The Wakelin Realty Team April 2018 Newsletter

Hello from Naples!

Rae and Fred went on another Jazz Cruise in March. The trip originated in Ft. Lauderdale, which makes the experience very simple because it’s a short drive to the cruise terminal and there is parking right next to it; then all that’s left to do is simply board the ship and cruise! The line-up of smooth jazz artists was fantastic…all well-known and best sellers in the genre. This was their fourth or fifth jazz cruise and it was one of the best. The destinations were all in the Caribbean, but they are secondary to the music. If you are into smooth jazz, you should definitely try one of these cruises. They have several each year and they sell out fast. This particular cruise sold out so fast that they added a second one…which also sold out. Rae and Fred are going on another one in August…a riverboat jazz cruise from Prague to Budapest. Stay tuned for details!

Spring Break for local Collier County School District kids also happened in March. So Nicola and Jeff decided to take their daughters’, Natalie and Riley, on a little get-a-way road trip. They drove from Naples through the middle of the state to Central Florida University so Natalie, who is a Sophomore, could take a tour of the campus. They were all impressed with this beautiful school right outside Orlando. After the tour they drove to their hotel in Daytona Beach. Much to their surprise, it was “Bike Week” in Daytona so thousands of biker’s from all over the country were in town. The next day they drove about an hour to St. Augustine, which is a fun, charming, historic town and they were surprised to learn it is actually the oldest continuously occupied European settlement in the United States. After a day of exploring it was back to Daytona and then out again the next day to visit the Kennedy Space Center. The space center was the highlight of their trip and they all were amazed to experience a tour of the launch pads, viewing the Shuttle Atlantis, having lunch with an astronaut and many more amazing things to see and do. They highly recommend a visit to the Kennedy Space Center!

 

Here’s an interesting article from the Naples Daily News:

Brent Batten: New Naples Council members heard voters; their colleagues, not so much. The three successful candidates in last month’s Naples City Council election got the message.But on Wednesday, it didn’t make a difference.

On the campaign trail, the candidates heard one demand — expressed in a variety of ways — more than any other: Keep density low; prevent overdevelopment; maintain Naples’ small city feel.

At Wednesday’s meeting the challenge was presented to the newly constituted council for the first time in a request to rezone a city block along the south side of U.S. 41 between 10th Street South and 11th Street South, east of the Four Corners.

The petitioners, represented by veteran land-use attorney John Passidomo, made a compelling case.

The property encompassing retail shops that burned in a tragic fire that claimed a life in 2015, and other buildings, are zoned under a commercial designation. The owners were seeking a change to a downtown zoning that would allow for greater lot coverage and potentially more than doubling the number of residential units allowed.

Doing so would effectively extend the “Fifth Avenue South” feel of the area, making it more pedestrian friendly and bringing the character of development in line with that of the properties across the street on the north side of U.S. 41.

The current zoning, calling for large, paved parking areas in front of the buildings, is a departure from the look the city strives for in its downtown development plans, Passidomo said. A planned, cohesive redevelopment of the parcel, coupled with the neighboring site of the old St. George and the Dragon restaurant owned by the same group, would link Fifth Avenue South to Naples Bay, he argued.

The move was approved by city’s staff and Planning Advisory Board. And by the City Council — unanimously — acting as the Community Redevelopment Agency board in April of 2017, before the 2018 campaign. Council woman Linda Penniman was in office in 2017 and joined in that approval. Then she campaigned for re-election. On Wednesday, she voted against the rezoning citing the redevelopment concerns she heard from voters. “We are hearing that consistently,” she said. Penniman worries greater lot coverage — up to 100 percent under the downtown zoning — will exacerbate already expensive drainage problems. The present zoning allows only 40 percent lot coverage on the three acres. “The density, intensity we’ve all agreed to, now it’s payback time,” Penniman said.

Gary Price and Terry Hutchison are the other two City Council members who won seats last month. They too voted against rezoning, citing the message from voters.

But it passed 4 to 3, with Mayor Bill Barnett and council members Reg Buxton, Michelle McLeod and Ellen Seigel voting in favor.

The split shows a disparity between long-held city plans and the concerns of residents.

