Blog * Real Estate Market Report * Regional Report * Wakelin Realty

The Naples Area Board of Realtors September 2018 Market Report: Naples 3Q Housing Market Remains Strong

Naples, Fla. (October 19, 2018) – One year after Hurricane Irma, overall closed sales in Naples increased 62 percent to 644 homes in September of 2018 compared to 398 closed sales of homes in September of 2017. According to broker analysts, this impressive increase in month over month sales is a result of the effect of the hurricane when homes sales halted following the massive storm.

“The September Market Report shows how resilient and desirable our market is,” said Lauren U. Melo, PA, Licensed Real Estate Broker with Florida’s Realty Specialists. “A three percent increase in pending and closed sales, year over year, is strong considering the reduced sales activity during the troubled period following the hurricane. This was when many sellers were making repairs caused by the hurricane. The September statistics show that our market is in a good position to see positive activity for the fourth quarter.”

Overall pending sales in the third quarter are up 20 percent, closed sales are up 13 percent, the median closed price is up 3 percent, inventory is up 4 percent, and the days on market decreased 1 percent; all indicators that the third quarter real estate market in Naples remains strong.

“Luxury properties are driving the market in the third quarter,” remarked Coco Amar, Managing Broker of John R. Wood Properties. “Third quarter pending sales in the $1 million to $2 million price category are up 18 percent and in the $2 million+ category they are up 50 percent compared to the pending sales in the third quarter of 2017.”

According to the 3Q 2018 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), closed sales of homes between $300,000 and $500,000 increased at a higher rate (24 percent) than other price categories during the third quarter. Sales of homes between $1 million and $2 million increased 18 percent to 122 homes for the third quarter of 2018 from 103 homes for the third quarter of 2017. Overall closed sales in the $2 million price category increased 20 percent in the third quarter of 2018 to 79 properties from 66 properties sold in the third quarter of 2017.

Most remarkable in the 3Q Market Report was the strong activity in the condominium market where pending sales increased 21 percent and closed sales increased 20 percent compared to the third quarter of 2017. The single-family home market also saw a strong increase in overall pending sales activity which was up 20 percent and its closed sales activity was up 6 percent.

“Even though the overall median closed price for the 12-months ending September 2018 increased 5 percent to $344,000 from $329,000, median closed prices for homes below $1 million saw no change in price, compared to 12-months ending September 2017,” said Brenda Fioretti, Managing Broker at Berkshire Hathaway HomeServices Florida Realty. “In fact, only homes priced between $1 million and $2 million in the 12-months ending September 2018 saw an increase, which was 3 percent to $1,375,000 from $1,340,000. The median closed prices for homes over $2 million decreased 4 percent year over year to $2,991,00 from $3,100,000.”

According to Jeff Jones, Managing Broker for Engel & VölkersNaples and Bonita Springs offices, “Sales activity in East Naples was impressive during the third quarter. This geographic area saw an increase of 21 percent in its closed sales and an increase of 16 percent in its inventory compared to the third quarter of 2017!”

If you are looking to sell a home in Naples, contact The Wakelin Team at BHHS as we have the experience and knowledge to provide an accurate market comparison so you can determine the right asking price. We can also ensure your next purchase in the Naples area is a success.

The Naples Area Board of Realtors August 2018 Market Report

August Housing Market in Naples Continues to Show Strength

Naples, Fla. (September 14, 2018) – Closed sales of properties during August increased 5 percent to 719 homes from 685 homes in August 2017 according to the August 2018 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). Inventory during August also rose by 2 percent and was driven by a surge of 218 more properties added to the market in the two lowest price categories reported, compared to August 2017.

“I’m really encouraged by activity in the lower end of the market during August,” said Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., who, along with several broker analysts reviewing the August Market Report, thinks we’ll continue to see an uptick in inventory through the end of the year. “Historically, August is where we begin to see an increase in inventory as sellers get ready for our busy winter season.”

Hughes went on to point out that the majority of the new inventory in August appeared in the single-family home market for properties below $500,000. Yet interestingly, closed sales during August were driven by activity in the condominium market, which experienced a 21 percent increase.

According to Jeff Jones, Managing Broker for Engel & Völkers Naples and Bonita Springs offices, “If you look at year over year numbers, the upper end continues to drive our market.” As such, pending and closed sales of properties above $1 million increased by double digits, year over year ending August 2018.

As to whether heightened Red Tide activity affected the Naples housing market in August, Bill Coffey, Broker Manager of Amerivest Realty Naples, responded by stating, “There were only 14 fewer pending sales in August compared to last year. And remember, we are still working with only 11 months of data since Hurricane Irma essentially halted activity for nearly a month last year.”

Overall pending sales in August fell 3 percent; but pending sales of condominiums in the $500,000 to $1 million price range soared 28 percent in August. And pending sales for single family homes above $300,000 increased as well, with an impressive 62 percent increase for single family homes in the $2 million and above price category.

