Naples 2016 Market Report
This information is brought to you courtesy of NABOR (Naples Area Board of Realtors). Area brokers have concluded that the local real estate market performed well in 2016 despite several unpredictable market influencers that impacted the housing market such as the February stock market slump, a low Canadian exchange rate, Brexit and Zika fears, and the presidential election. However, factors appear to be in place for a good market in 2017.
“We started the year with an inventory shortage but ended at a level that positions us to see sales escalate in 2017,” said one local broker at Poteet Properties.
Overall inventory increased 34 percent to 5,946 homes in year ending 2016 from 4,426 homes in year ending 2015. The Naples Beach area experienced the highest number of new listings with 437 homes added to its inventory during 2016. However, and according to the Report, the Naples Beach area also saw the largest decrease in overall closed sales during 2016 of all other geographic areas reported. Overall closed sales in this highly desired location decreased 21 percent to 1,525 homes in year ending 2016 from 1,922 homes in year ending 2015.
Closed sales of condominiums in the East Naples area and single family homes in the $500,000 to $1 million price category increased in 2016, despite overall closed sales decreasing 13 percent to 8,510 homes in year ending 2016 from 9,751 homes in year ending 2015.
According to a managing broker at John R. Wood Properties, competition from new home developments in 2016 played a role resulting in fewer sales of existing homes in 2016 compared to 2015, which was a very strong year. “The report showed the highest number of closed sales in 2016 occurred in the North Naples area, which is also where a rash of new home development is taking place.”
“With a surge in inventory from new construction, buyers had more options in 2016,” said the West Coast Sales Manager for BEX Realty Florida. “Unfortunately, developers and builders of newly constructed homes in Collier County do not fully utilize NABOR®’s MLS [Multiple Listing Service]; and therefore, the Market Report, while useful as a tool to track resale market performance, does not capture or reflect a clear picture of what’s happening in new construction.”
Of note, the annual Market Report showed that the overall median closed prices for homes above $300,000 did not change during 2016. In fact, homes in the $500,000 to $1 million price category experienced only a 3 percent decrease in their overall median closed price to $650,000 in year ending 2016 from $667,000 in year ending 2015. Brokers attribute this reduction in median closed price, and the 2 percent decrease in overall median closed price for the $1 million to $2 million price category in 2016, due to better informed and motivated sellers.
The NABOR® Annual 2016 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:
|
CATEGORIES
|
YE 2016
|
YE 2015
|
CHANGE
|
| Total homes under contract (pending sales) |
8,903
|
10,366
|
-14%
|
| Total closed sales | 8,510 | 9,751 | -13% |
| Median closed price | $320,000 | $308,000 | 4% |
| Total active listings (inventory) | 5,946 | 4,426 | 34% |
| Average days on market | 89 | 78 | 14% |
| Single-family closed sales | 4,268 | 4,640 | -8% |
| Single-family median closed price | $400,000 | $385,000 | 4% |
| Single-family inventory | 3,015 | 2,434 | 24% |
| Condominium closed sales | 4,242 | 5,111 | -17% |
| Condominium median closed price | $253,000 | $250,000 | 1% |
| Condominium inventory | 2,931 | 1,992 | 47% |
As noted by the Managing Broker at the Naples-Park Shore office of Coldwell Banker®, the Report showed a 14 percent increase in days on market for year ending 2016. He went on to explain that “the number of days on market is influenced by median closed prices and closed sales activity. By the last month of the year, the overall days on market decreased 8 percent [to 88 days in December 2016 from 96 days in December 2015], and we didn’t see a rise in median closed prices during December either. I think this shows us that sellers are beginning to heed their REALTORs recommendations to list their property at a reasonable market price initially rather than to start high and then go through two or three price reductions. Priced correctly, properties will move in a reasonable length of time.”
As pointed out by the President/CEO of Premier Commercial, “The first wave of Baby Boomers to hit 70 years old will take place in 2017, and Southwest Florida has traditionally been a very desirable place for those people to retire or purchase a second home. There are over 75 million boomers and that group represents a lot of potential housing demand.”
Brokers who analyzed NABOR®‘s Market Reports in 2016 predicted that inventory would rise and they believe our inventory of existing homes will continue to increase in 2017. In our opinion, if you’re thinking about making a real estate move in this market, you need to choose a seasoned professional who works full time in real estate and understands the market trends that we are experiencing. We’d be happy to help you or just review these facts with you and how they can impact what you’re contemplating.
Make it a great one.
Anna & Mike
239.293.0246
