MARKET WATCH - DECEMBER 2017
Optimistic - Quickly Rebounding
By Robert L. Nardi
The evidence that a hurricane hit the Naples area in September became less visible in October because residents were quick to address damages to their property and our county and utility service providers worked overtime to get the area back to normal as quickly as possible. The Naples area housing market finished on a positive note in October with closed sales increasing 1 percent over last October, according to the October 2017 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). October’s housing market activity was better than NABOR® expected.
There were 57 closed sales of high-end, luxury properties priced above $1 million in October, a 36 percent increase over October 2016. Yet closed sales of properties priced below $300,000 dropped 12 percent, a loss of just 32 sales compared to October 2016. Also reflected in the October report, closed sales for single-family homes priced between $1-$2 million increased 50 percent in October, while closed sales of condominiums priced between $300,000-$500,000 increased 26 percent.
In October the report shows an 8 percent decrease in inventory, or about 400 fewer homes available compared to October 2016 levels.
Inventory increased on the high and low end of the condominium market in October. While the report showed no increase, or decrease in inventory overall, there were an additional 76 condominiums (a 7 percent increase) added to the $300,000 and below market in October, and 10 condominiums (a 10 percent increase) were added to the $2 million and above market.
Median closed prices in the single-family home market increased to $425,000 (13 percent) in October, while median closed prices in the condominium market increased to $250,000 (4 percent). Interestingly, the median closed price for condominiums in the $2 million and above price category dropped 42 percent in October to $2,545,000, while the median closed price for single-family homes in the same price category increased 22 percent to $2,237,000.
The NABOR® October 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® October 2017 sales statistics are presented in chart format (CLICK HERE)
What Does This All Mean?
If the hurricane hadn’t happened and the market had kept the same pace as it did last September and October, we would have seen 400 more sales and been on track for a 6 percent increase in total closed sales year-to-date. However, it did happen & it was remarkable that we rebounded so quickly in such a brief time. In fact, new construction is humming along at a quick pace after the hurricane. With one of my associates, I sold new construction prior to the hurricane. This new home was supposed to be completed by the end of February early March of 2018. However, the Buyers were just informed that their new closing date is now on January 22, 2018. Wow!
As of today, I am currently carrying 14 listings. I haven’t listed this many homes/condominiums since 2008. The reason for this increase is because many people now either want to upsize or downsize and remain in Naples, Florida. There is a lot of great opportunities both on the buying & selling side.
What’s selling in my inventory? Condominiums priced $175,000 & below. The reason for this is because many mortgage companies are now offering “0” or 3% down for first home buyers. People who have been renting for years, now have an opportunity to purchase their own property. For example, if they were spending $1200 on rent a year, with this new loan program their mortgage payment, insurance & HOA fees would amount to that price or less. As long as they have a credit score of 640 or more, they could qualify for many “First Home Buyer” programs. If you are a “First Home Buyer” one who has not owned their own home for 3 years or more, I can put you in touch with several mortgage lenders that can assist you.
The Buzz
Since our launch of the new corporate web site, www.NardiRealty.com we have been receiving a lot of positive feedback from it. With its easy and accurate search capabilities, you can find what you are looking for (Properties for Sale or Rental Availability) with just a few keys strokes. In fact, we are only one of the few real estate web sites that gives you the yearly total of HOA Fees. 99% of the other property search web sites do not give you this important financial information. Of course, if you give me a call at 239-293-3592 or send me an e-mail at Robert@NardiRealty.com I would be happy to assist you with the search widget or I would be happy to perform a customize search for you if you wish.
Wishing you & yours Happy Holidays & a Happy & Healthy New Year! I know it is going to be a great buying & selling season!!!