Blog – Wakelin Realty

The Naples Area Board of Realtors March 2019 Market Report

Realistic Home Values Led to Strong Sales in March

Naples, Fla. (April 18, 2019) – According to the March 2019 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), the median closed price of homes decreased 5.6 percent to $340,000 in March 2019 from $360,000 in March 2018. Broker analysts reviewing the report clarified that the median closed price decrease was due, in part, to an increase in the number of closed sales of homes priced under $500,000 during the last year.

Another reason for the decrease in median home price is due to sellers pricing their homes appropriately – based on actual comparisons of recently sold homes – to gauge their home’s estimated value rather than pricing their homes based on unvalidated values.

The March 2019 Market Report showed overall closed sales decreased 1.7 percent to 973 in March 2019 compared to 990 in March 2018. This decrease was isolated to the single-family home market, whose sales in March 2019 fell by just 17 total sales compared to March 2018. The condominium market in March ended with 499 closed sales, the same number reported in March 2018.

However, as Bill Coffey, Broker Manager of Amerivest Realty Naples pointed out, the report also showed closed sales in March increased 64 percent compared to February 2019, which reported 595 closed sales; and it increased 65 percent compared to January 2019, which reported 588 closed sales.

“Sales activity in the first two months of the quarter was down compared to last year, but the March report showed a sales resurgence which I think will continue into April,” said Budge Huskey, President, Premier Sotheby’s International Realty. “Once a seller finds their realistic list price, the home tends to sell. The proof is in the report, which showed that sellers received 95.3 percent of the final list price in March.”

Many brokers have reported an increase in contracts (pending sales) during March, which they feel contributed to the 10 percent decrease in overall inventory for March. It is important to remember that inventory during the first quarter of 2018 included many homes that were put back on the market after having been taken off the market for repairs following Hurricane Irma during the last quarter of 2017. As such, the report showed 8.7 months of inventory for March 2019, down 11 percent compared to March 2018.

“When inventory was tight, there was more urgency to buy,” said Wes Kunkle, President and Managing Broker at Kunkle International Realty. “But so far this year buyers have been spending time looking around more and at new construction too.” Kunkle added that the Southwest Florida MLS showed “about 19 percent of the single-family closed sales in March were new construction.”

The NABOR® March 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	MAR 2018	MAR 2019	CHANGE
Total closed sales (month/month)	990	973	-1.7%
Median closed price (month/month)	$360,000	$340,000	-5.6%
Total active listings (inventory)	7,593	6,829	-10.1%
Average days on market	96	107	+11.5%
Single-family closed sales (month/month)	491	474	-3.5%
Single-family median closed price (month/month)	$450,000	$415,000	-7.8%
Single-family inventory	3,701	3,507	-5.2%
Condominium closed sales (month/month)	499	499	0%
Condominium median closed price (month/month)	$287,000	$280,000	-2.4%
Condominium inventory	3,892	3,322	-14.6%

Geographically, the median closed price for condominiums in the Naples Beach area (34102, 34103, 34108) increased 13 percent to $805,0000 in March 2019 compared to $711,500 in March 2018, the highest increase of all areas reported. The median closed price for single-family homes increased the most in South Naples (34112, 34113) by 2.6 percent to $410,000 in March 2019 compared to $400,000 in March 2018. Inventory during March increased in only one segment and place: single-family homes in the Naples Beach area. This area’s inventory increased by 4.1 percent and is where a large majority of “spec” home building is taking place.

Brokers reviewing the March report also discussed their concern about how water quality issues and short-term rental limits might impact the Naples housing market moving forward. Adam Vellano, West Coast Sales Manager, BEX Realty – Florida, and a member of the NABOR® Water Quality Task Force, remarked that actions by the new Governor to fast-track many delayed water-quality projects, appoint a new South Florida Water Management Board, and request the Army Corps of Engineers modify Lake Okeechobee’s scheduled releases so there are fewer in the summer, is already being met with positive response.