On the one hand, a revitalization plan for the downtown area led to the rebirth of once-moribund Fifth Avenue South. An extension of that plan calls for similar redevelopment east to Naples Bay. Thus, Wednesday’s request for a rezoning. At the March 7 first reading of the rezoning request, Passidomo reminded council members of the importance of allowing developers the option to do things like put buildings close to sidewalks and provide parking in the rear, off site or even underground. It’s too early to say what might go on the property, he explained. The owners don’t have specific plans but wanted to get the zoning in place so they could put together a unified project. Just trying to minimize the size of buildings isn’t always best, he said. “If the measurement is least impactful, we’d never have Fifth Avenue South,” Passidomo said.

To Price’s point that 40 percent lot coverage makes for less intense development, Passidomo pointed to a picture of one of the existing properties with its paved parking lot separating the sidewalk from the building. “There it is. You’ve got 40 percent lot coverage. You have front-yard, asphalt parking lots at the entrance to the city. It’s not what your comp plan says you want, but it’s what you’ve got. That’s where we think there’s this enormous disconnect.”

On the other hand, a growing chorus of voters let the 2018 candidates know they believe new development has been too intense. “It’s very clear to me the community is tired of density and traffic. At some point we’ve got to recognize we’re creating our own problems,” Price said. With zoning in place, the developer’s plans for the site can be approved by city staff without further input, so long as they don’t seek anything outside the base downtown densities. That also makes Price uncomfortable. “If we don’t have a plan what we want the area to look like, the developers will get ahead of us,” he said.

With the battle lines already drawn on March 7, when the council approved the rezoning on the same 4-3 vote, Wednesday’s discussion was little more than a formality. Although voters protested the intensity of redevelopment during the campaign, no one from the public showed up to speak at either of the two council hearings on the question. “This hearing was embarrassing,” Price said Wednesday. “I don’t think we’ve spent enough time on the impact of this zoning

 

Official March 2018 Climate Data at Naples Airport:

March 17
YTD 17
March 18
YTD 18
Normal YTD
Rainfall in inches
.13
1.92
1.33
1.96
6.33
Record High March Rainfall
13.56 (1970)
Record Low March Rainfall
0.0 (1974)
High March Temperature
87
88
Low March Temperature
47
48
Record High March Temperature
91 (1975)
Record Low March Temperature
33 (1980)

Temperatures in March were normal for the month, meaning great weather for all!  The average max temperature in March is 79.9…we recorded 78.5. Reported rainfall at Naples was only 1.33 inches. This means we now have a shortfall of over four inches.

 

Book Review: “The Patriarch” by David Nasaw

In this recent biography, historian David Nasaw examines the life of Joseph P. Kennedy, the founder of the twentieth century’s most notorious political dynasty. Drawing on never-before-published materials from extensive archives and interviews with Kennedy family members and friends, Nasaw tells the story of a man who participated in the major events of his times: the booms and busts, the Depression and the New Deal, two world wars and the Cold War, and the birth of the New Frontier. In studying Kennedy’s life, we relive the history of the American century.

“Riveting . . . The Patriarch is a book hard to put down . . . As his son indelibly put it some months before his father was struck down: ‘Ask not what your country can do for you – ask what you can do for your county.’ One wonders what was going through the mind of the patriarch, sitting a few feet away listening to that soaring sentiment as a fourth-generation Kennedy became president of the United States. After coming to know him over the course of this brilliant, compelling book, the reader might suspect that he was thinking he had done more than enough for his country. But the gods would demand even more.” – New York Times Book Review

I must say, I had no idea Joseph P. Kennedy (JPK) had such an amazing career. I knew he had amassed quite a fortune and that he had attained some serious political clout and connections in his lifetime. Before his sons ever hit the political scene, he was making his mark in a variety of industries… banking, finance, film distribution, politics, liquor importation, the real estate, and more. It was pretty amazing to find out all he had done – even if it took me 800 pages to find out about it. The “remarkable life” part of the title really captures it.

I was interested to learn how this family began, and wanted to read Joseph Kennedy’s life history. I found this book to be a great read. It debunks many of the lies and myths of the Kennedy family stories that I have heard for 50 years. (No, Joseph Kennedy did not get his money as a bootlegger. He didn’t have his daughter lobotomized because she was a shame to the family. He didn’t always dream of Joe Jr. and JFK becoming president.) The real stories are much more interesting. When reading this, I began to understand the depth of love that Joe had for his family. I wouldn’t say that his marriage to Rose was ideal; in fact, it was, to my eyes, very strange. However, they did share love and respect. It’s a fascinating look at American politics from 1900 to 1970. I highly recommend it.

