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!

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! 

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!"

By Robert Nardi
Broker analysts reviewing the June 2023 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), believe a surge in summer travel contributed to the reduction in home sales in Naples during June. The report showed a 13.6 percent decrease in overall closed sales for the month to 837 closed sales from 969 closed sales in June 2022. Though the dip in closed sales appears temporary and may not linger into July’s closed sales data, overall pending sales (homes under contract) in June increased 0.8 percent to 800 pending sales from 794 pending sales. June’s showings increased slightly from showings reported in June 2022. Fortunately, slow sales in June did not impact home prices as the median closed price reported in June increased 0.4 percent to $602,494 from $600,000 in June 2022.

Overall inventory continues to rise compared to 2022 levels. June had an 8.2 percent increase in comprehensive inventory to 2,659 homes from 2,457 homes. This increase was due to low monthly sales and not because of new listings, which decreased 28.2 percent to 860 new listings from 1,198 new listings in June 2022.

For those of you who like to look at data, please click on the  June 2023 Statistical Data  link to read the entire marketing report.

What does this mean?

Interest rates going up so quickly has made some buyers skittish about entering the market. In addition, they are worried about increasing property taxes and insurance costs. Lastly, they were concerned about inflation and the possibility of a recession. Therefore, the need to purchase ASAP is on the back burner for now. Some good news is that inflation is at a 3% low, and no recession exists. Other good news is that property values are not crashing and burning. The median and average closed prices continue to hold steady.

Some buyers who are watching the market insist that values are decreasing, but the only values that are going down are overpriced properties; usually, they start with an exaggerated price. Sellers were trying to get as much as they could. However, with all the accessible data, buyers have become much more sophisticated. They see the nos. Also, potential buyers are using REALTORS® in a consulting compacity to dig deeper into more comps not readily available to the public.

How about renting for next season?

If you are considering renting for next season, we have some charming rentals available. 

If you wish to rent for next season, January through April 2024, please contact my Rental Administrator, Sheri Martin, at 239-571-6189 or email her at  sheri@teamonesource.com.

Are you thinking about selling or buying?

Please remember that Nardi Realty is a concierge real estate firm where “we treat every customer like our only customer.” We could perform a free Comparative Market Analysis (CMA) and provide a listing price if you are considering selling. We could even put together a “Sellers’ Net.” This Sellers’ Net will allow you to see your bottom line after all expenses.

If you are thinking about buying, please contact me directly at 239-293-3592, via email Robert@NardiRealty.com or perform your own search at www.BuyNaples.net. In this market, you need a firm with years of experience and vast knowledge of the area. A firm like mine knows and can recommend a mortgage company/bank, insurance agent/broker, home inspectors, and contractors.

Well, enjoy the rest of this hot and “sticky” summer! Hopefully, I will see you in the fall!

By Robert Nardi

A slight reduction in overall median closed price and fewer new listings during May indicate a window of opportunity for buyers and sellers in the next few months. According to the May 2023 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), the overall median closed price decreased 1.2 percent to $600,000 from $607,500 in May 2022. There were also 1,045 price decreases and a 31.2 percent decrease in new listings reported during the month.

The May report shows a 3.8 percent decrease in the percent of list price received to 96.3 percent compared to 100.1 percent reported in May 2022. The report showed no month-over-month median closed price decrease for condominiums in May, only a 6.5 percent decrease (month-over-month) in the single-family home market. New listings decreased 31.2 percent to 990 from 1,438 new listings in May 2022. Fewer new listings are putting a strain on the overall inventory of homes, which is still recovering from frenzied buying during the pandemic.

Inventory has increased slowly over the last year, averaging 100 new homes monthly. Overall inventory increased 27.6 percent for May to 2,749 homes from 2,155 homes in May 2022. Pending and closed sales during May decreased 4.4 percent and 20 percent, respectively, compared to last year. The report also showed that we were 150 closed sales short of what sold in May 2019 but with half the inventory.

