Naples Area Real Estate News & Market Trends
by Robert Nardi

Robert L. Nardi, Broker/Owner of Weichert, Realtors - Paradise Homes (formerly Nardi Realty) provides his perspective on the real estate market, trends, and news for Naples, Florida and the surrounding area each month. To subscribe to Robert's Monthly e-Newsletter click this link.

You’ll find our blog to be a wealth of information, covering everything from local market statistics and home values to community happenings. That’s because, at Nardi Realty, we care about the community and want to help you find your place in it. Please reach out if you have any questions at all. We’d love to talk with you!

June 9, 2024

Market Watch June 2024

Nardi Realty becomes Weichert Realtors® - Paradise Homes

By Robert Nardi
I am pleased to report that Nardi Realty has franchised with Weichert Realtors® and has become Weichert Realtors® - Paradise Homes.  We are still the same real estate company with the same core values and high level of service; all we did was change the name. Weichert Realtors® has over 500 offices worldwide and is a well-known and respected brand. It is a privately held company and a giant "Mom & Pop" real estate firm. It offers tremendous technology and support, which will help my company grow and prosper. I am very excited about this alliance and look forward to the future. If you have any questions, please contact me at 239-293-3592 or by e-mail RobertNardi@aol.com . Now, let's talk about the southwest Florida real estate market.

Because of our rising inventory, April 2024's closed sales increased by 3.8 percent to 999 closed sales from 962 closed sales in April 2023. This appreciation is the first month closed sales have exceeded past years' monthly comparable sales since June 2021. According to the April 2024 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), the 2,365 price reductions in April stimulated sales in the right direction. Growth in inventory does not appear to be slowing down either, as new listings in April increased 16.3 percent to 1,335 new listings from 1,148 new listings in April 2023.

 

Demand for luxury properties has soared, especially in the $500,000 to $1.5 million price category, which increased 68.1 percent compared to April 2023 and occupies the highest number of properties available (2,410) in the current inventory. That said, this area was also where a large majority of properties sold for less than the original list price, as the percentage of list price received decreased to 93.3 percent for single-family homes and 94.8 percent for condominiums. The lower percentage indicates sellers are reducing prices to meet the market.

 

The average monthly inventory in Naples is back to its familiar pre-pandemic level. April's inventory increased 68.1 percent to 5,240 properties from 3,118 in April 2023. The months of supply of homes are up to 7.3 months. Generally, we begin to see prices slide once the month's supply exceeds six months, but we're not seeing this in our market today. Inventory is growing, and prices remain stable. The median closed price for April increased 4 percent to $450,000 from $425,000 in April 2023. However, price adjustments are moving the needle in specific markets. April reported 2,365 price decreases, which decreased the median closed price by 3.2 percent in the single-family home market to $793,750 from $820,000 in April 2023.

 

The NABOR® April 2024 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary ( CLICK HERE )

 

Today's average entry-level price of new construction is around $450,000 in Southwest Florida. The heightened cost to repair or rebuild is a primary factor in rising insurance rates. Yet, with more buyers in Naples paying cash—65.4 percent of all transactions recorded in April—insurance and interest rates may not be as great an obstacle as some assume.

 

What does this mean?

 

Naples appears to be in a little bubble unaffected by rising inventory. Add that to the fact that there is high demand for the luxury market here, and with a large number of cash sales, it continues to move along without much disruption in pricing. Therefore, Naples is a strong and thriving market.

If you are considering buying or selling in southwest Florida, please know that your needs are our top priority. In addition, if you wish to move out of state, in-state, or relocate to another Florida city, our new partnership with Weichert Realtors® can connect you with a Weichert office and a top-notch REALTOR®.

 

Your satisfaction is our goal, and we are here to guide you every step of the way.

 

Please have a safe and enjoyable summer!

