Blog – The Wakelin Team

The Naples Area Board Of Realtors February 2020 Market Report

February Housing Activity Reflects Naples Enduring Desirability

Naples, Fla. (March 27, 2020) – Despite state recommendations to practice self distancing, the housing market in the Naples area continues to breathe with life. The February 2020 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), showed overall closed sales increased 29 percent to 789 closed sales in February 2020 compared to 610 closed sales in February 2019. Admittedly, this report reflects comparable activity in February 2020 – which preceded self-distancing recommendations due to COVID-19 – but it is a glimpse at our market’s significant and enduring desirability.

“We have a resilient real estate market that was proven during the last recession,” said Dominic Pallini, Broker at Vanderbilt Realty, who was the President of NABOR® during Hurricane Irma in 2017. “This interruption should end in a few months; not seven to ten years.”

Like many professionals, REALTORS® in Naples are working remotely or from home and using creative solutions to stay connected to their buyers and sellers. Brenda Fioretti, Managing Broker at Berkshire Hathaway HomeServices Florida Realty, remarked that “some offices are closed, but we are all still in business!”

In an industry that is already technology-focused and adept, NABOR® and its members are continuing efforts to help foster the sale of homes, all while following the Centers for Disease Control guidelines. NABOR® is also providing new digital resources during the coronavirus outbreak to help keep the public and real estate professionals connected and safe.

Overall pending sales in February increased 43 percent to 1,526 pending sales compared to 1,068 pending sales in February 2019! There were also 32,712 showings by agents in Collier Collier during February, which is roughly 11,000 more showings than reported in February 2019.

Wes Kunkle, President and Managing Broker at Kunkle International Realty, keeps an eye on market activity daily by analyzing activity in the Southwest Florida MLS and said on March 25, 2020, that “the MLS data is showing an average of 25 new pending sales every day.”

Fioretti said her firm is “currently focusing our efforts on closing pending transactions because February’s pending sales were so strong and many buyers and sellers are eager to successfully close on their properties.”

Fioretti added that “there are many important tasks that must be completed in order to have a successful closing, such as inspections, appraisals, final walk through, meeting lender requirements, Homeowner Association applications and approval and more.” She predicts that March closings should be strong as a result of strong February pending sales, and the vigorous efforts of REALTORS®, lenders, and closing agents.

February’s Market Report also shows a renewed and growing interest in condominium sales, which saw pending sales increase 45 percent to 802 pending sales in February 2020 compared to 552 in February 2019.

Budge Huskey, President, Premier Sotheby’s International Realty, agreed with Fioretti that March’s closed sales will be strong as “most everywhere there is respect for the need to foster closings of pending sales.”

Properties priced between $1 million and $2 million reported the highest increase in closed sales (21 percent) for the 12-months ending February 2020 than any other price category. Single-family home sales in the $1 million to $2 million price category had the highest increase among all properties reported with a 27 percent increase (12-months ending February 2020)! However, condominiums priced above $2 million had the highest increase in closed sales for its property type, reporting a 20 percent increase (in the 12-months ending February 2020). These increases are in line with what broker analysts predicted in January that many buyers are rebalancing their portfolios and pulling money out of the stock market to buy homes.

Overall median closed prices increased 3 percent in February to $345,000 compared to $335,000 in February 2019. Broken down by property type, median sales prices rose 5 percent for single family homes and nearly 7 percent for condominiums in February 2020 compared to February 2019. Fioretti added that “price increases in February were expected due to the low inventory we are still experiencing.”

Because the federal government enacted stricter standards for financing following the recession in 2008, “most buyers in the last ten years have purchased homes using cash or conventional financing with significant down payments,” said Adam Vellano, West Coast Sales Manager, BEX Realty – Florida. “This has created larger amounts of equity in the market and, with our current balanced inventory, we can absorb a short disruption.”

Vellano added that we are not facing a housing crisis like what we experienced in 2008 because we don’t have a lot of highly leveraged owners with second mortgages that will be forced into foreclosure.

The NABOR® February 2020 Market Reports provide comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. NABOR® sales statistics are presented in chart format, including these overall (single-family and condominium) findings:

CATEGORIES	Feb 2019	Feb 2020	CHANGE
Total closed sales (year/year)	610	789	+29.3%
Total pending sales (homes under contract) (year/year)	1,068	1,526	+42.9%
Median closed price (year/year)	$335,000	$345,000	+3.0%
Total active listings (inventory)	8,160	5,825	-28.6%
Average days on market	101	95	-5.9%
Single-family closed sales (year/year)	300	376	+25.3%
Single-family median closed price (year/year)	$403,750	$425,500	+5.4%
Single-family inventory	4,134	2,868	-30.6%
Condominium closed sales (year/year)	310	413	+33.2%
Condominium median closed price (year/year)	$265,000	$283,250	+6.9%
Condominium inventory	4,026	2,957	-26.6%

The February 2020 Market Report also showed a 6-month supply of inventory for properties under $500,000, while properties priced above $500,000 are at an 8-month supply. Interestingly, there is currently a 14-month supply of inventory for properties priced above $2 million.

“The February report is a continuation of the incredible pace of the market we saw in January, with impressive results across all categories and price ranges,” said Huskey. “These figures reflect the market in advance of the coronavirus impact, which will no doubt be evident in March. The reality is business is continuing, albeit at a far slower pace as the REALTOR® community and the public enact the recommended precautionary steps to ensure the situation is short-lived. But, the first two months of the year confirmed that Naples is more desirable than ever, an attraction which will be sustained long after concerns of the virus have passed.”

If you are looking to buy or sell a home in Naples, contact The Wakelin Team as we have the experience and knowledge to provide an accurate market comparison or negotiate a sale. We can ensure your next purchase or sale in the Naples area is a success.

