By Robert Nardi
Broker analysts reviewing the June 2023 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), believe a surge in summer travel contributed to the reduction in home sales in Naples during June. The report showed a 13.6 percent decrease in overall closed sales for the month to 837 closed sales from 969 closed sales in June 2022. Though the dip in closed sales appears temporary and may not linger into July’s closed sales data, overall pending sales (homes under contract) in June increased 0.8 percent to 800 pending sales from 794 pending sales. June’s showings increased slightly from showings reported in June 2022. Fortunately, slow sales in June did not impact home prices as the median closed price reported in June increased 0.4 percent to $602,494 from $600,000 in June 2022.

Overall inventory continues to rise compared to 2022 levels. June had an 8.2 percent increase in comprehensive inventory to 2,659 homes from 2,457 homes. This increase was due to low monthly sales and not because of new listings, which decreased 28.2 percent to 860 new listings from 1,198 new listings in June 2022.

For those of you who like to look at data, please click on the  June 2023 Statistical Data  link to read the entire marketing report.

What does this mean?

Interest rates going up so quickly has made some buyers skittish about entering the market. In addition, they are worried about increasing property taxes and insurance costs. Lastly, they were concerned about inflation and the possibility of a recession. Therefore, the need to purchase ASAP is on the back burner for now. Some good news is that inflation is at a 3% low, and no recession exists. Other good news is that property values are not crashing and burning. The median and average closed prices continue to hold steady.

Some buyers who are watching the market insist that values are decreasing, but the only values that are going down are overpriced properties; usually, they start with an exaggerated price. Sellers were trying to get as much as they could. However, with all the accessible data, buyers have become much more sophisticated. They see the nos. Also, potential buyers are using REALTORS® in a consulting compacity to dig deeper into more comps not readily available to the public.

How about renting for next season?

If you are considering renting for next season, we have some charming rentals available. 

If you wish to rent for next season, January through April 2024, please contact my Rental Administrator, Sheri Martin, at 239-571-6189 or email her at  sheri@teamonesource.com.

Are you thinking about selling or buying?

Please remember that Nardi Realty is a concierge real estate firm where “we treat every customer like our only customer.” We could perform a free Comparative Market Analysis (CMA) and provide a listing price if you are considering selling. We could even put together a “Sellers’ Net.” This Sellers’ Net will allow you to see your bottom line after all expenses.

If you are thinking about buying, please contact me directly at 239-293-3592, via email Robert@NardiRealty.com or perform your own search at www.BuyNaples.net. In this market, you need a firm with years of experience and vast knowledge of the area. A firm like mine knows and can recommend a mortgage company/bank, insurance agent/broker, home inspectors, and contractors.

Well, enjoy the rest of this hot and “sticky” summer! Hopefully, I will see you in the fall!

By Robert Nardi

A slight reduction in overall median closed price and fewer new listings during May indicate a window of opportunity for buyers and sellers in the next few months. According to the May 2023 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), the overall median closed price decreased 1.2 percent to $600,000 from $607,500 in May 2022. There were also 1,045 price decreases and a 31.2 percent decrease in new listings reported during the month.

The May report shows a 3.8 percent decrease in the percent of list price received to 96.3 percent compared to 100.1 percent reported in May 2022. The report showed no month-over-month median closed price decrease for condominiums in May, only a 6.5 percent decrease (month-over-month) in the single-family home market. New listings decreased 31.2 percent to 990 from 1,438 new listings in May 2022. Fewer new listings are putting a strain on the overall inventory of homes, which is still recovering from frenzied buying during the pandemic.

Inventory has increased slowly over the last year, averaging 100 new homes monthly. Overall inventory increased 27.6 percent for May to 2,749 homes from 2,155 homes in May 2022. Pending and closed sales during May decreased 4.4 percent and 20 percent, respectively, compared to last year. The report also showed that we were 150 closed sales short of what sold in May 2019 but with half the inventory.

The NABOR® May 2023 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 are in a chart format ( CLICK HERE ) for an in-depth analysis of all the statistics.

What does this all mean?