The NABOR® May 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 in a chart format ( CLICK HERE ) for an in-depth analysis of all the statistics.

What does this all mean?

Demand for homes in Naples has remained strong; however, we are still in a very tight market. Our inventory is increasing but at a prolonged rate. Potential Buyers are waiting for prices to drop, but they are not falling. Sometimes we see a big price drop in properties by $50,000 to $100,000, but that is because the properties were priced too high. Some owners were reaching for the sky, but the market dictates where that price should be. For example, the development Park Shore in Naples, FL, currently has single-family homes that are active on the market and are priced from $2.1M to $25M and have had nine closed sales from April 8th to July 8th, 2023. Those sales ranged from $1.85M to $4.90. Six sales were below $2.275M, and four were between $2.89M and $4.9M. Many homes priced out of these ranges have a high “Days on Market,” which indicates that they are still priced higher than they should be. So, you will see prices dropping, but that is because they were priced higher than the market is dictating.

I currently have buyers that want to be near the water and are ready to pounce on new listings once they appear on the Multi-Listing Service (MLS). I look for new daily listings that fit their criteria and set up automated MLS searches. As you know, “The early bird catches the worm.” Since our inventory is still tight, you want to act quickly on new listings that appear. Most of these buyers are not here, so I, as their real estate agent, must do a “face time” with them and tour the home. If they like what they see, we could put an offer in. Yes, “just from a face time,” but the market still dictates this approach.

Interestingly, homes priced at $500,000 to $800,000 are moving slower than higher-end homes. Why? Because of the higher mortgage rates. The higher interest rates are preventing potential Buyers from moving. Why give up a 2.75% to 3.25% interest rate for a 6.8% interest rate? Their mortgage payment would increase 100% to %150 percent. It just knocks potential Buyers out of the market.

On the other hand, higher-end homes are moving because Buyers who can afford to pay cash are doing so. Moreover, the only people moving are those going through a life event; death, marriage, divorce, new job, and the need to move to a senior facility. Seniors are in the best position to move. Many have owned their homes for years and have built up a large amount of equity. They can now put that equity in a bank/financial institution and earn 5% interest on their monies with no risk. The new senior facilities offer different programs, from a small deposit and rent to a large investment and a monthly maintenance fee. The transition for seniors can be seamless.

Any questions? Please feel free to contact me at 239-293-3592 or via email,  Robert@NardiRealty.com .

By Robert Nardi

The Naples real estate market enjoyed another month of increased home values driven mainly by another month of below-typical inventory levels. According to the area's top real estate brokers, resale home inventory in Naples this year will unlikely spike to levels we enjoyed before the pandemic. However, since 2019, the number of new listings has remained consistent, with most months enjoying an average of between 1,100 and 1,300 new listings. According to the April 2023 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), some findings are:

• Overall inventory increased 64.4 percent to 2,868 homes for sale from 1,745 homes for sale in April 2022.
• The median closed price for single-family homes increased 3.1 percent to $825,000 from $800,000 in April 2022.
• Within the condominium market, the median closed price increased 14.3 percent to $526,000 from $460,000 in April 2022.
• New listings decreased 25 percent to 1,116 new listings from 1,488 new listings in April 2022.

If you wish to see all the statistics, the NABOR® April 2023 Market Report provides price ranges and geographic segmentation and includes an overall market summary in a chart format ( CLICK HERE).

What does this all mean?

Higher mortgage interest rates are slowing property sales in Naples because:
 

• Home buyers are forced out of the market because they cannot qualify for the loan because of the added expense of a larger monthly payment.
• Buyers who wish to purchase Naples’ properties have their homes up for sale in other states but face challenges of selling quickly because of fewer qualified buyers.
• On the selling side in Naples, higher interest rates prevent prospective sellers with a lower interest rate from selling. Sitting on the fence slows the replenishment of inventory and lessons purchasing simultaneously.