The Naples Area Board of Realtors January 2020 Market Report

Luxury Home Buyers are Back!

January Home Sales Set the Stage for Solid 1st Quarter

Naples, Fla. (February 21, 2020) – Despite a tug on inventory that resulted in a 26 percent decrease to 5,761 properties in January 2020 compared to 7,773 properties in January 2019, overall closed sales in Collier County rallied in January, especially in the luxury market. A 22 percent increase in January’s overall closed sales has many broker analysts optimistic that continued strong sales activity can be expected through the first quarter.

Aside from the 26 percent decrease in January’s month-end inventory compared to January 2019, we actually gained 360 more listings in January than what was available to buyers in December. Collier County has a 6.6-month supply of homes, which is much higher than many other hot markets in Florida. A recent Realtor.com analysis showed that other areas in Florida also experienced double-digit decreases in active listings for January including Tampa/St. Pete (20.2 percent decrease), Orlando (15.8 percent decrease), and Miami/Ft. Lauderdale/West Palm Beach (11.2 percent decrease).

“Unlike the first quarter of 2019, home buyers should move quickly, as time is not your friend this quarter,” said Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., “especially those in the high-end home market.” Hughes was referring to buyers interested in the $1 million to $2 million single-family home market in Collier County, which saw a 20 percent increase in closed sales year-over-year ending January 2020. According to the January 2020 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), there are currently 354 single-family homes on the market in this price category.

“A year ago, many economists were predicting a recession by the end of 2019, but they’ve since changed their tune and the affluent buyer is listening,” said Budge Huskey, President, Premier Sotheby’s International Realty. “It looks like many buyers are rebalancing their portfolios and pulling money out of the stock market to buy homes because they fear they won’t make the same returns as last year. The stock market inertia has reignited the luxury markets. Purchasing power is bringing back home buyers to the Naples area luxury home market. In essence, they believe now is the time to buy a luxury home in Naples.”

NABOR Board President Lauren U. Melo, PA, a Licensed Real Estate Broker with Florida’s Realty Specialists, agreed with Hughes and Huskey, adding that the report indicated that “showings of single-family homes in the $1 million to $2 million price category increased 109 percent in January 2020 compared to January 2019!”

For perspective and as noted by Spencer E. Haynes, Director of Business Development and Broker with John R. Wood Properties, “Seasonal visitors arrived earlier and spent more time during the 2019 holiday season looking for homes to purchase than in the previous holiday season.” This was demonstrated in the November and December 2019 Market Reports, which showed a 27 percent and 21 percent increase in pending sales, respectively.

Median closed prices increased 5.5 percent in January to $343,000 compared to $325,000 in January 2019. But this is still much lower than the median closed price reported in January 2018, which was $375,000. Interestingly, median closed prices for the 12-months ending January 2020 actually fell in all price categories except for the $2 million and above, which increased 6.1 percent.

The NABOR® January 2020 Market Reports provide comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. NABOR® sales statistics are presented in chart format, including these overall (single-family and condominium) findings:

CATEGORIES	Jan 2019	Jan 2020	CHANGE
Total closed sales (year/year)	594	722	+21.5%
Total pending sales (homes under contract) (year/year)	1,022	1,359	+33.0
Median closed price (year/year)	$325,000	$343,000	+5.5%
Total active listings (inventory)	7,773	5,761	-25.9%
Average days on market	96	107	+11.5%
Single-family closed sales (year/year)	318	361	+13.5%
Single-family median closed price (year/year)	$380,500	$437,500	+15.0%
Single-family inventory	3,903	2,842	-27.2%
Condominium closed sales (year/year)	276	361	+30.8%
Condominium median closed price (year/year)	$260,000	$270,000	+3.8%
Condominium inventory	3,870	2,919	-24.6%

Adam Vellano, West Coast Sales Manager, BEX Realty – Florida, noted that the report showed 1,885 price decreases in January, which he believes is “mostly old inventory that is finally coming to the buyer as a result of appealing price reductions.”

Responding to Vellano’s comments, Jeff Jones, Broker at Keller Williams Naples, added that “January’s price reductions represented 33 percent of active listings in January [5,761 properties], which is much higher than the 25 to 28 percent shown in the Market Reports over the last few months.”

Geographically, Melo was surprised to see that the median closed price for homes in the 34120 zip code was flat and remained at $300,000, the same as January 2019, as this is an area where a majority of new construction is taking place. Other areas with sales activity that stood out in January were Naples Beach, which had a 57.1 percent increase in closed sales of condominiums; South Naples had a 7.1 percent decrease in closed sales of single-family homes; and North Naples had a 2.3 percent decrease in median closed prices for single-family homes.

Naples Area Board Of Realtors December 2019 Market Report

Decade Ends with Strongest Year in Home Sales!

Naples, Fla. (January 17, 2020) – According to the 2019 Year End Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), existing home sales through December 2019 are the highest in a decade.Overall closed sales in 2019 increased 5.6 percent to 10,244 closed sales compared to 9,704 closed sales in 2018. In comparison, the only other year that came close to reaching this stellar sales activity was 2015, which had 10,154 closed sales.

Overall pending sales in 2019 also broke a record during the last decade; resulting in 12,604 total pending sales, a 9.4 percent increase over 2018, which reported 11,520 pending sales.

The 2019 Year End Market Report showed closed sales in 2019 increased in all but the $2 million and above price category, which had a 4 percent decrease to 523 closed sales compared to 544 closed sales in 2018. Of those in this price category, 376 were for single-family homes, and according to Wes Kunkle, President and Managing Broker at Kunkle International Realty. “The MLS further revealed that 14 single-family homes priced above $4 million closed in December 2019 compared to just 7 in 2018.”

Condominium closed sales held steady with a 1.9 percent increase in 2019 to 5,085 compared to 4,990 in 2018, but broker analysts reviewing the year-end report anticipate closed sales of condominiums in January will be much higher, especially since pending sales for condominiums increased 28.8 percent in December.