The NABOR® August 2018 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® August 2018 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:

CATEGORIES	August 2017	August 2018	CHANGE
Total homes under contract (pending sales) (month/month)	829	806	-3%
Total closed sales (month/month)	685	719	+5%
Median closed price (month/month)	$328,000	$319,000	-3%
Median closed price >$300K (month/month)	$510,000	$446,000	-13%
Total active listings (inventory)	4,807	4,913	+2%
Average days on market	95	120	+26%
Single-family closed sales (month/month)	378	348	-8%
Single-family median closed price (month/month)	$422,000	$405,000	-4%
Single-family inventory	2,446	2,560	+5%
Condominium closed sales (month/month)	307	371	+21%
Condominium median closed price (month/month)	$250,000	$250,000	0%
Condominium inventory	2,361	2,353	0%

Overall median closed prices fell 3 percent in August to $319,000 from $328,000 in August 2017, and it fell 13 percent for properties above $300,000 to $446,000 from $510,000 in August 2017. The only place prices increased was in the $500,00 to $1 million condominium market, which saw a 13 percent increase to $672,000 from $595,000 in August 2017.

Geographically, the median closed price increased 16 percent for homes in the South Naples area. This increase was reflected in a combined 37 percent increase in the single-family home market and 21 percent increase in the condominium market.

According to Adam Vellano, West Coast Sales Manager, BEX Realty – Florida, “One indication that homeowners were pricing homes to sell in August was apparent in the MLS as 50 percent of the inventory that sold during the month had been on the market for over 100 days.”

If you are looking to sell a home in Naples, contact The Wakelin Team as we have the experience and knowledge to provide an accurate market comparison so you can determine the right asking price. We can also ensure your next purchase in the Naples area is a success.

The Naples Area Board of Realtors July 2018 Market Report

July Housing Market in Naples Defies National Trends

Naples, Fla. (August 24, 2018) – According to the National Association of REALTORS July market report, existing home sales in America decreased for the third straight month as a result of the severe housing shortage that is not releasing its grip on the nation’s housing market.

Conversely, homes sales in the Naples area were up 8 percent in July according to the July 2018Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). The nation has only a 4.3-month supply of home inventory, while Naples has a healthier 6.25-month supply of inventory.

“The Naples area overall median home price increase in July 2018 seems to be the only statistical category where we match national trends,” said Kathy Zorn, broker/owner, Better Homes and Gardens Real Estate Pristine, “Naples saw an 8 percent increase in its overall median closed price in July 2018 compared to July 2017; whereas nationally, median closed prices went up just 4 percent. But median closed prices for properties over $300,000 in the Naples area decreased 2 percent in July 2018 compared to July 2017.”

Interestingly, while July’s overall inventory fell 1 percent to 4,871 properties from 4,928 properties in July 2017, inventory increased 5 percent in the $300,000 and below price category. In fact, inventory for single-family homes in this price category jumped 21 percent in July to 345 from 286 in July 2017.

“There are 1,154 single family homes and 1,722 condos for sale under $500,000 currently,” said Brenda Fioretti, Managing Broker at Berkshire Hathaway HomeServices Florida Realty. “Economists predict home sales in America during 2018 will not be as good as 2017. However, we’re seeing the opposite in the Naples area. Granted our sales were hampered by a hurricane in 2017, but there are no signs that interest in buying a home in Naples this year might drop because of temporary climate or environmental phenomena. We have a healthy inventory, an increase in closed sales, price stability and a decrease in the days on the market compared to July 2017.”

July also saw a huge 39 percent jump in condominium closings in the Naples Beach area. Closed sales for August look strong too in this segment as pending sales for condominiums in the Naples Beach area increased 55 percent in July 2018 over July 2017!

Overall pending sales in Naples were up 11 percent in July, with only one price segment ($500k-$1M) reporting a decrease compared to July 2017.

“Pending sales for luxury condominiums [$2 million and above] in July were up 150 percent,” said Budge Huskey, President, Premier Sotheby’s International Realty. “The strength of the luxury market segment for both single family and condos continued into the summer months, a reflection of sustained confidence among the affluent witnessing the longest economic expansion cycle in the nation’s history and record corporate earnings.”

How buyers are purchasing homes in Naples is very different than the national average home buyer, as well. Cash sales accounted for only 20 percent of home purchases in July nationally. But in Naples, cash sales accounted for 50 percent of all home sales in July.

The NABOR® July 2018 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® July 2018 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:

CATEGORIES	July 2017	July 2018	CHANGE
Total homes under contract (pending sales) (month/month)	720	796	+11%
Total closed sales (month/month)	682	738	+8%
Median closed price (month/month)	$319,000	$345,000	+8%
Median closed price >$300K (month/month)	$485,000	$474,000	-2%
Total active listings (inventory)	4,928	4,871	-1%
Average days on market	105	93	-11%
Single-family closed sales (month/month)	354	372	+5%
Single-family median closed price (month/month)	$409,000	$435,000	+6%
Single-family inventory	2,552	2,542	0%
Condominium closed sales (month/month)	328	366	+12%
Condominium median closed price (month/month)	$248,000	$255,000	+3%
Condominium inventory	2,376	2,329	-2%

According to Cindy Carroll, SRA, with the real estate appraisal and consultancy firm Carroll & Carroll, Inc., inventory in neighborhoods west of US 41 are beginning to tighten. “I think we can expect some upward price pressure in areas where the inventory supply level is below 4 months, like Pelican Bay.”

Carroll also noted that the number of affordable homes in areas like Golden Gate City and South Naples is growing. “In April 2018, Golden Gate City had a 1.3-month supply of inventory; today it’s at a 3.7-month supply. While a majority are priced on the high end of the $0-$300,000 price category, it might still provide some new opportunities for first-time homebuyers.”

