Posted on Monday, July 30, 2018
This is the time of year when you expect Naples real estate to soften a bit, after all tourist season is long over, the rainy season is here and life is quiet. We also see the national real estate picture may be slowing. But Naples prices are up again, inventories remain tight and we are positioned for a very strong summer.
Year over year home prices are up 9%+ and seller discounts are evaporating. Sure days on market are a little greater and pending sales are decreasing but we are in a very strong summer market.
Here are a few highlights:
Year over year home prices were up 9%+
Single family home prices are up, Condo prices are flat – again
Over 3.666 properties sold in the last 120 days – up from last year
Pending sales are slowed 15% similar to last month
Days on market increased to 63 days
Luxury is still running strong
This is a great time to buy, sell or rent a home in Naples as many properties exchange hands as season draws to an end.
The highlights above may be all you need to know for now about Naples real estate, but please keep reading. The overall market is one of the best in a while but as our readers know results vary by neighborhood, property type and many other factors. We need to get into the numbers to show you how things are going. Here we go!
One year ago the median Naples property (single family and condos) sold for $314,000. This month we are at $345,000 – up nicely.. But … look at the difference in single family homes and condos! Year over year single family homes prices are up 14+% and year over year condo prices are up only 1%. We spotted this “homes for condo” trend a few months ago with single family prices rising and condo’s decreasing. Is this a shift to year round living? Perhaps a shift away from HOA fees as some single family homes have no HOA fees? We’ve seen this single family vs. condo trend developing for a while and we certainly hear it at our open houses. It seems like people are more interested in single family homes right now – we need to keep an eye on this one.
As our readers know, at the heart of property price behavior in any real estate market is supply and demand. The Naples market inventory remains at 5+ months. If historic supply and demand forces hold true we should see further price increases in the near term. Any supply level under 12 months tends to be positive to prices.
There may be important demand shifts in the months ahead so keep reading our newsletter! At the time of this writing the US Ten Year Treasury backed off of 3+% highs, the Fed remained aggressive hinting at more rate hikes, and the stock market struggled over trade fears and other factors.
We may see more mortgage rate increases. So what? Well the “so what” is mortgage rates are rising and will probably continue to rise in the face of market uncertainty. Demand may slow in the face of uncertainty and rate increases but so far our great weather and lifestyle bring in the buyers. Something to watch.
Let’s look at price reductions for more interesting news. Sellers making fewer discounts from original asking prices with discounts dropping to 6%. This could be the end of season clearance behavior but it is something to watch.
Another interesting area to look at – The Luxury Market. We now have a Luxury rally taking place after months of slow sales. Naples luxury properties (defined as properties listed above $2,000,000) sold for a lot more money this month and inventories remained 8+ months.
Readers will remember condo prices fell a full year before single family home prices in the Great Recession so condos may be a “canary in the mine” indicator to foretell future trends. So what happened this month? Inventories remained at 5+ months and condo prices were flat. We should see some condo price appreciation with these supply figures.
We all know real estate is local, so what’s happening in different neighborhoods? A lot of variation! Let’s take a look. Oh good, more data!
Olde Naples – Who doesn’t like Olde Naples? Walk to the beach, retail shops and restaurants needing no car or even a scooter. The real estate pace improved this month. Inventories remained at 8+ months. We should see support for prices in the months ahead. Nice to see our favorite town in such good shape!
Pelican Bay – Red hot! Back to its old and positive ways, Pelican Bay is again a hot market. Inventories tightened to 3+ months! Get ready for price increases here. A new club house, fabulous beach amenities and some great homes.
Windstar On Naples Bay – “A one of kind community with a yacht club, a golf course and a private shuttle to Keewaydin Island – all on Naples Bay”
So how is inventory in Windstar? Very supportive of price increases at 5+ months. When you buy in Windstar on Naples Bay and join the club you get Tom Fazzio’s first Florida golf course, a yacht club, some great tennis teams and a private beach on Keewaydin Island. And … residents and non-residents alike may purchase well priced boat slips right on Naples Bay!
The good news in Windstar makes our listing at 3569 Windjammer Circle #2014 even more desirable. Give us a call on this one – it could be a great buy for you or your friends.
Crayton Road – “The charm of this near north side neighborhood away from the maddening crowd is truly wonderful.” Inventory is 5+ months – we expect price increases here in the short term. What a fantastic place to live – West of US 41, beach proximity and just north and just south of some fabulous restaurants. Beautiful spec homes built over the last few years are snatched up by the market in these times.
Royal Harbor – “On water living and walkable to town and new development on the way” Royal Harbor inventory tightened to 4+ and supportive of further price increases. There is a lot to like in Royal Harbor.
Port Royal and Aqualane Shores – “one of the finest enclaves anywhere” Great news here – sales rallied and inventories increased to 9+ months from 8+ months. This data means prices in this beautiful area should start to rise again – fantastic news for the luxury home seller – we in fact helped sell a wonderful home here and plan to close in June.
Need help with on-water Luxury Living? Just let us know. We have many ideas – and we can deliver.
Marco Island – “Island life and the beach at Tiger Tail offer a remarkable experience.” Inventories remained at 7+ months so expect support for pice increases. Houses and condos may be less pricey here compared to Naples and include incredible boating, golf, tennis and beach lifestyles. Check it out with us – there is a lot to love about Marco Island. Our colleagues at Marco Island Coldwell Banker provide excellent service.
We are constructing a beautiful new on-water single family home on Marco Island at 424 Driftwood Court. We do not have it on the MLS yet but wait until you see the plans. Call us for more information on this one. If you are a boater or just like on water living with beautiful southern and eastern exposures please get in touch with us.
Marco luxury homes also performed well. Many of these properties offer incredible bay views and inventories are now at only 10+ months from 13+ months – much better than figures like 70+ months in recent times. Luxury prices should remain stable here in the short term. Clearly Marco Luxury is back.
The Marco Island single family market priced $500,000 to $2,000,000 is very interesting right now. In fact it is the “sweet spot” of the Marco Island market. Inventories in this price range remained at 6+ months. So what? Well unlike the upper end of the market with stable prices, we see increased prices for this home segment.
And the story on new construction? The big market dynamic of new construction continues and perhaps we are now overbuilt slightly. It is tough to capture real data from the developers but the scuttlebutt is “we are a little far out over our skis” meaning overbuilt. There are an estimated 18 new communities in Collier County at a variety of price points with some fantastic floor plans. Developers offer some nice incentives to encourage sales.
If you are considering buying newly constructed homes right now, this is a good time to be looking. Please give us a call. We would love to listen and help.
Another interesting trend in Naples new construction … rental units. We see Lely building up its rental offerings and a new extended stay hotel is going up on US 41. Rents are rising.
Can we help you find your 2018-2019 seasonal rental or perhaps a year round rental? Just let us know, we would be pleased to help.
Please give us a call if you are considering buying, selling or renting. We would love to listen to you and help.