Posted in Market Updates
May 13, 2024

Market Watch May 2024

Heading to a Balanced Market

By Robert Nardi
March witnessed a significant shift in the Naples area housing market, with positive trends continuing to attract buyers and sellers. The March 2024 Market Report by the Naples Area Board of REALTORS® (NABOR®), which meticulously tracks home listings and sales within Collier County (excluding Marco Island), revealed a noteworthy 67.6 percent increase in inventory. This surge, from 3,153 properties in March 2023 to 5,283 properties in March 2024, sets the stage for the rest of the report. While home prices continue to appreciate steadily, up 6 percent in March to $649,000 from $612,000 in March 2023, there were also 2,667 price decreases during March, the highest number of decreases reported in over five years. Closed sales in March decreased 14.2 percent to 893 from 1,041 closed sales in March 2023. The report shows that 63 percent of transactions reported in March were cash sales. Naples has a very high cash market. The enduring appeal of Naples to the affluent home buyer, coupled with lower luxury home prices in the Naples area compared to other luxury markets and the steady growth in Naples area property values, is driving sales now more than ever.

 

Buyers purchased 32 homes in the $5 million and above price range, and 126 homes sold in the $1.5 to $5 million price range in March 2024. People were buying anything and everything during the pandemic.  Today, they are looking for homes they desire and locations or communities that can offer their preferred lifestyle. Buyers are now finding more homes to choose from. For example, in the $500,000 to $1.5 million price range, there were 2,404 homes for sale in March 2024, an increase of 71 percent from March 2023 when there were 1,406 for sale in that price category. Pre-sale activity for new, ultra-high-end properties like the Ritz Carlton Residences and Rosewood Residences has been remarkable, reflecting the strong demand for luxury residences. The NABOR® March 2024 Market Report compares single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. NABOR® sales statistics can be easily seen in a chart format ( CLICK HERE ).

Some observations

Market Report Standouts Closed sales of single-family homes in East Naples (east of Collier Boulevard or 34114, 34117, 34120, 34137) continue to outpace closed sales reported in all other areas in Naples. These increased sales result from lower land values, making homes more affordable.

The Naples Beach area (34102, 34103, 34108) reported the highest number of new condominium listings (188) and the highest inventory of condominiums (859) in March. These properties were damaged during Hurricane Ian and have finally been repaired. Owners have decided to put these properties on the market.

The North Naples area (34109, 34110, 34119) reported the highest closed sales of condominiums in March (130). It is an attractive area based on shopping, dining, and proximity to the beach.  As far as amenities are concerned, it is a great alternative to 5th Ave. S. However, it does not have the walkability factor like downtown Naples.

What does this mean?

The market dynamics are shifting, indicating  a move towards  a balanced market.  Increased inventory is coming to the market, addressing the previous shortage and creating a more favorable environment for both buyers and sellers.  It was a brief buyer’s market, then a seller’s market, and now buyers are enjoying choices when they shop. They now can pick and choose.  The interesting part of this increase is that it really has not affected prices.  They are still steadily going up.  More buyers are jumping into the market even though mortgage rates have not moved that much in the past several months.  They have waited and waited; however, they cannot wait any longer.  I know from my own observation within my firm that we had a much better selling season than last year.  People are getting off the fence and purchasing. 

If you should have any questions concerning real estate, please contact me directly at 239-293-3592 or via email at Robert@NardiRealty.com.  

 

Summer is approaching quickly!  I wish everyone a safe Memorial Day holiday.

Posted in Market Updates
April 22, 2024

Market Watch April 2024

Inventory Continues to Increase

By Robert Nardi

The overall median closed price in Naples increased 5 percent to $625,000 in February from $595,188 in February 2023, but there were also 2,264 price decreases reported. Brokers contend that price decreases may indicate sellers shifting from aspirational to realistic market pricing. According to the February 2024 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), closed sales decreased 9.3 percent in February despite a 66.6 percent increase in inventory to 5,139 properties from 3,085 properties in February 2023. February's price decreases demonstrate that REALTORS® are counseling sellers about realistic market pricing. However, some sellers still struggle to accept that the pandemic buying frenzy years with climbing price increases are over. As more new sellers enter the market (up 24.6 percent to 1,668 new listings from 1,336 new listings in February 2023), those sellers with overpriced properties risk missing an opportunity to attract and sell to eager buyers. 

 

There are currently two types of sellers: those who need to sell and those who are aspirational. Aspirational sellers are chasing the market now. They started with an unheard price and continue to lower their prices because they will not sell. This factor is also increasing days on market [DOM]. This appearance of "chasing the market" makes it appear as prices are falling. The true picture is that the property is adjusting to the correct market price.