Demand for homes in Naples has remained strong; however, we are still in a very tight market. Our inventory is increasing but at a prolonged rate. Potential Buyers are waiting for prices to drop, but they are not falling. Sometimes we see a big price drop in properties by $50,000 to $100,000, but that is because the properties were priced too high. Some owners were reaching for the sky, but the market dictates where that price should be. For example, the development Park Shore in Naples, FL, currently has single-family homes that are active on the market and are priced from $2.1M to $25M and have had nine closed sales from April 8th to July 8th, 2023. Those sales ranged from $1.85M to $4.90. Six sales were below $2.275M, and four were between $2.89M and $4.9M. Many homes priced out of these ranges have a high “Days on Market,” which indicates that they are still priced higher than they should be. So, you will see prices dropping, but that is because they were priced higher than the market is dictating.

I currently have buyers that want to be near the water and are ready to pounce on new listings once they appear on the Multi-Listing Service (MLS). I look for new daily listings that fit their criteria and set up automated MLS searches. As you know, “The early bird catches the worm.” Since our inventory is still tight, you want to act quickly on new listings that appear. Most of these buyers are not here, so I, as their real estate agent, must do a “face time” with them and tour the home. If they like what they see, we could put an offer in. Yes, “just from a face time,” but the market still dictates this approach.

Interestingly, homes priced at $500,000 to $800,000 are moving slower than higher-end homes. Why? Because of the higher mortgage rates. The higher interest rates are preventing potential Buyers from moving. Why give up a 2.75% to 3.25% interest rate for a 6.8% interest rate? Their mortgage payment would increase 100% to %150 percent. It just knocks potential Buyers out of the market.

On the other hand, higher-end homes are moving because Buyers who can afford to pay cash are doing so. Moreover, the only people moving are those going through a life event; death, marriage, divorce, new job, and the need to move to a senior facility. Seniors are in the best position to move. Many have owned their homes for years and have built up a large amount of equity. They can now put that equity in a bank/financial institution and earn 5% interest on their monies with no risk. The new senior facilities offer different programs, from a small deposit and rent to a large investment and a monthly maintenance fee. The transition for seniors can be seamless.

Any questions? Please feel free to contact me at 239-293-3592 or via email,  Robert@NardiRealty.com .

By Robert Nardi

The Naples real estate market enjoyed another month of increased home values driven mainly by another month of below-typical inventory levels. According to the area's top real estate brokers, resale home inventory in Naples this year will unlikely spike to levels we enjoyed before the pandemic. However, since 2019, the number of new listings has remained consistent, with most months enjoying an average of between 1,100 and 1,300 new listings. According to the April 2023 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), some findings are:

• Overall inventory increased 64.4 percent to 2,868 homes for sale from 1,745 homes for sale in April 2022.
• The median closed price for single-family homes increased 3.1 percent to $825,000 from $800,000 in April 2022.
• Within the condominium market, the median closed price increased 14.3 percent to $526,000 from $460,000 in April 2022.
• New listings decreased 25 percent to 1,116 new listings from 1,488 new listings in April 2022.

If you wish to see all the statistics, the NABOR® April 2023 Market Report provides price ranges and geographic segmentation and includes an overall market summary in a chart format ( CLICK HERE).

What does this all mean?

Higher mortgage interest rates are slowing property sales in Naples because:
 

• Home buyers are forced out of the market because they cannot qualify for the loan because of the added expense of a larger monthly payment.
• Buyers who wish to purchase Naples’ properties have their homes up for sale in other states but face challenges of selling quickly because of fewer qualified buyers.
• On the selling side in Naples, higher interest rates prevent prospective sellers with a lower interest rate from selling. Sitting on the fence slows the replenishment of inventory and lessons purchasing simultaneously.

In contrast, if you own in Naples, the good news is that your property has typically doubled in value since 2019, providing sellers with a nice profit for their next home purchase. With a hefty down payment, these sellers can minimize their next home's mortgage obligation to make monthly payments affordable, even at a higher interest rate.

Location and Inventory

I moved to Naples 21 years ago, and at the time, all my REALTOR® would tell me is, "You want to be West of 41, nearest to the beach." Apparently, at the time, it was very much in demand. Then in 2004, we had Hurricane Charlie, then in 2005 Wilma, then in 2017 Irma, and then in 2022, finally Ian! When reviewing Naples's inventory, properties off the water and east of 75 are in demand. Of course, after Ian, people are concerned about the storm surge. In addition, a majority of property West of 41 is in a flood zone which would require you to purchase flood insurance if you have a mortgage.

