The Naples Area Board of Realtors Q1 2018 Market Report:

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First Quarter Housing Market Activity Sets the Stage for Strong Year

 
Naples, Fla. (April 13, 2018) – Sales of homes above $1 million in Naples during the first quarter of 2018 drove the market. Their sales increased 61 percent compared to the same quarter of 2017 according to the First Quarter 2018 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island).
“January’s results led some to question expectations for the year when compared to last, yet in February the market gained its stride which accelerated in March with closed sales shooting ahead to end the first quarter on a very impressive note,” said Budge Huskey, President, Premier Sotheby’s International Realty. According to NABOR’s monthly reports, January had 672 closed sales, February reported 672 closed sales, but March kept agents very busy with 942 closed sales, driven by a strong high end which included a number of new construction condominiums just delivered.
Pending sales in the first quarter of 2018 increased 3 percent to 3,177 compared to 3,097 in the first quarter of 2017. Although pending sales for both single-family homes and condominiums over $1 million increased by double digits, it was the $2 million and above condominium market that raised eyebrows among brokers who reviewed the reports.
“Tourism was up in our area this season compared to last year so it is not surprising that we would end with strong pending sales for the quarter,” said Kathy Zorn, President/Owner, Better Homes and Gardens Real Estate Pristine. “But I wasn’t expecting to see a 109 percent increase during the quarter in pending sales for condominiums over $2 million!”
“There are very good investment opportunities in the condominium market, especially at both ends of the market,” added Coco Amar, a managing broker at John R. Wood Properties. “The top and bottom price categories are where both the inventory has grown and the prices have dropped.”
As reflected in the market’s year-ending statistics (12-months ending 1Q 2018 versus 12-months ending 1Q 2017), there was a 69 percent increase in closed sales of condominiums in the $2 million and above market, and a 17 percent decrease in its median closed price to $2,450,000 from $2,962,000 in 2017. Despite rocket sales in this high-end sector during the first quarter of 2018 (179 percent increase) and a drop in median closed prices for the first quarter (24 percent decrease), its inventory increased 5 percent! Similarly, median closed prices for condominiums in the $300,000 and below price category dropped 1 percent to $199,000 from $200,000 in the first quarter of 2017, but inventory increased 3 percent.
The NABOR® First Quarter 2018 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® First Quarter 2018 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:
CATEGORIES
Q1 2017
Q1 2018
CHANGE
Total homes under contract (pending sales) (quarter/quarter)
3,097
3,177
+3%
Total closed sales (quarter/quarter)
2,205
2,306
+5%
Median closed price (quarter/quarter)
$330,000
$370,000
+12%
Median closed price >$300K (quarter/quarter)
$510,000
$575,000
+13%
Total active listings (inventory)
6,389
6,112
-4%
Average days on market
95
95
0%
Single-family closed sales (quarter/quarter)
1,059
1,050
-1%
Single-family median closed price (quarter/quarter)
$410,000
$448,000
+9%
Single-family inventory
3,236
2,964
-8%
Condominium closed sales (quarter/quarter)
1,146
1,256
+10%
Condominium median closed price (quarter/quarter)
$270,000
$299,000
+11%
Condominium inventory
3,154
3,148
0%
Broker experts analyzing the reports said most counties in Florida continue to see inventories decline, but the Naples area experienced a steady rise over the past few months. In fact, according to Jeff Jones, Managing Broker for Engel & Völkers Naples and Bonita Springs offices, there is currently 8.25 months of inventory available in Collier County. Months of inventory is a nationally accepted measurement of how fast all existing homes on the market would last assuming no additional listings are added and sales activity continues to remain the same as the previous 12 months of sales.
“There were 118 closed sales of condominiums between $1.4 million and just over $2 million in a new development located in North Naples during the last two months that impacted our median closed price statistics,” said Wes Kunkle, President and Managing Broker at Kunkle International Realty. These “one-day-on-the-market” closed sales are one reason why the report showed a 13 percent increase in the median closed price for condominiums in the $1 to $2 million price category and a 24 percent decrease in median closed prices for condominiums in the $2 million and above price category.
Kunkle, along with several brokers who reviewed the reports, is concerned sellers may misinterpret this statistical anomaly as a reflection of the area’s comparable pricing activity. “These sales were for new luxury condos that were secured over a two year period. When the project obtained its final Certificate of Occupancy, the closings were finalized and they all appeared as a one-day sale in the MLS.”
However, this was not the only new construction activity that influenced NABOR®’s first quarter statistics. According to Jones, many sellers of speculative single-family homes that have been on the market for over two years in neighborhoods like Park Shore and the Moorings began to set more realistic list prices this past quarter, which resulted in more sales in the high-end, single-family home market.
“Overpriced homes don’t sell,” said Jones. “In fact, I think sales during January and February could have been better had many of these sellers set their prices realistically earlier. It wasn’t until March that I began to see an uptick in price decreases in the MLS for many of these speculative homes, and then those sellers saw multiple offers from buyers who had been holding out.”
If you are looking to sell a home in Naples, contact The Wakelin Realty Team We have the experience and knowledge to provide an accurate market comparison so you can determine the right asking price. We can also ensure your next purchase in the Naples area is a success.