 

Some good news! The Naples real estate market is becoming more favorable for buyers looking for properties under $300,000. The February Market Report revealed a staggering 103.4 percent increase in inventory in this price range. This significant rise in inventory, compared to a year ago, presents a promising opportunity for buyers to find their ideal property.

What is influencing property sales for buyers? Property insurance rates, condominium maintenance fees, homeowners' association fees, interest rates, inflation, and roof age. If a shingle roof is 15 years old, a yearly inspection is required by an insurer until it reaches 20 years old. Once a roof reaches 20 years, whether constructed of shingle or tile, it will need to be replaced to keep insurance costs down. Insurance costs at 20 years or older can increase three to four times because the property owner must go to a third property insurer like Lloyds of London. In addition, mandatory milestone inspections for condominium buildings/associations must be completed by 2024. After these inspections, insurance rates and association fees could increase for condominium owners.

 

Last year potential sellers did not want to move because of the interest rates. They have waited a year, and now there is evidence of people accepting the higher interest rates, biting the bullet, and moving on with their lives. The NABOR® February 2024 Market Report compares single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. NABOR® sales statistics are available in chart format ( CLICK HERE ).

 

If you're considering selling your property, I would recommend getting a comparative market analysis (CMA), which I offer for free. You, as the potential seller, can compare prices of homes currently listed along with a comparison of recently sold properties to help determine a realistic market price. This offers the advantage of positioning your listing price accurately to sell successfully. It is all about pricing the home right in this market. Please feel free to contact me at 239-293-3592 or at  Robert@NardiRealty.com .

Whether your are a buyer or seller in the Southwest Florida market, there are opportunities for each.

 

 

Happy Spring, everyone!

Posted in Market Updates
March 11, 2024

Market Watch March 2024

Inventory Growing Fast!

By Robert Nardi

Data in the January 2024 Market Report showed invigorated confidence in the Naples area housing market for sellers and buyers. Overall inventory continued to climb for six consecutive months, resulting in a 58.8 percent increase in homes for sale in January, or 4,639 properties from 2,921 in January 2023. Fueled by a 29.1 percent increase in new listings year over year, January showings doubled compared to showings reported in December 2023. The first month of the year also saw serious sellers taking action to capture increased buyer attention with 1,804 price decreases, a 122.7 percent increase compared to December’s 810 price decreases. The report showed 6.4 months of inventory for January compared to .9 months in January 2022, when frenzied pandemic buying began to simmer. While pending sales in January decreased 7.5 percent to 1,010 pending sales from 1,092 pending sales in January 2023, pending sales activity for January increased 73.2 percent compared to pending sales activity reported in December 2023.

The January 2024 Market Report also showed that average sales prices decreased 7.8 percent compared to January 2023, partially attributable to the slower pace of luxury sales. Values have increased approximately 60 percent over the last three and a half years in our market, so if there is a small price reduction, most sellers will still enjoy a very healthy profit at the time of the sale.

First-time homebuyers and those seeking homes under $500,000 will be pleased to know that inventory in this price range increased 58.6 percent in January. Inventory for condominiums priced under $300,000 increased 112 percent during the month. Notwithstanding, because Naples is paradise, inventory for condominiums over $5 million increased 182.6 percent in January.

NABOR® January 2024 Market Report compares single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. NABOR® sales statistics are in chart format (CLICK HERE, for all the statistics.

What does this all mean?

A buyer’s intent has shifted from pandemic years of wanting a home in Naples to wanting “the right” home in Naples. With more inventory available, buyers are now considering affordability factors that may influence insurance coverage: the age of the home, the age of the roof, storm protection, claim history, and whether the home lies in a flood zone. If buyers are contemplating an older home, it is best to consider the insurance cost up-front. Ask the seller what they currently pay for insurance. If the home has a 15-year-old shingle roof, it can be insured at a higher rate. In addition, to continue to get insurance each year after that, the roof would need to be inspected and have a “pass.”  After 20 years, the shingle roof would need to be replaced. If it is 20 years old, it can be a challenge for clay tile roofs. Most buyers would need to seek a third-party insurance provider like “Lloyds of London” to insure it, but the insurance cost could increase significantly. Hence, insurance costs are a significant factor when purchasing a home.

If a buyer purchases new construction, it has all the up-to-date hurricane building codes, and insurance coverage is much less. However, most of our new construction is farther southeast and northeast. So, you will be farther from 5th Avenue South, Downtown Naples. 

