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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.”

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

The Naples Area Board of Realtors July 2018 Market Report

July Housing Market in Naples Defies National Trends

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Naples Area Board of Realtors 2nd Quarter 2018 Market Report

Luxury Home Sales Lead to a Strong Second Quarter Finish

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

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

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

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

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

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

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

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

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

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

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

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

The Naples Area Board Of Realtors May 2018 Market Report

Housing Activity in May Yields Solid Market

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The Naples Area Board of Realtors April 2018 Market Report:

Inventory Keeping Spring Market Active

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The Naples Area Board of Realtors Q1 2018 Market Report:

First Quarter Housing Market Activity Sets the Stage for Strong Year

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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%

August Housing Market in Naples Continues to Show Strength

CATEGORIES

August

2017

August 2018

CHANGE

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

829

806

-3%

Total closed sales (month/month)

685

719

+5%

Median closed price (month/month)

$328,000

$319,000

-3%

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

$510,000

$446,000

-13%

Total active listings (inventory)

4,807

4,913

+2%

Average days on market

95