By Robert L. Nardi
The Naples area housing market enjoyed another 7 percent increase in overall closed home sales for the third month in a row. This trend may indicate that Collier County is becoming less seasonal.
According to the September 2019 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), showings in September 2019 were up 31 percent over September 2018. This translated into a 13.7 percent increase in pending sales (written contracts) or 823 pending sales in September 2019 compared to 724 pending sales in September 2018. Strong showing activity during the summer resulted in 698 closed sales during September 2019. Also, to help fuel this fire was the fact that 28 percent of the available inventory experienced a price decrease in September.
The September report showed median closed prices remained stable during the third quarter (July, August & September). In July, the median closed price was $326,400. By September, the median closed price had dropped slightly to $325,000, which is only a .7 percent decrease from September 2018, which reported a median closed price of $327,408. Interestingly, the median closed price in January 2019 was $325,000.
With over 500 listings pulled from the MLS in September, it is no surprise that overall inventory for the month fell. However, even though it decreased 17.8 percent to 4,989 homes compared to 6,070 homes in September 2018, inventory for September was higher than August by 72 homes.
The NABOR® September 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 ).
Geographically, condominiums in South Naples (34112, 34113) saw a 22.1 percent spike in its median closed prices to $213,000 in September 2019 from $174,500 in September 2018. Alternately, condominiums in North Naples saw a 16.4 percent decrease in median closed prices to $242,500 in September 2019 from $290,000 in September 2018.
What does this all mean?
It means that 28% of the inventory lowered their prices and there were more pending sales in the month of September. We currently have a stable market with 6 months of inventory. It also indicates that we are getting less seasonal.
The reason price increases occurred in condominiums in South Naples can be attributed to new construction which in turn means higher prices. In North Naples, the decrease in price can be attributed to an aging inventory. Many condominiums are approaching 20 years old or more and they need work. In order to sell them, sellers must lower their price or accept a lower price. Many people would like “new & shiny” and they are willing to pay a higher price for new construction.
Season is coming! Season is coming!
Have you gotten your rental yet? Thinking about coming down in December? We have some amazing rentals for the month of December; on the beach, a block from the beach or across from the beach. We even have a few that are available for the months of January, February & March 2020. Also, if you already own a property and would like to rent it during season. We can help. Please feel free to contract our Rental Operations Manager, Corine Bordges at 239-206-6457 for both rental availability and listing your property.
Please keep in mind, if you have either a buyer or seller referral, I will donate $200 to your favorite charity with every successful closing.
Wishing you a very Happy Thanksgiving! Enjoy!