“If the county puts limits on rentals we may see a spike in inventory,” said Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., who added that a limit would be bad news for a good portion of our seasonal residents and the homeowners and investors who benefit from a healthy rental market. Huskey responded that “a move to restrict rental lengths to the term suggested could significantly impact sales in some areas of unincorporated Collier County.” As it stands, his company already has an 85 percent rental reservation rate for next season which shows confidence in the market.

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 REALTOR® can ensure your next purchase or sale in the Naples area is a success.

The Naples Area Board of Realtors February 2019 Market Report

February Market Report Shows Many Options for Buyers

Naples, Fla. (March 26, 2019) – Home buyers had many more options to choose from in February as housing market inventory increased 7 percent to 7,442 homes in February 2019 compared to 6,912 in February 2018. In addition to 1,498 new listings added to the Southwest Florida MLS in February, the February 2019 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), also reflected a 4 percent decrease in the overall median closed price to $335,000 in February 2019 compared to $350,000 in February 2018.

“This is typically the time of year when we see inventory jump,” said Wes Kunkle, President and Managing Broker at Kunkle International Realty. “New listings increased 34 percent in the single-family home market and 7 percent in the condominium market [based on a comparison of February statistics]. That’s a lot of great new options for buyers!”

The February Market Report showed inventory for each home type was about even in February with 3,801 single-family homes available (a 10 percent increase compared to February 2018) and 3,641 condominiums available (a 4 percent increase compared to February 2018).

While there were 100 fewer closed sales in February 2019 compared to closed sales in February 2018 (a 14 percent decrease), the added inventory has broker analysts like Dominic Pallini, Broker at Vanderbilt Realty, convinced that buyers are not rushing into a sale like many did when inventory levels were much lower; and instead, are meticulously evaluating all their options that include new and existing homes.

“The average days on the market increased in February, which tells me that buyers are looking at more homes before they make an offer,” said Pallini. “Plus, there is a lot more new construction this year than a year ago. Agents were rarely in the office in February because showings really increased dramatically.”

Unlike many Florida markets, sales of homes in Naples are very geographically influenced. Historically, the closer a property was to the beach, the faster it would sell. But that’s not always the case anymore. Days on market were the lowest in the South Naples area (34112, 34113) in February; yet prices for single-family homes in this geographic area decreased 25 percent to $420,000 in February 2019 from $560,000 in February 2018.

“Our statistics show that the closed prices of properties that were sold in February averaged 95 to 96 percent of the current list price,” Brenda Fioretti, Managing Broker at Berkshire Hathaway HomeServices Florida Realty. “This shows that once a property is priced to attract buyers, the seller can realize a final closing price within 4 to 5 percent of asking price.”

Fioretti added that “many of the current listed properties are priced in excess of the range that is attracting buyers so sellers often have to reduce their asking price to the point where buyers are interested, looking and ready to make an offer. Pricing a home appropriately from the start helps the seller realize a much shorter marketing time and makes for a smoother transaction.”

Phil Wood, President & CEO of John R. Wood Properties, added that REALTORS® help buyers find the right homes at the right price in the right area faster because they understand how each geographic area and the neighborhoods within them are different. “For example, closed sales of single-family homes near the beach decreased in February compared to a year ago while its median closed price increased; but closed sales of single-family homes increased in the South Naples area during February and its median closed price fell.”

The NABOR® February 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	FEB 2018	FEB 2019	CHANGE
Total closed sales (month/month)	695	595	-14%
Median closed price (month/month)	$350,000	$335,000	-4%
Total active listings (inventory)	6,912	7,442	+7%
Average days on market	95	102	+7%
Single-family closed sales (month/month)	315	291	-7%
Single-family median closed price (month/month)	$439,000	$405,000	-8%
Single-family inventory	3,427	3,664	+7%
Condominium closed sales (month/month)	381	304	-20%
Condominium median closed price (month/month)	$275,000	$265,000	-4%
Condominium inventory	3,485	3,641	+4%

“The high-end market continues to do very well in our area,” said Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., who added that those high-end sales are usually made by very astute buyers and if the economy was bad or on a path to becoming bad, then they wouldn’t be buying as they are currently.