In response to the question of whether home sales will be affected by a longer-than-average red tide occurrence, Huskey responded, “Clearly it’s a situation we are all watching closely, yet currently there’s no reflection in the pace of home sales. While impossible to ignore if at the beach on a day in which it’s more prominent, a block or two east you wouldn’t be aware of any issue and inland sales represent the vast majority of all activity in the market.”

If you are looking to sell a home in Naples, contact The Wakelin Team at Berkshire Hathaway HomeServices Florida Realty as we have the experience and knowledge to provide an accurate market comparison so you can determine the right asking price. We can also ensure your next purchase in the Naples area is a success.

Naples Area Board of Realtors 2nd Quarter 2018 Market Report

Luxury Home Sales Lead to a Strong Second Quarter Finish

Naples, Fla. (July 13, 2018) – Activity in the Naples area housing market during the Second Quarter of 2018 remained steady in comparison to activity during the Second Quarter of 2017. According to the 2Q 2018 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), overall closed sales increased 2 percent to 2,926 properties in the 2Q of 2018 from 2,880 in the 2Q of 2017. But in the $2 million and above single-family home market, closed sales rose 25 percent in the 2Q of 2018, which-along with other market indicators-leads many broker analysts to believe that interest in luxury homes will remain in high demand.

Available inventory at the end of the 2Q of 2018 was 5,165 properties, just 24 units behind the inventory level at the end of the 2Q of 2017 (5,189 properties). “This tells me that homes are coming onto the market at the same rate we are selling them,” said Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc.

Inventory rose 15 percent in the $2 million and above condominium market during the 2Q of 2018, which may be a factor in the uptick of pending sales in the luxury condominium market as it rose 32 percent during the 2Q of 2018.

“Inventory in other parts of the state and nation are stretched thin, hovering between 3 and 4 months of inventory, but Naples enjoys almost 7 months of inventory,” said Budge Huskey, President, Premier Sotheby’s International Realty. “What’s even more impressive is that we have such a great selection of homes for buyers despite the recent increase in sales and still having some undergoing repairs from Hurricane Irma.”

“We are seeing a very different sales environment locally from that of 10 years ago when home sales in northern states stalled,” said Coco Amar, a managing broker at John R. Wood Properties. “But now that homes are moving fast up north, sales of high-end single-family homes in Naples are stronger than ever.”

“It’s hard to ignore the increase in interest for ultra-luxury properties,” said Huskey. “A $48.8 million sale for a home in Naples is impressive, but when you learn there was a second potential buyer who was considering the property you know what type of buyers are in the market.”

According to Adam Vellano, West Coast Sales Manager, BEX Realty – Florida, there were four property sales over $10 million during the 2Q. “It’s possible the new tax laws are impacting people’s minds about residency and we’re benefiting from it.”

Brokers analyzing the market report agreed that multiple offers on luxury properties have risen. But whatever factor(s) is driving the increased interest, closed sales of luxury homes over $2 million are positioned to rise again as the stage has been set in the 2Q where pending sales in this price category increased 22 percent for single-family homes and 32 percent for condominiums.

The NABOR® Second Quarter 2018 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® Second Quarter 2018 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:

CATEGORIES	2Q 2017	2Q 2018	CHANGE
Total homes under contract (pending sales) (quarter/quarter)	2,770	2,733	-1%
Total closed sales (quarter/quarter)	2,880	2,926	+2%
Median closed price (quarter/quarter)	$340,000	$345,000	+1%
Median closed price >$300K (quarter/quarter)	$535,000	$510,000	-5%
Total active listings (inventory)	5,189	5,165	0%
Average days on market	97	96	-1%
Single-family closed sales (quarter/quarter)	1,349	1,395	+3%
Single-family median closed price (quarter/quarter)	$418,000	$449,000	+7%
Single-family inventory	2,654	2,601	-2%
Condominium closed sales (quarter/quarter)	1,531	1,531	0%
Condominium median closed price (quarter/quarter)	$282,000	$270,000	-4%
Condominium inventory	2,535	2,564	+1%

The real estate market’s stability during the 2Q also extended to its median closed prices which increased only 1 percent to $345,000 in the 2Q of 2018 from $340,000 in the 2Q of 2017. However, despite increased sales in nearly every price category for properties priced above $300,000 during the 2Q of 2018, the median closed prices for properties above $300,000 decreased 5 percent!

As pointed out by Vellano, sales of single-family homes near Naples Beach and in the expanding North Naples area saw the greatest increase during the 2Q, and condominium sales in Central Naples outpaced all other home type sales during the 2Q. “According to the report, we averaged 30 transactions a day during the 2Q,” said Vellano. “That’s good news for REALTORS® as we move into the summer months.”

The Naples Area Board Of Realtors May 2018 Market Report

Housing Activity in May Yields Solid Market

Naples, Fla. (June 16, 2018) – For a second consecutive year, housing activity during May demonstrated to broker analysts that May remained a standout month. Overall closed sales were remarkable with 1,024 closed sales during May 2018 compared to 1,027 closed sales in May 2017. Closed sales in May 2018 were higher than all months following May 2017. May also saw inventory levels continue to stabilize, according to the May 2018 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island).

“In 2017, May’s sales increased 23 percent over sales in May 2016,” said Phil Wood, President & CEO of John R. Wood Properties. “The fact that we are keeping the same pace this year and inventory is holding steady is good news as we move into summer.”

Closed sales of properties in the $300,000 to $500,000 price category during May increased 21 percent over May 2017, while closed sales in the $300,000 and below price category were just one sale short of the number of closed sales in May 2017.

