By October 2019 was Up!
Buyer activity began to rise in October with a remarkable 23.7 percent increase in overall pending sales (homes under contract) to 987 pending sales during October 2019 compared to 798 pending sales in October 2018. Sellers also felt a surge in showings (up 40 percent compared to October 2018), and the number of price reductions slowed to just 15 percent of the properties available in October’s overall inventory compared to September, which saw 26 percent of its inventory’s prices reduced.
Closed sales during October increased 9.7 percent to 758 closed sales compared to 689 closed sales in October 2018, according to the October 2019 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island).
Even though October’s overall inventory decreased 17.7 percent to 5,351 homes for sale from 6,500 homes for sale in October 2018, there were 362 more homes that came onto the market in October compared to September. A fair amount of the new inventory is in the new construction market where builders are pricing homes aggressively and offering sweeteners to agents and buyers via incentives.
A large majority of the new construction over the last year appears to be in the market’s “sweet spot”, which is the category of homes priced below $500,000. This influx of new construction is probably why the median closed price in that price range hasn’t shifted much.
The overall median closed price decreased 3 percent in October to $329,950 from $340,000 in October 2018. But it’s important to remember that there are also three times as many properties for sale under $300,000 than properties for sale over $2 million in Naples.
The NABOR® October 2019 Market Reports provide 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).
What does this all mean?
I heard from some other Brokers and it appears that $2 Million & up properties were being purchased in October. It seems to make sense, because most people want to be in a home or condominium by season. Therefore, they would purchase in October, decorate, etc. so come January 1, 2020 they would be ready for season. I did not sell any $2 Million & up properties and up in October, however, I was able to ascertain two million-dollar listings in November. One was for $4.289M (shared with my associate, Don Bahash) and the other was for $1.899. When I listed these properties, they generated quite a bit of interest. In fact, the $4.289M listing even had a 2nd showing within 7 days of listing the property. The other is a beach property that is on Vanderbilt Beach that has been totally renovated and newly furnished. It shows like a model. Unfortunately, my resale properties that are listed for $500K or less seem to be moving at a slower pace. I believe because of the amount of competition from other resales and new construction.
Please keep mind that if you are still looking for a rental during season, please feel free to call my Rental Operations Manager, Corine Bordges at 239-206-6457. We still have availability. And as always, I appreciate all of your referrals. This month alone I received two referrals from past clients and friends. Thank you for the vote of confidence and keeping me present in your mind. It means so very much to me.
I wanted to say, “Happy Holidays and Wishing you a Healthy & Happy New Year!” May the New Year bring you hope, love, peace & joy!