A great example was in January 2019, the neighborhood of Port Royal had 1.3 years of inventory; today, it has 1.3 years. But in January 2019, the Vineyards had ten months of inventory; today, it has less than a month. Even in areas east of Collier Boulevard (SR 951), there are less than four months of inventory.

Some Advice for Buyers

When purchasing a single-family home in Naples, please do your homework. Know the areas you wish to live in and then research a home's insurance and utility costs. In addition, if the property is part of a Homeowners' Association (HOA), verify all paid assessments for Hurricane Ian and, if any, are still coming from the HOA. Lastly, try to get the listed home's Sellers Disclosure which tells you the age of items like the cooling and heating systems, water heater, and roof. Roof age is most important. Many insurance carriers will not insure if a roof is 20 years or older. In the past, an insurance carrier would not issue a homeowner's policy if a roof inspection revealed structural or age issues. However, the new homeowner could sign an affidavit stating they would put on a new roof within a designated time post-closing. Insurance carriers would then insure the property. However, this is no longer an option. As the purchaser, you would have to look for a third-party insurance carrier, i.e., Lloyds of London, to insure your home. Generally, when this occurs, your home insurance would typically double in price.

With a condominium purchase, you would follow the same type of investigation for a single-family home. However, the most significant difference is roof age. Generally, the condominium's structure is managed/maintained by the association. So having a roof over 20 years old would not affect the purchase. However, I would review the association's budget and make sure they have a line item for roof replacement with sufficient balance.

Now more than ever, do your due diligence before purchasing property!

Questions? Please feel free to call me at 239-293-3592 or via e-mail  Robert@NardiRealty.com.

By Robert Nardi

Closed sales of homes in Naples during the first quarter of 2023 exceeded closed sales reported in the first quarter of 2019 (pre-COVID), when inventory levels were nearly three times the current level. According to the March 2023 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), overall inventory in March increased 92.4 percent to 2,900 properties from 1,507 properties in March 2022. While historically low at 3.6 months of inventory, inventory in Naples has continued to grow since it bottomed out at 0.8 months in December 2021.

 
Closed sales decreased 16.5 percent to 1,017 closed sales from 1,218 closed sales in March 2022, but compared to March 2019, closed sales increased 2.6 percent. Pending sales in March decreased by 14.5 percent to 1,377 pending sales from 1,611 pending sales in March 2022; compared to March 2019, pending sales increased by 22 percent. At the same time, new listing growth was relatively static in the first quarter of 2023. New listings during March decreased by 17.9 percent to 1,369 new listings from 1,667 new listings in March 2022, but compared to March 2019, new listings for the month slipped by only 2.5 percent.  Lastly, driven by the condominium market, which had a 5.9 percent increase in its median closed price, the median closed price in March increased 7.3 percent to $615,000 from $573,000 in March 2022.

The NABOR® March 2023 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 are in a chart format ( CLICK HERE ).

What does this mean?

Buyers today are facing high-interest rates, rising property and flood insurance rates, and low inventory levels; these factors are not diminishing demand for those who wish to live in Naples. Even though we have a 3.6-month supply, it should not discourage protentional buyers. It comes down to where the buyer wishes to purchase. Inventory numbers could fluctuate at any time. From all indicators, some areas of Naples could have an over-year supply of homes like Port Royal. My thoughts are that inventory should become available at a faster rate. However, some sellers are still sitting on the fence because they fear a possible recession may impact their home’s value. However, they must realize that what they paid for it twenty years ago is a much smaller number than what they could get now. These sellers would be wise to jump off the fence and toss their property into the ring. It indeed could be a great time to sell!

Searching for a loan

If you wish to purchase in today’s market, there are still a lot of opportunities to find a lower interest rate or find programs out there that could assist you in purchasing. My best advice is to seek out a mortgage broker.

Tell the mortgage broker about your work life and what organizations you work for or have worked for. Are/Were you in the military, a firefighter, or a first home buyer? Some programs could assist you with your down payment, get discounts on the interest rate or do both! The most important tool you can use when you buy a home is a pre-approval letter that lists your rate and what you are qualified for. Therefore, there will be no guessing about what you can afford or not afford. You can buy with confidence.