There was very good news for buyers in the report as May’s overall median closed price dropped 5 percent to $337,000 from $355,000 in May 2017. Moreover, the overall median closed price for homes priced above $500,000 decreased 14 percent to $507,000 from $590,000 in May 2017.

On the high-end side of the market, despite an 11 percent increase in median closed prices, pending sales of properties in the $2 million and above price category increased 23 percent in May 2018 compared to May 2017.

“We haven’t seen inventory levels in May this high since 2013,” said Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc. “I was concerned that the low end of the market would start shrinking after season, but the May report showed inventory increased 6 percent for homes under $300,000.”

Overall inventory in May rose by 15 properties compared to May 2017. The report also showed inventory rose in May for both single family homes and condominiums priced below $500,000, which accounted for 58 percent of the available market in Collier County at the end of the month.

The NABOR® May 2018 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® May 2018 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:

CATEGORIES	May 2017	May 2018	CHANGE
Total homes under contract (pending sales) (month/month)	1,027	970	-6%
Total closed sales (month/month)	1,027	1,024	0%
Median closed price (month/month)	$355,000	$337,000	-5%
Median closed price >$300K (month/month)	$590,000	$507,000	-14%
Total active listings (inventory)	5,404	5,419	0%
Average days on market	98	97	-1%
Single-family closed sales (month/month)	485	497	+2%
Single-family median closed price (month/month)	$435,000	$440,000	+1%
Single-family inventory	2,734	2,680	-2%
Condominium closed sales (month/month)	542	527	-3%
Condominium median closed price (month/month)	$289,000	$270,000	-7%
Condominium inventory	2,670	2,739	+3%

According to Dominic Pallini, Broker at Vanderbilt Realty, “both median closed prices and days on market for single family homes above $300,000 decreased in May, which may indicate sellers are pricing homes to sell.”

As broker analysts discussed the inherent necessity for REALTORS® to work with a seller to help them price a home properly the first time, veteran broker Bill Coffey, Broker Manager of Amerivest Realty Naples, added that “When I was trained, they told us that 50 percent of our listings won’t sell because they are overpriced. But things look better today because REALTORS® are better trained and can provide more accurate market comparisons to sellers. As a result, sellers can make more informed decisions.”

Geographically, North Naples continues to be a shining star as the only coastal area in Collier County to report an increase in closed sales for May. Activity in the rural Ave Maria area has increased steadily over the last year; but in May, this area saw its single-family home closed sales skyrocket to 40 percent.

“Inventory levels in other areas of the nation and Florida are very tight right now, but Naples is enjoying some renewed momentum in our inventory,” said Brenda Fioretti, Managing Broker at Berkshire Hathaway HomeServices Florida Realty. “When the market is good in other areas of the country, our home sales activity is driven up as out-of-staters relocate to the Naples area. I think we’ll see a very strong summer.”

If you are looking to sell a home in Naples, contact The Wakelin Realty Team as we have the experience and knowledge to provide an accurate market comparison so you can determine the right asking price. We can also ensure your next purchase in the Naples area is a success.

The Naples Area Board of Realtors April 2018 Market Report:

Inventory Keeping Spring Market Active

Naples, Fla. (May 25, 2018) – According to the April 2018 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), Collier County enjoys a 7.76 month supply of inventory compared to a 4-month supply nationally. This is great news for Naples REALTORS® as they transition from a very busy high season to what broker analysts believe will be a very strong summer.

“Summer buyers are going to be very happy this year because there will be plenty of choices,” said Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc. “Inventory growth has been good across all price ranges and geographic territories.”

According to Cindy Carroll, SRA, with the real estate appraisal and consultancy firm Carroll & Carroll, Inc., the rate of inventory loss is declining and she predicts the Collier housing market will become even more stable before the end of the year. Carroll considers a 12-month supply of inventory a stable market for Collier County. Nationally, a stable market is reflected as having a 6-month supply of inventory.

Even though April’s inventory fell 2 percent to 5,793 from 5,920 in April 2017, it’s actually rebuilding from an annual low of 4,608 properties in inventory at the end of September 2017.

“The reality is, the real estate market is doing much better this year than in 2017,” said Hughes, considering the 2018 statistics includes the period of time when Hurricane Irma stalled home sales activity for nearly six weeks starting in September (and as reflected in the 4Q 2017 Market Report).

Condominium inventory grew 2 percent in April to 3,003 units, over half the entire market, from 2,934 units in April 2017. The $300,000 and below price category experienced the highest increase in inventory (7 percent) to 1,472 units from 1,378 units in April 2017. Pending and closed sales of condominiums in this low-end price category were also strong, with a 17 and 14 percent increase, respectively. Interestingly, the median closed price of condominiums in April dropped 8 percent to $271,000 from $296,000 in April 2017.

“Sellers are pricing properties to sell and it shows,” said Adam Vellano, West Coast Sales Manager, BEX Realty – Florida.

Carroll agreed and added, “The market for homes above $1 million is hot. If we can maintain current inventory trend levels – and I think we can – then sales of properties in this price point will be strong for at least a couple of years.”

Overall closed sales increased 8 percent (month over month) in April to 978 properties from 902 properties in April 2017. And just like the first three months of the year, the high-end of the market continued to outpace other price categories tracked by NABOR® in April. As shown in the report, the number of closed sales of homes between $1 and $2 million increased 34 percent, while closed sales of homes over $2 million increased 15 percent in April.