A breakdown of December’s closed sales by area showed Naples Beach reported the highest increase in closed sales during December with a 59.1 percent increase to 140 closed sales compared to 88 closed sales in December 2018. Closed sales by zip code revealed 34113 and 34108 commanded impressive increases, 62.3 percent and 61.5 percent, respectively, in December 2019 compared to December 2018.

“Growth in the eastern part of the county, including the addition of many desirable amenities like restaurants, retail shopping centers, banking, and personal care, is redefining what is a desirable ‘location’ for Collier County,” said Coco Amar, VP, Strategic Growth, South Florida, William Raveis Real Estate. “West of 41 was a location high point for many years, but I think buyers are finding beach proximity is less important than the lifestyle offered in and around new communities now.”

While inventory fell 21 percent in 2019 to 5,401 properties compared to 6,801 properties in 2018, the Collier County market is still commanding a much higher supply than the state’s average levels (as reported by Florida Realtors®). As such, the Market Report showed Collier County enjoyed 6.2 months of supply in the single-family home market during December, while the state reported 3.6 months of supply for the month. Likewise, the report showed 6.4 months of supply in the condominium market for December compared to 5.5 months of supply statewide.

Interestingly, inventory levels dropped in all price categories except in the $2 million and above condominium market, which reported a 16.3 percent increase in inventory during December.

Broker analysts reviewing the Market Report like Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., agree that “the sales environment today is much different than it was in 2005 – when we also had low inventory and high sales. Back then, you might see the same home for sale multiple times [flipping] during the year. But it’s a different market today. Last year we had a rolling inventory; we’re not selling the same properties, there are fresh new listings every month.”

The NABOR® YE 2019 Market Reports provide comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. NABOR® sales statistics are presented in chart format, including these overall (single-family and condominium) findings:

CATEGORIES	YE 2018	YE 2019	CHANGE
Total closed sales (year/year)	9,704	10,244	+5.6%
Total pending sales (homes under contract) (year/year)	11,520	12,604	+9.4
Median closed price (year/year)	$338,000	$332,514	-1.6%
Total active listings (inventory)	6,801	5,401	-20.6%
Average days on market	95	101	+6.3%
Single-family closed sales (year/year)	4,714	5,159	+9.4%
Single-family median closed price (year/year)	$425,000	$415,000	-2.4%
Single-family inventory	3,479	2,678	-23.0%
Condominium closed sales (year/year)	4,990	5,085	+1.9%
Condominium median closed price (year/year)	$265,000	$260,000	-1.9%
Condominium inventory	3,322	2,723	-18.0%

Jeff Jones, Broker at Keller Williams Naples, pointed out that re report also showed, “There were 1,550 price reductions in December. That is 26 percent of the available inventory. This has been a trend for the past few months.”

Median closed prices in 2019 decreased 1.6 percent to $332,514 from $338,000 in 2018. Only the $2 million and above price category had a significant increase of 6.7 percent during the year. But, on a month to month comparison, median closed prices in December 2019 increased 6.7 percent to $348,000 compared to $326,000 in December 2018. However, the overall average closed price in Collier County during 2019 increased 19.3 percent to $772,380.

Showings remain on the rise as well. There were 10 showings for each listing reported in December 2019 compared to just 7 in December 2018.

CATEGORIES	DEC 2018	DEC 2019	CHANGE
Total closed sales (month/month)	702	929	+32.3%
Total pending sales (homes under contract) (month/month)	676	817	+20.9%
Median closed price (month/month)	$326,000	$348,000	+6.7%
Total active listings (inventory)	6,801	5,401	-20.6%
Average days on market	94	97	+3.2%
Single-family closed sales (month/month)	362	476	-6.3%
Single-family median closed price (month/month)	$395,900	$439,000	+10.9%
Single-family inventory	3,479	2,678	-23.0%
Condominium closed sales (month/month)	340	454	+33.5%
Condominium median closed price (month/month)	$255,000	$262,500	+2.9%
Condominium inventory	3,322	2,723	-18%

Broker analysts agreed that new state actions, led by Governor Ron DeSantis, to address water quality issues during 2019 made a significant impact in local real estate activity during 2019, especially during the summer months.

On whether an election year is a good time to buy a home, broker analysts contend that stable pricing, great financing rates, and above state-level months of supply in inventory are three great reasons for Naples real estate agents to be optimistic in 2020. Of course, location shouldn’t be overlooked, as well.

The Naples Area Board of Realtors November 2019 Market Report

November Home Activity Shows Buyers Trying to Beat the Pac

Naples, Fla. (December 20, 2019) – An increase in traffic on roads and beaches, and in restaurants, hotels, and open houses during November was reflected in a 27 percent increase in overall pending sales (homes under contract), and a 46 percent increase in showings for the month compared to November 2018. Several broker analysts who reviewed the November 2019 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), said they saw a noticeable increase in buyer interest starting back in October. The presence of more eager buyers before our traditional high season has contributed to the depletion of inventory, which decreased 19.4 percent in November to 5,563 properties compared to 6,896 properties in November 2018.

“We currently have a six-month supply of inventory,” said Brenda Fioretti, Managing Broker at Berkshire Hathaway HomeServices Florida Realty, who added that there were price reductions in 28 percent of all homes on the market in November. But according to Budge Huskey, President, Premier Sotheby’s International Realty, “Six months of inventory offers Naples a great advantage when compared to other popular Florida areas like Tampa and Orlando, which currently average two to three months of inventory, as buyers have more options.”

“Naples is not a major business center where demand is driven by significant employment gains,” added Huskey, “yet we continue to enjoy another solid year in real estate sales due to all the unique offerings which make Naples such as special destination to so many around the country.”

