By Robert Nardi
March witnessed a significant shift in the Naples area housing market, with positive trends continuing to attract buyers and sellers. The March 2024 Market Report by the Naples Area Board of REALTORS® (NABOR®), which meticulously tracks home listings and sales within Collier County (excluding Marco Island), revealed a noteworthy 67.6 percent increase in inventory. This surge, from 3,153 properties in March 2023 to 5,283 properties in March 2024, sets the stage for the rest of the report. While home prices continue to appreciate steadily, up 6 percent in March to $649,000 from $612,000 in March 2023, there were also 2,667 price decreases during March, the highest number of decreases reported in over five years. Closed sales in March decreased 14.2 percent to 893 from 1,041 closed sales in March 2023. The report shows that 63 percent of transactions reported in March were cash sales. Naples has a very high cash market. The enduring appeal of Naples to the affluent home buyer, coupled with lower luxury home prices in the Naples area compared to other luxury markets and the steady growth in Naples area property values, is driving sales now more than ever.
Buyers purchased 32 homes in the $5 million and above price range, and 126 homes sold in the $1.5 to $5 million price range in March 2024. People were buying anything and everything during the pandemic. Today, they are looking for homes they desire and locations or communities that can offer their preferred lifestyle. Buyers are now finding more homes to choose from. For example, in the $500,000 to $1.5 million price range, there were 2,404 homes for sale in March 2024, an increase of 71 percent from March 2023 when there were 1,406 for sale in that price category. Pre-sale activity for new, ultra-high-end properties like the Ritz Carlton Residences and Rosewood Residences has been remarkable, reflecting the strong demand for luxury residences. The NABOR® March 2024 Market Report compares 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 can be easily seen in a chart format ( CLICK HERE ).
Some observations
Market Report Standouts Closed sales of single-family homes in East Naples (east of Collier Boulevard or 34114, 34117, 34120, 34137) continue to outpace closed sales reported in all other areas in Naples. These increased sales result from lower land values, making homes more affordable.
The Naples Beach area (34102, 34103, 34108) reported the highest number of new condominium listings (188) and the highest inventory of condominiums (859) in March. These properties were damaged during Hurricane Ian and have finally been repaired. Owners have decided to put these properties on the market.
The North Naples area (34109, 34110, 34119) reported the highest closed sales of condominiums in March (130). It is an attractive area based on shopping, dining, and proximity to the beach. As far as amenities are concerned, it is a great alternative to 5th Ave. S. However, it does not have the walkability factor like downtown Naples.
What does this mean?
The market dynamics are shifting, indicating a move towards a balanced market. Increased inventory is coming to the market, addressing the previous shortage and creating a more favorable environment for both buyers and sellers. It was a brief buyer’s market, then a seller’s market, and now buyers are enjoying choices when they shop. They now can pick and choose. The interesting part of this increase is that it really has not affected prices. They are still steadily going up. More buyers are jumping into the market even though mortgage rates have not moved that much in the past several months. They have waited and waited; however, they cannot wait any longer. I know from my own observation within my firm that we had a much better selling season than last year. People are getting off the fence and purchasing.
If you should have any questions concerning real estate, please contact me directly at 239-293-3592 or via email at Robert@NardiRealty.com.
Summer is approaching quickly! I wish everyone a safe Memorial Day holiday.