 

Restaurant Recommendation: M Waterfront Grille, Village on Venetian Bay

We dined at this restaurant with friends last week after a long absence. We remember that it was named Maxwell’s on the Bay when we moved to Naples 20 years ago! This iteration is a great improvement. Our server and the chef came up with a great vegan meal, which always makes me think that a restaurant is a “cut above”. Fred had the meal and it sounded so appetizing that one of our friends also ordered it. Both found it delicious and suggested they put it on the menu!

Here are a few recent reviews on Trip Advisor:

“This restaurant is on the water (bay). We made reservations and when we arrived a few minutes early we were seated immediately. As we were celebrating our daughter and son-in-law’s first wedding anniversary our table was at the long windows overlooking the bay without even a request. The wait staff was very good — making good suggestions and on top of everything to make this an enjoyable evening. Food was excellent though pricey but between the service and food it was well worth it. Will definitely return and recommend to friends.”

“We had a very good meal at this lovely restaurant. Reservations are a must during their busy time. I had the veal and shrimp, which was excellent; hubby had the bouillabaisse, which was just okay (fish was overcooked and dry); friend had scallops, which she said was delicious. The best part of the meal was the appetizer we had which was warm brie and stone fruit served with toast points — delicious! Our waitress was Tiffany and she did a great job.”

“Having dined at all of the restaurants on both sides of this complex, some with better views, my favorite is definitely M Waterfront Grille. Food was exceptionally good; the wait staff was polite and accommodating and the manager came over to inquire about our comfort which made for a very delightful experience.”

 

Naples Real Estate:

Here are the March 2018 Naples/Bonita market statistics:

For the month of March, there were 3,175 closed sales of existing homes in all of Naples and Bonita. This compares with 3,172 closed sales for last year. This is an identical year-to-year pattern for existing home sales.

Here’s an interesting chart comparing January thru March of 2018 to last year:

Closed Sales
Total
Under $300,000
$300,000 to $700,000
$700,001 to $1,000,000
$1,000,001 to $3,000,000
Over $3,000,000
January-March 2017
3,172
1,421
1,243
211
241
56
January-March 2018
3,175
1,325
1,199
205
376
70
Difference
+3
-96
-44
-6
+135
+14
% Change
0%
-7%
-4%
-3%
+56%
+25%

It’s a little early in the year for meaningful comparisons year-to-year. It’s interesting to see what happened in each category though. Clearly, though, the high-end market is doing better than the lower end on a year-to-year basis.

 

The inventory of available property remains down from last year, but is increasing. As the following table shows, the level of inventory varies dramatically by price point:

Naples Home Inventory As of April 6, 2018
Total
Under $300,000
$300,000 to $700,000
$700,001 to $1,000,000
$1,000,001 to $3,000,000
Over $3,000,000
Number Sold Last 12 months
12,328
5,499
4,764
763
1,069
233
Average Number Sold per Month
1,027
458
397
64
89
19
Total Available for Sale
8,069
2,599
3,377
678
1,037
378
Months of Supply as of April 6, 2018
8
6
9
11
12
20

The inventory levels increased about 1% from last month to 8,069 properties. Typically this is a busy time for listings. Also, keep in mind that the figure is still a low number for existing homes. For comparison, the high point of available existing home inventory was June of 2007 when there were 11,601 listed in the MLS system for Naples and Bonita! Also keep in mind, however, that a significant number of new homes are not included in this number.

It is still a buyer’s market for existing homes priced above $300,000. In the over $3 million market, for example, there are 378 properties available. During the last 12 months, 233 properties in this price range have sold…which means an average of about 19 per month. At that rate, the 378 homes available represent about 20 months of supply.

Sellers in the upper price categories are in a highly competitive environment. The median sales price has increased slightly in Naples however, there are still many good buys available in all price categories.

Another market factor is the supply of brand new homes which are now either being built or permitted. There are many new home developments either being built or in the planning stages right now. If you are looking to buy, we can help guide you through the maze of new home availability. If you are planning to sell, you need to know details of the new competition you are facing.