If you have an investment account, the other possibility is to speak with your financial advisor. With an investment portfolio, you could borrow against it and receive a reduced interest rate than the standard. You would then have to pay monthly, including principal and interest. The interest paid could be deposited directly to your investment account based on loan terms. Therefore, you would be paying yourself the interest! You must ask your financial advisor. The possibilities are endless.

Seasonal Rentals

If you, your friends, or your family wish to book a seasonal rental for 2024, they should do it as quickly as possible to get the best selection for the next season. By this time, many rental agencies know who will or will not be returning next year. If you are interested in booking, please contact Sheri Martin, Rental Administrator for Nardi Realty, at 239-571-6189 or via email at  sheri@teamonesource.com . Lastly, you can always search for your rentals at  www.BuyNaples.Net.  Happy searching and have a fantastic summer!

By Robert Nardi

Buyers in February 2023 had more choices to select properties than in the past. Overall inventory increased 131.4 percent to 2,835 properties from 1,225 properties in February 2022. Broker analysts reviewing the February 2023 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), attribute some of the rise in inventory to Hurricane Ian as many Sellers placed their damaged properties for purchase. February's median close price is the same as January's closed sales price of $600,000. The gap in sales activity year over year continues to close thanks to continued confidence in the Naples real estate market.

Overall pending sales in February decreased 16.8 percent to 1,241 pending sales from 1,480 pending sales in February 2022. Overall closed sales in February fell 17.2 percent to 682 closed sales from 824 closed in February 2022. And showings decreased by 15 percent in February to 36,574 showings from 43,032 showings in February 2022.

The NABOR® February 2023 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 are in chart format ( CLICK HERE ) for those who would like to look at all of that statistics.

What does this mean?

Our inventory continues to rise, which gives potential Buyers a more comprehensive selection. However, even though the amount is increasing, it is partially populated by damaged properties from Hurricane Ian that the Sellers have never remedied. They figured that season would be the right time to throw them onto the market. However, Buyers need to investigate the property and the community to evaluate if this property would be a good fit for them.

In dealing with damaged property, you must determine if the Sellers have paid all hurricane assessments to the condominium or homeowners' association. You should request minutes of the board meetings, call the association directly, and ask to speak with someone who manages that association. You'll also want to investigate what the association is responsible for. An association will often be accountable for any drywall damage if it is a condominium. Therefore, receiving a copy of the Bylaws would be crucial before you make an offer on the property.

Lastly, it would be best to determine where the Seller stands regarding an insurance payout. If they received their payout, please consider this when making your offer. In addition, if they have yet to be paid out and are going to be, you may want to negotiate with them to see if they would be willing to assign any insurance monies to you as the Buyer.

And speaking of insurance, you'll need to determine what insurance will cost you concerning hurricanes, wind, and floods. Since Hurricane Ian, the insurance cost has risen significantly; therefore, you may want to use an insurance broker to shop around to get several different insurance quotes. Lastly, since the property is in a damaged state, it will be a challenge for you to obtain a mortgage. You may have to go to a "hard money lender," but you'll pay a much higher interest rate.

All of these are essential factors to consider when purchasing a damaged property.

Seasonal Rentals

Many people this year rented from January 1 through March 31, 2022. With Nardi Realty, we give the current renters "first right of refusal." If they pass, the condominium or home will be available next year. If you are considering renting for next year, contact my Rental Administrator, Sheri Martin, at 239-571-6189 or email her at sheri@teamonesource.com. You'll have a better opportunity to "nab" the rental before they fill up.

Happy Passover and Easter to those of you who celebrate! I hope you have a great spring! 

By Robert Nardi

Evidence of growing confidence in the Naples real estate market revealed itself in January as new sellers entered the sales market. New listings in January rose 74.5 percent compared to December 2022 and 3.2 percent to 1,338 new listings from 1,297 new listings a year ago, according to the January 2023 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). But the rise in home options during January did not stymy home values as median closed prices rose 11.1 percent to $600,000 from $540,000 in January 2022. An even number of single-family homes and condominiums made up the increased inventory. Therefore, Buyers have more options. Closed sales in January decreased 33.8 percent to 555 homes from 839 in January 2022. But the spike in new listings is a good turn of events as they pushed inventory up 122.7 percent to 2,699 properties from 1,212 properties in January 2022. 

Pending sales in January were remarkably higher than pending sales not only in December (682) but also compared to January 2019 (660) and January 2020 (892). Compared to last January's phenomenal sales activity, pending sales decreased 20.5 percent to 1,092 pending sales from 1,373 pending sales in January 2022.