But these inventory reductions aren’t necessarily coming from just the resale market. “A portion of our inventory is made up of new listings available by builders,” said Adam Vellano, West Coast Sales Manager, BEX Realty – Florida. “Many big, new home developments are now complete and just about sold out so there is less new product available, thus contributing to some of the decrease in overall home inventory.”

Overall closed sales in November increased 2.4 percent, but it was the single-family home market that led the month’s closed sales with a 5.3 percent increase compared to closed sales in the condominium market, which decreased 0.6 percent.

In response to slow sales in the condominium market, Coco Amar, a managing broker at John R. Wood Properties remarked, “We’ve had such huge activity in the condominium market over the last three years, it was bound to slow down a bit.” But despite closed sales of condominiums being tepid in November, the report showed pending sales in the condominium market were up 26 percent compared to an increase in pending sales in the single-family homes market of 28 percent. This substantial increase is a direct result of the early influx of buyers.

Inventory levels for the single-family and condominium markets were about even in November; with 2,771 properties and 2,792 properties, respectively. Inventory declines during November were highest in the low end of the single-family home market (under $300,000), which saw a 35.4 percent decline in November. But inventory increased 19.6 percent in the $2 million and above condominium market.

“With overall inventory down and showings up, now is a great time to put your home on the market,” said Fioretti, who added that her agents were extremely busy in November and she’s anticipating they will be even busier during the upcoming winter season.

The NABOR® November 2019 Market Reports provide comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. NABOR® sales statistics are presented in chart format, including these overall (single-family and condominium) findings:

CATEGORIES	NOV 2018	NOV 2019	CHANGE
Total closed sales (month/month)	671	687	+2.4%
Total pending sales (homes under contract) (month/month)	792	1006	+27.0
Median closed price (month/month)	$330,000	$332,500	-0.8%
Total active listings (inventory)	6,896	5,563	-19.3%
Average days on market	94	91	-3.2%
Single-family closed sales (month/month)	340	358	+5.3%
Single-family median closed price (month/month)	$413,000	$425,000	+2.9%
Single-family inventory	3,573	2,771	-22.4%
Condominium closed sales (month/month)	331	329	-0.6%
Condominium median closed price (month/month)	$254,000	$260,000	+2.4%
Condominium inventory	3,323	2,792	-16.0%

“People who own homes in Naples are staying longer and more are staying year round,” said Amar. “There has definitely been a shift in the market this year as we are seeing buyers more interested in homes under $500,000 than those priced over $2 million.”

The report showed overall median closed prices increased .8 percent in November to $332,500 from $330,000 in November 2018. Interestingly, median closed prices in the $2 million and above price category increased 4.6 percent in November, while the median closed price in the under $300,000 market decreased 5 percent.

Vellano also pointed out that the November Market Report showed “40 percent of the current inventory has been on the market for over 150 days, and 20 percent has been on the market for over 300 days.” Amar responded that much of this entails two types of inventory: teardowns and those that require major renovations. “These sellers will need to reduce prices further if they want to attract buyers.”

Lauren Melo, PA, Licensed Real Estate Broker with Florida’s Realty Specialists and NABOR®’s President, said she’s seen “a small increase in the number of distressed properties on the market mostly due to loan modifications that didn’t work out.” On a positive note, Melo added that “good rates and good deals from lenders right now should help more buyers purchase homes.”

The Naples Area Board of Realtors October 2019 Market Report

Buyers are Back: Homes Under Contract Soar 24% in October

Naples, Fla. (November 22, 2019) – As predicted by a group of Naples real estate brokers, buyer activity began to rise in October with a remarkable 23.7 percent increase in overall pending sales (homes under contract) to 987 pending sales during October 2019 compared to 798 pending sales in October 2018. Sellers also felt a surge in showings (up 40 percent compared to October 2018), and the number of price reductions slowed to just 15 percent of the properties available in October’s overall inventory compared to September, which saw 26 percent of its inventory’s prices reduced. Price reduction activity is an important behavior for buyers to watch as it is an indication of how eager sellers are to sell.

Closed sales during October increased 9.7 percent to 758 closed sales compared to 689 closed sales in October 2018, according to the October 2019 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island).

“These pre-season pending sales numbers are setting us up to have a good winter sales season,” said Dominic Pallini, Broker at Vanderbilt Realty. “Inventory is also going up yet prices have been holding steady.”

Even though October’s overall inventory decreased 17.7 percent to 5,351 homes for sale from 6,500 homes for sale in October 2018, there were actually 362 more homes that came onto the market in October compared to September. According to Pallini, a fair amount of the new inventory is in the new construction market where builders are pricing homes aggressively and offering sweeteners to agents and buyers via incentives.

“A large majority of the new construction over the last year appears to be in the market’s “sweet spot”, which is the category of homes priced below $500,000,” said Jeff Jones, Broker at Keller Williams Naples. “This influx of new construction is probably why the median closed price in that price range hasn’t shifted much.”

According to Tom Bringardner, Jr., President/CEO of Premier Commercial, “median closed prices in the upper end of the market [homes priced at $2 million and above] rose 8 percent” in October 2019 to $3,200,000 from $2,962,500 in October 2018. However, when 57 percent of the market’s available inventory are homes priced under $500,000, and the majority of new listings every month are also in this range, it’s easy to understand how the overall median closed price reported for the entire market appears to be decreasing.

The overall median closed price decreased 3 percent in October to $329,950 from $340,000 in October 2018. But it’s important to remember that there are also three times as many properties for sale under $300,000 than properties for sale over $2 million in Naples.

“Inventory has kept prices attractive which drives demand,” said Budge Huskey, President, Premier Sotheby’s International Realty. “The under $500,000 market is driving our overall market today. This is naturally bringing the median closed price down.”

