokers analyzing the market report agreed that multiple offers on luxury properties have risen. But whatever factor(s) is driving the increased interest, closed sales of luxury homes over $2 million are positioned to rise again as the stage has been set in the 2Q where pending sales in this price category increased 22 percent for single-family homes and 32 percent for condominiums.

The NABOR® Second Quarter 2018 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® Second Quarter 2018 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:

CATEGORIES
2Q 2017
2Q 2018
CHANGE
Total homes under contract (pending sales) (quarter/quarter)
2,770
2,733
-1%
Total closed sales (quarter/quarter)
2,880 2,926 +2%
Median closed price (quarter/quarter)
$340,000 $345,000 +1%
Median closed price >$300K (quarter/quarter)
$535,000 $510,000 -5%
Total active listings (inventory)
5,189 5,165 0%
Average days on market
97 96 -1%
Single-family closed sales (quarter/quarter)
1,349 1,395
+3%
Single-family median closed price (quarter/quarter)
$418,000 $449,000 +7%
Single-family inventory
2,654 2,601 -2%
Condominium closed sales (quarter/quarter)
1,531 1,531 0%
Condominium median closed price (quarter/quarter)
$282,000 $270,000 -4%
Condominium inventory
2,535 2,564 +1%
The real estate market’s stability during the 2Q also extended to its median closed prices which increased only 1 percent to $345,000 in the 2Q of 2018 from $340,000 in the 2Q of 2017. However, despite increased sales in nearly every price category for properties priced above $300,000 during the 2Q of 2018, the median closed prices for properties above $300,000 decreased 5 percent!
As pointed out by Vellano, sales of single-family homes near Naples Beach and in the expanding North Naples area saw the greatest increase during the 2Q, and condominium sales in Central Naples outpaced all other home type sales during the 2Q. “According to the report, we averaged 30 transactions a day during the 2Q,” said Vellano. “That’s good news for REALTORS® as we move into the summer months.”

NABOR May 2018 Market Report

 

NABOR Market Report April 2018

 

July 2017 NABOR Market Report

Naples, Fla. (August 25, 2017) – 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 released by the Naples Area Board of REALTORS® (NABOR®), which track home listings and sales within Collier County (excluding Marco Island), 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.
Bill Coffey, Broker Manager of Amerivest Realty Naples, pointed out, “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.
Many broker analysts reviewing the July report agreed that an increase in conventional sales (homes purchased with financing) is a good sign that first-time homebuyers are gaining a foothold in the market. As such, the July Market Report showed total closed sales were split almost equally between cash sales and conventional sales.
Kathy Zorn, broker/owner, Better Homes and Gardens Real Estate Pristine, said she is 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. “The median closed price went down 16 percent for condos in this $500,000 to $1 million price category. I believe this is a reflection of smart pricing strategies finally taking hold.”
For months, broker analysts and NABOR® have warned against setting unrealistic pricing, a strategy that Dominic Pallini, NABOR® President and Broker at Vanderbilt Realty, said 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.”

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

CATEGORIES
July 2016
July 2017
CHANGE
Total homes under contract (pending sales)
681
720
6%
Total closed sales
627 682 9%
Median closed price
$300,000 $319,000 6%
Median closed price >$300K
$524,000 $485,000 -7%
Total active listings (inventory)
4,801 4,928 3%
Average days on market
75 105 40%
Single-family closed sales
323 354 10%
Single-family median closed price
$375,000 $409,000 9%
Single-family inventory
2,565 2,552 -1%
Condominium closed sales
304 328 8%
Condominium median closed price
$245,000 $248,000 1%
Condominium inventory
2,236 2,376 6%
Geographically, pending and closed sales activity in South Naples in July outperformed all other areas, showing a 36 and 35 percent increase, respectively. With respect to property type, single-family homes in North Naples saw the most impressive activity in its pending and closed sales (23 and 45 percent, respectively); possibly as a result of a 14 percent decrease in its median closed price and a 3 percent decrease in its inventory.
“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.”

June 2017 NABOR Market Report

Naples, Fla. (June 16, 2017) – Record-breaking rain fall in June did not dampen buyer interest in the Naples housing market as evidenced in the Second Quarter and June 2017 Market Reports released by the Naples Area Board of REALTORS® (NABOR®), which track home listings and sales within Collier County (excluding Marco Island). The 2Q report showed strong and steady sales activity leading into summer with a 7 percent increase in overall closed sales to 2,880 closed sales in 2Q 2017 from 2,704 closed sales in 2Q 2016, and a 9 percent increase in overall closed sales for the month of June to 907 closed sales from 832 closed sales in June 2016.