Naples Area Board Of Realtors February 2018 Market Report

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February Market Report Shows High End Properties
in High Demand
Naples, Fla. (March 16, 2018) – Buyer interest in homes over $1 million in Naples continued to climb during February as overall closed sales increased 10 percent to 672 homes sold compared to 613 homes sold in February 2017, according to the February 2018 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island).
The February Market Report revealed a 9 percent increase in the overall median closed price to $364,000 in February 2018 from $333,000 in February 2017. However, as identified by Bill Coffey, Broker Manager of Amerivest Realty Naples, this was due in part to a 95 percent increase in closed sales for properties priced over $1 million in February. In fact, the median closed price within each of the five price categories tracked by NABOR® actually decreased. The greatest decrease appeared in the $1 million to $2 million price category, which reflected a 12 percent drop to $1,326,000 from $1,500,000 in February 2017.
Inventory continued to rise for the fifth straight month, but it decreased in February by 3 percent to 6,286 properties compared to 6,466 properties in February 2017.
Overall pending sales in February decreased 3 percent, but it increased 14 percent in the $1 million and above price category and 39 percent in the $2 million and over price category. “I believe that the high end market is poised for a good year,” said Mike Hughes, Vice President and General Manager of Downing-Frye Realty, Inc. “The economy is doing much better. The stock market has risen substantially over the last year. All in all many Americans have seen their financial picture improve. This should translate to improved sales, particularly with the high-end market.”
“The new tax laws appear to be inspiring confidence in wealthy buyers,” said Kathy Zorn, broker/owner, Better Homes and Gardens Real Estate Pristine, who also pointed out that the February Market Report showed 44 of the 52 homes purchased in the $2 million price category were cash purchases.
Growth in the luxury home market in Naples is not just a seasonal phenomenon. According to Phil Wood, President & CEO of John R. Wood Properties, “The 12-month rolling numbers are remarkable for properties above $1 million, especially in the condominium market where the data shows a 60 percent increase in closed sales over the last 12 months.”

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

CATEGORIES
Feb 2017
Feb 2018
CHANGE
Total homes under contract (pending sales) (month/month)
1,092
1,056
-3%
Total closed sales (month/month)
613
672
10%
Median closed price (month/month)
$333,000
$364,000
9%
Median closed price >$300K (month/month)
$488,000
$570,000
17%
Total active listings (inventory)
6,466
6,286
-3%
Average days on market
99
96
-3%
Single-family closed sales (month/month)
294
298
1%
Single-family median closed price (month/month)
$402,000
$472,000
17%
Single-family inventory
3,259
3,050
-6%
Condominium closed sales (month/month)
319
374
17%
Condominium median closed price (month/month)
$270,000
$275,000
2%
Condominium inventory
3,207
3,236
1%
The February report showed a 6 percent increase in inventory for condominiums in the $300,000 and below market. This was the highest increase reported among all price categories and home types. Interestingly, this segment’s median closed price dropped 2 percent in February (month over month) to $200,000 from $205,000 in February 2017.
Geographically, sales activity in the Naples Beach single-family homes market outpaced all other areas. Increased buyer interest in luxury properties located in this highly valued location resulted in a 33 percent uptick in closed sales, yet the heightened attention also influenced median closed prices, which rose 52 percent in February to $1,350,000 from $860,000 in February 2017.
Coincidentally, similar to an unusual closed sales anomaly in January that was reported last month, a high number of delayed closed sales in one luxury condominium located in North Naples influenced February’s closed sales, median closed price, and days on market statistics for the month. As reflected in the report, there were 56 closed sales of condominiums above $1 million in the North Naples area in February (a 211 percent increase over February 2017). A great majority of them were identified as having zero days on market, which broker analysts contend were from one particular condominium’s sales activity.

 