The NABOR® October 2019 Market Reports provide comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. NABOR® sales statistics are presented in chart format, including these overall (single-family and condominium) findings:

CATEGORIES	OCT 2018	OCT 2019	CHANGE
Total closed sales (month/month)	689	756	+9.7%
Median closed price (month/month)	$340,000	$329,950	-3.0%
Total active listings (inventory)	6,500	5,351	-17.7%
Average days on market	94	104	+10.6%
Single-family closed sales (month/month)	371	389	+4.9%
Single-family median closed price (month/month)	$425,000	$395,000	-7.1%
Single-family inventory	3,376	2,675	-20.8%
Condominium closed sales (month/month)	318	367	+15.4%
Condominium median closed price (month/month)	$265,000	$255,000	+3.8%
Condominium inventory	3,124	2,676	-14.3%

Jones noted that homes built prior to the current modern “coastal” era designs are lingering on the market due to the growing unpopularity of the older Tuscan and Mediterranean home designs and architecture. In response, several brokers wondered if this could explain why the days on market for homes in the Naples Beach area increased by a month in October since many of the homes are not amongst the more popular modern designs and architecture.

Geographically, closed sales in October were highest (64.4 percent) in areas located in the 34109 zip code (east of Goodlette Frank Rd., west of I-75, south of Immokalee Rd., and north of Pine Ridge Rd.). Other locations that experienced sales increases over 50 percent month/month in October were 34117 (south of Golden Gate Blvd., and east of Collier Blvd.), and 34112 (south of Davis Blvd., north of Rattle Snake Hammock Rd., east of U.S. 41, west of Collier Blvd.).

According to the October 2019 ShowingTime Report, a monthly supplemental report now released with monthly Market Reports, REALTORS® in Collier County reported over 5,000 more showing appointments in October 2019 – a total of 18,531 – compared to October 2018, which had 13,271 showing appointments, a statistic that indicates the heartbeat on overall real estate market activity.

The Naples Area Board Of Realtors September 2019 Market Report

Home Showings Lead to Increased Sales

Naples, Fla. (October 25, 2019) – The Naples area housing market enjoyed another 7 percent increase in overall closed home sales for the third month in a row. This trend leads broker analyst Adam Vellano, West Coast Sales Manager, BEX Realty – Florida, to suggest that the consistent uptick in summer home sales illustrates that Collier County is becoming less seasonal.

According to the September 2019 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), showings in September 2019 were up 31 percent over September 2018. This translated into a 13.7 percent increase in pending sales (written contracts) or 823 pending sales in September 2019 compared to 724 pending sales in September 2018. Strong showing activity during the summer resulted in 698 closed sales during September 2019.

“With an average of 17.4 showings per listing, agents stayed busy this summer,” said Jeff Jones, Broker at Keller Williams Naples, which, according to Vellano, means “inventory was coming to the buyer.” Jones noted that 28 percent of the available inventory experienced a price decrease in September.

Broker analysts warn consumers that this market behavior won’t last long as they anticipate inventory to increase before the end of the year. “Decreases in inventory are customary this time of year,” said Phil Wood, President & CEO of John R. Wood Properties. “And increases in inventory preceding winter season are customary too. But the low inventory is not because there was a deficit of buyers. This is apparent in the consistently high number of showings during the summer and better closed sales numbers compared to last year.”

The September report showed median closed prices remained stable during the third quarter (July, August & September). In July, the median closed price was $326,400. By September, the median closed price had dropped slightly to $325,000, which is only a .7 percent decrease from September 2018, which reported a median closed price of $327,408. Interestingly, the median closed price in January 2019 was $325,000.

With over 500 listings pulled from the MLS in September, it is no surprise that overall inventory for the month fell. However, even though it decreased 17.8 percent to 4,989 homes compared to 6,070 homes in September 2018, inventory for September was higher than August by 72 homes.

The NABOR® September 2019 Market Reports provide comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. NABOR® sales statistics are presented in chart format, including these overall (single-family and condominium) findings:

CATEGORIES	SEPT 2018	SEPT 2019	CHANGE
Total closed sales (month/month)	651	698	+7.2%
Median closed price (month/month)	$327,408	$325,000	-0.7%
Total active listings (inventory)	6,070	4,989	-17.8%
Average days on market	93	102	+9.7%
Single-family closed sales (month/month)	321	359	+11.8%
Single-family median closed price (month/month)	$395,000	$405,000	+2.5%
Single-family inventory	3,208	2,567	-20.0%
Condominium closed sales (month/month)	330	339	+2.7%
Condominium median closed price (month/month)	$242,250	$245,000	+1.1%
Condominium inventory	2,862	2,422	-15.4%

As noted by brokers reviewing the housing data, September had a 6-month supply of inventory. “Inventory levels are always low in September,” said Bill Coffey, Broker Manager of Amerivest Realty Naples. “You’re going to see those homes that were pulled off the MLS on the market again in the next few months. But it’s too bad because buyers who don’t have options in the resale market in Naples now are not waiting for more homes to come onto the market, but instead are buying resale homes in Lee County or even further north.”

Geographically, condominiums in South Naples (34112, 34113) saw a 22.1 percent spike in its median closed prices to $213,000 in September 2019 from $174,500 in September 2018. Alternately, condominiums in North Naples saw a 16.4 percent decrease in median closed prices to $242,500 in September 2019 from $290,000 in September 2018.

The Naples Area Board of Realtors August 2019 Market Report

August Home Sales Strong as Prices Hold Steady

Naples, Fla. (September 20, 2019) – Closed sales of homes in Collier County increased 7.4 percent in August, but overall inventory fell 17.8 percent to 4,917 properties compared to 5,980 in August 2018, according to the August 2019 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). This reduction in inventory – which included 616 homes that were either terminated, expired or withdrawn from the Southwest Florida MLS in August – resulted in a six-month supply of inventory for Collier County at the end of August.

