Heightened showing activity in June led to a spike in July’s closed sales, which increased 7.1 percent to 829 closed sales compared to 774 closed sales during July 2018. And despite a 14.8 percent reduction in overall inventory compared to last July, overall median closed prices have not increased, according to the July 2019 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island).
Twenty-six percent of the homes on the market during July had price reductions. The number-one reason a home lingers on the market is that it is priced too high. Those price reductions seemed to bring more buyers into the market.
The July 2019 Showing Time report, a monthly supplemental report that’s now being run alongside the monthly Market Reports, indicated that local REALTORS scheduled over 17,000 appointments to show a range of properties during July. On average, the report shows that a home for sale in Collier County is shown 17 times before it sells. Broker analysts believe the less inventory people have available to view, the more properties they want to see. Therefore, they believe now is a good time for sellers to enter the market, so they have the opportunity to capture buyers who are looking at homes now.
Sellers added 935 new listings to July’s inventory, but this increase in inventory failed to keep up with the buyers entering the market. At the end of July, there were 5,200 homes on the market compared to 6,100 in July 2018. Naples only has a 6-month supply of inventory which is lower than we would like.
From the report, it seems sellers were willing to negotiate more in the $1 million to $2 million price category for condominiums, there was a 10 percent decrease in the median closed price during July.
Since January, median closed prices have decreased 2.9 percent to $335,000 from $345,000. But compared to last July, prices have held steady. July’s median closed price was $326,200 compared to $326,500 for July 2018. However, based on a rolling 12-month analysis, only condominiums priced above $2 million have seen a substantial increase in their prices, i.e., 13 percent.
The NABOR® July 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 numbers!
Geographically, closed sales activity was the highest in the Naples Beach area (34102, 34103, 34108), which saw a 25 percent increase in overall closed sales and a 40 percent increase in single-family home closed sales compared to July 2018. Interestingly, the median closed price for condominiums in the Naples Beach increased 27.1 percent to $632,500 from $497,000 in July 2018.
What does this all mean?
This means that properties near the beach are still very desirable. It is funny how overtime, the “near the beach location” runs either hot or cold. There was a time where everyone looking for a home wanted to be West of 41 (closest to the beach). Then there was a time, when prices reached a point, where people were looking father east in Naples so they could get a better deal and “more bang for their buck.” Now, the beach is back regardless of price. Buyers want sun, sand and convenience. I think this is partly because of our growing population in season. During season our population swells to approximately 360,000 and then out of season, it goes down to 250,000. Years ago, it would swell to 250,000 in season and out of season, it would go down to 170,000. The numbers speak for themselves; more people, more traffic and longer drive times. And quite honestly, in this age of “instant gratification” people don’t have the patience to sit in traffic anymore.
Tis the season…
Speaking of masses of people, if you haven’t booked your seasonal rental yet, they are going fast. Please feel free to call Corine Bordges at 239-206-6457 or e-mail her at corine.teamonesource@gmail.com. Corine is our Rental Operations Manager for Nardi Realty - “Team One Source” and has up-to-date rental inventory. If our inventory isn’t exactly what you are looking for, she could place you with one of our Nardi Realty – “Team One Source” licensed real estate rental experts to assist with your search.
Referrals…
I’ve been in the business for over 17 years now and I have owned my own brokerage for over 12 years. Over this time, I’ve assisted my customers with buying and selling over $150,000,000 worth of property. Last year I was ranked 359 out of over 6000 REALTORS® in accumulative production. For those who have worked with me over the years, I hope that you keep me in the forefront of your mind if you ever decide to sell or purchase in Southwest Florida. Also, just to let you know, Nardi Realty has associates that can assist you with buying and selling all the way up the west coast to Sarasota! Even if you decide to sell and purchase in another state, I have a network of REALTORS® that could assist you anywhere in the U.S.A. I am either one phone call, 239-293-3592 or e-mail, Robert@NardiRealty.com away! Giving me a referral or allowing me to work with you again, would be life’s greatest compliment!
Enjoy your fall and all that it has to offer!!!