“You can’t look at our market with only one lens,” Hughes added. “A lot can change in a quarter mile. Sellers are best served when they work with a REALTOR®, whose job is to offer home buyers and sellers a good understanding of neighborhood market trends and comparative pricing strategies. This is very important during high season, and especially today, when buyers have more housing options.”

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.

Just Released…The Naples Area Board of Realtors January 2019 Market Report:

January Housing Market Shows Signs of Opportunity

Naples, Fla. (March 8, 2019) – The year is off to a good start for homebuyers. Beyond escaping frigid temperatures up north, visitors looking to purchase a home in the Naples area during January were pleasantly surprised with their options as inventory levels increased 7 percent to 8,154 homes for sale in January 2019 from 7,605 homes for sale in January 2018. The good news didn’t stop there for new homebuyers in January as median home prices increased by only 1 percent to $325,000 in January 2019 from $322,500 in January 2018, according to the January 2019 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). A new statistical reporting system with enhanced formats and data capture features was adopted by NABOR®. The January 2019 Market Report was prepared using the new system.

Broker analysts reviewing the new report were quick to point out that a rare occurrence in January 2018 contributed to a reduction in overall closed sales reported in January 2019. Namely, that a developer added 79 newly constructed high-end condominium closed sales to the MLS during the month of January 2018. To further clarify, the actual “sales” were made over a three-year period, but the sales data for all 79 units was input into the MLS over a three-week period in January 2018. Consequently, this data is reflected in the monthly statistics as a 160 percent decrease in overall closed sales for homes in the $1 million to $2 million price category. It is for this reason that the January 2019 Market Report has been clarified to also reflect the removal of these anomalous sales in order to show a truer comparative analysis of the data.

Many broker analysts reviewing the January 2019 Market Report felt the stock market tumble in late December may have contributed to potential homebuyers delaying purchasing decisions in January. This may be why there was a 6 percent decrease in overall closed sales reported for January 2019 compared to overall closed sales in January 2018. However, high-end homes increased 21 percent in the single-family home market and 18 percent in the condominium market in January 2019 compared to January 2018.

According to Cindy Carroll, SRA, of Carroll & Carroll Appraisers & Consultants, LLC, new home construction is tempering price increases in many areas of the resale market. “More builders are using the MLS and reaching out to brokers and REALTORS® with purchase incentives, which will make it necessary for homeowners to price their homes more competitively.”

The monthly statistics only capture a fraction of new construction product. NABOR® is working to engage more builders and encourage their use of the MLS. As such, it anticipates the ability to report broader data – like new construction, pending sales and list-to-closed sales – in future months with the new system.

“Fee heavy condominiums are hurting,” said Adam Vellano, West Coast Sales Manager, BEX Realty – Florida. Even though inventory rose 6 percent in the under $300,000 condominium market in January, closed sales for this product in January dropped 25 percent.

“The good news is that prices have remained relatively flat in both the single-family and condominium markets over the last 12 months despite the increase in inventory, so this factor along with an increase in inventory means there are some very good deals out there. This is a positive for homebuyers,” said Vellano.

“The housing market, while not markedly busy in January, remains healthy. The big news in January was inventory,” said Jeff Jones, NABOR® President and Managing Broker for Engel & Völkers Naples and Bonita Springs offices, “especially in the single-family home market where inventory for single-family homes under $300,000 grew 8 percent, and inventory for single-family homes between $300,000 to $500,000 grew 12 percent. “We expect the supply of homes for sale to increase, giving buyers more homes to buy, but not so many that will negatively affect overall home prices.”