On the seller side, additional factors influencing list price include mortgage rates, master fees, community fees, social membership obligations, current or future assessments, etc.

On the bright side, our inventory is increasing, and buyers now have many more properties that they could choose from. In addition, Southwest Florida is a fantastic place to live. The glimmering Gulf of Mexico, sunshine, and beaches are superb. Your quality of life is excellent here.

Lastly, to assist with offsetting some of the insurance costs I discussed earlier, if you are a full-time resident, you do not pay state income tax. In addition, Collier County has the lowest real estate taxes in the state. It is only 1.25% of the assessed value of a home. Lastly, with homesteading your property here (your primary domicile), your real estate taxes can only go up 3% of the assessed value for the rest of your life.

 

If you need assistance with purchasing, selling, and renting, please get in touch with me at 239-293-3592 or via e-mail at Robert@NardiRealty.com. You can also perform your searches at BuyNaples.Net. I wish you and yours a fantastic spring!

Posted in Market Updates
Feb. 13, 2024

Market Watch February 2024

Property Inventory Increases

By Robert Nardi

According to the December 2023 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), overall inventory increased 45.9 percent to 3,949 properties from 2,706 properties in December 2022. The report showed consistent monthly increases in inventory during the year, which means more options for buyers in 2024, especially in the condominium market, which reported a 78.7 percent increase in inventory. However, according to broker analysts reviewing the December report, the housing market faced several challenges in 2023: rising interest rates, insurance rates, and inflation. Brokers also point to increased personal travel in 2023 as another reason home sales lagged. As a result, closed sales in 2023 decreased 13.6 percent to 8,816 from 10,206 closed sales in 2022. Despite the challenges, there were seven months in 2023 when new listings increased more than new listings reported in comparative months in 2022. New listings increased 12.1 percent for December to 892 new listings from 796 new listings in December 2022. Interestingly, unlike other industries that experience a price reduction when supply increases, the Naples area housing market enjoyed a 9.7 percent increase in overall median closed price in December to $631,000 from $575,000 in December 2022. In comparison, according to the National Association of Realtors, the median existing-home price in the U.S. increased 4.4 percent to $382,000 from $366,000 in December 2022. 

 

Migration in the eastern part of the Collier County is booming. The land values are lower since it is farther out, so pricing is attractive, giving consumers "a bigger bang for the buck." In 2023, the Immokalee/Ave Maria area was the only geographic area tracked by NABOR® that reported an increase in single-family home closed sales (+34.1 percent). Conversely, the report indicated a 24.8 percent decrease in closed sales for single-family homes near the beach. Nowadays, the cost of homeownership includes a lot more than the sales price of a home. Contributing costs to homeownership are property and flood insurance, association fees, and potential future assessments.

 

The NABOR® December 2023 Market Report compares single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. NABOR® sales statistics are presented in chart format ( CLICK HERE ) for those who like to see all of the statistics.

 

What does this all mean?

 

We did not outperform last year's sales because buyers who had plans to relocate to Florida moved up their timeline. The pandemic convinced many people to buy sooner, so the high sales numbers we enjoyed in 2021 and 2022 were stolen sales from what would have happened in 2023. In 2021 and 2022, interest rates were low, Florida was an open state during COVID-19, we had no state tax, and our weather was a huge draw, which made it attractive to buy then. Now sellers realize that the market has changed, and those "glory days" of selling quickly are over. Hence, that's why a 29.6 percent increase in price decreases in 2023.

 

The good news is that mortgage interest rates have dropped a bit. Because of this rate reduction, the market is loosening, and now, people who have been waiting have decided to sell their property. However, instead of staying in Florida, some are migrating to other states where home prices are lower. 

 

If you need assistance with selling, buying, renting, or looking for a seasonal or annual rental, please feel free to contact me directly at 239-293-3592 or send an email to  Robert@NardiRealty.com . I or one of my team members would be happy to help.

 

If you would like to see your property's potential list price or if you enjoy performing property searches, please go to BuyNaples.net.

 

 

Happy Valentine's Day to all!

Posted in Market Updates
Jan. 14, 2024

Market Watch January 2024

Inventory is Going Up!