 

Kensington Real Estate:  

Kensington is the community where Rae and Fred live. As of April 6th, 2018 there were 41 active listings in Kensington. This is three more than last month.

Type of Property
Number
Lowest Price
Highest Price
Average Price per sq. ft.
Avg. Days on Mkt.
Estate Homes
5
$1,150,000
$1,299,000
$405
177
Villas
4
$510,000
$1,075,000
$281
45
Coach Homes
29
$319,000
$669,000
$203
164
Total
41

There have been 31 closed sales in the past 12-month period. At this average selling rate of 2.58 properties per month, the 41 homes listed represent about 16 months of inventory on average. The number of homes available is three more than last month, and it is definitely a buyers’ market for those available.

 

Riverstone Real Estate:

Riverstone is the community where Jeff and Nicola live. These statistics are taken from the MLS system we use in Naples. Riverstone has now been fully built out and turned over to the residents by the developer, GL Homes. Here’s a look at the MLS market in Riverstone as of April 6, 2018:

Property
Number for Sale
Lowest Price
Highest Price
Avg. Asking Price Per Sq. Ft.
Avg. Days on Market
Riverstone
35
$427,500
$1,190,000
$227
118

 

Here’s a breakdown of what’s currently on the market thru MLS:

$400,000 to $499,999
$500,000 to $599,999
$600,000 to $699,999
$700,000 to $799,999
$800,000 and Over
Number for Sale
5
4
11
11
4
Average Price per Sq. Ft.
$213
$210
$232
$228
$244
Average Number of Days on Market
215
200
77
118
54

Available inventory is 11 less than last month. As of April 6th there were 35 active listings,2 pending sales and 14 pending sales with contingencies. The MLS system lists 38 spec and resale homes sold in the last 12 months.

Give us a call if we can help with any real estate questions you have at 239-398-0028 (Rae) or 239-451-9351 (Nicola).

Rae & Nicola

Naples Area Board of Realtors October 2017 Market Report:

October Housing Market Rebounds After Hurricane Irma

Naples, Fla. (November 17, 2017) – The evidence that a hurricane hit the Naples area in September became less visible in October because residents were quick to address damages to their property and our county and utility service providers worked overtime to get the area back to normal as quickly as possible. The Naples area housing market finished on a positive note in October with closed sales increasing 1 percent over last October, according to the October 2017 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). October’s housing market activity was better than NABOR® expected.

“October could have been better, but it did pretty well given the fact that we had no historic perspective of how the market would behave after a hurricane,” said Bill Coffey, Broker Manager of Amerivest Realty Naples. “Even though overall pending sales decreased 11 percent in October, some pockets of the market saw really good activity during the month. The drop in pending sales is most likely because many homes damaged by the hurricane are in need of repair before they can go back on the market.”

There were 57 closed sales of high-end, luxury properties priced above $1 million in October, a 36 percent increase over October 2016. Yet closed sales of properties priced below $300,000 dropped 12 percent, a loss of just 32 sales compared to October 2016. Also reflected in the October report, closed sales for single-family homes priced between $1-$2 million increased 50 percent in October, while closed sales of condominiums priced between $300,000-$500,000 increased 26 percent.

A lull in inventory following the hurricane was predicted by broker panelists at NABOR®’s Third Quarter Market Conference. Their prediction was spot on as the October report shows an 8 percent decrease in inventory, or about 400 fewer homes available compared to October 2016 levels.

“Tradesmen and construction supplies are in high demand right now,” said Dominic Pallini, NABOR® President and Broker at Vanderbilt Realty. “Reports of roofing companies and carpenters being booked several months out with hurricane repair jobs puts things in perspective when you look at our inventory. Homebuyers want move-in ready homes, and these delayed listings of homes needing repairs will create a higher demand for inventory moving into season.”

Inventory increased on the high and low end of the condominium market in October. While the report showed no increase or decrease in inventory overall, there were an additional 76 condominiums (a 7 percent increase) added to the $300,000 and below market in October, and 10 condominiums (a 10 percent increase) were added to the $2 million and above market.

Median closed prices in the single-family home market increased to $425,000 (13 percent) in October, while median closed prices in the condominium market increased to $250,000 (4 percent). Interestingly, the median closed price for condominiums in the $2 million and above price category dropped 42 percent in October to $2,545,000, while the median closed price for single-family homes in the same price category increased 22 percent to $2,237,000.

