By Robert Nardi
An increase in traffic on roads and beaches, and in restaurants, hotels, and open houses during November was reflected in a 27 percent increase in overall pending sales (homes under contract), and a 46 percent increase in showings for the month compared to November 2018. Several broker analysts who reviewed the November 2019 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), said they saw a noticeable increase in buyer interest starting back in October. The presence of more eager buyers before our traditional high season has contributed to the depletion of inventory, which decreased 19.4 percent in November to 5,563 properties compared to 6,896 properties in November 2018.
There is a 6 month supply now but there were also price reductions in 28 percent of all homes on the market in November. Some of this reduction in inventory can be contributed to new home sales. Builders in some communities are almost built out and want to move what they have so they are offering incentives and price reductions.
Overall closed sales in November increased 2.4 percent, but it was the single-family home market that led the month’s closed sales with a 5.3 percent increase compared to closed sales in the condominium market, which decreased 0.6 percent. However, the pending sales in the condominium market were up 26 percent compared to an increase in pending sales in the single-family homes market of 28 percent. This substantial increase is a direct result of the early influx of buyers.
Inventory levels for the single-family and condominium markets were about even in November; with 2,771 properties and 2,792 properties, respectively. Inventory declines during November were highest in the low end of the single-family home market (under $300,000), which saw a 35.4 percent decline in November. But inventory increased 19.6 percent in the $2 million and above condominium market.
The NABOR® November 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) for those of you who like to see all of the statistics.
The report showed overall median closed prices increased .8 percent in November to $332,500 from $330,000 in November 2018. Interestingly, median closed prices in the $2 million and above price category increased 4.6 percent in November, while the median closed price in the under $300,000 market decreased 5 percent.
What does this all mean?
We continue to be in a stable market and some properties had increased in value while others had decreased based on location and price point. It is a normal property cycle. We have 6 months of inventory which is typical, but now it is lower than it has been in a year so if you are contemplating putting your home on the market, it might be a good time to list it. As far as Buyers go, it appears that we have potential Buyers that come in early but want “a steal of a deal!” With some of my listings, Buyers have offered anywhere from 15%to 25% below list price. I call this “fishing” if they get the price they want, then they’ll purchase if not, they’ll wait either a few more months or even up to year and come back and try to “fish” again. My philosophy is that comps are comps. If comps dictate a lower price than it was not priced appropriately. When working with some sellers, you can show them the comps, but they believe their unit is worth more. So has a rule, REALTORS don’t take an overpriced listing. But sometimes we do if we believe the location, lot, etc. can be deemed “special.” Sometimes it is a huge “dance” between both the Sellers & Buyers and my job is to make them congenial dance partners at the end!
Happy New Year!
Wow! 2020! Where has time gone? Speaking of the New year, we still have some very nice rentals for February, March & April. Even some on the Gulf of Mexico. If you have an interest in any of those months or all three of those months, please contact Corine Bordges, Rental Operations Manager at 239-206-6457. She has access to all our inventory and will be able to assist you.
Any real estate questions? Thinking of selling or buying? Need a Comparative Market Analysis (CMA) on your current property either up North or down South? Please feel free to contact me at 239-293-3592 or via e-mail Robert@NardiRealty.com.
Do you like to search for you own sale & rental properties? If you do, access www.BuyNaples.net for all your search needs. It also gives you all our inventory with a few keystrokes. Plus, we show yearly HOA/Condominium maintenance fees which most other property search engines do not.
Have an amazing year! Wishing you and yours all the best! -Robert