By Robert L. Nardi
According to the March 2019 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), the median closed price of homes decreased 5.6 percent to $340,000 in March 2019 from $360,000 in March 2018. Broker analysts reviewing the report clarified that the median closed price decrease was due, in part, to an increase in the number of closed sales of homes priced under $500,000 during the last year.
Another reason for the decrease in median home price is due to sellers pricing their homes appropriately – based on actual comparisons of recently sold homes – to gauge their home’s estimated value rather than pricing their homes based on unvalidated values.
The March 2019 Market Report showed overall closed sales decreased 1.7 percent to 973 in March 2019 compared to 990 in March 2018. This decrease was isolated to the single-family home market, whose sales in March 2019 fell by just 17 total sales compared to March 2018. The condominium market in March ended with 499 closed sales, the same number reported in March 2018.
The report also showed closed sales in March increased 64 percent compared to February 2019, which reported 595 closed sales; and it increased 65 percent compared to January 2019, which reported 588 closed sales.
The NABOR® March 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 statistics in chart form.
Geographically, the median closed price for condominiums in the Naples Beach area (34102, 34103, 34108) increased 13 percent to $805,0000 in March 2019 compared to $711,500 in March 2018, the highest increase of all areas reported. The median closed price for single-family homes increased the most in South Naples (34112, 34113), by 2.6 percent to $410,000 in March 2019 compared to $400,000 in March 2018. Inventory during March increased in only one segment and place: single-family homes in the Naples Beach area. This area’s inventory increased by 4.1 percent and is where a large majority of “spec” home building is taking place.
What does this mean?
Last year after Hurricane Irma, repairs had to be made to homes, so the buying process and the amount of inventory was lower. Now we have a surplus of inventory and once a seller finds their realistic list price, the home tends to sell. The proof is in the report, which showed that sellers received 95.3 percent of the final list price in March.
2019 Economic Summit
I recently attended the 2019 Economic Summit on housing in Naples. As predicted, we are seeing pockets of areas increasing as well was areas decreasing. It appears over the next couple of years, the Park Shore & Moorings area will have an increase in value. Builders are trying to find vacant lots/tear downs to build spec homes. It seems to be the area where demand is higher and inventory is lower.
The areas showing the decreases are those homes that are “Tuscan Inspired.” The demand for coastal living homes are on the rise and those home that are very “Tuscan” are having difficulty selling and unfortunately selling for a lower price point.
I want to thank all my past and present customers for referring me to their friends and family when thinking of listing or buying in Southwest Florida. I also want to let you know that we can sell/list as far as Bradenton, FL on the west coast. I have several agents that know areas all the way from Marco Island to Sarasota to Bradenton that have sold and/or live in these areas. Please keep in mind that we also have a large rental department. If you are thinking of booking a rental for season, I urge you to do it now. We already are getting a large amount of bookings for season. Please contact me at 239-293-3592 or send me an e-mail to Robert@NardiRealty.com so I may assist you with any referrals you may have or to book a rental. By the way, you can always start your search at NardiRealty.com.
Summer is fast approaching! Wishing you warmth & sunshine always!