By Robert Nardi

Overall inventory of homes in Naples for November increased 38.8 percent to 3,795 properties from 2,734 properties in November 2022. Buyers have not enjoyed a level of choice since September 2020. The month also included 1,080 price decreases resulting in a 3.3 percent decrease in overall median closed price. According to the November 2023 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), data showed the housing market is poised to enjoy healthy winter sales.

The November Report showed 1,080 price decreases, the highest in six months. Price deceleration may be happening in parts of Naples as the overall median closed price dropped to $580,000 from $600,000 in November 2022. As such, November was one of four months this year that reported a decrease in median closed prices. In fact, year-over-year price decreases have not been reported since 2019. Area builders have experienced a much slower fall sales market than what was budgeted for the fall months. Sales were lagging behind monthly budgets by approximately 25 percent, and cancellation rates on contracts have hovered around 20 percent due to the higher interest rates.  Therefore, pending sales (homes under contract) in November decreased 13.8 percent to 661 pending sales from 767 pending sales in November 2022. Closed sales also decreased by 6.1 percent to 537 closed sales from 572 closed sales.

The NABOR® November 2023 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. NABOR® sales statistics are presented in chart format (CLICK HERE ).

While monthly inventory levels for single family and condominiums typically increase and decrease in a similar manner, inventory in the condominium home market in November rose by 74.5 percent compared to a 17.4 percent increase in the single-family home market.

What does this all mean?

The current rise in condominium and the single-family inventory were most likely due to post Hurricane Ian repairs that were finally completed making them available for sale. To add fuel to the fire, interest rates and property insurance rates rose, making the cost of maintaining or keeping a home in Florida a challenge for some property owners. However, the tides are changing, and Buyers have more of an opportunity to purchase at a lower price. In addition, there are many positives to owning in Southwest Florida, especially in Collier County. Collier County has the lowest real estate tax rate in the state.  Your property will be taxed at 1.25% of the assessed value.  Plus, if you homestead your property, you’ll get an additional $25,000 (single) or $50,000 (married) deducted from the assessed value. If you do not live in the City of Naples, you will not have to pay city tax.  Lastly, you pay no state taxes. Those savings could and would outweigh some of the higher expenses owning in the state of Florida.  I know some states charge up to 3% of the assessed value for real estate taxes.  For example, if you owned a $500K home in a state that would charge 3%, your real estate taxes would be $15,000 per year.  In Collier County, your taxes would be $6,250. Lastly, the sales tax in Collier County is 6% which is lower than many other states.  My best advice to you is to work with an accountant or tax attorney and form a plan that could derive tax and savings benefits by purchasing in Southwest Florida. And of course, my firm and I are always willing to assist you in anyway we can.

I just want to wish everyone a very Healthy, Happy, & Prosperous New Year!   

Posted in Market Updates
Dec. 14, 2023

Market Watch December 2023

October 2023 Inventory is Up!

By Robert Nardi

Real estate brokers reviewing the October 2023 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), were encouraged to see a 31.8 percent increase in new listings to 1,231 new listings from 934 new listings in October 2022. The report also showed the median closed price of homes in Naples during October increased 4.5 percent to $580,000 from $555,000 in October 2022. According to broker analysts, these two factors indicate rumors of an extreme market correction were false. They also illustrate renewed seller confidence, which will be good news for buyers seeking more options in the coming months.

October had the highest number of new listings added to the market compared to any October in the last two years. Historically, and according to NABOR®’s monthly market reports, October and January have the highest number of new listings. New listings in October for the condominium market shot up 61.9 percent to 612 new condominium listings from 378 new condominium listings in October 2022. Single-family home new listings in October also increased at a healthy rate of 11.3 percent to 619 new single-family home listings from 556 new single family homes listings in October 2022. Pent up consumer travel during the summer distracted attention away from home sales as the report showed both pending sales (homes under contract) and closed sales activity were lower than pre-pandemic levels reported for October. This can be traced to lower showing activity during the recent summer compared to summer 2022 levels. As such, overall pending sales in October decreased 1.2 percent to 665 pending sales from 673 pending sales; and overall closed sales in October decreased 12.8 percent to 594 closed sales from 681 closed sales in October 2022. Higher days on the market also contributed to lower sales in October.

Sales of luxury properties continue to drive the metrics for the real estate market in Naples. Looking at October’s market report the average closed price of all properties – year to date – in Naples is over $1 million. And compared to last October, there are now 275 homes for sale in the $5 million and above price category, a 55.4 percent increase.