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

Naples Area Board Of Realtors January 2018 Market Report

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Luxury Market Surges in January
Naples, Fla. (February 26, 2018) – Unlike national figures for home sales in January which, according to the National Association of Realtors®, dropped 4.8 percent compared to sales in January 2017, home sales in Collier County rose 11 percent in January to 671 home sales in January 2018 from 603 home sales in January 2017. In fact, closed sales of luxury properties (homes above $1 million) were quite remarkable in January with a 123 percent increase over the number of closed sales of luxury properties in January 2017, according to the January 2018 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island).
“Thank goodness for the luxury properties for sale; they are driving the market,” said Bill Coffey, Broker Manager of Amerivest Realty Naples, who added, “Pending sales of homes priced above $1 million increased 67 percent in January compared to last year.”
Broker analysts reviewing the report agreed that many of the high-end speculative homes that had been on the market for over two years, especially in desirable locations like the Naples Beach area, were sold in January.
Dominic Pallini, Broker at Vanderbilt Realty said, “An increase in motivated sellers is demonstrated by January’s overall pending sales, which increased 11 percent.”
“I think we had a lot of pent up demand from wealthy buyers who waited to see how the new tax laws would affect them,” said Jeff Jones, Managing Broker for Engel & Völkers’ Naples and Bonita Springs offices. “Once they understood the law, they obviously felt confident in making a big purchasing decision.”
As such, January’s median closed price decreased 19 percent in the $2 million and above price category. For the entire market, the overall median closed price increased 19 percent in January.
“The storm blew in a lot of business,” remarked Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., who added, “I believe that some buyers who would have purchased in the fourth quarter of 2017 delayed their decision until the first quarter of 2018. It looks like we are off to a good start this year with respect to sales.”
Overall median prices in January decreased for homes up to $1 million compared to last year. For example, median closed prices for properties in the $300,000 and below price category decreased 6 percent in January to $205,000 from $219,000 in January 2017.
“For a long time we saw double digit increases in median closed prices for single-family homes in the $300,000 and below market,” said Cindy Carroll, SRA of Carroll & Carroll Appraisers and Consultants LLC. “But for January, the report showed only a 4 percent increase [year over year (or a 5 percent increase month over month)].”
Overall inventory in Collier County decreased 5 percent in January to 6,071 homes from 6,393 homes in January 2017. However, inventory has been on the rise over the past few months and while the nation continues to experience declining inventory levels that resulted in a 3.4 months supply for January, the Naples area market is seeing its inventory levels increase to 8.2 months of inventory for January.
However, the report also showed a 21 percent decline in inventory for single-family homes in the Naples Beach area, which Carroll says can be attributed to a rush of speculative homes sales in that area.
The NABOR® January 2018 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® January 2018 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:
CATEGORIES
Jan 2017
Jan 2018
CHANGE
Total homes under contract (pending sales) (month/month)
924
1,030
11%
Total closed sales (month/month)
 603 671 11%
Median closed price (month/month)
 $314,000 $375,000 19%
Median closed price >$300K (month/month)
 $485,000 $646,000 33%
Total active listings (inventory)
 6,393 6,071 -5%
Average days on market
 91 91 0
Single-family closed sales (month/month)
 284 280 -1%
Single-family median closed price (month/month)
 $397,000 $430,000 8%
Single-family inventory
 3,219 2,961 -8%
Condominium closed sales (month/month)
 319 391 23%
Condominium median closed price (month/month)
 $265,000 $320,000 21%
Condominium inventory
 3,174 3,110 -2%
According to Carroll, the South Naples (34112, 34113) and East Naples (34114, 34117, 34120, 34137) single-family home markets continued to see the strongest increases in value in January, as reflected in 8 and 9 percent increases in median closed prices, respectively.
Interestingly, and as confirmed by several broker analysts reviewing the January report, an unusual closed sales anomaly transpired in January that, while impacting figures for the month, does not influence the market’s activity trend on a 12-month ending basis.
Basically, and as explained by Hughes, “A newly constructed luxury high rise condominium in North Naples delayed the closings for 79 of its units that were previously pending until January. This in turn, influenced NABOR®’s closed sales, median closed price, and days on market statistics for the month.”
As reflected in the report, there were 150 closed sales of condominiums in the North Naples area in January (a 150 percent increase over January 2017). By the same token, because the 79 condominiums sold between $1.8 million and $2.5 million, the median closed price in this geographic area increased by 428 percent. The data also showed 0 days on the market for the 79 units. The closings were apparently postponed as a result of the hurricane disruption and not completed until January.
“This type of anomaly is why it’s best for REALTORS® to also review the 12-months ending data that accompanies each monthly report,” said Brenda Fioretti, Managing Broker at Berkshire Hathaway HomeServices Florida Realty. “We feel a long-view of the statistics reflects the market’s true behavior better and will help REALTORS® educate both buyers and sellers on how the market is really performing.”
To ensure your next sale or purchase in the Naples area is a success, contact The Wakelin Realty Team at Berkshire Hathaway HomeServices Florida Realty.

Naples Area Board of Realtors 2017 Market Report

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Naples Real Estate Market Showed Resilience & Strength in 2017
NABOR® Releases Annual Market Report for 2017