“We know that traditionally, inventory will begin to creep up in September, October and November as many sellers try to get a jump on the competition that might list their properties closer to our winter season,” said Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc. “But the pre-season months (September through November) can be a great time for buyers as well. Buyers will find less competition [from other buyers] in the pre-season months. They will also get an early peek at properties that will probably sell during season.”

The August ShowingTime report indicated that local REALTORS® scheduled 16,878 appointments during August. This is an increase of 16 percent compared to showings in August 2018. On average, a home in the Naples area is shown 16 times before it secures a contract.

Broker analysts reviewing the August Report are leery of sales activity next year as sellers will face market uncertainty brought on by a presidential election. In the third quarter of 2016 – right before the last presidential election – overall closed sales in Collier County decreased 14 percent compared to closed sales during the third quarter of 2015.

Budge Huskey, President of Premier Sotheby’s International Realty added, “The overall market is very healthy today based on the average person’s financial position continuing to improve in tandem with the economy. Yet in the luxury and upscale second homes markets, which are often elective, buyers tend to have a longer-term horizon and base investment decisions on where they believe the economy and markets will be a year or more out in the future. Accordingly, there are mixed signals and sentiment.”

Incidentally, the $300,000 to $500,000 price category led closed sales in August with a 10.1 percent increase followed by closed sales of properties under $300,000, which increased 6.5 percent. Closed sales of homes between $1,000,000 and $2,000,000 decreased 5.7 percent.

“Sales of single-family homes were up almost 10 percent this August,” said Huskey. “Despite the reduced inventory overall, new listings coming on the market were up 4 percent in August and builder inventory is up as well.”

The median closed price in August decreased just 0.2 percent to $317,918, which is only $582 lower than the median closed price in August 2018 ($318,500). In fact, price increases have only been reported in two of the last 12 months (October 2018, 3.7%; and April 2019, 3.4%).

“We don’t know how changes in the political climate will affect the housing market in 2020,” said Wes Kunkle, President and Managing Broker at Kunkle International Realty. The August Report showed median closed prices for homes below $300,000 and homes between $1 million and $2 million decreased 4 percent in August, while homes between $300,000 and $1 million showed no change in median closed prices.

The NABOR® August 2019 Market Reports provide comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. NABOR® sales statistics are presented in chart format, including these overall (single-family and condominium) findings:

CATEGORIES	AUG 2018	AUG 2019	CHANGE
Total closed sales (month/month)	741	796	+7.4%
Median closed price (month/month)	$318,500	$317,918	-0.2%
Total active listings (inventory)	5,980	4,917	-17.8%
Average days on market	99	103	+4.0%
Single-family closed sales (month/month)	356	417	+17.1%
Single-family median closed price (month/month)	$405,000	$399,000	-1.5%
Single-family inventory	3,147	2,523	-19.8%
Condominium closed sales (month/month)	385	379	-1.6%
Condominium median closed price (month/month)	$250,000	$245,000	-2.0%
Condominium inventory	2,833	2,394	-15.5%

Kunkle added, “We have an entire generation of first-time homebuyers who have never seen interest rates over 6 percent. With the recent quarter percentage point cut in interest rates, there isn’t been a better time to lock in and buy than now!”

Geographically, closed sales of single-family homes in the East Naples are (34114, 34117, 34120, 34137) increased the most in August by 35.6 percent followed by closed sales of single-family homes in North Naples (34109, 34110, 34119), which increased 15.6 percent.

Jeff Jones, NABOR® President and Broker at Keller Williams Naples, added, “There were 1,443 price reductions made during August [29 percent of the total homes listed], which is important for buyers as this is an indication that many sellers are eager to sell!”

The Naples Area Board of Realtors July 2019 Market Report

Spike in July Home Sales, a Sign of Heightened Buyer Interest

Naples, Fla. (August 23, 2019) – Heightened showing activity in June led to a spike in July’s closed sales, which increased 7.1 percent to 829 closed sales compared to 774 closed sales during July 2018. And despite a 14.8 percent reduction in overall inventory compared to last July, overall median closed prices have not increased, according to the July 2019 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island).

“Twenty-six percent of the homes on the market during July had price reductions,” said Jeff Jones, NABOR® President and Broker at Keller Williams Naples. “The number-one reason a home lingers on the market is that it is priced too high. Those price reductions seemed to bring more buyers into the market.”

The July 2019 ShowingTime report, a monthly supplemental report that’s now being run alongside the monthly Market Reports, indicated that local REALTORS scheduled over 17,000 appointments to show a range of properties during July. On average, the report shows that a home for sale in Collier County is shown 17 times before it sells. Broker analysts believe the less inventory people have available to view, the more properties they want to see. This is why they believe now is a good time for sellers to enter the market so they have the opportunity to capture buyers who are looking at homes now.

“The late summer and early fall are a good time for a seller to list a home because there is a lot of interest from eager buyers – 17 showings per listing in July compared to 13 in January – and values are not decreasing,” said Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc.

Sellers added 935 new listings to July’s inventory, but this increase in inventory failed to keep up with the buyers entering the market. At the end of July, there were 5,200 homes on the market compared to 6,100 in July 2018.

“We have about a 6-months supply of homes, which is lower than we like during this time of year,” said Jones.

According to Coco Amar, a managing broker at John R. Wood Properties, the report showed one category where sellers seemed more open to negotiate home prices. “In the $1 million to $2 million price category for condominiums, there was a 10 percent decrease in the median closed price during July. This decrease in median price might have been precipitated by soft sales for condos in this price category as its sales decreased the most during July [-17%] compared to all other price and home type categories as compared to July 2018.”

Since January, median closed prices have decreased 2.9 percent to $335,000 from $345,000. But compared to last July, prices have held steady. July’s median closed price was $326,200 compared to $326,500 for July 2018. However, based on a rolling 12-month analysis, only condominiums priced above $2 million have seen a substantial increase in their prices, i.e., 13 percent.

