Hurricane Ian will have a lasting effect on the real estate market in Naples but not necessarily an expected one. Often, after a lower than normal rate of sales, real estate markets rebound rapidly. This is what happened when Hurricane Irma hit SW Florida in 2017. Pending sales dropped significantly following the hurrican but were back to a normal rate just over a month later.
What will be the relationship between will Hurricane Ian and the Naples Florida market? History shows that after Katrina hit New Orleans in 2005, sales dropped significantly then rebounded to exceed the prior rate. When Harvey hit Houston, the same happened as well. No two markets are the same and the effects of a hurricane on a real estate market can vary. It does bode well for the Naples Florida real estate market based on historical trends. Naples Florida is still an incredibly gorgeous location to live, work and play and cleanup is well on it’s way. The residents of this special town are committed to restoring the outstanding beauty of this town.
So, let’s talk about sales… noting that the information we have is mostly from prior to Ian’s landing. Obviously the October numbers will be a much more accurate reflection of Hurricane Ian and the Naples Florida market.
Naples Florida real estate closed sales
Naples Florida real estate closed sales for the past year ending September 30, 2022 were down 26.7% from the preceding 12-months, from 41,559 to 30,480. Comparing September 2021 to September 2022, there were 1,449 sales which is down 44.8% when compared to September of 2021. When we compare this to Naples real estate market trends pre-pandemic, Naples Florida sales for September were down 14%.
Naples Florida real estate inventory
At the end of September there were 5,375 properties were available. Inventory was up 108.5% from 2021 but down 1% from August 2022. There was a 5.4% drop in new listings for the year ending September 30, 2022 from 37,884 to 36,836. Compared to 2021, new listings were down 26.6%. However, it’s important to note that there were only 2.12 months of supply which indicates a seller’s market. In Naples Florida real estate a 6-12 month supply is considered a balanced market.
Naples Florida real estate sales prices
In Naples, Florida, the average selling price for the past year was $755,403 which is an increase of 22.6% from the prior year of $615,992. This is a strong increase but in line with what we’ve seen locally, statewide, and across the country in areas that are in high demand.
Naples Future After Ian
We need more post-storm data in order to see what the full impact may be from the storm. Obviously in areas such as Sanibel, Ft. Myers beach and those that were devastated by the hurricane there will be significant declines in inventory and sales and lower than normal activity while they rebuild. What we’ve seen in the past is that areas that weren’t as badly impacted will increase in demand.