“There’s been a big increase in showings for high-end homes recently,” said Coco Amar, a managing broker at John R. Wood Properties, who pointed out that, geographically, there was a decrease in median closed prices for condominiums in all areas except North Naples in October.

According to Brenda Fioretti, Broker Associate with Berkshire Hathaway Home Services Florida Realty, evidence of bracket creep can be seen in the lower end of the market where some homes once priced below $300,000 have moved into the $300,000-$500,000 price category. “This may also account for some of the lost inventory in the $300,000 and below single-family home market, where demand has always been higher.”

“Compared to closed sales in September, which dropped 30 percent month over month, October’s 1 percent increase in closed sales is an indication that we recovered rather quickly from the hurricane, and buyer interest in our market is still very strong,” said Adam Vellano, West Coast Sales Manager, BEX Realty – Florida.

Budge Huskey, President, Premier Sotheby’s International Realty, agreed and added that “if the hurricane hadn’t happened and the market had kept the same pace as it did last September and October, we would have seen 400 more sales and been on track for a 6 percent increase in total closed sales year-to-date.”

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 April 2016 Market Report: Real Estate Market in a Sweet Spot with More Choices & Steady Prices

Naples, Fla. (May 20, 2016) – As predicted by broker analysts in January, declines in home sales activity that appeared in the first quarter of 2016 were not a trend. This was further evidenced in the April 2016 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). In fact, the April report showed several signs that the Collier County residential resale market is a healthy, self-correcting machine that’s on a steady course to becoming even more balanced.

“Every market undergoes ups and downs in activity from time to time, and in order to get a true picture of what is happening, you need to work with a professional to drill down into each price range and geo-area,” said Tom Bringardner, Jr., President/CEO of Premier Commercial. Coco Waldenmayer, a managing broker at John R. Wood Properties, agreed and added that, “Our statistics need to be looked at hyper locally, as generic statements about activity in the national real estate market don’t apply to the Naples area real estate market.”

Continuing on this theme, Mike Hughes, Vice President/General Manager of Downing-Frye Realty said, “It’s important to keep in mind that we are comparing activity today to what was happening a year ago, and 2015 was an outstanding year in my book. So even though pending sales [homes under contract] in April 2016decreased 10 percent to 1,084 pending sales, this is only 126 fewer than in April 2015. Pending sales were down over 20 percent for each of the first three months of this year. But as inventory continues to become available and buyers continue to have more choices, I’m pretty confident we’ll see the number of pending and closed sales improve.”

Rick Fioretti, NABOR® President and Broker Associate with Berkshire Hathaway Home said, “Closed sales have eased from April 2015 to April 2016 due to a leveling off of the market.”

Overall inventory increased 36 percent in April 2016 to 5,480 homes from 4,040 homes in April 2015. Most surprising was a 171 percent increase in inventory for condominiums in the $2 million and above price category, which resulted in 92 condominiums for sale in April 2016 from 34 condominiums in April 2015. Condominium inventory in the Naples Beach area also increased 73 percent to 683 condominiums in April 2016 from 394 condominiums in April 2015.

“Buyers are also finding values in the high end single family home market,” said Waldenmayer. “Inventory rose 23 percent in the $2 million and above price segment. Interestingly, the days on market for this price segment also decreased 30 percent while it increased 37 percent in the condominium market.”

According to Jeff Jones, Managing Broker at the Naples-Park Shore office of Coldwell Banker®, the report also revealed a new sweet spot in the market: Condominiums in the $300,000 to $500,000 price category. “There was a 74 percent increase in inventory in this price segment, a 26 percent increase in closed sales [12-months ending], a 20% increase in pending sales [12-months ending] and a 3 percent decrease in median closed price [12-months ending]!”

The NABOR® April 2016 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 2016 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:

Overall pending sales decreased 10 percent to 1,084 in April 2016 from 1,210 in April 2015.

Overall pending sales for homes in the $1 million to $2 million price category increased 4 percent to 93 homes in April 2016 from 89 homes in April 2015.

Overall closed sales decreased 7 percent to 9,117 homes in the 12-months ending April 2016 from 9,856 homes in the 12-months ending April 2015.