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

“Real estate sales are based on many other economic factors,” said Tom Bringardner, Jr, President and CEO of Premier Commercial. “In 2017, we saw above average employment rates, low inflation, record stock market activity, and increased consumer confidence. Looking into 2018, there are additional reasons for buyers to be optimistic including new tax cuts on the horizon and continued growth of their investment portfolios.”
Adam Vellano, West Coast Sales Manager, BEX Realty – Florida, agrees with Bringardner and also points to the unusually frigid weather in northern states recently, which he says will encourage more people to head south and buy homes. “Now is a great time to diversify and invest in property because there’s still plenty of inventory and prices have remained stable.”
This may not always be the case as indicated by Cindy Carroll, SRA of Carroll & Carroll Appraisers and Consultants LLC, who advises real estate agents to start watching closely for pockets that may soon show an increase in value. “Overall we had a solid year, but there are hints that change is coming with opportunities for increasing values in market sectors with tightening inventories.”
According to Vellano, pending sales during the 3rd Quarter increased 5 percent (12-months ending August 2017), while pending sales at the end of the 4th Quarter increased 2 percent (12-months ending December 31, 2017). “We can only imagine how much more activity the statistics would reflect if the market had not been shut down for nearly five weeks because of a major hurricane in 2017.”
The year-end report showed a 4 percent increase in closed sales to 8,815 in 2017 compared to 8,510 in 2016. Many brokers, including Budge Huskey, President of Premier Sotheby’s International Realty,think, “4 percent growth is great considering we had a hurricane and we lost over a month of real estate activity.”
“Between December of 2015 and December of 2016, overall market inventory increased 54 percent; between December of 2016 and December of 2017 overall inventory has decreased 11 percent. The single family and condominium markets are well positioned with about 7.5 months of supply in each,” said Carroll.
“Other areas in Florida, like Tampa Bay, have less than 2 months worth of inventory,” said Vellano.
Properties priced below $300,000 experienced the fewest days on market in 2017. Some broker analysts reported that they saw many of these properties go from list to close in less than 10 days. Inventory continued to struggle in the low end of the market making options difficult for buyers looking for single-family homes in this price range. In fact, 1,265 of the 1,554 available properties in the $300,000 and below price category were condominiums.
“The shining star in 2017 was condominiums in the $1 to $2 million price category,” said Brenda Fioretti, Managing Broker at Berkshire Hathaway HomeServices Florida Realty. “This category had a 28 percent increase in pending sales and a 14 percent increase in closed sales.”
The NABOR® Year End 2017 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® Year End 2017 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:
CATEGORIES
2016
2017
CHANGE
Total homes under contract (pending sales) (year/year)
8,903
9,121
2%
Total closed sales (year/year)
 8,510 8,815 4%
Median closed price ((year/year)
 $320,000 $330,000 3%
Median closed price >$300K (year/year)
 $520,000 $514,000 -1%
Total active listings (inventory)
 5,946 5,491 -8%
Average days on market
 89 104 17%
Single-family closed sales (year/year)
 4,268 4,347 2%
Single-family median closed price (year/year)
 $400,000 $418,000 4%
Single-family inventory
 3,015 2,685 -11%
Condominium closed sales (year/year)
 4,242 4,468 5%
Condominium median closed price (year/year)
 $253,000 $263,000 4%
Condominium inventory
 2,931 2,806 -4%
Geographically, condominiums in North Naples were the biggest sellers in 2017. Closed sales in this region increased 17 percent, while pending sales increased 15 percent.
How homes are purchased continued to shift in 2017 with an increase in conventional sales (properties with a mortgage). According to Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., “Only 54 percent of home sales in Naples were cash buys in 2017 compared to 69 percent in 2013. Many factors play into this trend including the fact that we have more end users and fewer investors. Also, a buyer’s ability to lock in a low interest rate allows them to continue to enjoy the high performing stock market, which had a 25 percent increase in 2017.”
To ensure your next sale or purchase in the Naples area is a success, contact The Wakelin Realty Team.

Naples Area Board of Realtors November 2017 Market Report

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November Housing Market Returns to Normal

Naples, Fla. (December 15, 2017) – Home sales in the Naples area increased 3 percent in November year over year, according to the November 2017 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). The report also showed heightened activity in the single-family home market in November where sales of properties priced above $300,000 increased by double digits. Local brokers analyzing the Market Report said they were pleased with the high-end market’s closed sales activity in November, which experienced a 21 percent increase in single-family home sales and a 22 percent increase in condominium sales in the $2 million and above price category.

“November was a good month for both buyers and sellers,” said Lauren U. Melo, PA, a Licensed Real Estate Broker with Florida’s Realty Specialists. “Sellers are pricing homes to sell and there were 521 homes sold in the month of November despite the effects of Hurricane Irma. This is only 51 fewer homes than sold in November 2016.”
These observations were also recognized by the Vice President and General Manager for Downing-Frye Realty, Inc., Mike Hughes, who said, “Buyers and sellers have good reason to be confident as there are many positives on both sides of the fence. Sellers should get their properties on the market now and buyers should move quickly as multiple offers could occur as a result of the tight inventory.”
The November Market Report showed the overall median closed price rose 9 percent to $330,000 compared to $303,000 in November 2016, and overall pending sales in November increased 2 percent to 728 compared to 713 last year. More impressively, pending sales for homes valued at $1 to $2 million increased by 30 percent in November to 61 from 47 last November.
“There were 116 cash transactions for properties below $300,000 in November,” said Melo. “This was higher than expected and may indicate the return of investors to the market.”
The report also showed that a 12 percent decrease in single-family inventory during November led to a subsequent 9 percent increase in the market value of single-family homes. The Naples Beach area saw a 28 percent increase in its median closed price to $975,000 from $762,000 in November 2016.
“The luxury market has gone wild,” said Phil Wood, President & CEO of John R. Wood Properties. “November had a 63 percent increase in pending sales for single-family homes over $1 million. This is a clear indication that high-end buyers continue to find Naples a desirable location for investment.”