“Closed sales of single-family homes in April were up 11 percent with an increase in every price category except the $300,000 and below range, where there are only 300 single-family homes on the market,” said Brenda Fioretti, Managing Broker at Berkshire Hathaway HomeServices Florida Realty.

The NABOR® April 2018 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® April 2018 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:

CATEGORIES	April 2017	April 2018	CHANGE
Total homes under contract (pending sales) (month/month)	1,075	1,126	+5%
Total closed sales (month/month)	902	978	+8%
Median closed price (month/month)	$355,000	$365,000	+3%
Median closed price >$300K (month/month)	$525,000	$525,000	0%
Total active listings (inventory)	5,920	5,793	-2%
Average days on market	97	95	-2%
Single-family closed sales (month/month)	404	450	-11%
Single-family median closed price (month/month)	$419,000	$455,000	+9%
Single-family inventory	2,986	2,790	-7%
Condominium closed sales (month/month)	498	528	+6%
Condominium median closed price (month/month)	$296,000	$271,000	-8%
Condominium inventory	2,934	3,003	+2%

Geographically, real estate activity was strong across the entire county, but closed sales of single-family homes in South Naples were most remarkable with a 51 percent increase to 62 closed sales in April 2018 from 41 in April 2017.

“North Naples was also a shining star in April,” said Fioretti. “Even though inventory was down 8 percent in this geographic area, its year over year pending sales increased 9 percent, the highest of all geographic areas tracked. And its closed sales increased 13 percent year over year too.”

April’s month over month activity was even more impressive in the North Naples area, as reflected in a 26 percent increase in closed sales. Similarly, the median closed price of condominiums in North Naples dropped 14 percent in April to $258,000 from $300,000 in April 2017.

The Naples Area Board of Realtors Q1 2018 Market Report:

First Quarter Housing Market Activity Sets the Stage for Strong Year

Naples, Fla. (April 13, 2018) – Sales of homes above $1 million in Naples during the first quarter of 2018 drove the market. Their sales increased 61 percent compared to the same quarter of 2017 according to the First Quarter 2018 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island).

“January’s results led some to question expectations for the year when compared to last, yet in February the market gained its stride which accelerated in March with closed sales shooting ahead to end the first quarter on a very impressive note,” said Budge Huskey, President, Premier Sotheby’s International Realty. According to NABOR’s monthly reports, January had 672 closed sales, February reported 672 closed sales, but March kept agents very busy with 942 closed sales, driven by a strong high end which included a number of new construction condominiums just delivered.

Pending sales in the first quarter of 2018 increased 3 percent to 3,177 compared to 3,097 in the first quarter of 2017. Although pending sales for both single-family homes and condominiums over $1 million increased by double digits, it was the $2 million and above condominium market that raised eyebrows among brokers who reviewed the reports.

“Tourism was up in our area this season compared to last year so it is not surprising that we would end with strong pending sales for the quarter,” said Kathy Zorn, President/Owner, Better Homes and Gardens Real Estate Pristine. “But I wasn’t expecting to see a 109 percent increase during the quarter in pending sales for condominiums over $2 million!”

“There are very good investment opportunities in the condominium market, especially at both ends of the market,” added Coco Amar, a managing broker at John R. Wood Properties. “The top and bottom price categories are where both the inventory has grown and the prices have dropped.”

As reflected in the market’s year-ending statistics (12-months ending 1Q 2018 versus 12-months ending 1Q 2017), there was a 69 percent increase in closed sales of condominiums in the $2 million and above market, and a 17 percent decrease in its median closed price to $2,450,000 from $2,962,000 in 2017. Despite rocket sales in this high-end sector during the first quarter of 2018 (179 percent increase) and a drop in median closed prices for the first quarter (24 percent decrease), its inventory increased 5 percent! Similarly, median closed prices for condominiums in the $300,000 and below price category dropped 1 percent to $199,000 from $200,000 in the first quarter of 2017, but inventory increased 3 percent.

The NABOR® First Quarter 2018 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® First Quarter 2018 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:

CATEGORIES	Q1 2017	Q1 2018	CHANGE
Total homes under contract (pending sales) (quarter/quarter)	3,097	3,177	+3%
Total closed sales (quarter/quarter)	2,205	2,306	+5%
Median closed price (quarter/quarter)	$330,000	$370,000	+12%
Median closed price >$300K (quarter/quarter)	$510,000	$575,000	+13%
Total active listings (inventory)	6,389	6,112	-4%
Average days on market	95	95	0%
Single-family closed sales (quarter/quarter)	1,059	1,050	-1%
Single-family median closed price (quarter/quarter)	$410,000	$448,000	+9%
Single-family inventory	3,236	2,964	-8%
Condominium closed sales (quarter/quarter)	1,146	1,256	+10%
Condominium median closed price (quarter/quarter)	$270,000	$299,000	+11%
Condominium inventory	3,154	3,148	0%

Broker experts analyzing the reports said most counties in Florida continue to see inventories decline, but the Naples area experienced a steady rise over the past few months. In fact, according to Jeff Jones, Managing Broker for Engel & Völkers Naples and Bonita Springs offices, there is currently 8.25 months of inventory available in Collier County. Months of inventory is a nationally accepted measurement of how fast all existing homes on the market would last assuming no additional listings are added and sales activity continues to remain the same as the previous 12 months of sales.