Closed sales of single-family homes in the $300,000 to $500,000 price category increased 26 percent to 881 single-family homes from 698 single-family homes in April 2015.

Overall median closed price increased 11 percent to $314,000 in the 12-months ending April 2016 from $283,000 in the 12-months ending April 2015.

Median closed price for single-family homes in the $300,000 and below price segment increased 25 percent to $227,000 in April 2016 from $182,000 in April 2015.

Overall inventory increased 36 percent to 5,480 homes in April 2016 from 4,040 homes in April 2015.

Inventory for condominiums in the $300,000 and below price category increased 33 percent to 1,181 condominiums in 1Q 2016 from 887 condominiums in the 1Q 2015.

Inventory for condominiums in the Naples Beach area increased 73 percent to 683 condominiums in April 2016 from 394 condominiums in April 2015.

Average days on market decreased 9 percent to 72 days in April 2016 from 79 days in April 2015.

“Inventory levels have continued to grow for a few months, but we haven’t seen any unexpected or dramatic price increases,” said Dominic Pallini, Broker at Vanderbilt Realty. “There are many variables that may affect this situation in the future including a big inventory of homes from builders.”

Bill Coffey, Broker Manager of Amerivest Realty Naples said, “If you compare our market today, which is at 7.35 months of inventory to 2007 when we had nearly 35 months of inventory, the statistics show that we are in a good position to continue this path of stability.”

Beside the Immokalee/Ave Maria area, inventories are the highest in the Naples Beach area, which saw a 47 percent increase in inventory to 1,276 properties in April 2016 from 868 properties in April 2015. The number of condominiums in this geographic area swelled impressively by 73 percent in April making it a buyer’s paradise once again.

To ensure your next sale or purchase in the Naples area is a success, contact the Wakelin Realty Team.

2nd Qtr. 2015 Naples Area Board of Realtor Report Indicates Housing Market is On Pace to Be a Great Year

Naples, Fla. (July 17, 2015) – According to the Second Quarter 2015 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), 60 percent of the market experienced inventory growth, and overall sales activity remained on pace with activity experienced in the second quarter of 2014. The report also indicated a 9 percent increase in pending sales (quarter over quarter) for homes priced above $300,000. These factors and other statistics in the 2Q 2015 Market Report have led broker analysts to conclude another great year is very likely.

“In this quarter last year, 44 percent of pending sales [homes under contract] were for homes in the price category over $300,000,” said Brett Brown, a Broker/Salesperson for Premier Sotheby’s International Realty. “The current report shows us that the number of pending sales has increased to 53 percent of the market.”

Brown pointed out that from 2010 to 2012 80 percent of all pending sales were composed of homes under $300,000. But second quarter reports for 2014 and 2015 identify a shift took place in pending sales activity to homes at higher price points within the market. And while inventory in the under $300,000 price category decreased 24 percent in the 2Q of 2015 (the same rate as in the 1Q of 2015); this price segment no longer makes up the majority of the market’s inventory.

Broker analysts contend that the market was quite different 10 years ago with a lot of flipping and loose financing going on. But the consumer and industry setting is different today. The 2Q 2015 Market Report revealed where the differences occurred like median closed price, where prices for homes between $300,000 and $2 million leveled out increasing or decreasing 0 to 2 percent. Other differences revealed in the 2Q Report are a gradual increase in financed homes to 38.3 percent of the market in June 2015, and a non-traditional market (short sales and foreclosures) that is dwindling at just 7 percent of the market.

“Prior to 2014, prices in all segments were going up,” said Tom Bringardner, Jr., President/CEO of Premier Commercial. “But a side-by-side comparison of overall activity for the first six months of last year to this year signifies a different climate where the market has reached stabilization.”

According to the 2Q 2015 Market Report, the Naples area experienced a 14 percent increase in overall median closed price from $255,000 in the 12-months ending 2Q of 2014 to $290,000 in the 12-months ending 2Q of 2015. Yet this increase was driven by increases at both ends of the market spectrum during this time period; i.e., an 11 percent increase in homes under $300,000, and a 15 percent increase in homes $2M and above. Incidentally, the median closed price for homes in price categories over $300,000 and under $2M decreased 1 percent.

