Blog – The Wakelin Team

The Naples Area Board of Realtors May 2019 Market Report

Home Sales in May Shifted to the East

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The Naples Area Board of Realtors April 2019 Market Report

April Report Shows Market Resurgence Continues

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The Naples Area Board of Realtors March 2019 Market Report

Realistic Home Values Led to Strong Sales in March

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

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

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

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

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

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

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

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

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

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

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

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

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

The Naples Area Board of Realtors February 2019 Market Report

February Market Report Shows Many Options for Buyers

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

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

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

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

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

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

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

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

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

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

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

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

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

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

January Housing Market Shows Signs of Opportunity

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

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

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

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

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

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

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

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

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

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

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

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

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

CATEGORIES

MAR 2018

MAR 2019

CHANGE

Total closed sales (month/month)

990

973

-1.7%

Median closed price (month/month)

$360,000

$340,000

-5.6%

Total active listings (inventory)

7,593

6,829

-10.1%

Average days on market

96

107

+11.5%

Single-family closed sales (month/month)

491

474

-3.5%

Single-family median closed price (month/month)

$450,000

$415,000

-7.8%

Single-family inventory

3,701

3,507

-5.2%

Condominium closed sales (month/month)

499

499

0%

Condominium median closed price (month/month)

$287,000

$280,000

-2.4%

Condominium inventory

3,892

3,322

-14.6%

CATEGORIES

FEB 2018

FEB 2019

CHANGE

Total closed sales (month/month)

695

595

-14%

Median closed price (month/month)

$350,000

$335,000

-4%

Total active listings (inventory)

6,912

7,442

+7%

Average days on market

95

102

+7%

Single-family closed sales (month/month)

315

291

-7%

Single-family median closed price (month/month)

$439,000

$405,000

-8%

Single-family inventory

3,427

3,664

+7%

Condominium closed sales (month/month)

381

304

-20%