“There were 118 closed sales of condominiums between $1.4 million and just over $2 million in a new development located in North Naples during the last two months that impacted our median closed price statistics,” said Wes Kunkle, President and Managing Broker at Kunkle International Realty. These “one-day-on-the-market” closed sales are one reason why the report showed a 13 percent increase in the median closed price for condominiums in the $1 to $2 million price category and a 24 percent decrease in median closed prices for condominiums in the $2 million and above price category.

Kunkle, along with several brokers who reviewed the reports, is concerned sellers may misinterpret this statistical anomaly as a reflection of the area’s comparable pricing activity. “These sales were for new luxury condos that were secured over a two year period. When the project obtained its final Certificate of Occupancy, the closings were finalized and they all appeared as a one-day sale in the MLS.”

However, this was not the only new construction activity that influenced NABOR®’s first quarter statistics. According to Jones, many sellers of speculative single-family homes that have been on the market for over two years in neighborhoods like Park Shore and the Moorings began to set more realistic list prices this past quarter, which resulted in more sales in the high-end, single-family home market.

“Overpriced homes don’t sell,” said Jones. “In fact, I think sales during January and February could have been better had many of these sellers set their prices realistically earlier. It wasn’t until March that I began to see an uptick in price decreases in the MLS for many of these speculative homes, and then those sellers saw multiple offers from buyers who had been holding out.”

If you are looking to sell a home in Naples, contact The Wakelin Realty Team We have the experience and knowledge to provide an accurate market comparison so you can determine the right asking price. We can also ensure your next purchase in the Naples area is a success.

Naples Area Board Of Realtors February 2018 Market Report

February Market Report Shows High End Properties
in High Demand

Naples, Fla. (March 16, 2018) – Buyer interest in homes over $1 million in Naples continued to climb during February as overall closed sales increased 10 percent to 672 homes sold compared to 613 homes sold in February 2017, according to the February 2018 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island).

The February Market Report revealed a 9 percent increase in the overall median closed price to $364,000 in February 2018 from $333,000 in February 2017. However, as identified by Bill Coffey, Broker Manager of Amerivest Realty Naples, this was due in part to a 95 percent increase in closed sales for properties priced over $1 million in February. In fact, the median closed price within each of the five price categories tracked by NABOR® actually decreased. The greatest decrease appeared in the $1 million to $2 million price category, which reflected a 12 percent drop to $1,326,000 from $1,500,000 in February 2017.

Inventory continued to rise for the fifth straight month, but it decreased in February by 3 percent to 6,286 properties compared to 6,466 properties in February 2017.

Overall pending sales in February decreased 3 percent, but it increased 14 percent in the $1 million and above price category and 39 percent in the $2 million and over price category. “I believe that the high end market is poised for a good year,” said Mike Hughes, Vice President and General Manager of Downing-Frye Realty, Inc. “The economy is doing much better. The stock market has risen substantially over the last year. All in all many Americans have seen their financial picture improve. This should translate to improved sales, particularly with the high-end market.”

“The new tax laws appear to be inspiring confidence in wealthy buyers,” said Kathy Zorn, broker/owner, Better Homes and Gardens Real Estate Pristine, who also pointed out that the February Market Report showed 44 of the 52 homes purchased in the $2 million price category were cash purchases.

Growth in the luxury home market in Naples is not just a seasonal phenomenon. According to Phil Wood, President & CEO of John R. Wood Properties, “The 12-month rolling numbers are remarkable for properties above $1 million, especially in the condominium market where the data shows a 60 percent increase in closed sales over the last 12 months.”

The NABOR® February 2018 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® February 2018 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:

CATEGORIES	Feb 2017	Feb 2018	CHANGE
Total homes under contract (pending sales) (month/month)	1,092	1,056	-3%
Total closed sales (month/month)	613	672	10%
Median closed price (month/month)	$333,000	$364,000	9%
Median closed price >$300K (month/month)	$488,000	$570,000	17%
Total active listings (inventory)	6,466	6,286	-3%
Average days on market	99	96	-3%
Single-family closed sales (month/month)	294	298	1%
Single-family median closed price (month/month)	$402,000	$472,000	17%
Single-family inventory	3,259	3,050	-6%
Condominium closed sales (month/month)	319	374	17%
Condominium median closed price (month/month)	$270,000	$275,000	2%
Condominium inventory	3,207	3,236	1%

The February report showed a 6 percent increase in inventory for condominiums in the $300,000 and below market. This was the highest increase reported among all price categories and home types. Interestingly, this segment’s median closed price dropped 2 percent in February (month over month) to $200,000 from $205,000 in February 2017.

Geographically, sales activity in the Naples Beach single-family homes market outpaced all other areas. Increased buyer interest in luxury properties located in this highly valued location resulted in a 33 percent uptick in closed sales, yet the heightened attention also influenced median closed prices, which rose 52 percent in February to $1,350,000 from $860,000 in February 2017.

Coincidentally, similar to an unusual closed sales anomaly in January that was reported last month, a high number of delayed closed sales in one luxury condominium located in North Naples influenced February’s closed sales, median closed price, and days on market statistics for the month. As reflected in the report, there were 56 closed sales of condominiums above $1 million in the North Naples area in February (a 211 percent increase over February 2017). A great majority of them were identified as having zero days on market, which broker analysts contend were from one particular condominium’s sales activity.

If you are looking to sell a home in Naples, contact The Wakelin Realty Team because we have the experience and knowledge to provide an accurate market comparison so you can determine the right asking price. We can also ensure your next purchase in the Naples area is a success.