Pockets of market highs and lows will continue to appear in the area, as demand and location continue to be major market influencers. For example, the report showed an 83 percent increase in inventory for condominiums in the $2M and above price category from 29 units in the 2Q of 2014 to 53 units in the 2Q of 2015, and a 23 percent decrease in condominium inventory in the Naples Beach area from 476 units in the 2Q of 2014 to 368 units in the 2Q of 2015.

Inventory for single-family homes continued to rise in the 2Q of 2015 with a 9 percent increase from 1,964 single-family homes in the 2Q of 2014 to 2,133 single-family homes in the 2Q of 2015. Whereas the condominium market saw an 11 percent decrease in inventory for 2Q 2015 from 1,759 condominiums in the 2Q 2014 to 1,565 condominiums in the 2Q of 2015.

The NABOR® 2Q 2015 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® 2Q 2015 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:

  • Overall pending sales decreased 4 percent from 2,949 in the 2Q of 2014 to 2,843 in the 2Q of 2015.
  • Overall closed sales remained flat with no increase or decrease reported in the 2Q of 2015.
  • Closed sales for condominiums in the $300,000 to $500,000 price category increased 38 percent from 682 in the 2Q of 2014 to 938 in the 2Q of 2015.
  • Overall median closed price increased 14 percent from $255,000 in the 12-months ending 2Q of 2014 to $290,000 in the 12-months ending 2Q of 2015.
  • Overall inventory decreased 1 percent from 3,723 homes in the 2Q of 2014 to 3,698 homes in the 2Q of 2015.
  • Overall inventory for homes in the under $300,000 price category decreased 24 percent from 1,366 homes in the 2Q of 2014 to 1,036 homes in the 2Q of 2015.
  • Inventory for single-family homes in the $500,000 to $1M price category increased 32 percent from 456 single-family homes in the 2Q of 2014 to 604 single-family homes in the 2Q of 2015.
  • Average days on market decreased 20 percent from 94 days in the 2Q of 2014 to 75 days in the 2Q of 2015.

“Overall inventory is almost the same number as it was this time last year. That is amazing when you consider the fact that we have had 9,850 closings over the last twelve months. Overall, this tells you that the properties are being listed almost as fast as we are selling them. Certainly we would like to see more listings come on the market than the 3,698 properties that are currently listed,” said Mike Hughes NABOR President, Vice President and General Manager of Downing-Frye Realty, Inc. “If there is a perception that inventory is dramatically shrinking, the 2Q Market Report shows us that this observation is unfounded.”

“I saw a lot more locals selling and buying homes in the second quarter of 2015,” said Steve Barker, Advising Broker for Equity Realty, who added that market conditions are right for this type of transition. “People are no longer underwater in their homes and are confident it’s a good time to sell and move into a new community.”

May 2015 Naples Real Estate Market Report by the Naples Area Board of Realtors

Naples, Fla. (June 19, 2015) – Historically, many local REALTORS® consider May an “in-between month” as it sits between when seasonal winter residents leave Naples for their homes up north and summer visitors arrive. Yet despite this perception, activity for May in the $300,000 to $500,000 price category of the housing market was on fire with a 30 percent increase (month over month) in overall closed sales from 181 homes in May 2014 to 236 homes in May 2015 according to a report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island).

 

Many of the homes in the under $300,000 price category have moved into the $300,000-$500,000 price category (bracket creep), a phenomenon that contributes to the increase in inventory levels for single family homes in all price categories above $300,000, all of which increased by double digits.

 

NABOR®’s May 2015 Market Report also indicated closed sales for single family homes in the $300,000 to $500,000 price category, while impressive at an increase of 25 percent from 102 single family homes in May 2014 to 127 single family homes in May 2015, was not actually the highest performing price segment. It was closed sales for single family homes in the $1M to $2M price category that experienced the highest increase – 38 percent – from 32 single family homes in May 2014 to 44 single family homes in May 2015. Interestingly, closed sales in the $300,000 to $500,000 condominium market in May were also impressive with an increase of 38 percent from 79 condominiums in the 12-months ending May 2014 to 109 condominiums in the 12-months ending May 2015.

 

Homes in the $300,000 to $500,000 price category saw positive double-digit action in overall pending and closed sales (and inventory), yet the overall median closed price did not change. Contributing to this category’s median closed pricing stabilization was a 2 percent increase for single-family homes from $380,000 in the 12-months ending May 2014 to $386,000 in the 12-months ending 2015; and a 1 percent decrease in the median closed price for condominiums in the same price category from $370,000 in the 12-months ending May 2014 to $367,000 in the 12-months ending May 2015.