Overall, there were 549 more homes for sale in January 2019 than in January 2018. The Naples area has seen its resale market inventory climb over the last few months. As such, there was 8.4 months of inventory in January 2019, typically indicating a buyer’s market, up from 6.3 months of inventory in January 2018.

The NABOR® January 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	JAN 2018	JAN 2019	CHANGE
Total closed sales (month/month)	625	588	-6%
Median closed price (month/month)	$322,500	$325,000	+1%
Total active listings (inventory)	7,605	8,154	+7%
Average days on market	97	97	0%
Single-family closed sales (month/month)	295	314	+6%
Single-family median closed price (month/month)	$422,000	$380,500	-11%
Single-family inventory	3,757	4,124	+9%
Condominium closed sales (month/month)	330	274	-20%
Condominium median closed price (month/month)	$251,000	$260,000	+3%
Condominium inventory	3,848	4,030	+5%

Prices are expected to remain stable over the next 12 months according to Carroll, who also noted that some pockets of the market may begin to see value erosion while others continue to increase due to location and demand.

Geographically, inventory increased the most in Eastern Collier (10 percent) and Ave Maria (18 percent).

The Naples Area Board of Realtors 2018 Market Report

5 Positive Trends for Buyers & 5 Positive Trends for Sellers in 2019

NABOR® Year End 2018 Market Report was Good for All!

Naples, Fla. (January 18, 2019) – The Naples area housing market ended 2018 with impressive annual activity statistics in all areas of the residential real estate market including an 11 percent increase in total closed sales and a 14 percent increase in inventory compared to 2017. Sales of homes over $1 million continued to drive the market in 2018, especially in the condominium market where closed sales of condominiums over $1 million increased 37 percent! According to the Year End 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 at the end of 2018 was the highest on record in six years.

“Prices held steady in 2018 with just a 3 percent increase in median closed price,” said Brenda Fioretti, Managing Broker at Berkshire Hathaway HomeServices Florida Realty. “However, for homes over $300,000, the median closed price actually decreased 1 percent.”

Upon reviewing the YE 2018 Market Report, Fioretti concluded that there are many positive trends for both home buyers and sellers in 2019. The top 5 positive trends for home buyers and sellers are:

5 POSITIVE TRENDS FOR SELLERS

5 POSITIVE TRENDS FOR BUYERS

Colder winters up north are bringing more visitors to the Naples area
Naples area homes are selling faster (average days on market decreased 9 percent from list to closing)
Buyers interest in the Naples market is on the rise as a result of aggressive builder advertising in northern markets
More comparable home prices are available with the increase in inventory
Location, location, location continues to appeal to home buyers

Inventory is increasing which translates to more options for home buyers
There are as many condos for sale as there are single family homes which expands overall opportunities for home buyers (Total: 6,261)
The stability of the overall median closed price builds buyer confidence in the market
Mortgage interest rates are currently low (< 5%) spurring home buying decisions
Location, location, location continues to offer appeal!

Single-family homes in the Naples Beach area (34102, 34103, 34108) reported the highest median closed price increase (14 percent) in 2018 compared to 2017. But that’s most likely due to closed sales of a few multimillion homes that took place last year including a $48.8 million transaction in June for a home in Port Royal.

The median closed prices listed on NABOR®’s market reports do not reflect average sales prices. Rather, the median closed price demonstrates a rate wherein half the closed sales were purchased for amounts below the figure (median) and half the sales were purchased for prices above it. As such, of the 662 single-family homes located in the Naples Beach area that sold in 2018, the median closed price was $1,268,000 in 2018 compared to the 652 single-family homes that sold in 2017 where the median closed price was $1,117,000. Incidentally, closed sales in this area increased only 2 percent.