The NABOR® July 2019 Market Reports provide comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. NABOR® sales statistics are presented in chart format, including these overall (single-family and condominium) findings:

CATEGORIES	JULY 2018	JULY 2019	CHANGE
Total closed sales (month/month)	774	829	+7.1%
Median closed price (month/month)	$326,500	$326,200	-0.1%
Total active listings (inventory)	6,100	5,200	-14.8%
Average days on market	94	103	+9.6%
Single-family closed sales (month/month)	380	435	+14.5%
Single-family median closed price (month/month)	$423,500	$409,500	-3.3%
Single-family inventory	3,175	2,668	-16.0%
Condominium closed sales (month/month)	394	394	0%
Condominium median closed price (month/month)	$254,500	$240,000	-5.7%
Condominium inventory	2,925	2,532	-13.4%

Geographically, closed sales activity was the highest in the Naples Beach area (34102, 34103, 34108), which saw a 25 percent increase in overall closed sales and a 40 percent increase in single-family home closed sales compared to July 2018. Interestingly, the median closed price for condominiums in the Naples Beach increased 27.1 percent to $632,500 from $497,000 in July 2018.

“Land values are high right now,” said Amar, “which will make homes for sale in the resale market more attractive this fall.”

The Naples Area Board of Realtors May 2019 Market Report

Home Sales in May Shifted to the East

Naples, Fla. (June 21, 2019) – In tempo with a recent shift in sales from high-end homes near the beach to homes under $500,000 in areas east of the beach, overall closed sales during May in the Naples area increased 9.8 percent to 1,165 closed sales compared to 1,061 closed sales in May 2018. Closed sales were highest in East Naples (34114, 34117, 34120, 34137), which reported a remarkable 21.7 percent increase.

While inventory levels decreased 13 percent to 5,905 homes in May 2019 from 6,785 homes in May 2018, over 2,000 homeowners reduced prices during May according to the May 2019 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island).

“Nearly 30 percent of active listings had a price decrease in May,” said Coco Amar, a managing broker at John R. Wood Properties. “This was most apparent in the City of Naples [34102], which reported a 24.9 percent decrease in its overall median closed prices.”

Broker analysts reviewing the May report noticed a shift in sales from the traditional high-end market to homes under $500,000 earlier this year. The trend continued to be reflected in the May report, which showed closed sales for homes between $1 million and $2 million decreased 8.9 percent in May, while closed sales of homes between $300,000 and $500,000 increased 10.8 percent. Incidentally, closed sales increased in every price category reported except the $1 million to $2 million price category.

The May 2019 report showed closed sales of single-family homes up 12.8 percent compared to a 7 percent increase in closed sales for the condominium market. Interestingly, the decrease in closed sales for the $1 million to $2 million price category appeared in its condominium market, which saw a 23.1 percent decrease, while its single-family homes closed sales actually increased 3.6 percent. In comparison, the $300,000 to $500,000 price category reported a 12.6 percent increase in sales of condominiums and a 9.6 percent increase in sales of single-family homes.

“Despite a shift in buyer interest, sales of properties over $2 million continue to perform well,” said Jeff Jones, NABOR® President. This is reflected in a 1.2 percent increase in closed sales during May for homes over $2 million.

While the median closed price for May 2019 increased 6.9 percent to $355,000 from $332,000 in May 2018, Amar pointed out that the median closed price for single family homes in May 2019 actually decreased 3.5 percent to $415,000 from $430,000 in May 2018.

The NABOR® May 2019 Market Reports provide comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. NABOR® sales statistics are presented in chart format, including these overall (single-family and condominium) findings:

CATEGORIES	MAY 2018	MAY 2019	CHANGE
Total closed sales (month/month)	1,061	1,165	+9.8%
Median closed price (month/month)	$332,000	$355,000	+6.9%
Total active listings (inventory)	6,785	5,905	-13.0%
Average days on market	98	107	+9.2%
Single-family closed sales (month/month)	515	581	+12.8%
Single-family median closed price (month/month)	$430,000	$415,000	-3.5%
Single-family inventory	3,355	2,986	-11.0%
Condominium closed sales (month/month)	546	584	+7.0%
Condominium median closed price (month/month)	$268,000	$269,500	+0.6%
Condominium inventory	3,430	2,919	-14.9%

Geographically, closed sales in East Naples (34114, 34117, 34120, 34137) continued to expand as development in the Collier Boulevard and U.S. 41 corridor continues to grow. According to Wes Kunkle, President and Managing Broker at Kunkle International Realty, commercial interest is high in all areas off the east trail (i.e., property on U.S. 41 heading east from Naples to Everglades City). “This is an ‘Opportunity Zone’ area and its commercial footprint is getting bigger each year.”

An Opportunity Zone provides businesses with permanent exclusion from taxable income of capital gains from the sale or exchange of an investment if it’s held for at least 10 years. There are currently five Opportunity Zones in Collier County: three are located in Immokalee; one in the Naples Manor community west of Collier Boulevard, north of U.S. 41 East and south of Rattlesnake Hammock Road; and another is identified as land in Golden Gate, west of Collier Boulevard, south of Golden Gate Parkway and east of Santa Barbara Boulevard.

“I kind of see East Naples and South Naples as the last growth frontier for the Naples area,” said Mike Hughes, Vice President and General Manager of Downing-Frye Realty, Inc. “A lot of our future growth will be in these two areas. It should be noted that the zip code 34114 saw a 56.2 percent increase in closed sales in May 2019 compared to the previous May.”

Upon reviewing the report, Bill Coffey, Broker Manager of Amerivest Realty Naples, added that there were “over 4,000 more showings this May compared to showings in May 2018!” Not surprising, and according to the report, this represented an average of 641 showings each day during May.