Pent-up demand was evident in January. While showings decreased 20 percent compared to January 2022, they nearly doubled compared to December's reported showings. Of course, another factor contributing to increased contracts (pending sales) during January was the 1,092 price decreases reported for the month, which brought the overall percent of current list price value down to 95.8 percent, a 4.2 percent decrease from 100 percent in January 2022. The first price reductions occurred with investors. They wanted to move their inventory.

The NABOR® January 2023 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 are in chart format ( CLICK HERE) for those who like statistics.

What does this all mean?

Buyers have more of an opportunity to purchase with a more considerable inventory. However, depending on the property location, they may still have competing offers. Beachfront or near-the-beach properties are at high demand. It astounds me the number of multiple offers these properties can manifest. What is also apparent is most offers are all cash. We are talking about properties $2 million or less. Paying cash used to be "king," but now everyone is offering it. So, it does not set an offer apart from others. Hence, having an experienced REALTOR® is essential who can create a strategy that will produce an accepted offer.

Interest Rates

Interest rates continue to inch up, and when this happens, it mentally prevents people from making a move unless an incident in life pushes the decision along, like birth or death. Generally, potential Buyers want to avoid making a move because their current mortgage rates are relatively low, generally from 2.75% to 3.75%. The higher interest rates are a deterrent. Luckily, this does not affect Florida like other states because we are primarily a secondary market. Hence, our market continues to push forward while other housing markets in the United States are stalling.

Do you think about a rental for next season?

Having a rental for the season is a great way to "test the waters." It is less expensive than purchasing property and allows people to explore Naples and its surrounding areas. Nardi Realty will be able to start booking rentals for next season starting Mid-April. The reason is that we give the current tenants the "first right of refusal." If they pass on their current rental, it will become available and offered to "next in line." Therefore, if you are interested in seasonal rentals, call Sheri Martin, Rental Administrator, at 239-571-6189. You will be placed on a list and contacted if the rental becomes available. Seasonal rates can go from $4000 to $100,000 monthly (Yes! $100,000 is not a typo). Other expenses include Tourist Tax (any rental less than six months and one day is considered a short-term rental and will be taxed at 12%), application, background check, and cleaning fees.

Enjoy and have a fantastic March! 

By Robert Nardi

In the first year after a two-year interruption in regular activity caused by the COVID-19 pandemic, the Naples real estate market is stable in terms of value. Still, buyers have fewer homes to choose from, and prices have elevated. As pandemic restrictions loosened in 2022, sellers and buyers pivoted their attention from the housing market to the travel market. As a result, and according to the December 2022 and 2022 Annual Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), overall closed sales in 2022 decreased 34.8 percent to 10,156 properties from 15,570 properties in 2021. And while inventory is beginning to rebound, increasing 106.3 percent to 2,465 properties in December 2022 from 1,195 properties in December 2021, broker analysts reviewing the report are uncertain where and when an influx of inventory will arrive to meet our pre-pandemic levels. The report showed only 105 homes for sale below $300,000 in December compared to 1,816 in December 2019. Demand for the Naples lifestyle remained constant in 2022, and low inventory pressed median closed prices upward. The median closed price in December 2022 increased 13.9 percent to $575,000 from $505,000 in December 2021. Looking back at December 2019, the median closed price was $344,255, and inventory was double what it is today.

Demand for homes in 2022 kept REALTORS® busy looking for new listings, which dropped 8.4 percent to 13,577 compared to 14,819 in 2021. Many homeowners, especially those who purchased homes below $300,000 or at low-interest rates, are now unable to afford a change in local address due to the increase in mortgage rates. Then, in the wake of Hurricane Ian, the Naples real estate market pivoted again in the fourth quarter of 2022. Homes that suffered damage fell into two categories depending on their age and the Federal Emergency Management Agency (FEMA) 50 percent rule. (The FEMA 50 percent rule, as part of the National Flood Insurance Program, mandates that if a home incurs substantial damage — determined when repair costs total or exceeded 50 percent of the property's market value. Then, the owner must bring up the property to current building codes and floodplain regulations.) This mandatory rule will affect older homes in the Moorings, Park Shore, and Naples Park areas. The owners may choose not to rebuild and sell the property "As-Is." If this is the case, it most likely will be priced at "land value."

