Naples real estate is balancing out
The latest Naples Area Board of Realtors report is out and here’s a synopsis for your review. The market in Naples Florida real estate is becoming more balanced. Overall inventory has increased 16.5% over inventory at the same time last year. With an increase of 5.7% single family homes entering the market, it appears that the Naples Florida real estate market outlook is becoming more balanced and healthy with values not skyrocketing as much.
It’s been over two years since we’ve had as many single-family home sellers enter our market in one month which could indicate that the Naples Florida real estate market is redefining itself. Another major factor that signified the market was self-correcting to a new normal in April were the 549 price reductions (33 percent of the inventory)
during the month. During the massive upsurge in property values, price reductions were few and far between. That means that we are seeing sellers realizing that the pricing needs to be more moderate to attract buyers and buyers are realizing that they may have some choices in the properties they purchase and the prices they want to pay.
Naples Florida real estate inventory is still low but increasing
The latest reports show we 1.5 months of inventory, the highest level since March 2021 which is not a lot of inventory but when compared to just a few months ago, it’s significant. Demand for the Naples lifestyle remains strong. Days on market for April was 16 days, considerably less than the historic 90-day average. As inventory begins to rise, days on market may increase and list prices in some neighborhoods may shift down slightly; but broker analysts agree that we should not expect home prices to drop
to anywhere near pre-pandemic levels. There are virtually no home sales on the MLS below the $300,000 mark which used to be one of the larges categories for closed sales in Naples. There were only 96 properties available in Naples real estate under $300,000. The overall median closed price in April increased 39.2 percent to $599,000 from $440,000 in April 2021. The uptick reflects the low number of sales in the $300 and below price category. Median closed prices continue to rise in the single-family home market, up 8.7 percent from March, but median closed prices during April in the
condominium market decreased 1.1 percent from March.
Naples Florida Real Estate Statistics for Geeking Out
Here are some statistics if you really want to go in depth. The NABOR® April 2022 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. NABOR® sales statistics are presented overall (single-family and condominium) findings for 2022:
CATEGORIES APR 2021 APR 2022 CHANGE (percentage)
Total showings (month/month) 52,540 37,914 -28%
Total closed sales (month/month) 1,926 1,227 -36.3
Total pending sales (homes under contract) (month/month) 2,037 1,377 -32.4
Median closed price (month/month) $440,000 $599,000 +36.1
New listings (month/month) 1,494 1,454 -2.7
Total active listings (inventory) 1,432 1,668 +16.5
Average days on market 55 16 -70.9
Single-family closed sales (month/month) 838 569 -32.1
Single-family median closed price (month/month) $605,000 $810,000 +33.9
Single-family inventory 729 1,017 +39.5
Condominium closed sales (month/month) 1,088 658 -39.5
Condominium median closed price (month/month) $318,000 $460,000 +44.7
Condominium inventory 703 651 -7.4
Naples Florida Real Estate Summary 2022
Even though inventory rose 39.5 percent in the single-family home market during April, pent up demand for this property type did not temper its median closed price. “When inventory rises, buyers have more options. If inventory continues to rise, it should create more balance during negotiations between sellers and buyers but in this case as there are so many buyers we’re not quite there yet.
Rising mortgage rates are likely reducing the number of buyers who can get pre-qualified for a home purchase in Naples, but it did not negatively impact buyer interest during April. In fact, there were over 200 more showing appointments during the month than reported in March, and 66.7 percent of all closed sales in April
were cash sales.
Many brokers, recommend buyers place back-up offers because over 600 properties that went pending were put back onto the market in the last two months. Summer buyers should put in back up offers as they may have a chance (though slim) of being the accepted offer. Naples Florida real estate continues to be extremely desireable and a hot commodity; the summer may present some opportunities for buyers. If you’d like more information either as a buyer or seller, please drop us an email at napleslaw@yahoo.com or call us at 239.293.0246. We look forward to helping you with your real estate needs.