Naples Area Board Of Realtors January 2018 Market Report

Luxury Market Surges in January

Naples, Fla. (February 26, 2018) – Unlike national figures for home sales in January which, according to the National Association of Realtors®, dropped 4.8 percent compared to sales in January 2017, home sales in Collier County rose 11 percent in January to 671 home sales in January 2018 from 603 home sales in January 2017. In fact, closed sales of luxury properties (homes above $1 million) were quite remarkable in January with a 123 percent increase over the number of closed sales of luxury properties in January 2017, according to the January 2018 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island).

“Thank goodness for the luxury properties for sale; they are driving the market,” said Bill Coffey, Broker Manager of Amerivest Realty Naples, who added, “Pending sales of homes priced above $1 million increased 67 percent in January compared to last year.”

Broker analysts reviewing the report agreed that many of the high-end speculative homes that had been on the market for over two years, especially in desirable locations like the Naples Beach area, were sold in January.

Dominic Pallini, Broker at Vanderbilt Realty said, “An increase in motivated sellers is demonstrated by January’s overall pending sales, which increased 11 percent.”

“I think we had a lot of pent up demand from wealthy buyers who waited to see how the new tax laws would affect them,” said Jeff Jones, Managing Broker for Engel & Völkers’ Naples and Bonita Springs offices. “Once they understood the law, they obviously felt confident in making a big purchasing decision.”

As such, January’s median closed price decreased 19 percent in the $2 million and above price category. For the entire market, the overall median closed price increased 19 percent in January.

“The storm blew in a lot of business,” remarked Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., who added, “I believe that some buyers who would have purchased in the fourth quarter of 2017 delayed their decision until the first quarter of 2018. It looks like we are off to a good start this year with respect to sales.”

Overall median prices in January decreased for homes up to $1 million compared to last year. For example, median closed prices for properties in the $300,000 and below price category decreased 6 percent in January to $205,000 from $219,000 in January 2017.

“For a long time we saw double digit increases in median closed prices for single-family homes in the $300,000 and below market,” said Cindy Carroll, SRA of Carroll & Carroll Appraisers and Consultants LLC. “But for January, the report showed only a 4 percent increase [year over year (or a 5 percent increase month over month)].”

Overall inventory in Collier County decreased 5 percent in January to 6,071 homes from 6,393 homes in January 2017. However, inventory has been on the rise over the past few months and while the nation continues to experience declining inventory levels that resulted in a 3.4 months supply for January, the Naples area market is seeing its inventory levels increase to 8.2 months of inventory for January.

However, the report also showed a 21 percent decline in inventory for single-family homes in the Naples Beach area, which Carroll says can be attributed to a rush of speculative homes sales in that area.

The NABOR® January 2018 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® January 2018 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:

CATEGORIES	Jan 2017	Jan 2018	CHANGE
Total homes under contract (pending sales) (month/month)	924	1,030	11%
Total closed sales (month/month)	603	671	11%
Median closed price (month/month)	$314,000	$375,000	19%
Median closed price >$300K (month/month)	$485,000	$646,000	33%
Total active listings (inventory)	6,393	6,071	-5%
Average days on market	91	91	0
Single-family closed sales (month/month)	284	280	-1%
Single-family median closed price (month/month)	$397,000	$430,000	8%
Single-family inventory	3,219	2,961	-8%
Condominium closed sales (month/month)	319	391	23%
Condominium median closed price (month/month)	$265,000	$320,000	21%
Condominium inventory	3,174	3,110	-2%

According to Carroll, the South Naples (34112, 34113) and East Naples (34114, 34117, 34120, 34137) single-family home markets continued to see the strongest increases in value in January, as reflected in 8 and 9 percent increases in median closed prices, respectively.

Interestingly, and as confirmed by several broker analysts reviewing the January report, an unusual closed sales anomaly transpired in January that, while impacting figures for the month, does not influence the market’s activity trend on a 12-month ending basis.

Basically, and as explained by Hughes, “A newly constructed luxury high rise condominium in North Naples delayed the closings for 79 of its units that were previously pending until January. This in turn, influenced NABOR®’s closed sales, median closed price, and days on market statistics for the month.”

As reflected in the report, there were 150 closed sales of condominiums in the North Naples area in January (a 150 percent increase over January 2017). By the same token, because the 79 condominiums sold between $1.8 million and $2.5 million, the median closed price in this geographic area increased by 428 percent. The data also showed 0 days on the market for the 79 units. The closings were apparently postponed as a result of the hurricane disruption and not completed until January.

“This type of anomaly is why it’s best for REALTORS® to also review the 12-months ending data that accompanies each monthly report,” said Brenda Fioretti, Managing Broker at Berkshire Hathaway HomeServices Florida Realty. “We feel a long-view of the statistics reflects the market’s true behavior better and will help REALTORS® educate both buyers and sellers on how the market is really performing.”

To ensure your next sale or purchase in the Naples area is a success, contact The Wakelin Realty Team at Berkshire Hathaway HomeServices Florida Realty.

Naples Area Board of Realtors 2017 Market Report

Naples Real Estate Market Showed Resilience & Strength in 2017

NABOR® Releases Annual Market Report for 2017

Naples, Fla. (January 19, 2018) – Home sales increased 4 percent in 2017 and the median closed price increased 3 percent, according to the Year End 2017 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). The report also showed heightened activity in the high-end market, with closed sales of homes in the $2 million and above price category skyrocketing 20 percent in 2017.