The NABOR® December 2022 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 are presented in chart format ( CLICK HERE ) for those who would like to see all of the statistics.

What does this all mean?

It means, once again, we are moving toward a balanced market. Are people still buying? They are, but at a slower pace which is why inventory is rising. The economic factors affecting our market include fears of inflation and recession and increasing mortgage rates, which are still over six percent on average. In addition, if you factor in insurance, assessments, and taxes, the cost of buying a home today in Naples is a lifestyle that some people, unfortunately, cannot afford. On the other hand, Naples's lifestyle and weather are a huge draw for retirees or people who can work remotely and want to get out of the cold and enjoy what they love, like tennis, golf, pickleball, jogging, walking, etc.

Speaking of interest rates

I would not let the interest rates deter you from purchasing. You could always get an adjustable 5-year mortgage rate, significantly lower than the 6%, 30-year rate. Even if you finance for 15 years, your mortgage rate will be lower. My advice is to seek a mortgage professional who can help you navigate through lowering your starting interest rate.  Many can structure a loan based on your solvency, monthly income, and credit score for you to acquire your "piece of paradise."

Rentals

Nardi Realty has a large rental department. We have over 120 annual rentals and over 150 seasonal rentals. This season many people booked for three months, January through March. In other years, many just reserved for one or two months. Why? Because many come down not only to participate in what they love to do but because these three months become their socialization instead of being cooped up in their home up north, with a foot of snow and cold temperatures. I have lived here for over 21 years, and the Florida sunshine and activities make you vibrant, making you feel younger. You are thriving daily! Hence, our rental department is busy. If you wish to book a rental for March or April 2023 or 2024, you can call Sheri Martin at 239-571-6189, Rental Administrator. She can assist you with your search, or you can access  www.BuyNaples.net  and create your own.

For those up north, I wish you warmer days ahead, and for those currently down here, may we continue with this weather of low humidity and temperatures in the high 70s! 

By Robert Nardi
According to the November 2022 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), there were 552 overall closed sales in November, which is a 41.4 percent decrease from 942 closed sales recorded in November 2021. The post-pandemic home buying surge when mortgage rates were historically low has ended. Housing inventory in Naples is rising but remains low at just 2.8 months of inventory reported in November (a balanced market has a six-month supply of inventory). As expected, the limited inventory environment in Naples is restricting sales and increasing prices. Though broker analysts reviewing the report pointed out that cash sales accounted for 62.3 percent of closed sales in November, it indicates that the Naples housing market remains a solid investment. The November report showed inventory rose in all price categories except the $300,000 and below category, which decreased 14.2 percent from 127 to 109 properties. Overall inventory in November rose 96.8 percent to 2,478 properties from 1,259 properties in November 2021. Comparatively, in November 2019, there were 5,563 properties in inventory, which was split between 2,771 single-family homes and 2,792 condominiums. Today, the inventory is single-family home heavy, accounting for 63 percent of all homes in Naples. November's overall median closed price increased 20.4 percent to $600,000 from $498,500 in November 2021.  Here is the report in chart form (CLICK HERE) for those of you who wish to see all the statistics.

What does this all mean?

We are slowly turning into a balanced market. The only hurdle now that we have is insurance. Since Hurricane Ian, insurance companies have been inundated with insurance claims. To add to the mix, they are swamped with the harsh weather up north (pipes bursting from the cold, roofs leaking, etc.). They are moving slower than usual, so many potential sellers are also slow to move. They need to work with their insurance company to get a resolution to repair damaged properties to put them on the market. Hence, it will be slow before six months of inventory are available.

Now for the buyers who are purchasing and wish to obtain insurance, it is becoming more and more difficult. If you purchase a property with a 20-year-old clay tile roof that is sound and has no leaks, no insurance company will insure the property. However, you can seek a third-party insurer, like Lloyds of London. The price of insurance could be costly until a new roof is installed. If it is a shingle roof and is 15 years old, insurance companies will still insure it but will need to undergo a certification process each year up until its 20th year, and then it must be replaced. Lastly, some insurers now offer insurance but will no longer insure the roof. Hence, when looking at a property, you must read the Seller's Disclosure, find out the roof's age, and investigate your insurance options. You can also try shopping for insurance using an Insurance Broker instead of just going through one company. They can send out your information and receive 3-4 quotes back.  