In contrast, if you own in Naples, the good news is that your property has typically doubled in value since 2019, providing sellers with a nice profit for their next home purchase. With a hefty down payment, these sellers can minimize their next home's mortgage obligation to make monthly payments affordable, even at a higher interest rate.

Location and Inventory

I moved to Naples 21 years ago, and at the time, all my REALTOR® would tell me is, "You want to be West of 41, nearest to the beach." Apparently, at the time, it was very much in demand. Then in 2004, we had Hurricane Charlie, then in 2005 Wilma, then in 2017 Irma, and then in 2022, finally Ian! When reviewing Naples's inventory, properties off the water and east of 75 are in demand. Of course, after Ian, people are concerned about the storm surge. In addition, a majority of property West of 41 is in a flood zone which would require you to purchase flood insurance if you have a mortgage.

A great example was in January 2019, the neighborhood of Port Royal had 1.3 years of inventory; today, it has 1.3 years. But in January 2019, the Vineyards had ten months of inventory; today, it has less than a month. Even in areas east of Collier Boulevard (SR 951), there are less than four months of inventory.

Some Advice for Buyers

When purchasing a single-family home in Naples, please do your homework. Know the areas you wish to live in and then research a home's insurance and utility costs. In addition, if the property is part of a Homeowners' Association (HOA), verify all paid assessments for Hurricane Ian and, if any, are still coming from the HOA. Lastly, try to get the listed home's Sellers Disclosure which tells you the age of items like the cooling and heating systems, water heater, and roof. Roof age is most important. Many insurance carriers will not insure if a roof is 20 years or older. In the past, an insurance carrier would not issue a homeowner's policy if a roof inspection revealed structural or age issues. However, the new homeowner could sign an affidavit stating they would put on a new roof within a designated time post-closing. Insurance carriers would then insure the property. However, this is no longer an option. As the purchaser, you would have to look for a third-party insurance carrier, i.e., Lloyds of London, to insure your home. Generally, when this occurs, your home insurance would typically double in price.

With a condominium purchase, you would follow the same type of investigation for a single-family home. However, the most significant difference is roof age. Generally, the condominium's structure is managed/maintained by the association. So having a roof over 20 years old would not affect the purchase. However, I would review the association's budget and make sure they have a line item for roof replacement with sufficient balance.

Now more than ever, do your due diligence before purchasing property!

Questions? Please feel free to call me at 239-293-3592 or via e-mail  Robert@NardiRealty.com.

By Robert Nardi

Closed sales of homes in Naples during the first quarter of 2023 exceeded closed sales reported in the first quarter of 2019 (pre-COVID), when inventory levels were nearly three times the current level. According to the March 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 in March increased 92.4 percent to 2,900 properties from 1,507 properties in March 2022. While historically low at 3.6 months of inventory, inventory in Naples has continued to grow since it bottomed out at 0.8 months in December 2021.

 
Closed sales decreased 16.5 percent to 1,017 closed sales from 1,218 closed sales in March 2022, but compared to March 2019, closed sales increased 2.6 percent. Pending sales in March decreased by 14.5 percent to 1,377 pending sales from 1,611 pending sales in March 2022; compared to March 2019, pending sales increased by 22 percent. At the same time, new listing growth was relatively static in the first quarter of 2023. New listings during March decreased by 17.9 percent to 1,369 new listings from 1,667 new listings in March 2022, but compared to March 2019, new listings for the month slipped by only 2.5 percent.  Lastly, driven by the condominium market, which had a 5.9 percent increase in its median closed price, the median closed price in March increased 7.3 percent to $615,000 from $573,000 in March 2022.

The NABOR® March 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 in a chart format ( CLICK HERE ).

What does this mean?