Conversely, closed sales of single-family homes in the Ave Maria/Immokalee area increased 233 percent to 143 homes in 2018 compared to 43 single-family homes in 2017. Median closed prices for single-family homes in the Ave Maria/Immokalee area decreased 4 percent to $245,000 in 2018 compared to $255,000 in 2017.

According to Kathy Zorn, broker/owner, Better Homes and Gardens Real Estate Pristine, many small builders are listing their newly constructed homes on the Southwest Florida MLS (multiple listing service), which is reflected in the increased inventory statistics in all price points and in all geographic locations. “Inventory for single-family homes under $500,000 increased the most in 2018, which is good news for buyers who don’t necessarily require a home within walking distance of the beach. In fact, the highest increase in inventory for 2018 was 34 percent, and it appeared in the under $300,000 single-family homes category.”

While the Ave Maria/Immokalee area also reported the highest increase in single-family inventory (40 percent) among all geographic areas tracked, the single-family home inventory in Central Naples (34104, 34105, 34116) increased 38 percent to 391 homes in 2018 from 283 homes in 2017.

As pointed out by NABOR® President Jeff Jones, Managing Broker for Engel & VölkersNaples and Bonita Springs offices, the 3 percent increase in overall pending sales for 2018 concerned him at first as it looked too low compared to activity in other areas of the report. However, after much discussion with several broker analysts also reviewing the annual market report including Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., it was determined that, according to Hughes, “the smaller-than-expected increase was because many closings for a large percentage of homes under contract in the 4th quarter of 2017 were delayed while repairs from Hurricane Irma damage took place.”

The NABOR® Year End, 4th Quarter and December 2018 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 Year Ending 2018 (single-family and condominium) findings:

CATEGORIES	YE 2017	YE 2018	CHANGE
Total homes under contract (pending sales) (year/year)	9,121	9,365	+3%
Total closed sales (year/year)	8,815	9,771	+11%
Median closed price (year/year)	$330,000	$339,000	+3%
Median closed price >$300K (year/year)	$514,000	$510,000	-1%
Total active listings (inventory)	5,491	6,261	+14%
Average days on market	104	95	-9%
Single-family closed sales (year/year)	4,347	4,768	+10%
Single-family median closed price (year/year)	$418,000	$425,000	+2%
Single-family inventory	2,685	3,131	+17%
Condominium closed sales (year/year)	4,468	5,003	+12%
Condominium median closed price (year/year)	$263,000	$265,000	+1%
Condominium inventory	2,806	3,130	+12%

Even though the Southwest Florida MLS system is not as widely used by REALTORS® working in commercial real estate in Naples, the data collected does help agents gauge this sector of the market. According to Wes Kunkle, President and Managing Broker at Kunkle International Realty, “Vacancy rates for commercial properties are low right now. I’m seeing most vacancy rates well under 5 percent.”

Historically, commercial real estate activity is directly affected by the residential real estate market. When nearly 1,000 more homes are sold annually compared to a previous year, as was the case between 2017 and 2018, it is realistic to expect the number of businesses will increase to meet the needs of those new consumers.

Dozens of new commercial properties are in various stages of development across Collier County, many of which have large grocery store anchors.

The Naples Area Board of Realtors November 2018 Market Report

November Housing Market Report Shows Activity Heating Up

Naples, Fla. (December 21, 2018) – Home sales in November increased by double digits across every price category resulting in an overall increase of 24 percent compared to November 2017. Median closed prices decreased for homes under $1 million in November and inventory rose 12 percent to 5,971 homes, according to the November 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 November report shows greater balance in the market which is propelling strong performance,” said Budge Huskey, President, Premier Sotheby’s International Realty, who added that the 24 percent increase in overall closed sales for November is “significant because it reflects our recovery from the hurricane last year.”

The $0 to $300,000 single-family home market had the most impressive activity in November where inventory rose 38 percent and closed sales increased 30 percent compared to November 2017. This section of the market also saw its median closed price hold steady at $250,000.