The benefits of living in Florida full time.

Property owners pay three times more for property insurance than in other states.  However, there are many financial benefits to living here. First of all there is no state tax, and if you purchase in Collier County, real estate taxes are 1.25% of the  assessed  value set by the Collier Appraiser. I am happy to report that Collier County has the lowest real estate taxes in all of Florida. In addition, if you don't live in the City of Naples proper, you have no city tax. The other huge benefit is the homestead exception. If you become a full-time resident, you'll receive this exception on your real estate taxes, saving you up to $625 a year on your taxable value. The most significant savings is that your taxes can only increase by 3% a year until you sell your property. Even though your property value could go up 10% a year, you pay taxes of 3%. This is a considerable saving over time. Another benefit is if you are a married couple and one spouse dies, it simply transfers to the other spouse without any tax ramifications. Lastly, since it is your homestead property, if you were ever involved in a lawsuit and a lien was placed on your home, a judge could never force you to sell your property to pay off the lien.

We live in paradise!

Southwest Florida is recovering quickly from Hurricane Ian. 95% of our beaches are open. The Gulf of Mexico is shimmering greens and blues. Our weather is fantastic in the winter months. So if you are looking to buy a little piece of paradise, you could always start searching online at  www.BuyNaples.net , or if you wish to have personalized service, please feel free to contact me directly at 239-293-3592 or send an e-mail to  Robert@NardiRealty.com . I am here to help! Happy New Year!

By Robert Nardi

Speculation that home sales in October would drop dramatically in Collier County following Hurricane Ian was proven inaccurate as closed and pending sales for the month increased by 23.7 and 8.7 percent. Respectively, compared to closed and pending sales reported in September, according to the October 2022 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). And even though 525 listings were either terminated, expired, or withdrawn from the Southwest Florida MLS during October, overall inventory increased 72.7 percent to 2,325 properties from 1,346 properties in October 2021.

Admittedly, compared to 2021, a standout year for real estate in Collier County, closed sales in October decreased 24.5 percent to 662 closed sales from 877 closed sales in October 2021. Pending sales (homes under contract) dropped 43.3 percent to 673 pending sales from 1,186 pending sales in October 2021. According to NABOR®’s statistics, October’s overall median closed price held fast at $555,000, the same as was reported in September. But compared to October 2021, the median closed price increased 23.3 percent from $450,000. The statistics showed a 1.6 percent decrease in median closed prices for condominiums between September and October. There was a 26.1 percent increase in new listings in October compared to September, which broker analysts say is typical this time of year. Overall new listings in October decreased by 13.9 percent to 908 from 1,054 in October 2021. Still, new listings for single-family homes soared in October and were just ten properties shy of the 548 new listings reported in October 2021.

The NABOR® October 2022 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 are presented in chart format ( CLICK HERE ) for those who like statistics.

What does this all mean?

Unfortunately, the tragedy of Hurricane Ian and those that received water damage spurred some other types of buyers to the area. Some investors want to swoop down and “catch” a good deal, while others see Southwest Florida as a new opportunity to purchase at a reduced price. Some lower elevated homes West of 41 took a hard hit with flooding. Therefore, owners can either rebuild, re-model or sell the property “As Is” (which means they are not making any repairs). Many have owned their properties for years, with built-in equity. They are either too old or tired or do not want to take on the remedial process.

Also, some sellers have decided that they want to move East of 41 and no longer wish to live near the Gulf of Mexico even though they experienced no damage. And lastly, Hurricane Ian pushed them to move up North to be with family and friends full-time. Therefore, Naples/Southwest Florida housing market is starting to weaken as a Sellers’ market because the overall percent of the current list price received is 96.4 percent and has been declining since April. In a nutshell, more available units are now on the market. There are 2478 available properties for sale in Naples based on NABOR® MLS data (12/10/2022). We are inching our way to a balanced market (around 6000 units), allowing Buyers to negotiate a bit more than in the past. 

