Similar to last year, our Naples buyers waited until the month of May to make some major moves. In fact, the Naples Best Addresses Team just put another home under contract about an hour ago!
This month, buying volume spiked, inventories decreased, sold prices increased and many Naples neighborhoods are poised for further price increases in the short term. Too add to the strength of this market, several homes in the $10,000,000 to $25,000,000 range also sold in the last few weeks putting an exclamation point to “season end” 2019. Wow.
Let’s take a look at the highlights:
- Average Naples homes sales popped 13% to $672,505 from $605,108 breaking a multi month price decrease trend. This was on the backs on some top end luxury homes lifting the whole market.
- Condo prices were up 8%+ reversing a three month trend
- Inventories tightened to 7.32 months from 8+ months
- Pending sales TRIPLED to 1,619, very similar to last year at this time
- Luxury property inventories improved slightly to 15 months from 17 months
What are we hearing on the street this month? Our increased buying behavior may be due to Mother Nature. With extended winter weather “up north” this year, Naples looked better and better. As an example Cape Cod is setting records recognizing its first 60 degree day this year and Detroit has yet to see 80 degrees. There is nothing like the pull of a sunny Naples beach or dolphins splashing and playing behind your boat to cause someone to buy here.
In addition to the weather, a significant U.S. north to south migration is underway due in part to the climate but also increasing opportunities for young families, favorable personal tax treatments, budget surpluses, and an increased attention to the environment. Speaking of the environment, did you know the Naples Best Addresses team shares its financial success by donating to the Everglades Foundation? We like to pay forward the rewards our customers pass on to us.
I know, I know, you are thinking all this market growth is due to retirees moving to Florida, right? Well …. did you know our area is one of the leading areas for new job growth in the United States? Did you know the average age of our county is dropping? Naples is changing, in size, in jobs, in things-to-do and oh yes – it is the #1 healthiest spot for female longevity in the United States. Retirees may have started the boom years ago but there is a lot more going on today.
In addition to the big market numbers, lets get local and take a look at individual areas around Naples. There are important variations in sales trends by neighborhood and it benefits our buyers and sellers to know specific trends. The numbers reflect current inventory or supply levels. A “+” or “-” reflects an increase or decrease in inventory over last month. Twelve months inventory is considered “equilibrium” with no short term price changes. Lower inventories should produce higher future prices, higher inventory prices could cause prices to fall in the short term.
Olde Naples 10.83 – expect support for price increases
Pelican Bay 9.07- expect support for price increases
Windstar On Naples Bay 4.22 – expect support for price increases
Crayton Road 8.47 – expect support for price increases
Royal Harbor 14.67 – expect downward price pressure
Port Royal and Aqualane Shores 13.94 – expect downward price pressure
Marco Island 10.54- expect support for price increases
What is the point in all this inventory stuff? Inventories differ widely by neighborhood, and so should prices in the short term. Buyers and sellers should do their homework and price AND market and submit offers accordingly! Give us a call and we can help you sort it out.
Please remember new construction provides wonderful opportunities for buyers and we helped many families purchase in these communities. Construction is still booming here which causes some downward price pressure in resales due to competition. Talked to us about comparison between new construction and resales. We would be happy to help you.
Please give us a call if you are considering buying, selling or renting – or just to provide more facts. We would love to listen to you and help.