By Robert L. Nardi
The Naples area housing market ended 2018 with impressive annual activity statistics in all areas of the residential real estate market including an 11 percent increase in total closed sales and a 14 percent increase in inventory compared to 2017. Sales of homes over $1 million continued to drive the market in 2018, especially in the condominium market where closed sales of condominiums over $1 million increased a whopping 37 percent! According to the Year End 2018 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), inventory at the end of 2018 was the highest on record in six years.
Prices held steady in 2018 with just a 3 percent increase in median closed, however, for homes over $300,000, the median closed price decreased 1 percent.
The top 5 positive trends for home buyers and sellers are:
5 POSITIVE TRENDS FOR SELLERS
• Colder winters up north are bringing more visitors to the Naples area • Naples area homes are selling faster (average days on market decreased 9 percent from list to closing) • Buyers interest in the Naples market is on the rise as a result of aggressive builder advertising in northern markets • More comparable home prices are available with the increase in inventory • Location, location, location continues to appeal to home buyers
5 POSITIVE TRENDS FOR BUYERS
• Inventory is increasing which translates to more options for home buyers • There are as many condos for sale as there are single family homes which expands overall opportunities for home buyers (Total: 6,261) • The stability of the overall median closed price builds buyer confidence in the market • Mortgage interest rates are currently low (< 5%) spurring home buying decisions • Location, location, location continues to offer appeal!
Single-family homes in the Naples Beach area (34102, 34103, 34108) reported the highest median closed price increase (14 percent) in 2018 compared to 2017. But that’s most likely due to closed sales of a few multimillion homes that took place last year including a $48.8 million transaction in June for a home in Port Royal.
The median closed prices listed on NABOR®’s market reports do not reflect average sales prices. Rather, the median closed price demonstrates a rate wherein half the closed sales were purchased for amounts below the figure (median) and half the sales were purchased for prices above it. As such, of the 662 single-family homes located in the Naples Beach area that sold in 2018, the median closed price was $1,268,000 in 2018 compared to the 652 single-family homes that sold in 2017 where the median closed price was $1,117,000. Incidentally, closed sales in this area increased only 2 percent.
Conversely, closed sales of single-family homes in the Ave Maria/Immokalee area increased 233 percent to 143 homes in 2018 compared to 43 single-family homes in 2017. Median closed prices for single-family homes in the Ave Maria/Immokalee area decreased 4 percent to $245,000 in 2018 compared to $255,000 in 2017.
For those of you who like statistics, the NABOR® Year End, 4th Quarter and December 2018 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 for Dec 2018 Statistics and CLICK HERE for 4th Quarter 2018 Statistics
I threw a lot of statistics at you. The bottom line is that certain sectors are selling well, and the median sales price is increasing while others are slowing down. Closer to the beach the higher median price. We are in a very stable market, but it appears it is starting to swing into more of a buyer’s market. We currently have 9 months of inventory and just around 8 months ago, we had 6 months of inventory. As of late, I am getting fewer showings even though it is season. I believe people are still apprehensive concerning purchasing due to the volatility of the stock market in December and the government shut down. Even now, there is some uncertainty as to whether the government will remain opened. Once the government does open indefinitely, I believe demand will increase, inventory will lessen, and sale prices will increase.
As of late, Buyers have been putting lowball offers on some of my listings. They are coming in over 20% below list price (which closed sales prove they should not be coming in that low). Generally, offers come in 10% below list price. Then when the seller counters this lower offer, the buyers say that we are too far apart, and they won’t even counter back. It’s a very odd time.
I hope all of you who are currently up North are staying warm and if you aren’t, we still have some March seasonal rentals available. If you have any interest, please feel free to call me at 239-293-3592 or send an e-mail to Robert@NardiRealty.com. The weather down here is picture perfect, upper 70’s low 80’s with little humidity.
Wishing everyone a warm, sunny & happy Valentine’s Day!