There’s increased confidence in the Naples real estate market as an increase in new sellers occurred during the month. As we’ve seen in the past, new listings increased dramatically as we moved into season. New listings in January rose 74.5% compared to December 2022, and increased 3.25% to 1,338 new listings from 1,297 new listings a year ago. This data is from the January 2023 Market Report by the Naples Area Board of REALTORS® (NABOR®). NABOR tracks the Naples real estate market for home listings and sales within Collier County (excluding Marco Island). Interestingly the inventory increase for buyers during January didn’t dampen home values; median closed prices rose 11.1% to $600,000 from $540,000 in January 2022.
New Naples Florida Listings
Here’s some good news. Local Downing Frye Realty broker Mike Hughes noted the new Naples Florida listings are evenly split between single family residences and condominiums. With an increased inventory that has almost doubled over last year in both areas there are more options for buyers. Closed sales in January decreased 33.8 percent to 555 homes from 839 homes in January 2022. The new listings spike is promising as inventory in January increased 122.7% to 2,699 properties from 1,212 in January 2022. However in a more accurate representation of what’s happening, inventory increased about 10% from December 2022 to January 2023. There has also now been a large increase in the number of pending sales for that time frame as well.
January to January or December to January?
Pending sales in the Naples real estate market for January were remarkably higher at 1092 pending sales. This is compared to December (682), or to January 2019 (660) and January 2020 (892). What throws this off is looking at January 2023 vs January 2022. Last January’s phenomenal sales activity was a new record so comparing 2023 to 2022 pending sales shows a decrease of 20.5 percent to 1,092 pending sales from 1,373 pending sales in January 2022. The same analysis is important and applicable when looking at the inventory, sales and pending sales.
Are homes under $500K ever coming back?
What does that mean for homebuyers? It appears buyers looking for a single family home for under $500,000 in Naples won’t find much inventory in that price range. The pandemic pricing and demand created a new level for single family housing that may make it impossible to purchase a dream home for under $500,000 ever again. Showings declined 20% compared to January 2022, however were nearly double compared to December’s reported showings. Yet another factor contributing to increased contracts (pending sales) during January were the 1,092 price decreases reported for the month, which brought the overall percent of current list price value down to 95.8 percent, a 4.2 percent decrease from 100 percent in January 2022. There is speculation that investors started the trend of decreasing home prices and that increased the numbers of sales for the Naples real estate market.
Which home category is increasing in price?
According to the NABOR report, the only home type that experienced an increase in closed sales during January compared to last year were condominiums in the $500,000 to $1 million price category, which increased 4.2%. Meanwhile, the median closed price of single-family homes decreased 2.7% between December and January, but the median closed price for condominiums increased 6%. Not surprising, due to high demand for properties in the $300,000 and below price category, condominiums in this price category had the highest reported median closed price increase (16.1 percent) and were the only price category that reported a decrease in inventory (13.1 percent) in January.
How are mortgage rates affecting sales?
Mortgage rates are still a factor for homeowners who have a low mortgage rate and are worries about selling and repurchasing locally due to the unaffordability of the new home at the higher interest rates we currently have. One distinguishing factor in the Naples real estate market is that Naples values aren’t reliant on people moving within the city/county to keep the pace of sales brisk. There have traditionally been new buyers migrating to Naples that make values increase and create demand for product.
If you are considering buying or selling your home, we’ve sold over 500+ properties in the SW Florida and the Naples real estate market as well as over 160+ five star Zillow reviews. Ask us for an accurate market comparison. We have the experience to give you expert advice on how to make today’s market work best for you. Give us a call at 239.293.0246. Thanks, Mike & Anna Bryant.