“Real estate sales are based on many other economic factors,” said Tom Bringardner, Jr, President and CEO of Premier Commercial. “In 2017, we saw above average employment rates, low inflation, record stock market activity, and increased consumer confidence. Looking into 2018, there are additional reasons for buyers to be optimistic including new tax cuts on the horizon and continued growth of their investment portfolios.”

Adam Vellano, West Coast Sales Manager, BEX Realty – Florida, agrees with Bringardner and also points to the unusually frigid weather in northern states recently, which he says will encourage more people to head south and buy homes. “Now is a great time to diversify and invest in property because there’s still plenty of inventory and prices have remained stable.”

This may not always be the case as indicated by Cindy Carroll, SRA of Carroll & Carroll Appraisers and Consultants LLC, who advises real estate agents to start watching closely for pockets that may soon show an increase in value. “Overall we had a solid year, but there are hints that change is coming with opportunities for increasing values in market sectors with tightening inventories.”

According to Vellano, pending sales during the 3rd Quarter increased 5 percent (12-months ending August 2017), while pending sales at the end of the 4th Quarter increased 2 percent (12-months ending December 31, 2017). “We can only imagine how much more activity the statistics would reflect if the market had not been shut down for nearly five weeks because of a major hurricane in 2017.”

The year-end report showed a 4 percent increase in closed sales to 8,815 in 2017 compared to 8,510 in 2016. Many brokers, including Budge Huskey, President of Premier Sotheby’s International Realty,think, “4 percent growth is great considering we had a hurricane and we lost over a month of real estate activity.”

“Between December of 2015 and December of 2016, overall market inventory increased 54 percent; between December of 2016 and December of 2017 overall inventory has decreased 11 percent. The single family and condominium markets are well positioned with about 7.5 months of supply in each,” said Carroll.

“Other areas in Florida, like Tampa Bay, have less than 2 months worth of inventory,” said Vellano.

Properties priced below $300,000 experienced the fewest days on market in 2017. Some broker analysts reported that they saw many of these properties go from list to close in less than 10 days. Inventory continued to struggle in the low end of the market making options difficult for buyers looking for single-family homes in this price range. In fact, 1,265 of the 1,554 available properties in the $300,000 and below price category were condominiums.

“The shining star in 2017 was condominiums in the $1 to $2 million price category,” said Brenda Fioretti, Managing Broker at Berkshire Hathaway HomeServices Florida Realty. “This category had a 28 percent increase in pending sales and a 14 percent increase in closed sales.”

The NABOR® Year End 2017 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® Year End 2017 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:

CATEGORIES	2016	2017	CHANGE
Total homes under contract (pending sales) (year/year)	8,903	9,121	2%
Total closed sales (year/year)	8,510	8,815	4%
Median closed price ((year/year)	$320,000	$330,000	3%
Median closed price >$300K (year/year)	$520,000	$514,000	-1%
Total active listings (inventory)	5,946	5,491	-8%
Average days on market	89	104	17%
Single-family closed sales (year/year)	4,268	4,347	2%
Single-family median closed price (year/year)	$400,000	$418,000	4%
Single-family inventory	3,015	2,685	-11%
Condominium closed sales (year/year)	4,242	4,468	5%
Condominium median closed price (year/year)	$253,000	$263,000	4%
Condominium inventory	2,931	2,806	-4%

Geographically, condominiums in North Naples were the biggest sellers in 2017. Closed sales in this region increased 17 percent, while pending sales increased 15 percent.

How homes are purchased continued to shift in 2017 with an increase in conventional sales (properties with a mortgage). According to Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., “Only 54 percent of home sales in Naples were cash buys in 2017 compared to 69 percent in 2013. Many factors play into this trend including the fact that we have more end users and fewer investors. Also, a buyer’s ability to lock in a low interest rate allows them to continue to enjoy the high performing stock market, which had a 25 percent increase in 2017.”

To ensure your next sale or purchase in the Naples area is a success, contact The Wakelin Realty Team.

August Housing Market in Naples Continues to Show Strength

CATEGORIES

August

2017

August 2018

CHANGE

Total homes under contract (pending sales) (month/month)

829

806

-3%

Total closed sales (month/month)

685

719

+5%

Median closed price (month/month)

$328,000

$319,000

-3%

Median closed price >$300K (month/month)

$510,000

$446,000

-13%

Total active listings (inventory)

4,807

4,913

+2%

Average days on market

95

120

+26%

Single-family closed sales (month/month)

378

348

-8%

Single-family median closed price (month/month)

$422,000

$405,000

-4%

Single-family inventory

2,446

2,560

+5%

Condominium closed sales (month/month)

307

371

+21%

Condominium median closed price (month/month)

$250,000

$250,000

0%

Condominium inventory

2,361

2,353

0%

July Housing Market in Naples Defies National Trends

First Quarter Housing Market Activity Sets the Stage for Strong Year

CATEGORIES

Q1 2017

Q1 2018

CHANGE

Total homes under contract (pending sales) (quarter/quarter)

3,097

3,177

+3%

Total closed sales (quarter/quarter)

2,205

2,306

+5%

Median closed price (quarter/quarter)

$330,000

$370,000

+12%

Median closed price >$300K (quarter/quarter)

$510,000

$575,000

+13%

Total active listings (inventory)

6,389

6,112

-4%