By Robert Nardi
I am pleased to report that Nardi Realty has franchised with Weichert Realtors® and has become Weichert Realtors® - Paradise Homes. We are still the same real estate company with the same core values and high level of service; all we did was change the name. Weichert Realtors® has over 500 offices worldwide and is a well-known and respected brand. It is a privately held company and a giant "Mom & Pop" real estate firm. It offers tremendous technology and support, which will help my company grow and prosper. I am very excited about this alliance and look forward to the future. If you have any questions, please contact me at 239-293-3592 or by e-mail RobertNardi@aol.com . Now, let's talk about the southwest Florida real estate market.
Because of our rising inventory, April 2024's closed sales increased by 3.8 percent to 999 closed sales from 962 closed sales in April 2023. This appreciation is the first month closed sales have exceeded past years' monthly comparable sales since June 2021. According to the April 2024 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), the 2,365 price reductions in April stimulated sales in the right direction. Growth in inventory does not appear to be slowing down either, as new listings in April increased 16.3 percent to 1,335 new listings from 1,148 new listings in April 2023.
Demand for luxury properties has soared, especially in the $500,000 to $1.5 million price category, which increased 68.1 percent compared to April 2023 and occupies the highest number of properties available (2,410) in the current inventory. That said, this area was also where a large majority of properties sold for less than the original list price, as the percentage of list price received decreased to 93.3 percent for single-family homes and 94.8 percent for condominiums. The lower percentage indicates sellers are reducing prices to meet the market.
The average monthly inventory in Naples is back to its familiar pre-pandemic level. April's inventory increased 68.1 percent to 5,240 properties from 3,118 in April 2023. The months of supply of homes are up to 7.3 months. Generally, we begin to see prices slide once the month's supply exceeds six months, but we're not seeing this in our market today. Inventory is growing, and prices remain stable. The median closed price for April increased 4 percent to $450,000 from $425,000 in April 2023. However, price adjustments are moving the needle in specific markets. April reported 2,365 price decreases, which decreased the median closed price by 3.2 percent in the single-family home market to $793,750 from $820,000 in April 2023.
The NABOR® April 2024 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 ( CLICK HERE )
Today's average entry-level price of new construction is around $450,000 in Southwest Florida. The heightened cost to repair or rebuild is a primary factor in rising insurance rates. Yet, with more buyers in Naples paying cash—65.4 percent of all transactions recorded in April—insurance and interest rates may not be as great an obstacle as some assume.
What does this mean?
Naples appears to be in a little bubble unaffected by rising inventory. Add that to the fact that there is high demand for the luxury market here, and with a large number of cash sales, it continues to move along without much disruption in pricing. Therefore, Naples is a strong and thriving market.
If you are considering buying or selling in southwest Florida, please know that your needs are our top priority. In addition, if you wish to move out of state, in-state, or relocate to another Florida city, our new partnership with Weichert Realtors® can connect you with a Weichert office and a top-notch REALTOR®.
Your satisfaction is our goal, and we are here to guide you every step of the way.
Please have a safe and enjoyable summer!