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

CATEGORIES
Nov 2016
Nov 2017
CHANGE
Total homes under contract (pending sales) (month/month)
713
728
2%
Total closed sales (month/month)
 572 521 -9%
Median closed price (month/month)
 $303,000 $330,000 9%
Median closed price >$300K ((month/month)
 $519,000 $482,000 -7%
Total active listings (inventory)
 5,733 5,322 -7%
Average days on market
 88 101 15%
Single-family closed sales (month/month)
 268 271 1%
Single-family median closed price (month/month)
 $397,000 $433,000 9%
Single-family inventory
 2,971 2,606 -12%
Condominium closed sales (month/month)
 304 250 -18%
Condominium median closed price (month/month)
 $251,000 $250,000 0%
Condominium inventory
 2,762 2,716 -2%
As pointed out by Cindy Carroll, SRA, with the real estate appraisal and consultancy firm Carroll & Carroll, Inc., the November report showed a high concentration of condominiums available in the $300,000 and below price category (1,228). “Even though they appear to be a more affordable option, condominiums often have obstacles during the buying process like 55 and older age restrictions or high annual fees.”
Despite these challenges and a 2 percent decrease in inventory in November, condominiums in both the $300,000 and below and the $2 million and above price categories saw inventory rise by 4 percent.
Geographically, sales activity for single-family homes in the North Naples market is heating up as evidenced in the 21 percent increase in pending sales during November. Also hot are condominiums in the Naples Beach area, which saw an 11 percent increase in pending sales during November.
According to Dominic Pallini, Broker at Vanderbilt Realty, “The tax reform proposals coming out of Washington, D.C., appear to present negative tax consequences for many people living in states with high state income tax burdens. This may make relocation to Florida even more attractive in 2018, especially to the wealthy since Florida does not impose an individual income tax.”
Before you sell your home, seek guidance from The Wakelin Realty Team who knows the local market and can help you price your property correctly. We can also locate properties that match buyer needs and negotiate a purchase price that reflects the current market.

Naples Area Board of Realtors 3rd Quarter & September 2017 Market Report:

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Market Shows Resilience at the End of Third Quarter
 
Naples, Fla. (October 27, 2017) – The Naples area housing market maintained positive traction during the Third Quarter of 2017 despite enduring a hurricane that impeded activity for three weeks in September. According to the September 2017 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which track home listings and sales within Collier County (excluding Marco Island), there were 398 closed sales during the month of September, a 30 percent decrease compared to September 2016.
September proved challenging for the real estate market as homeowners and agents were forced to wait while public and utility services rebuilt or repaired infrastructure damaged by the hurricane. This was reflected in statistics released for September, which affected total outcomes for the Third Quarter of 2017. However, year-to-date numbers tell a different story as activity in pending, closed and median price categories were up year over year at the end of the quarter!
“To withstand a hurricane and still outperform last year’s activity is a clear sign of market resilience,” said Budge Huskey, President, Premier Sotheby’s International Realty. Broker analysts who reviewed both reports agreed that our county’s hurricane building code standards and quality craftsmanship by local builders helped to greatly reduce the amount of major structural damage in the area.
“The hurricane hit us in the right month,” said Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., who went on to explain that September is typically when the housing market takes a breath before it begins to intensify again. Yet despite a direct hit by a major hurricane, overall closed sales for the third quarter increased 3 percent (year over year). Not surprisingly, the storm’s short-term impact on the housing market in September only tempered sales slightly in the third quarter by 5 percent (quarter over quarter), which translated to just 86 fewer closed sales than in the third quarter of 2016.
Hughes added that activity in July and August outperformed the same months last year. If the hurricane had not hit the area in September, the third quarter of 2017 would have shown much more impressive activity.
“A 55 percent decrease in pending sales for September is equivalent to three weeks of inactivity,” said Coco Amar, a managing broker at John R. Wood Properties. “These sales didn’t disappear, they are just delayed.”
“That’s true. Our office saw more closings in the first week of October than it did for the entire month of September,” said Bill Coffey, Broker Manager of Amerivest Realty Naples.
The hurricane’s force slowed inventory in September, which resulted in a third quarter decrease of 9 percent. Jeff Jones, Managing Broker at the Naples-Park Shore office of Coldwell Banker® said this was most likely a result of homeowners either delaying to list because they evacuated or removing a listing because they needed time to clean up and make minor repairs to properties following the storm.
“The hurricane created big concerns and delays from banks too,” said Jones. “Most lenders are requiring re-inspections and re-appraisals of properties after the hurricane.”
One element the hurricane failed to harm was the continued growth in property value for Naples. Overall median closed prices in the third quarter of 2017 increased 3 percent to $320,000 compared to $312,000 in the third quarter of 2016.
“The integrity of our real estate market has been renewed now that it survived a direct hit from a major storm like Hurricane Irma,” said Lauren Melo, PA, Licensed Real Estate Broker with Florida’s Realty Specialists, adding, “Even homes built over 50 years ago withstood damage. Our survival actually strengthened buyer confidence.”
“Fortunately, media in most of the core areas where our buyers come from didn’t overhype the storm, which helped obscure fears,” said Cindy Carroll, SRA, with the real estate appraisal and consultancy firm Carroll & Carroll, Inc. “This is going to be a very good history lesson for us because the hurricane hit during a time of stable market activity. By January though, I think our brush with Irma will be forgotten.”
Carroll added that sales of existing homes are poised to increase in the coming months too because much of the labor force stepped away from new construction to work for companies that provide a variety of property maintenance, including tree removal and lawn debris cleanup.
Wes Kunkel, President and Managing Broker at Kunkle International Realty, added that material costs for new construction may increase too as there will be shortages across the country due to the hurricanes and fires. Carroll responded that delays in new home construction might spur increases in existing home values, especially if inventory does not keep up with the pace of sales.
 
