$1M & Up Still Surging!

By Robert Nardi
According to the April 2018 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), Collier County enjoys 7.76 months of inventory compared to a 4-month supply nationally. This is great news for Naples REALTORS® as they transition from a very busy high season to what broker analysts believe will be a very strong summer.

Condominium inventory grew 2 percent in April to 3,003 units, over half the entire market, from 2,934 units in April 2017. The $300,000 and below price category experienced the highest increase in inventory (7 percent) to 1,472 units from 1,378 units in April 2017. Pending and closed sales of condominiums in this low-end price category were also strong, with a 17 and 14 percent increase, respectively. Interestingly, the median closed price of condominiums in April dropped 8 percent to $271,000 from $296,000 in April 2017.

What is still a top performer and a trend, the number of closed sales of homes between $1 and $2 million increased 34 percent, while closed sales of homes over $2 million increased 15 percent in April.

The NABOR® April 2018 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® April 2018 sales statistics are presented in chart format ( CLICK HERE).

What does this all mean?

The high-end is still going strong.  If you have $1million to over a $2million listing, you have more of a chance of being sold, then if you had a listing from $300,000 to $999,999.  The growth of the $1Million to $2Million market is a direct result of new high rises going up like Kalea Bay in North Naples. With all new construction, they are offering numerous amenities.  Buyers are no longer looking for a home or a condo, they are looking for a lifestyle which makes it tough to sell resales that either have a few or no amenities.  I have some beautiful homes between $475,000 - $500,000 very close to the Gulf of Mexico and they are just not moving.  Furthermore, today’s buyers don’t want to take on any projects, therefore, new construction seems to be a solution.   A buyer can purchase a brand-new home with a pool at a price point between $450,000-$500,000 (depending on the upgrades they choose).  Location, location, location is no longer important to them.  They don’t mind driving farther east or southeast to get exactly what they want.

Book your seasonal rental in advance

Our rental booking department is already getting very busy for next season (January – April 2019).  My suggestion to you is if you wish to book a rental, please do it sooner than later.  We have a lot of our old customers returning and many new customers booking in advance.  You can search for your own rental at NardiRealty.com or you can call me directly at 239-293-3592 and I can put you with one of our rental agents.

 

Enjoy your summer!  I have a feeling it is going to be a hot one!