 

According to Jeff Jones, NABOR treasurer and Managing Broker at the Naples-Park Shore office of Coldwell Banker®, the May report also indicated that, “historically, the median closed price for homes above $300,000 in May was the lowest since NABOR®’s been tracking statistics [March 2008].” Effectively, the median closed price for homes above $300,000 was $520,000 in the 12-months ending May 2015 compared to $550,000 in the 12-months ending May 2009.

 

“In all actuality, prices for homes between $300,000 and $1M are remaining relatively static,” said John Steinwand, Broker and Principal at Naples Realty Services, Inc. The May Market Report supported Steinwand’s observation as it indicated that the overall median closed price for homes under $300,000 increased 10 percent from $170,000 in the 12-months ending May 2014 to $187,000 in the 12-months ending May 2015; and the overall median closed price for homes $2 million and above increased 11 percent from 2,900,000 in the 12-months ending May 2014 to 3,212,000 in the 12-months ending May 2015.

 

The NABOR® May 2015 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 2015 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:

  • Overall pending sales decreased 11 percent from 1,096 in May 2014 to 977 in May 2015.
  • Overall closed sales remained flat for a second month with no increase or decrease reported on a 12-months ending basis.
  • Closed sales for single family homes in the $300,000 to $500,000 price category increased 22 percent from 1,075 homes in the 12-months ending May 2014 to 1,316 homes in the 12-months ending May 2015.
  • Closed sales for condominiums in the $300,000 to $500,000 price category increased 33 percent from 691 condominiums in the 12-months ending May 2014 to 922 condominiums in the 12-months ending May 2015
  • Overall median closed price increased 15 percent from $252,000 in the 12-months ending May 2014 to $289,000 in the 12-months ending May 2015.
  • Overall inventory decreased 3 percent from 3,919 homes in May 2014 to 3,800 homes in May 2015.
  • Inventory for single-family homes in the under $300,000 price category decreased 34 percent from 465 single-family homes in May 2014 to 307 single-family homes in May 2015.
  • Inventory for condominiums in the $2M and above price category increased 83 percent from 30 condominiums in May 2014 to 55 condominiums in May 2015.
  • Average days on market decreased 21 percent from 95 days in May 2014 to 75 days in May 2015.

As pointed out by Bill Coffey, Broker Manager of Amerivest Realty Naples, there is only a 1.85-month supply of homes under $300,000.

 

“Inventory is not going down as much as it once did,” noted Mike Hughes, NABOR® president, Vice President and General Manager of Downing-Frye Realty. “The inventory of properties below $300,000 has been reduced quite a bit from several years ago. This market is under tremendous pressure from multiple groups including first time home buyers, retirees and boomerang buyers.

 

The dynamics of the Naples market in 2015 are quite different than they were in 2005. We are not seeing the rampant flipping of properties that occurred in 2005. Many of our buyers recently are end users. The financing market today is a lot tougher now than it was in 2005. Roughly 60 to 70 percent of our buyers these days are cash buyers. Also, many of the developers are requiring a larger down payment than they did back in 2005.

 

Certainly property values have climbed in the area. With respect to the low-end part of the market, we still have many properties within Naples and there are plenty of these properties on the outskirts of the Naples area too. The bottom line is that the consumer looking for properties below $300,000 still has a wide selection of choices in Southwest Florida.”

 

Hughes also pointed to similar dynamics affecting other high demand cities like Washington, DC, where most of the affordable homes are located in suburban areas. The projections are for tremendous growth east of Collier Boulevard over the next 20+ years. This area is very desirable for the consumer who wants land and wants to stay in a more affordable budget.

 

Homebuyers are fueling the decrease in days on market according to broker analysts, as shown by an overall decrease of 21 percent from 95 days on the market in May of 2014 to 75 days on the market in May of 2015. “It takes a lot less time to sell your house when it’s priced right,” remarked Brenda Fioretti, Managing Broker at Berkshire Hathaway HomeServices Florida Realty. “And if a buyer finds a home they like, they need to move quickly!”

 

To ensure your next sale or purchase in the Naples area is a success contact a REALTOR® on Naplesarea.com.”