Compared to other tropical second-home destinations like Puerto Rico, the Southwest Florida housing market fared quite well after it faced a hurricane. Broker analysts including Hughes and Kunkel believe our area may see an uptick in sales from buyers who had their eyes set on an island home in the Caribbean.
If you are looking to sell your home in Naples, seek guidance from The Wakelin Realty Team who can help you determine a fair market price for your home and then market your property correctly to appeal to buyers. We can also locate properties that match buyer needs and negotiate a purchase price that reflects the market.

Naples Area Board of Realtors August 2017 Market Report:

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August Home Sales Show Increased Consumer Confidence

Naples, Fla. (September 29, 2017) – August proved to be an outstanding month for the Naples area housing market with more pending and closed sales than last August. Broker analysts reviewing the August 2017 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which track home listings and sales within Collier County (excluding Marco Island), said sales of 685 homes was impressive for August, up 5 percent compared to August 2016. This was encouraging to broker analysts since inventory increased by only 20 properties compared to August’s inventory last year.

“This turned out to be a great summer for sales in Naples,” said Brenda Fioretti, Managing Broker at Berkshire Hathaway HomeServices Florida Realty. “Overall pendings in August were up 13 percent, overall sales were up 5 percent, and there were some nice surprises in the report that we didn’t expect to see.”

These surprises included a 75 percent increase in pending sales and a 42 percent increase in closed sales for single-family homes located in South Naples. The August report also showed single-family homes in this geographic area had a 22 percent decrease in median closed price.

The condominium market performed just as well as the single-family home market in August, reporting a similar 13 percent increase in pending sales. The Pending Home Sales statistic is a forward-looking indicator that is based on contract signings.

Fioretti believes summer’s sales activity outpaced last year’s because of renewed consumer confidence. “Buyer traffic continued to exceed our expectations in August.”

The overall median closed price for August was $328,000, a 2 percent increase over August 2016. Geographically, prices in the Naples Beach area continue to rise faster than all other areas tracked. In fact, median closed prices for single-family homes in the Naples Beach area increased 32 percent in August.

Median closed price for single-family homes jumped 10 percent in August to $422,000. This initially surprised broker analysts but, as reflected in the report, this figure was heavily influenced by 17 sales in the $2 million and above single-family home market, which saw a 54 percent increase in median closed price. All other price categories in the single-family home market reported median closed price increases of 5 percent or below.

However, when taking a long look at closed pricing trends (12-month ending), August’s median closed price for single-family homes was $405,000, the same as August 2016. Median closed price actually dropped 5 percent for single-family homes over $300,000 to $510,000 for the 12-month ending August 2017 from $535,000 in the 12-months ending August 2016.

“One big sale at the top of the price bracket can influence the monthly report’s median closed price,” said Dominic Pallini, NABOR® President and Broker at Vanderbilt Realty. For example, there were 20 total closed sales in the $2 million and above market in August. Therefore, this means 10 sales were below $4.2 million and 10 sales were above $4.2 million.

Overall inventory for August barely budged with a total of 4,807 homes compared to 4,787 in August 2016. Single-family home inventory decreased 4 percent, while the condominium market saw a 6 percent increase in inventory for August.

“Single-family home inventory under $300,000 may be lingering on the market because of necessary interior or exterior remodeling or improvements,” said Pallini, who then pointed out that the report showed only 278 single-family homes under $300,000 were left on the market at the end of August.

Inventory for condominiums priced below $300,000 in August increased by 133 units to 1,107 total units available. This was the highest increase (14 percent) of all property types and price categories reported in the month.

Fioretti added that, statistically, major weather events impact housing market sales, and Hurricane Irma was no exception. In agreement, Wes Kunkle, President and Managing Broker at Kunkle International Realty, added that he actively watches the Southwest Florida MLS, and there was virtually no activity in it for almost two weeks following the storm.

“We won’t truly know the impact of Hurricane Irma on the area’s housing market for a few months,” said Tom Bringardner, Jr., President CEO of Premier Commercial, who added that “the event presents a great opportunity for sellers to refresh their homes and make them more appealing to buyers before season starts.”

Inventory continued to tighten in August with a 6.83-months’ supply for single-family homes and a 6.18-months’ supply for condominiums, according to the August 2017 Market Report.

Bringardner and all broker analysts agreed that the county’s hurricane building code standards saved the area’s housing market from severe destruction. NABOR® and its board of directors also want to recognize and thank the combined efforts of county government, its leaders, and members of all emergency management and preparedness teams, as well as the Naples resident Governor Rick Scott, and utility providers, both public and private. The fast response and citizen-led restoration of our beloved community is a testament to the integrity of its people.

If you are weighing the pros and cons of renovations to your home following Hurricane Irma before you decide to sell, ask The Wakelin Realty Team of Amerivest for assistance. We can help you do a market comparison and determine a fair and reasonable listing price, both with and without renovations. We can also identify properties best suited for your needs and negotiate a purchase price that fits your budget.