There were many remarkable areas of activity in the 2Q Market Report. For example, condominiums in the $2 million and above price category saw an 86 percent increase in closed sales and a 38 percent decrease in median closed price in 2Q 2017 from 2Q 2016. Similarly, pending sales (homes under contract) in the North Naples market increased 20 percent during 2Q 2017 from 2Q 2016, and was the only geographic area that reported a decrease in median closed price (-1 percent).
“The North Naples area is making a big turnaround,” said Coco Amar, a managing broker at John R. Wood Properties, “Especially in the condominium market which had the highest pending and closed sales reported.”
As reflected in the 2Q Market Report, pending sales of condominiums in North Naples increased 30 percent to 428 condominiums in 2Q 2017 from 329 condominiums in 2Q 2016. Closed sales of condominiums in North Naples increased 29 percent to 463 condominiums in 2Q 2017 from 358 condominiums in 2Q 2016. Condominium sales moving into summer look very good for North Naples too as June’s Market Report showed a 30 percent increase in pending sales.
Overall inventory during the 2Q of 2017 rose a respectable 4 percent to 5,189 homes in 2Q 2017 from 4,983 homes in 2Q 2016. According to Bill Coffey, Broker Manager of Amerivest Realty Naples, inventory during the 2Q was “getting eaten up by sales.” This is very evident in the Report for homes in the $2 million and above price category, which only saw a 1 percent increase in inventory, yet a 43 percent increase in closed sales.
Despite a 12 percent increase in inventory for the $300,000 and below price category, there was a 4 percent decline in overall closed sales in this low-end price category. Interestingly, while inventory for condominiums in the $300,000 and below price category saw the highest increase (17 percent) in the 2Q of 2017, the number of closed sales for condominiums in this category did not change quarter over quarter.
“Buyers struggling to find homes under $300,000 in the single family market are turning to condominiums or coach homes as an alternative,” said Steve Barker, Advising Broker for Equity Realty. “Even so, as it stands today, there is only 2.4 months worth of inventory available in the under $300,000 single-family home market, and 4.2 months worth of inventory available in the under $300,000 condominium market.” In response, many broker analysts remarked that slack sales in the low end of the market might be due to the imminent burden of additional costs beyond the sale price such as high condominium association and/or club membership fees.
The NABOR® Second 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® 2Q 2017 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:
CATEGORIES
2Q 2016
2Q 2017
CHANGE
Total homes under contract (pending sales)
2,541
2,770
9%
Total closed sales
2,704 2,880 7%
Median closed price
$325,000 $340,000 5%
Median closed price >$300K
$540,000 $535,000 -1%
Total active listings (inventory)
4,983 5,189 4%
Average days on market
76 97 28%
Single-family closed sales
1,263 1,349 7%
Single-family median closed price
$421,000 $418,000 -1%
Single-family inventory
2,674 2,654 -1%
Condominium closed sales
1,399 1,531 9%
Condominium median closed price
$259,000 $282,000 9%
Condominium inventory
2,309 2,535 10%
Closed sales in the $2 million and above price category are poised to remain strong through the summer as this category experienced a 30 percent increase in pending sales during the 2Q of 2017. One explanation for the burst in closed sales activity for the $2 million and above condominium market was given by Amar, “It appears sellers in the high end of the market are coming around to the idea that a realistic price will sell a property faster. The 38 percent reduction in median closed price for this category during the second quarter shows we are not only seeing more negotiations, but also that sellers are more willing to accept real market offers.”
Broker analysts reviewing the June 2017 Market Report acknowledged that the first two weeks of June started out a little slow, but the month ended strong with 907 closed sales, up 9 percent from 832 in June 2016. Sales of condominiums on the Naples Beach took center stage in June with a 50 percent increase over June 2016. June’s pending sales activity may set the tempo for a promising summer, as pending sales increased 16 percent in June 2017 from June 2016.
The NABOR® June 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® June 2017 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:
CATEGORIES
JUNE 2016
JUNE 2017
CHANGE
Total homes under contract (pending sales)
720 837 16%
Total closed sales 832 907 9%
Median closed price $315,000 $325,000 3%
Median closed price >$300K $521,000 $499,000 -4%
Total active listings (inventory) 4,983 5,189 4%
Average days on market 82 97 18%
Single-family closed sales 421 434 5%
Single-family median closed price $400,000 $404,000 1%
Single-family inventory 2,674 2,654 -1%
Condominium closed sales 420 473 13%
Condominium median closed price $243,000 $263,000 8%
Condominium inventory 2,309 2,535 10%
At the end of June 2017, the Naples market contained 7.86 months of inventory, which is considered to be normal, indicating that the June market is neither a sellers’ nor a buyers’ market. Inventory has not been this robust for the month of June since 2011.
Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., remarked that the Days on Market increase of 18 percent could be due to overpriced listings. Wes Kunkle, President and Managing Broker at Kunkle International Realty, agreed and said, “With median home prices flattening out in June, there would have been more sales if the homes were priced right.”

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.