“New home construction in the lower price tiers is rushing to meet the needs of buyers and it’s building our inventory in much needed areas within eastern Collier,” said Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc. The November market report supports Hughes’ claim as the East Naples area (34114, 34117, 34120 and 34137) saw the highest number of closed sales for single-family homes – 105 – with another 121 sales pending.

According to Cindy Carroll, SRA, of Carroll & Carroll Appraisers & Consultants, LLC, activity in the $0 to $300,000 price category is rallying in Collier. “Inventory under $300,000 consumes over half of the available condominium inventory. It had the highest inventory increase [38 percent] in the single-family home market too. The November report shows our inventory levels are just about even between condos and single-family homes now.”

“We haven’t seen this level of inventory going into season in six years,” said NABOR® President Jeff Jones, Managing Broker for Engel & VölkersNaples and Bonita Springs offices. “Plus, days on market is cascading downward which is a sign of better pricing. The trend to price homes to sell is clearly taking hold and it’s definitely making a difference in overall sales numbers. Visitors will be impressed at the choices and stable prices this season.”

The NABOR® November 2018 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. The November 2018 NABOR® sales statistics are presented in chart format, including these overall 3Q (single-family and condominium) findings:

CATEGORIES	Nov 2017	Nov 2018	CHANGE
Total homes under contract (pending sales) (month/month)	728	700	-4%
Total closed sales (month/month)	521	645	+24%
Median closed price (month/month)	$330,000	$334,000	+1%
Median closed price >$300K (month/month)	$482,000	$485,000	+1%
Total active listings (inventory)	5,322	5,971	+12%
Average days on market	101	95	-6%
Single-family closed sales (month/month)	271	327	+21%
Single-family median closed price (month/month)	$433,000	$420,000	-3%
Single-family inventory	2,606	3,033	+16%
Condominium closed sales (month/month)	250	318	+27%
Condominium median closed price (month/month)	$250,000	$255,000	+2%
Condominium inventory	2,716	2,938	+8%

Broken down geographically, Collier’s housing market in November had some interesting pockets of activity. For example, median closed prices decreased 19 percent in the Naples Beach area (34102, 34103, 34108); but increased 12 percent in the North Naples area (34109, 34110, 34119). There was a 90 percent increase in closed sales of condominiums in East Naples (34114, 34117, 34120, 34137), which brokers attribute to an increase in new construction of townhome developments east of Collier Boulevard. And single-family homes in Central Naples (34104, 34105, 34116) sold the fastest with an average 66 days on the market from listing to closing.

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 October 2018 Market Report

October Housing Market Activity is Strong

Naples, Fla. (November 16, 2018) – Closed sales of homes in the Naples market grew 20 percent to 674 sales in October 2018 compared to 561 sales in October 2017. The last few months have seen not only a return to a steady housing market for Naples since Hurricane Irma, but also an increased buyer appetite for homes in Collier County. We are pleased to report that inventory during October jumped 20 percent to 5,992 homes – the highest October inventory level since 2012 – which is good news for buyers according to leading broker analysts who reviewed the October 2018 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island).

While buyers struggle to find inventory in other highly desirable locations across the country, this is not the case in Naples. “We have almost 7.5 months of inventory,” said Bill Coffey, Broker Manager of Amerivest Realty Naples. “In fact, inventory for single-family homes under $300,000 grew by 79 percent to 483 homes in October!”

Cindy Carroll, SRA, of Carroll & Carroll Appraisers & Consultants, LLC, believes the spike in inventory during October is a reflection of the market’s recovery after Hurricane Irma in September 2017. “There are some neighborhoods where I still see an oversupply in the spec home market, but I’m also seeing inventory begin to tighten in very desirable areas west of U.S. 41.”

