Posted on Saturday, June 29, 2019
As we move into the summer months Naples real estate inventories are surprisingly tight and support further price increases. It is common to see some market slow down May to July, before the arrival of Western European tourists, but this year looks to carry forward strong spring markets. In fact, the Naples Best Addresses Team sold several properties this month.
This month, buying volume remained stable, inventories decreased, pending sales decreased somewhat, sold prices returned to trend lines and many Naples’ neighborhoods are poised for further price increases in the short term. Naples condos continue to find solid footing even though Miami and some east coast markets report challenges.
Let’s take a look at the highlights:
- Average Naples homes sales returned to trend lines at $604,323
- Single Family home prices averaged $784,311
- Inventories remained tight at 7.39 months
- Pending sales decreased to 1,410 after last month’s strong result
What are we hearing on the street this month? Our strong inventories are due to late season buying, as well as terminated listings. Some sellers take their homes off the market in the summer months thinking Naples is still a sleepy little hamlet in the off season. The reality is many more people stay longer, many more live here year round and many more are on the way. So what? Keep your home on the market if you want to sell it – how can you sell your home if you take it off the market? Duh!
This listing on the northern end of Collier County was just placed under contract! Don’t take your home off the market in the summer.
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, increased attention to the environment all allow Florida to grow to the third largest state in the Union. The northern “tax” issue is now well documented and several northern cities referenced people headed south for tax reasons. We see this trend increasing in the years ahead.
I know, I know you are thinking all this growth is due to retirees moving to Florida right? Well …. did you know our county is one of the leading areas for new job growth in the country AND 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.
Let’s take a look at individual areas around Naples. There are important variations in sales trends and it benefits our buyers and sellers to know specific trends. 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 9.33 (tightening) – expect support for price increases
Pelican Bay 8.33 (tightening) – expect support for price increases
Windstar On Naples Bay (less than 12 months and tightening)
Crayton Road 7.71 (tightening) – expect support for price increases
Royal Harbor 10.71 (tightening) – expect downward price pressure
Port Royal and Aqualane Shores 12.52 (tightening) – expect downward price pressure
Marco Island 10.36 (tightening) – expect support for price increases
We do not often see these strong results – all our observed markets experienced tightening inventories. If our summer tourists arrive to carry the summer trade we may set up for a very strong 2020.
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 sort it our.
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.