Naples Real Estate Market Report
Buyers’ interest in Naples real estate sales was certainly not dampened by our record-breaking rain fall in June. The latest data from the Naples Area Board of REALTORS® (NABOR) shows strong & steady sales activity, moving into summer, with a 7% increase in overall sales closed compared with the second quarter of 2016 (2,880 closings this quarter vs 2,704 last year). In fact, in the month of June alone, Naples real estates sales were up 9% over that of June last year ( 907 closed sales this June vs 832 last June). NABOR, which track home listings and sales within all of Collier County (except for Marco Island) also indicates there were several “remarkable” areas of activity over this last quarter. Condominiums in the $2 million and above price, saw as much as an 86% increase in closings as well as a 38% decrease in median closed price. With regard to pending sales, the North Naples market experienced a 20% increase this quarter over last, and was the only market area to indicate a decrease in median closed price (down by 1%). The North Naples area proved to have the highest pending and closed sales in the condominium market (up 30% vs same quarter last year).
The overall Naples real estate inventory was also shown to rise by 4% this quarter (5,189 homes vs 4,983 last year). And while there was a 12% increase in inventory for homes in the $300,000 and below price category, there was actually a 4% decline in overall closed sales among properties in the low-end price category. Here’s another interesting factor, though inventory for condos in the $300,000 and below category incurred the highest increase (17 percent), closed sales for condominiums in this category did NOT change this quarter over last. It is believed that buyers trying to find homes under $300,000 are turning to condos or coach homes as an alternative, Data shows only 2.4 months of single-family home inventory available among the under $300,000 single-family home market, compared to 4.2 months worth of inventory in the under $300,000 condominium market. Some analysts suggest lagging sales in the low end of the market could be the result of buyers not wanting the burden of additional costs beyond sale price, such as high club membership fees or homeowner association fees.
There is other good news in Naples real estate sales activity in that closed sales within the $2 million and above price category are well poised to stay strong throughout the summer. This category saw a 30% increase in pending sales during this quarter. The escalation in closed sales activity for the $2 million and above condo market has been attributed to sellers coming to the awareness that realistic pricing helps sell a property faster.
Naples real estate continues to shine for buyers, sellers and investors. It makes perfect sense considering our community has recently been distinguished as The Healthiest and Happiest City in America (for 2nd year in a row), and the gurus of financial advice at WalletHub just named Naples as America’s Best Beach Town. While our community has long been known as one of America’s best places to vacation, recognition like this helps drive home the message, Naples is a great place to live. For more insight on Naples real estate, connect with Dave Bartley of Bartley Realty by submitting the contact form below.