Historically, inventory begins to increase in October in preparation of seasonal visitors entering Naples’ prime home-selling season. According to Jeff Jones, Managing Broker for Engel & Völkers Naples and Bonita Springs offices, “About 10 percent of the new inventory in our MLS during October was new construction. A good portion of this building is taking place in East Naples [Eastern Collier County], which had the highest single-family home inventory reported in October. Builders also tell me that over 80 percent of their inventory is sold by REALTORS® rather than the builders’ sales staff.”

Overall pending sales for October were up 17 percent with the $1 to $2 million price category reporting the highest increase (39 percent) for the month compared to October 2017.

The October report also showed the overall median closed price increased 1 percent to $344,000 from $342,000 in October 2017; but went down 1 percent for homes priced over $300,000 to $475,000 from $480,000 in October 2017. Interestingly, the median closed price in the Naples Beach area decreased 13 percent in October to $595,000 in October 2018 from $682,000 in October 2017. However, in the 12-months ending October 2018, the median closed price rose 4 percent to $344,000 from $330,000 in the 12-months ending October 2017. In the Naples Beach area, the median price rose 4 percent in the 12-months ending October 2018 to $790,000 from $763,000 in 12 months-ending October 2017.

The NABOR® October 2018 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. The October 2018 NABOR® sales statistics are presented in chart format, including these overall 3Q (single-family and condominium) findings:

CATEGORIES	Oct 2017	Oct 2018	CHANGE
Total homes under contract (pending sales) (month/month)	623	730	+17%
Total closed sales (month/month)	561	674	+20%
Median closed price (month/month)	$342,000	$344,000	+1%
Median closed price >$300K (month/month)	$480,000	$475,000	-1%
Total active listings (inventory)	5,010	5,992	+20%
Average days on market	104	93	-11%
Single-family closed sales (month/month)	301	366	+22%
Single-family median closed price (month/month)	$425,000	$426,000	0%
Single-family inventory	2,432	3,177	+31%
Condominium closed sales (month/month)	260	308	+18%
Condominium median closed price (month/month)	$250,000	$265,000	+6%
Condominium inventory	2,578	2,815	+9%

Added Carroll, “In addition to predictions that our inventory will continue to increase as we approach the winter season, giving home buyers more choices, we also saw the passing of Amendment 2, which put a permanent cap of 10 percent on annual non-homestead property assessment increase, keeping a reasonable protection for home owners in place. Along with a trend for home sellers to price properties realistically, these factors should inspire even more buyers of second-home properties in the coming months to make their purchase decision this season while all these factors work in their favor.”

Increased inventory is expected to lead to increased sales. Higher volume sales during our peak selling months during season is important for both homebuyers and sellers. For home buyers, it means a higher likelihood of finding the right property. For home sellers, it means shorter marketing time and a higher likelihood of finding a buyer.

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 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.”

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.”

CATEGORIES

MAR 2018

MAR 2019

CHANGE

Total closed sales (month/month)

990

973

-1.7%

Median closed price (month/month)

$360,000

$340,000

-5.6%

Total active listings (inventory)

7,593

6,829

-10.1%

Average days on market

96

107

+11.5%

Single-family closed sales (month/month)

491

474

-3.5%

Single-family median closed price (month/month)

$450,000

$415,000

-7.8%

Single-family inventory

3,701

3,507

-5.2%

Condominium closed sales (month/month)

499

499

0%

Condominium median closed price (month/month)

$287,000

$280,000

-2.4%

Condominium inventory

3,892

3,322

-14.6%

CATEGORIES

FEB 2018

FEB 2019

CHANGE

Total closed sales (month/month)

695

595

-14%

Median closed price (month/month)

$350,000

$335,000

-4%

Total active listings (inventory)

6,912

7,442

+7%

Average days on market

95

102

+7%

Single-family closed sales (month/month)

315

291

-7%

Single-family median closed price (month/month)

$439,000

$405,000

-8%

Single-family inventory

3,427

3,664

+7%

Condominium closed sales (month/month)

381

304

-20%