Home sales increased 4 percent in 2017 and the median closed price increased 3 percent, according to the Year End 2017 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). The report also showed heightened activity in the high-end market, with closed sales of homes in the $2 million and above price category skyrocketing 20 percent in 2017.
Pending sales during the 3rd Quarter increased 5 percent (12-months ending August 2017), while pending sales at the end of the 4th Quarter increased 2 percent (12-months ending December 31, 2017). I can only imagine how much more activity the statistics would reflect if the market had not been shut down for nearly five weeks because of a major hurricane in 2017.
The year-end report showed a 4 percent increase in closed sales to 8,815 in 2017 compared to 8,510 in 2016. This amount of growth is great considering we had a hurricane and we lost over a month of real estate activity.
Properties priced below $300,000 experienced the fewest days on market in 2017. Some broker analysts reported that they saw many of these properties go from list to close in less than 10 days. Inventory continued to struggle in the low end of the market making options difficult for buyers looking for single-family homes in this price range. In fact, 1,265 of the 1,554 available properties in the $300,000 and below price category were condominiums.
The brightest star in 2017 was condominiums in the $1 to $2 million price category. This category had a 28 percent increase in pending sales and a 14 percent increase in closed sales.
The NABOR® Year End 2017 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® Year End 2017 sales statistics are presented in chart format (CLICK HERE), including these overall (single-family and condominium) findings:
Geographically, condominiums in North Naples were the biggest sellers in 2017. Closed sales in this region increased 17 percent, while pending sales increased 15 percent.
How homes purchased continued to shift in 2017 with an increase in conventional sales (properties with a mortgage). Only 54 percent of home sales in Naples were cash buys in 2017 compared to 69 percent in 2013. Many factors play into this trend including the fact that we have more end users and fewer investors. Also, a buyer’s ability to lock in a low interest rate allows them to continue to enjoy the high performing stock market, which had a 25 percent increase in 2017.
It appears that Naples has returned to a normal market. In the past few months, I have picked up over 22 listings (you may have an interest in some). Right now, 5 have sold. It appears that something goes pending every other week. The biggest contributor of these pending properties is price or location (on the beach is very hot right now). It appears there is a lot of movement for people who wish to purchase new construction but live here permanently. They either want to upsize or downsize depending on their situation but are looking toward new construction as their answer. However, most new construction is farther east. Their drive is longer, however, most of these new construction communities are rich in amenities. These amenities include a resort style pool, Tiki hut with drinks & food available, pickle ball, tennis, golf etc. Socialization is very important to them now. 16 years ago, I use to assist people with purchasing a home, now I assist them with finding the right lifestyle that suits their needs and then we try to find a home in that community that is a perfect fit.
If you are looking to make a move and you wish to look for new construction, click on www.NardiRealty.com scroll down on the right size & you’ll see an icon that says, “Looking for New Home Construction? Click Here to Search.” It is very easy to navigate. Or if you wish to search for resales, please feel free to use the search box on the right side. The information you’ll find is always up-to-date.
As always, fi you wish for me to assist you with your real estate needs, you can send an e-mail to Robert@NardiRealty.com or call me directly at 239-293-3592.
Happy Valentine’s Day!