The Naples Area Board of Realtors April 2019 Market Report

April Report Shows Market Resurgence Continues

Naples, Fla. (May 24, 2019) – Closed sales during April in the Naples housing market increased 12.8 percent to 1,158 properties in April 2019 from 1,027 properties in April 2018. Broker analysts reviewing the April 2019 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), reported that April was a solid month with strong sales activity in both the single-family and condominium markets.

“I believe we have reason to be optimistic going into the summer,” said Bill Coffey, Broker Manager of Amerivest Realty Naples who added, “The report showed overall sales were up 17 percent in April over March, and March’s sales were higher than February.”

According to Kathy Zorn, broker/owner, Better Homes and Gardens Real Estate Pristine, who analyzed April’s Market Report and showing activity provided by ShowingTime, a REALTOR® resource that tracks agent listing appointments with potential buyers, it took an average of 15 showings for a property to secure a contract in April.

“The uptick in showings during the last few months are a positive indicator of continued buyer interest in our area,” said Zorn. And while April’s overall median closed price decreased 5.6 percent to $340,000 in April 2019 from $360,000 in April 2018, April 2019’s median closed price was higher than both January and February’s median closed prices.

The Report also showed nearly 1,000 properties went from active to either terminated, expired, or withdrawn in the Southwest Florida MLS during April, which directly impacted April’s ending inventory level as seen in an 11.1 percent decrease to 6,435 properties in April 2019 from 7,239 properties in April 2018. But Zorn also pointed out that April saw the number of new condominium listings increase by 9.2 percent; whereas there was a decrease of 3.2 percent for new listings in the single-family homes market.

“Despite old-fashioned beliefs that our area is predominately seasonal, the last few years of home sales activity after Easter are proof that this is just not the case anymore,” said Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc.

In agreement, Brenda Fioretti, Managing Broker at Berkshire Hathaway HomeServices Florida Realty, added that “April and May have always been our strongest months for closings historically. But unlike last year, April’s Report this year shows signs of a possible new trend: more closed sales for homes on the lower end of the price spectrum versus last year which had more closed sales in higher price points.”

The Report supports Fioretti’s theory as closed sales of single-family homes in April 2019 increased 4.4 percent, but closed sales of condominiums increased 20.1 percent in April 2019 compared to April 2018 market statistics. Further, the trend toward more sales of lower priced properties Fioretti mentioned is also visible in activity tracked over the last 12 months where there was a 4.3 percent increase or 2,727 closed sales of condominiums in the under $300,000 price category compared to a .8 percent decrease in this same price category for single-family homes (1,037 closed sales). The increase in condominium inventory Zorn mentioned is also a contributing factor to this new trend.

The NABOR® April 2019 Market Reports provide comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. NABOR® sales statistics are presented in chart format, including these overall (single-family and condominium) findings:

CATEGORIES	APR 2018	APR 2019	CHANGE
Total closed sales (month/month)	1,027	1,158	+12.8%
Median closed price (month/month)	$360,000	$340,000	-5.6%
Total active listings (inventory)	7,239	6,435	-11.1%
Average days on market	94	98	+4.3%
Single-family closed sales (month/month)	481	502	+4.4%
Single-family median closed price (month/month)	$445,000	$469,000	+5.4%
Single-family inventory	3,554	3,228	-9.2%
Condominium closed sales (month/month)	546	656	+20.1%
Condominium median closed price (month/month)	$269,750	$272,250	+.9%
Condominium inventory	3,685	3,207	-13%

Geographically, closed sales skyrocketed in April for the Naples Beach area (34102, 34103, 34108), which had a 44.6 percent increase in closed sales for its single-family homes market and a 12.5 percent increase in closed sales for its condominium market. Also remarkable, the Central Naples area (34104, 34105, 34116) had a 22 percent increase in closed sales of condominiums while the East Naples area had a 36.4 percent increase in condominium sales and the South Naples area (34112, 34113) topped them all with an impressive 49 percent increase in closed sales of condominiums during April.

Hughes added that – from a buyer’s perspective – “the late spring and summer months are a great time to buy because there has always been a good selection of homes in all price ranges.”

One trend that continues to be applauded by broker analysts is the adoption by sellers to price their homes appropriately – based on actual comparisons of recently sold homes – in order to gauge their home’s estimated value rather than pricing their homes based on unvalidated values.

If you are looking to buy or sell a home in Naples, contact a Naples The Wakelin Team as we have the experience and knowledge to provide an accurate market comparison or negotiate a sale. We can ensure your next purchase or sale in the Naples area is a success.

CATEGORIES

Feb 2019

Feb 2020

CHANGE

Total closed sales (year/year)

610

789

+29.3%

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

1,068

1,526

+42.9%

Median closed price (year/year)

$335,000

$345,000

+3.0%

Total active listings (inventory)

8,160

5,825

-28.6%

Average days on market

101

95

-5.9%

Single-family closed sales (year/year)

300

376

+25.3%

Single-family median closed price (year/year)

$403,750

$425,500

+5.4%

Single-family inventory

4,134

2,868

-30.6%

Condominium closed sales (year/year)

310

413

+33.2%

Condominium median closed price (year/year)

$265,000

$283,250

+6.9%

Condominium inventory

4,026

2,957

-26.6%

CATEGORIES

YE 2018

YE 2019

CHANGE

Total closed sales (year/year)

9,704

10,244

+5.6%

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

11,520

12,604

+9.4

Median closed price (year/year)

$338,000

$332,514

-1.6%

Total active listings (inventory)

6,801

5,401

-20.6%

Average days on market

95

101

+6.3%

Single-family closed sales (year/year)

4,714

5,159

+9.4%

Single-family median closed price (year/year)

$425,000

$415,000

-2.4%