The NABOR® October 2023 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. NABOR® sales statistics are presented in chart format (CLICK HERE) for those of you who like to see all the statistics.

What does this mean?

One factor contributing to a rise in new listings this October was the need for many homeowners to postpone listing their properties for sale last October until damage from Hurricane Ian could be repaired.  Surprisingly, interest rates are not as much an obstacle in Naples as cash sales continue to exceed 50 percent of all our sales, but they are for many northern home sellers who rely on buyers that require financing. There’s talk that some buyers are also sitting on the fence waiting for rates to drop.

I have a listing in Golden Gate Estates.  A beautiful home on 2.34 acres.  We have had the gambit of showings and some offers.  Several “low ball” offers were thrown into the mix.  I think these are investors who want to make a quick buck.  They are hoping there are some distressed sales out there.  So, they go “fishing” and hope to catch “the big one!”  Yet, with this home, we did have a buyer that fell in love with it, but he must sell his home up north before he can purchase in Naples.

The good news for buyers is that the percentage of list price received has decreased 2.7 percent and 3.5 percent in the single-family and condominium market over the past 12 months, respectively. There were also 1,004 price reductions in October, basically a third of all homes for sale. If inventory continues to rise at its current pace, there will likely be more opportunities for buyers to negotiate.

Rental Opportunities

During COVID Florida was booming.  Many people stayed here all year round because they did not want to be in states that sanctioned tougher COVID restrictions.  Now that COVID restrictions have been lifted, not as many people are seasonal renting here. They have an opportunity to rent somewhere else.  For years, my rental department had a waiting list for seasonally rent properties, but that no longer is the case.  This now is having a direct effect on rental prices.  They care coming down for both annual and seasonal rentals.  Therefore, if you are thinking about coming down to Southwest Florida, you would have a nice selection of rentals to choose from.  If you have any interest, please feel free to contact Sheri Martin, my Rental Administrator at 239-571-6189 or send her an e-mail at sheri@teamonesource.com.

 

I wish you Happy Holidays and a very Healthy, Happy and Prosperous New Year!  2024, where has time gone?

Posted in Market Updates
Nov. 12, 2023

Market Watch November 2023

Inventory is Rising!

By Robert Nardi

New listings in Naples during September increased 27.3 percent to 937 new listings from 736 new listings in September 2022, making pre-season buyers very happy. According to the September 2023 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), overall inventory continues to increase. For September, inventory for the single-family home and condominium markets increased 13.2 percent to 2,793 properties from 2,468 properties in September 2022. The report also demonstrated that pre-season homebuying is starting earlier every year as pending sales (homes under contract) in September increased 18.7 percent to 735 pending sales from 619 in September 2022 and 687 in September 2019 (pre-pandemic). The median closed price in September increased 3 percent to $571,500 from $555,000 in September 2022. Interestingly, the September report indicated 723 price reductions compared to 80 monthly price increases. Therefore, September was a great month to purchase a home in Naples based on the price reductions and the increased inventory.

 

What does this mean?

 

The report showed that September's average closed price increased by over 13 percent (month over month). While appreciation rates decelerate across all markets, Naples continues to command top values for quality properties. The NABOR® September 2023 Market Report compares single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. NABOR® sales statistics are presented in chart form (CLICK HERE ) for those who would like to see all the numbers.

 

I looked at the current active inventory in November 2023, and we have just over 3,480 units. This inventory is up from last month's inventory of 2,900 units. In an even market, active listings should be around 6000. I believe the growing number of actives is because our "Days on Market" is increasing. Hence, the reason why in September 2023, there were 723 price reductions. The inventory is not moving as quickly as in the past. Buyers are hesitant to buy because there are a lot of uncertainties out there. They fear higher mortgage rates, whether we are starting a recession (which we are not), two major wars to contend with, and the fear of inflation (which has calmed down considerably). These fears are buyers of homes $1M and below who will most likely seek a mortgage. Higher-end properties are selling because most people pay cash at a higher level. They are not buying a $2M property and mortgaging $1.6 Million at a 7.5% to 8% interest rate. If it were 8% after thirty years, they would pay over $2,600,000 in interest.

