By Robert Nardi
Despite a 59 percent increase in overall inventory during June (compared to June 2023), overall closed sales decreased 17.3 percent to 710 closed sales from 859 closed sales in June 2023. Data reflected in the June 2024 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), showed the overall median closed price decreased .8 percent to $595,000 from $600,000 in June 2023. Broker analysts say a steady number of list price reductions each month, and more realistic prices set by sellers will help the Naples market find its new “sweet spot” for home buying. Price reductions occur for many reasons: nearby comparative homes are priced lower, there are no recent showings or offers, the house has received a low appraisal, or it has to attract more buyers.
The June report showed 1,351 price reductions compared to 94 price increases. Coupled with a 95 percent list-to-sale price ratio, the data appears to indicate that sellers are making headway in adjusting their initial asking prices to reflect today’s market better and, to some degree, are entertaining negotiations to secure a buyer. Summer buyers will enjoy more home options as the inventory of properties continues to rise compared to the last three years. In June, the 59 percent increase in inventory resulted in an available pool of 4,680 properties compared to only 2,943 properties during June 2023. Plus, confidence in the market remains steady, with overall new listings increasing 1.5 percent to 896 new listings from 882 new listings in June 2023. The number of new listings in the condominium market drove this influx of inventory, which increased 9 percent compared to a 3.9 percent decrease in new listings for the single-family home market.
While inventory is nearly split between single-family homes and condominiums, the median close price in the single-family home market decreased by 3 percent in June to $730,000 from $752,500 in June 2023, while the median closed price in the condominium market increased by .8 percent to $485,000 from $481,250.
Sales activity in the Naples area housing market during the off-season summer months is historically lower than sales activity reported during its high-visitor winter season. The days on the market in June increased 56 percent to 78 days from 50 days in June 2023
The NABOR® June 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. The NABOR® sales statistics are presented in chart format ( CLICK HERE ).
What does this mean?
Our inventory is increasing, days on the market are growing, and prices are decreasing. However, the southwest Florida market is unique because prices are declining slightly. Based on the amount of inventory entering the market, it should be a more significant decrease.
Inventory is increasing because the damage from Hurricane Ian has been repaired, and sellers either want to “cash out” because of the significant increases made in the past four years or those who are full-time and have recently retired have decided to go to other parts of the United States to be with family and friends. Over the past several weeks, I have gone on numerous listing appointments, and potential sellers want to be back “home.” With their gains in real estate, they could go to other parts of the country and pay significantly less for property while still retaining a portion of their money and investing it accordingly.
If you should have any questions or need assistance with real estate sales or rentals, please call me at 239-293-3592 or via email robertnardi@aol.com.
Stay safe, and enjoy the rest of your summer.