Naples Area Board of Realtors July 2017 Market Report:

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July Home Sales Hit the Sweet Spot

Naples, Fla. (August 25, 2017) – REALTORS® in Naples sold more existing homes in July (682) than they did in January (603) or February (613), a statistical reality that busts an old myth that home sales stall in the summer. In fact, overall closed sales in the market’s sweet spot (homes priced between $300,000 and $500,000) increased 32 percent in July. Broker analysts reviewing the July 2017 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which track home listings and sales within Collier County (excluding Marco Island), said a 9 percent increase in closed sales during July was very good, but the continued reduction of inventory, especially in the single-family home market, is cause for concern as it limits choices for buyers.

One segment of the market that brokers are watching closely is the $300,000 and below single-family home market, which saw pending sales decrease 24 percent, closed sales decrease 19 percent, and inventory decrease 2 percent in July. In fact, the entire single-family home market is getting stretched thin as inventory tightens. In July, inventory rose just 3 percent overall, but single family home inventory decreased 1 percent.

Bill Coffey, Broker Manager of Amerivest Realty Naples, pointed out, “The July report showed the median closed price for homes under $300,000 was the highest since 2008. However, the median closed price for homes over $300,000 was the lowest reported in 9 years!”

According to the report, overall median closed prices in July increased 6 percent to $319,000 from $300,000 in July 2016. For homes in the $300,000 and below price category, the median closed price increased only 3 percent to $225,000 from $219,000 in July 2016. And for homes above $300,000, the median closed price decreased 7 percent to $485,000 from $524,000 in July 2016.

Many broker analysts reviewing the July report agreed that an increase in conventional sales (homes purchased with financing) is a good sign that first-time homebuyers are gaining a foothold in the market. As such, the July Market Report showed total closed sales were split almost equally between cash sales and conventional sales.

Kathy Zorn, broker/owner, Better Homes and Gardens Real Estate Pristine, said she is optimistic that the third quarter closed sales will finish ahead of the second quarter, and pointed to activity in the $500,000 to $1 million price category, which saw the overall pending sales increase 44 percent in July from July 2016. “The median closed price went down 16 percent for condos in this $500,000 to $1 million price category. I believe this is a reflection of smart pricing strategies finally taking hold.”

For months, broker analysts and NABOR® have warned against setting unrealistic pricing, a strategy that Dominic Pallini, NABOR® President and Broker at Vanderbilt Realty, said can “hurt a homebuyer because a home is often overlooked if it’s overpriced.”

High prices are a strategy that can work in an accelerating market, but it’s risky. A home might sit for months without an offer and sellers typically end up marking the price down, perhaps lower than it should have sold for in the first place. A licensed REALTOR® uses real-time MLS data that can help a seller hit the sweet spot when setting the listing price: a price that’s high enough to reflect the home’s value, but attractive enough to gain buyer attention and get it sold quickly.

Another segment that brokers are watching closely is the number of days on the market it takes for a property to sell, which is on the rise and hit 105 days in July. One reason for this could be cosmetic. According to Brenda Fioretti, Managing Broker at Berkshire Hathaway HomeServices Florida Realty, “Many homebuyers are looking for a coastal, contemporary look, not the Mediterranean or Tuscan look that dominates much of the existing home market and appears dated. Sellers must either consider making renovations to meet the light, coastal look buyers want or reducing the home’s price in order to stay competitive with the new construction product that reflects this new coastal, contemporary style.”

Geographically, pending and closed sales activity in South Naples in July outperformed all other areas, showing a 36 and 35 percent increase, respectively. With respect to property type, single-family homes in North Naples saw the most impressive activity in its pending and closed sales (23 and 45 percent, respectively); possibly as a result of a 14 percent decrease in its median closed price and a 3 percent decrease in its inventory.

“Because inventory dropped 1 percent in the single-family home market in July, this may be the first sign that we are not far from a shift in the market,” said Cindy Carroll, SRA, with the real estate appraisal and consultancy firm Carroll & Carroll, Inc., who went on to add, “the housing market is cyclical, and the rate of inventory increase has been trending down since December. If this behavior continues and we go below our lowest inventory point (3,563), which was in July 2014, I predict we’ll shift from a buyer’s to a seller’s market and probably start to see prices increase again.”

If you are weighing the pros and cons of buying or selling a home in the coming months, let The Wakelin Realty Team of Amerivest be your guide. We can help you do a market comparison and determine a fair and reasonable listing price. We can also identify properties best suited for your needs and negotiate a purchase price that fits your budget.

Naples Area Board of Realtors: 2Q 2017 Market Report Shows Home Sales Activity is Hotter than 2Q 2016