 

My best advice is to speak to your local bank or mortgage lender. You may want to consider a 5/1 ARM, which is a type of 30-year mortgage loan that has a fixed interest rate for the first five years (generally a lower rate than a 30-year fixed mortgage) and then adjusts on an annual basis based on market conditions and an additional amount from the lender. It is a hybrid mortgage that combines the features of a fixed-rate loan and a variable-rate loan. The "5" means the number of years with a fixed rate, and the "1" indicates how often the rate adjusts after that.

 

Another thought would be to seek out new construction. Some builders would like to move their product and, in doing so, may offer mortgage rates as low as 5.65%. In addition, with new construction, you may be able to "negotiate" a better price if it is a "spec" home. A "spec" home is when the builder is "speculating" that a buyer will come along and purchase a finished property.

 

If you are interested in selling, buying, or renting, please feel free to contact me directly at 239-293-3592 or send an email to  Robert@NardiRealty.com .

 

 

I wish everyone a Happy and Healthy Thanksgiving! My favorite holiday of the year!

Posted in Market Updates
Oct. 9, 2023

Market Watch October 2023

August 2023 Prices Holding Steady!

By Robert Nardi

Inventory is selling quickly, and prices are stable in the Naples housing market. According to the August 2023 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), closed sales of homes in Naples during August increased 17 percent compared to July closed sales, and 1.9 percent to 702 closed sales from 689 closed sales in August 2022. Brokers who reviewed the Market Report are confident sales during the second half of 2023 could outperform sales during the second half of 2022 unless we experience another major disaster like a hurricane. Another promising factor that supports this expectation is the steady rate of new listings, which increased 2.6 percent in August and contributed to the 7.2 percent increase in inventory for the month. Prices are holding, and we will be near the historical 8% yearly appreciation.

The median closed price in August increased 5.2 percent to $605,000 from $575,000 in August 2022. However, according to the August report, activity in the condominium market fueled many of the increases reported. As such, there was a 7.7 percent increase in the median closed price in the condominium market compared to a 2.2 percent decrease in median closed sales price for the single-family home market; a 10.1 percent increase in new condominium listings compared to a 3 percent decrease in new single-family home listings; and a 25.5 percent increase in condominium inventory compared to a 3.7 percent decrease in single-family home inventory. The report showed 54 days on the market compared to 31 days in August 2022.

The NABOR® August 2023 Market Report compares single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. NABOR® sales statistics in chart format (CLICK HERE) for those who want to see all the data.  

What does this all mean?

It means that Naples, FL, continues to be resilient even after having a major hurricane last year and with mortgage rates climbing. The real reason prices are holding steady is because of our lower inventory. Naples' housing inventory currently has 2880 properties for sale. An even market would be hovering around 6000 properties for sale. Demand continues to occur here, just at a lesser pace. Less demand and inventory equate to prices holding steady. Why is there less inventory? People are "stuck" in their current properties because they have a low mortgage interest rate. Most interest rates for years were between 2.75% and 3.25%. Their mortgage payment would double if someone wanted to move for an extra bedroom or a third-car garage. Most people can't afford that. Plus, since the hurricane, it has been a challenge to find insurance, and if you did find insurance for a new property, it would be higher than what you are currently paying. Let's face it: the only people who are moving are the ones that have to based on life changes. Some of those life changes are newborns, divorce, death, and the elderly who can no longer live alone. Older adults have the best advantage because they have owned their homes for years and most likely have accumulated much equity. In addition, there certainly are plenty of 55-plus communities here. There is a wide variety they could choose from. These communities are all different and allow an array of living packages. There could be a "buy-in" and rent like an apartment. Another could be a much larger "buy-in," they build the property to suit, but it reverts to the community upon death. The last one is you buy a fee simple property. If death occurs or you decide to move, you can sell the property.

Seasonal Rentals

Summer and seasonal rentals have been slower than in the past. For years, with COVID-19 rearing its ugly head, many people chose Florida as a destination. For the most part, we were an open state with many outdoor dining opportunities, and people could be social and not wear masks like the rest of the country. We had an increasing number of bookings for both seasonal and summer rentals. No one wanted to be in their home state due to COVID-19 restrictions. COVID-19 mandates started disappearing at the beginning of 2023. When the summer of 2023 approached, we realized that bookings for both summer of 2023 and seasonal rentals for 2024 were down significantly. Why? No more COVID-19 mandates preventing people from traveling. They wanted to venture out and do something different. I am sure you noticed everyone went to Europe this summer; Italy was the most prevalent vacation destination. Since potential tenants now have other options to travel, along with the hike in seasonal rental costs, the demand for seasonal rentals has lessened. 

