Buyer interest in homes over $1 million in Naples continued to climb during February as overall closed sales increased 10 percent to 672 homes sold compared to 613 homes sold in February 2017, according to the February 2018 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island).

Inventory continued to rise for the fifth straight month, but it decreased in February by 3 percent to 6,286 properties compared to 6,466 properties in February 2017.

Overall pending sales in February decreased 3 percent, but it increased 14 percent in the $1 million and above price category and 39 percent in the $2 million and over price category.   In fact in the February Market Report showed 44 of the 52 homes purchased in the $2 million price category were cash purchases.

The NABOR® February 2018 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® February 2018 sales statistics are presented in chart format (Click Here).

The February report showed a 6 percent increase in inventory for condominiums in the $300,000 and below market. This was the highest increase reported among all price categories and home types. Interestingly, this segment’s median closed price dropped 2 percent in February (month over month) to $200,000 from $205,000 in February 2017.

Geographically, sales activity in the Naples Beach single-family homes market outpaced all other areas. Increased buyer interest in luxury properties located in this highly valued location resulted in a 33 percent uptick in closed sales, yet the heightened attention also influenced median closed prices, which rose 52 percent in February to $1,350,000 from $860,000 in February 2017.

What Does this all Mean?

It means that the luxury market is booming.   Last year many investors saw a greater return on their investment than they had in a very long time which equates to more wealth.   In addition, I believe that these buyers were educated about the new tax laws that took effect in 2018 and felt comfortable in purchasing.  

I have currently 15 listings and 6 that have gone pending.  It appears that below $400,000 & $800,000 and up seem to be selling.   It is the middle market between $400,000 -$800,000 seem to be a bit stalled.   In February, I did not see a lot of foot traffic (which made me a bit concerned), but then in March, I had some frantic buyers.   They really wanted to purchase before they left Southwest Florida.   I believe the multiple nor’easter weather in the North pushed these potential buyers to purchase.   The thought of dealing with this inclement weather was overwhelming for some.   Hence the reason 4 of my listings went pending in the beginning of March.

Looking to Rent or Purchase?

If you were here as a seasonal renter, I highly recommend that you book early.   There has been quite a demand for seasonal rentals for 2019.   Also, if you are thinking of purchasing, it might be a very good time to do so.   It looks like the current market has turned to more of a buyers’ market depending on the price point & location.   As you know as supply increases and demand decrease, prices tend to decrease.

If I could help in anyway, please let me know.   You can either phone me directly at 239-293-3592 or via e-mail Robert@NardiRealty.com    Or if you like to perform your own searches, I highly recommend that you access www.NardiRealty.com We have an up-to-date property search engine & we do list total annual fees (many other property search engines do not).

Happy Spring to all!   Summer is just around the corner!