By Robert L. Nardi
In tempo with a recent shift in sales from high-end homes near the beach to homes under $500,000 in areas east of the beach, overall closed sales during May in the Naples area increased 9.8 percent to 1,165 closed sales compared to 1,061 closed sales in May 2018. Closed sales were highest in East Naples (34114, 34117, 34120, 34137), which reported a remarkable 21.7 percent increase.
While inventory levels decreased 13 percent to 5,905 homes in May 2019 from 6,785 homes in May 2018, over 2,000 homeowners reduced prices during May according to the May 2019 Market Report (CLICK HERE) released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island).
Nearly 30 percent of active listings had a price decrease in May. This was most apparent in the City of Naples , which reported a 24.9 percent decrease in its overall median closed prices.
Broker analysts reviewing the May report noticed a shift in sales from the traditional high-end market to homes under $500,000 earlier this year. The trend continued to be reflected in the May report, which showed closed sales for homes between $1 million and $2 million decreased 8.9 percent in May, while closed sales of homes between $300,000 and $500,000 increased 10.8 percent. Incidentally, closed sales increased in every price category reported except the $1 million to $2 million price category.
The May 2019 report showed closed sales of single-family homes up 12.8 percent compared to a 7 percent increase in closed sales for the condominium market. Interestingly, the decrease in closed sales for the $1 million to $2 million price category appeared in its condominium market, which saw a 23.1 percent decrease, while its single-family homes closed sales increased 3.6 percent. In comparison, the $300,000 to $500,000 price category reported a 12.6 percent increase in sales of condominiums and a 9.6 percent increase in sales of single-family homes.
While the median closed price for May 2019 increased 6.9 percent to $355,000 from $332,000 in May 2018, however, the median closed price for single family homes in May 2019 decreased 3.5 percent to $415,000 from $430,000 in May 2018.
The reason why closed sales in East Naples have increased is because there is a greater amount of new construction and the price points tend to be lower than other areas of Naples. Therefore, Buyers tend to get a better overall value. The “better value” comes from the fact that the land values are not as high in East Naples as other parts of Naples, i.e., North Naples.
The report also showed a large amount of list price decreases. This is a direct result of Sellers setting prices in January 2019 and when their listing did not sell during season, they lowered prices in hopes that they could make a sale in May.
The shift to purchasing $500,000 or less from the $1M to the $2M is a bit skewed. Kalea Bay, a large luxury high rise in North Naples was completed last January and they sold out of all units. Closings have been brisk but now there is no more inventory to offer. They are constructing a 2nd building. So those $1M to $2M closed sales have stopped for the moment until the 2nd building can be completed.
Just a reminder that season is approaching. If you are thinking about renting, you should contact me as soon as possible. Many renters are returning, and new renters may have difficulty finding the right time frame or unit.
Lastly, if you have friends or family looking for property from Marco Island all the way up the west coast to Sarasota, FL and if you refer them to me and it results in a closed sale, I will donate $200 to your favorite charity as a “Thank you!” Please feel free to contact me anytime at 239-293-3592 or by e-mail, Robert@NardiRealty.com
Enjoy the rest of your summer! It appears to be going fast!