If you are considering buying, selling, or renting, don't hesitate to contact me with any questions. You can call me directly at 239-293-3592 or send an e-mail to Robert@NardiRealty.com.

Happy Fall! 

Posted in Market Updates
Sept. 15, 2023

Market Watch September 2023

SW Florida - Slow & Steady Market

By Robert Nardi

While much of America grapples with unfamiliarly high interest rates that have stalemated the resale home market, broker analysts reviewing the July 2023 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), point to data that shows home sales activity in Naples has remained steady for the past year despite several interest rate increases. Yet, even as cash sales for homes in Naples decreased from 66.7 percent in January to 53.5 percent in July, the overall median closed price of homes in the first seven months of 2023 has continued to increase compared to most months in the first seven months of 2022.

 

The July Market Report's total sales data showed 81 fewer homes sold in July than in July 2022, an 11.9 percent decrease to 600 closed sales from 681 closed sales. On the other side of the spectrum, pending listings (homes under contract) in July increased 6.3 percent to 798 pending listings from 751 pending listings in July 2022, which illustrates our market's steadiness. Also, the percentage of list price received this July is steady at 96.1 percent compared to 97.9 percent in July 2022. In July, days on market increased 115.4 percent to 56 days from 26 days in July 2022, the lowest reported in the history of NABOR®'s Market Reports. Incidentally, before the pandemic, days on market averaged over 100 days (104 days in July 2019).

 

New listings in July decreased 15.4 percent to 810 new listings from 957 new listings in July 2022. Before the pandemic, new listings supplemented an already very healthy inventory level. Data showed 5,200 properties for sale in Naples in July 2019 compared to 2,583 properties listed for sale in July 2023. But while new listings, closed sales, and pending sales activity have almost returned to 2019 levels, overall inventory has not. As inventory faded away during the homebuying frenzy of the pandemic years, median closed prices rose by over 50 percent. In July 2019, the median closed price in Naples was $325,000. But in July 2023, the median closed price increased 9.2 percent to $595,000 from $545,000 in July 2022.

 

The NABOR® July 2023 Market Report compares single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. NABOR® sales statistics chart ( CLICK HERE ) presents all data.

 

What does this mean?

 

The July report shows we are in a steady market with lower inventory. Prices are stable, and the market is not on "shaky ground." To add to the steadiness, Hurricane Idalia was a non-event for Southwest Florida. Whew!

 

Back-on-market properties

 

An interesting finding in the July statistics is that 199 pending listings returned to the market in July. So potential Buyers should look at this as an additional opportunity. Why did these properties come back on the market? Some Buyers, even though pre-approved for a mortgage, are denied after their paperwork is submitted/processed by their lender's underwriting division. If the sales contract has a mortgage contingency, the lender issues a denial letter to the Buyer to present to the Seller, and the Buyer's escrow funds are refunded. Another way for a property to come back on the market is when a Buyer and Seller cannot come to terms with fixing non-working items discovered in the inspection period. In Naples, you have the NABOR® sales contract and the NABOR® AS-IS sales contract. In the NABOR® contract, you inspect the property and present all non-working items to the Sellers to fix. As a Buyer, you can ask for remedial action or get estimates and request a credit at closing for fixing non-working items. If the Seller refuses to fix anything or give a credit at closing, the Buyer can cancel the contract and receive their escrow monies back.

 

With the NABOR® AS-IS contract, you have a specific time frame for inspections, generally a 15-day period, and you have the right to cancel for any reason. Maybe the Buyer found another property that met their needs better. Maybe the Buyer got cold feet. With an AS-IS contract, you can walk away for any reason, cancel the contract, and receive your escrow monies back.

 

If you have any questions or need assistance with buying, selling, contracts, etc., please call me directly at 239-293-3592 or email me at  Robert@NardiRealty.com. I would be happy to help.

 

Please feel free to use  BuyNaples.net  for your property searches. We allow users to "drill down," providing many criteria you can search on compared to other real estate websites.

 

Have a wonderful "beginning to fall!"

Posted in Market Updates