|Home sales in the Naples area increased 3 percent in November year over year, according to the November 2017 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). Local brokers analyzing the Market Report said they were pleased with the high-end market’s closed sales activity in November, which experienced a 21 percent increase in single-family home sales and a 22 percent increase in condominium sales in the $2 million and above price category.
It appears that sellers are pricing homes to sell and there were 521 homes sold in the month of November despite the effects of Hurricane Irma. This is only 51 fewer homes than sold in November 2016.
The November Market Report showed the overall median closed price rose 9 percent to $330,000 compared to $303,000 in November 2016, and overall pending sales in November increased 2 percent to 728 compared to 713 last year. More impressively, pending sales for homes valued at $1 to $2 million increased by 30 percent in November to 61 from 47 last November.
There were 116 cash transactions for properties below $300,000 in November. This was higher than expected and may indicate the return of investors to the market.
The report also showed that a 12 percent decrease in single-family inventory during November led to a subsequent 9 percent increase in the market value of single-family homes. The Naples Beach area saw a 28 percent increase in its median closed price to $975,000 from $762,000 in November 2016.
November had a 63 percent increase in pending sales for single-family homes over $1 million. This is a clear indication that high-end buyers continue to find Naples a desirable location for investment.
The NABOR® November 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® November 2017 sales statistics are presented in chart format ( CLICK HERE ).
The November report showed a high concentration of condominiums available in the $300,000 and below price category (1,228). Even though they appear to be a more affordable option, condominiums often have obstacles during the buying process like 55 and older age restrictions or high annual fees.
Despite these challenges and a 2 percent decrease in inventory in November, condominiums in both the $300,000 and below and the $2 million and above price categories saw inventory rise by 4 percent.
Some good news for real estate in Florida concerning the tax reform proposals coming out of Washington, D.C. From what has been read as of late, it appears to present negative tax consequence for many people living in states with high state income tax burdens. This may make relocation to Florida even more attractive in 2018, especially to the wealthy since Florida does not impose an individual income tax.
Pricing, Staging & Cleanliness
I think “Pricing homes to sell” is the key to success in this market. When you price your home too high, it just sits on the market and becomes stagnate. I offer an “Elite Listing” package which includes a professional appraisal, clean-up & staging. It is so important for a home or condominium to be priced competitively and look its best. There was a glut of new construction in Southwest Florida in 2002-2006 which were Tuscan inspired and now these homes are “showing their age.” I show numerous properties to different buyers all the time. And I hear, “This flooring looks tired.” The one I hear most often now is “I hate those columns. Are these columns load bearing? Can I get rid of them?” Today’s buyers don’t’ want to be bothered with updating. In fact, some of these buyers don’t even want to deal with taking down wallpaper. What do they do? They buy new construction. They get less home, maybe not the exact location they want to live in, but they get what they want. Therefore, every resale home/condominium on the market must look perfect. Good staging & having it in pristine condition could assist with selling a property quickly.
Season is Upon Us!
Tired of the cold & snow already. We still have some rentals available that will be able to keep you warm & toasty. Also, my firm has listings priced to sell. Please visit www.NardiRealty.com when searching for residential or rental properties. Inventories & changes are always updated every 10 minutes. No lag like other property search web sites. Plus, it does disclose yearly HOA/Condo maintenance fees where other sites do not.
Lastly, your referrals are always welcomed. Please feel free to contact me directly at 239-293-3592 or e-mail me at Robert@NardiRealty.com.
Wishing you & yours a very Healthy & Happy New Year!