Buyers today are facing high-interest rates, rising property and flood insurance rates, and low inventory levels; these factors are not diminishing demand for those who wish to live in Naples. Even though we have a 3.6-month supply, it should not discourage protentional buyers. It comes down to where the buyer wishes to purchase. Inventory numbers could fluctuate at any time. From all indicators, some areas of Naples could have an over-year supply of homes like Port Royal. My thoughts are that inventory should become available at a faster rate. However, some sellers are still sitting on the fence because they fear a possible recession may impact their home’s value. However, they must realize that what they paid for it twenty years ago is a much smaller number than what they could get now. These sellers would be wise to jump off the fence and toss their property into the ring. It indeed could be a great time to sell!

Searching for a loan

If you wish to purchase in today’s market, there are still a lot of opportunities to find a lower interest rate or find programs out there that could assist you in purchasing. My best advice is to seek out a mortgage broker.

Tell the mortgage broker about your work life and what organizations you work for or have worked for. Are/Were you in the military, a firefighter, or a first home buyer? Some programs could assist you with your down payment, get discounts on the interest rate or do both! The most important tool you can use when you buy a home is a pre-approval letter that lists your rate and what you are qualified for. Therefore, there will be no guessing about what you can afford or not afford. You can buy with confidence.

If you have an investment account, the other possibility is to speak with your financial advisor. With an investment portfolio, you could borrow against it and receive a reduced interest rate than the standard. You would then have to pay monthly, including principal and interest. The interest paid could be deposited directly to your investment account based on loan terms. Therefore, you would be paying yourself the interest! You must ask your financial advisor. The possibilities are endless.

Seasonal Rentals

If you, your friends, or your family wish to book a seasonal rental for 2024, they should do it as quickly as possible to get the best selection for the next season. By this time, many rental agencies know who will or will not be returning next year. If you are interested in booking, please contact Sheri Martin, Rental Administrator for Nardi Realty, at 239-571-6189 or via email at  sheri@teamonesource.com . Lastly, you can always search for your rentals at  www.BuyNaples.Net.  Happy searching and have a fantastic summer!

By Robert Nardi

Buyers in February 2023 had more choices to select properties than in the past. Overall inventory increased 131.4 percent to 2,835 properties from 1,225 properties in February 2022. Broker analysts reviewing the February 2023 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), attribute some of the rise in inventory to Hurricane Ian as many Sellers placed their damaged properties for purchase. February's median close price is the same as January's closed sales price of $600,000. The gap in sales activity year over year continues to close thanks to continued confidence in the Naples real estate market.

Overall pending sales in February decreased 16.8 percent to 1,241 pending sales from 1,480 pending sales in February 2022. Overall closed sales in February fell 17.2 percent to 682 closed sales from 824 closed in February 2022. And showings decreased by 15 percent in February to 36,574 showings from 43,032 showings in February 2022.

The NABOR® February 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 in chart format ( CLICK HERE ) for those who would like to look at all of that statistics.

What does this mean?

Our inventory continues to rise, which gives potential Buyers a more comprehensive selection. However, even though the amount is increasing, it is partially populated by damaged properties from Hurricane Ian that the Sellers have never remedied. They figured that season would be the right time to throw them onto the market. However, Buyers need to investigate the property and the community to evaluate if this property would be a good fit for them.

In dealing with damaged property, you must determine if the Sellers have paid all hurricane assessments to the condominium or homeowners' association. You should request minutes of the board meetings, call the association directly, and ask to speak with someone who manages that association. You'll also want to investigate what the association is responsible for. An association will often be accountable for any drywall damage if it is a condominium. Therefore, receiving a copy of the Bylaws would be crucial before you make an offer on the property.

Lastly, it would be best to determine where the Seller stands regarding an insurance payout. If they received their payout, please consider this when making your offer. In addition, if they have yet to be paid out and are going to be, you may want to negotiate with them to see if they would be willing to assign any insurance monies to you as the Buyer.