Demand for Rentals

As you may have noticed, rentals have taken a life of their own. They have increased in number, and rental payments have increased significantly. The demand for annual and short-term rentals has been overwhelming not only because of trying to find housing for displaced individuals from Hurricane Ian but because of the spur of people who want to rent for three months during the season. You would think that people would not want to come down in season; however, it has been the opposite. Naples/Southwestern Florida is still in demand. People want to experience “paradise” and get away from the cold. Nardi Realty still has some rentals available. If you are considering renting, please call my Rental Administrator, Lilly Fulcher, at 239-571-6189. She can let you know our rental availability, assist with your search, or put you in contact with one of our REALTORS® that specializes in rentals.

In closing, I want to wish all of you Happy Holidays! May your New Year bring you loads of health, happiness, and prosperity. 

By Robert Nardi

The impact of Hurricane Ian, as witnessed on the last two days of September, is not reflected in the September 2022 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). Given this, September's data showed a predictable pattern of slow closed and pending sales with a slight increase in inventory, which is traditionally the case in historically stable September.

If you are comparing sales, etc., from September 2021 to September 2022, the following statistics are:

• Total showings (month/month) 28,452 to 19,034, -33% change
• Total closed sales (month/month) 931 to 523, -43.8% change
• Total pending sales (homes under contract) (month/month) 1,085 to 619, -42.9% change
• Median closed price (month/month) $455,500 to $555,000, +21.8% change
• New listings (month/month) 985 to 694, -29.5% change
• Total active listings (inventory) 1,387 to 2,146, +54.7% change
• Average days on the market 24 to 40, +66.7% change
• Single-family closed sales (month/month) 454 to 258, -43.2% change
• Single-family median closed price (month/month) $615,000 to $682,500, +11.0% change
• Single-family inventory 883 and 1,379, +56.2% change
• Condominium closed sales (month/month) 477 to 265, -44.4% change
• Condominium median closed price (month/month) $355,000 to $446,520, +25.8% change
• Condominium inventory 504 to 767, +52.2% change

I published all these statistics because they give you an excellent insight into our current market if you wish to see the full market report ( CLICK HERE ).

What does it all mean?

The statistics above show the market is shifting from a "Sellers' Market" to an "Even Market."

Unfortunately, when Hurricane Ian made its crashing entrance, the national news showed all the devastation that occurred in Southwest Florida. I had friends and family that thought Naples was underwater.

My company received numerous calls from around the world from owners and renters to find out the status of the livability of the Naples area. The bad news was that if you were West of 41, near the coast or on the beach, you most likely experienced flooding. There was very little damage if you lived or owned East of 41. Hurricane Ian was not a wind event but a storm surge event for Naples. Fort Myers Beach, Sanibel, Captiva, and Cape Coral not only received storm surges but also high winds as Hurricane Ian pushed its way farther North and East when it made its landfall, making them the hardest hit areas.

The one bright spot is that the clean-up and rebuilding are the fastest I have ever seen. 85% of restaurants, golf courses, etc., are open for business. If you drive East of 41, you would be hard-pressed to conceive there was a hurricane here. The devastation was all storm surge related on or near the coast.

Unfortunately, many people were displaced if they lived along the coast. Some stay with friends and family, while others seek short-term or annual rentals. For example, rebuilding a home in the hardest-hit areas will take at least a year or more. Therefore, rents are at a premium. For those owners that did not have damage, this may be an opportunity to rent their properties. Not only will they be able to help someone in need, but receive a rental income.

Who's buying now?

Naples continues to grow. People are coming here for their jobs and are seeking to purchase. It's a bit harder because the interest rates continue to climb, but there is still demand.

Another demand is owners with large homes damaged on the coast. They still want to live in Naples, so some displaced people are purchasing properties to live in during the repair/rebuild process. They figured once they moved back into their original home, they could either sell their temporary property or use it as an investment property.

Investors are swooping in as well. Some people had extensive damage and did not want to go through the rebuilding/repairing process. Therefore, they are lowering their prices and putting their properties on the market significantly lower than fair market value knowing the amount of money needed to bring it back to where it was before Hurricane Ian.

Best advice

For those people who were affected by the storm, work closely with your insurance company. Document what you need to document and understand what your policy covers. Insurance companies can reimburse you for your temporary housing, community assessments levied for clean-up, failed equipment, and other damages. Make sure you know what you are entitled to and put in a claim.

If you have questions concerning buying, selling, or renting, don't hesitate to contact me at 239-293-3592 or via e-mail at  Robert@NardiRealty.com . In addition, you can always perform your searches at  www.NardiRealty.com .