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Naples, Fla. (June 16, 2017) – Record-breaking rain fall in June did not dampen buyer interest in the Naples housing market as evidenced in the Second Quarter and June 2017 Market Reports released by the Naples Area Board of REALTORS® (NABOR®), which track home listings and sales within Collier County (excluding Marco Island). The 2Q report showed strong and steady sales activity leading into summer with a 7 percent increase in overall closed sales to 2,880 closed sales in 2Q 2017 from 2,704 closed sales in 2Q 2016, and a 9 percent increase in overall closed sales for the month of June to 907 closed sales from 832 closed sales in June 2016.
There were many remarkable areas of activity in the 2Q Market Report. For example, condominiums in the $2 million and above price category saw an 86 percent increase in closed sales and a 38 percent decrease in median closed price in 2Q 2017 from 2Q 2016. Similarly, pending sales (homes under contract) in the North Naples market increased 20 percent during 2Q 2017 from 2Q 2016, and was the only geographic area that reported a decrease in median closed price (-1 percent).
“The North Naples area is making a big turnaround,” said Coco Amar, a managing broker at John R. Wood Properties, “Especially in the condominium market which had the highest pending and closed sales reported.”
As reflected in the 2Q Market Report, pending sales of condominiums in North Naples increased 30 percent to 428 condominiums in 2Q 2017 from 329 condominiums in 2Q 2016. Closed sales of condominiums in North Naples increased 29 percent to 463 condominiums in 2Q 2017 from 358 condominiums in 2Q 2016. Condominium sales moving into summer look very good for North Naples too as June’s Market Report showed a 30 percent increase in pending sales.
Overall inventory during the 2Q of 2017 rose a respectable 4 percent to 5,189 homes in 2Q 2017 from 4,983 homes in 2Q 2016. According to Bill Coffey, Broker Manager of Amerivest Realty Naples, inventory during the 2Q was “getting eaten up by sales.” This is very evident in the Report for homes in the $2 million and above price category, which only saw a 1 percent increase in inventory, yet a 43 percent increase in closed sales.
Despite a 12 percent increase in inventory for the $300,000 and below price category, there was a 4 percent decline in overall closed sales in this low-end price category. Interestingly, while inventory for condominiums in the $300,000 and below price category saw the highest increase (17 percent) in the 2Q of 2017, the number of closed sales for condominiums in this category did not change quarter over quarter.
“Buyers struggling to find homes under $300,000 in the single family market are turning to condominiums or coach homes as an alternative,” said Steve Barker, Advising Broker for Equity Realty. “Even so, as it stands today, there is only 2.4 months worth of inventory available in the under $300,000 single-family home market, and 4.2 months worth of inventory available in the under $300,000 condominium market.” In response, many broker analysts remarked that slack sales in the low end of the market might be due to the imminent burden of additional costs beyond the sale price such as high condominium association and/or club membership fees.
Closed sales in the $2 million and above price category are poised to remain strong through the summer as this category experienced a 30 percent increase in pending sales during the 2Q of 2017. One explanation for the burst in closed sales activity for the $2 million and above condominium market was given by Amar, “It appears sellers in the high end of the market are coming around to the idea that a realistic price will sell a property faster. The 38 percent reduction in median closed price for this category during the second quarter shows we are not only seeing more negotiations, but also that sellers are more willing to accept real market offers.”
Broker analysts reviewing the June 2017 Market Report acknowledged that the first two weeks of June started out a little slow, but the month ended strong with 907 closed sales, up 9 percent from 832 in June 2016. Sales of condominiums on the Naples Beach took center stage in June with a 50 percent increase over June 2016. June’s pending sales activity may set the tempo for a promising summer, as pending sales increased 16 percent in June 2017 from June 2016.
At the end of June 2017, the Naples market contained 7.86 months of inventory, which is considered to be normal, indicating that the June market is neither a sellers’ nor a buyers’ market. Inventory has not been this robust for the month of June since 2011.
Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., remarked that the Days on Market increase of 18 percent could be due to overpriced listings. Wes Kunkle, President and Managing Broker at Kunkle International Realty, agreed and said, “With median home prices flattening out in June, there would have been more sales if the homes were priced right.”
If you are looking to sell your home in Naples, seek guidance from the Wakelin Realty Team of Amerivest who can help you determine a fair market price for your home and then market your property correctly to appeal to summer buyers. We can also locate properties that match summer buyer needs and negotiate a purchase price that reflects the market. Discover more at www.viewnaplesproperty.com.

Ranch Style Home in Naples’ New Stonecreek Community

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stonecreek_wakelin

This three bedroom + club room and three and a half baths Bal Harbor model home is move-in ready. Food enthusiasts will appreciate the open concept kitchen area, complete with a gas cook top stove. The Master Bedroom highlights two spacious walk in closets and tray ceilings. The Master bathroom features his and her vanities and a step in shower.

The Stonecreek community is gated and offers a multitude of amenities including indoor and outdoor basketball courts, a fitness center, game rooms, billiards, hobby room, a resort style pool area, spa, a lap pool, water play area, tot lot, party pavilion, five lighted tennis courts, beach volleyball and four pickleball courts. At the heart of the community will be a 13,676 square foot clubhouse with a social hall, catering kitchen, indoor sports court, card room and more. A full-time activities director is prepared to keep members of this community active and social for all lifestyles once the community is completed as far as building.

A-rated schools and a desirable North Naples location, just North of Immokalee Road, close to I-75 and minutes from shopping, dining, and beaches, also make Stonecreek a wonderful place to live.

The beautiful one-story single-family ranch style home with 3,101 square feet is located at 4386 Caldera Circle in Naples and is listed at $692,900.

Stonecreek is being built by GL Homes, known for building communities with lush landscaping, high-end amenities and quality construction. When complete, Stonecreek will provide its residents with an idyllic Florida-lifestyle experience. There will be just over 600 single family homes within this community, ranging from 1,900 to 4,800 square feet and from approximately $400,000 to the low $700,000’s, and many of them will offer preserve of lake views.

Please contact us today to schedule an appointment and view this move-in ready model home.