And speaking of insurance, you'll need to determine what insurance will cost you concerning hurricanes, wind, and floods. Since Hurricane Ian, the insurance cost has risen significantly; therefore, you may want to use an insurance broker to shop around to get several different insurance quotes. Lastly, since the property is in a damaged state, it will be a challenge for you to obtain a mortgage. You may have to go to a "hard money lender," but you'll pay a much higher interest rate.

All of these are essential factors to consider when purchasing a damaged property.

Seasonal Rentals

Many people this year rented from January 1 through March 31, 2022. With Nardi Realty, we give the current renters "first right of refusal." If they pass, the condominium or home will be available next year. If you are considering renting for next year, contact my Rental Administrator, Sheri Martin, at 239-571-6189 or email her at sheri@teamonesource.com. You'll have a better opportunity to "nab" the rental before they fill up.

Happy Passover and Easter to those of you who celebrate! I hope you have a great spring! 

By Robert Nardi

Evidence of growing confidence in the Naples real estate market revealed itself in January as new sellers entered the sales market. New listings in January rose 74.5 percent compared to December 2022 and 3.2 percent to 1,338 new listings from 1,297 new listings a year ago, according to the January 2023 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). But the rise in home options during January did not stymy home values as median closed prices rose 11.1 percent to $600,000 from $540,000 in January 2022. An even number of single-family homes and condominiums made up the increased inventory. Therefore, Buyers have more options. Closed sales in January decreased 33.8 percent to 555 homes from 839 in January 2022. But the spike in new listings is a good turn of events as they pushed inventory up 122.7 percent to 2,699 properties from 1,212 properties in January 2022. 

Pending sales in January were remarkably higher than pending sales not only in December (682) but also compared to January 2019 (660) and January 2020 (892). Compared to last January's phenomenal sales activity, pending sales decreased 20.5 percent to 1,092 pending sales from 1,373 pending sales in January 2022.

Pent-up demand was evident in January. While showings decreased 20 percent compared to January 2022, they nearly doubled compared to December's reported showings. Of course, another factor contributing to increased contracts (pending sales) during January was the 1,092 price decreases reported for the month, which brought the overall percent of current list price value down to 95.8 percent, a 4.2 percent decrease from 100 percent in January 2022. The first price reductions occurred with investors. They wanted to move their inventory.

The NABOR® January 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 in chart format ( CLICK HERE) for those who like statistics.

What does this all mean?

Buyers have more of an opportunity to purchase with a more considerable inventory. However, depending on the property location, they may still have competing offers. Beachfront or near-the-beach properties are at high demand. It astounds me the number of multiple offers these properties can manifest. What is also apparent is most offers are all cash. We are talking about properties $2 million or less. Paying cash used to be "king," but now everyone is offering it. So, it does not set an offer apart from others. Hence, having an experienced REALTOR® is essential who can create a strategy that will produce an accepted offer.

Interest Rates

Interest rates continue to inch up, and when this happens, it mentally prevents people from making a move unless an incident in life pushes the decision along, like birth or death. Generally, potential Buyers want to avoid making a move because their current mortgage rates are relatively low, generally from 2.75% to 3.75%. The higher interest rates are a deterrent. Luckily, this does not affect Florida like other states because we are primarily a secondary market. Hence, our market continues to push forward while other housing markets in the United States are stalling.

Do you think about a rental for next season?

Having a rental for the season is a great way to "test the waters." It is less expensive than purchasing property and allows people to explore Naples and its surrounding areas. Nardi Realty will be able to start booking rentals for next season starting Mid-April. The reason is that we give the current tenants the "first right of refusal." If they pass on their current rental, it will become available and offered to "next in line." Therefore, if you are interested in seasonal rentals, call Sheri Martin, Rental Administrator, at 239-571-6189. You will be placed on a list and contacted if the rental becomes available. Seasonal rates can go from $4000 to $100,000 monthly (Yes! $100,000 is not a typo). Other expenses include Tourist Tax (any rental less than six months and one day is considered a short-term rental and will be taxed at 12%), application, background check, and cleaning fees.

Enjoy and have a fantastic March! 

By Robert Nardi

In the first year after a two-year interruption in regular activity caused by the COVID-19 pandemic, the Naples real estate market is stable in terms of value. Still, buyers have fewer homes to choose from, and prices have elevated. As pandemic restrictions loosened in 2022, sellers and buyers pivoted their attention from the housing market to the travel market. As a result, and according to the December 2022 and 2022 Annual Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), overall closed sales in 2022 decreased 34.8 percent to 10,156 properties from 15,570 properties in 2021. And while inventory is beginning to rebound, increasing 106.3 percent to 2,465 properties in December 2022 from 1,195 properties in December 2021, broker analysts reviewing the report are uncertain where and when an influx of inventory will arrive to meet our pre-pandemic levels. The report showed only 105 homes for sale below $300,000 in December compared to 1,816 in December 2019. Demand for the Naples lifestyle remained constant in 2022, and low inventory pressed median closed prices upward. The median closed price in December 2022 increased 13.9 percent to $575,000 from $505,000 in December 2021. Looking back at December 2019, the median closed price was $344,255, and inventory was double what it is today.

Demand for homes in 2022 kept REALTORS® busy looking for new listings, which dropped 8.4 percent to 13,577 compared to 14,819 in 2021. Many homeowners, especially those who purchased homes below $300,000 or at low-interest rates, are now unable to afford a change in local address due to the increase in mortgage rates. Then, in the wake of Hurricane Ian, the Naples real estate market pivoted again in the fourth quarter of 2022. Homes that suffered damage fell into two categories depending on their age and the Federal Emergency Management Agency (FEMA) 50 percent rule. (The FEMA 50 percent rule, as part of the National Flood Insurance Program, mandates that if a home incurs substantial damage — determined when repair costs total or exceeded 50 percent of the property's market value. Then, the owner must bring up the property to current building codes and floodplain regulations.) This mandatory rule will affect older homes in the Moorings, Park Shore, and Naples Park areas. The owners may choose not to rebuild and sell the property "As-Is." If this is the case, it most likely will be priced at "land value."

The NABOR® December 2022 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 would like to see all of the statistics.

What does this all mean?

It means, once again, we are moving toward a balanced market. Are people still buying? They are, but at a slower pace which is why inventory is rising. The economic factors affecting our market include fears of inflation and recession and increasing mortgage rates, which are still over six percent on average. In addition, if you factor in insurance, assessments, and taxes, the cost of buying a home today in Naples is a lifestyle that some people, unfortunately, cannot afford. On the other hand, Naples's lifestyle and weather are a huge draw for retirees or people who can work remotely and want to get out of the cold and enjoy what they love, like tennis, golf, pickleball, jogging, walking, etc.

Speaking of interest rates

I would not let the interest rates deter you from purchasing. You could always get an adjustable 5-year mortgage rate, significantly lower than the 6%, 30-year rate. Even if you finance for 15 years, your mortgage rate will be lower. My advice is to seek a mortgage professional who can help you navigate through lowering your starting interest rate.  Many can structure a loan based on your solvency, monthly income, and credit score for you to acquire your "piece of paradise."

Rentals

Nardi Realty has a large rental department. We have over 120 annual rentals and over 150 seasonal rentals. This season many people booked for three months, January through March. In other years, many just reserved for one or two months. Why? Because many come down not only to participate in what they love to do but because these three months become their socialization instead of being cooped up in their home up north, with a foot of snow and cold temperatures. I have lived here for over 21 years, and the Florida sunshine and activities make you vibrant, making you feel younger. You are thriving daily! Hence, our rental department is busy. If you wish to book a rental for March or April 2023 or 2024, you can call Sheri Martin at 239-571-6189, Rental Administrator. She can assist you with your search, or you can access  www.BuyNaples.net  and create your own.

For those up north, I wish you warmer days ahead, and for those currently down here, may we continue with this weather of low humidity and temperatures in the high 70s!