Thanks for checking in to get the latest Naples Florida real estate market report. We are able to provide this information to you from NABOR (Naples Area Board of Realtors).
Local residents quickly addressed property damage and the evidence that a hurricane hit the Naples area in September became less visible in October. As we saw, Collier county and utility service providers worked overtime to get everyone back on track as quickly as possible. The Naples area housing market finished on a positive note in October with closed sales increasing 1 percent over last October, October’s housing market activity was better than expected.
There was no historical precedent for how the Naples real estate market would react after a hurricane. There were some areas that had really good activity but overall pending sales decreased 11 percent in October alone, most likely due to hurricane damage that couldn’t be rectified in time for closings.
There were 57 closed sales of high-end, luxury properties priced above $1 million in October, a 36 percent increase over last year. Yet closed sales of properties priced below $300,000 dropped 12 percent, a loss of just 32 sales compared to October 2016. Also reflected in the October report, closed sales for single-family homes priced between $1-$2 million increased 50 percent in October, while closed sales of condominiums priced between $300,000-$500,000 increased 26 percent.
There’s been a decrease in inventory as evidenced by the October report showing an 8 percent decrease which works out to about 400 fewer homes available compared to October 2016 levels.
It’s a great time to be in the trades or construction. Roofing companies and carpenters are booked several months out which is going to create a higher demand for inventory moving into season as fewer homes will be available and move in ready than normal.
Inventory increased on the high and low end of the condominium market in October. While the report showed no increase or decrease in inventory overall, there were an additional 76 condominiums (a 7 percent increase) added to the $300,000 and below market in October, and 10 condominiums (a 10 percent increase) were added to the $2 million and above market.
Prices are definitely going up in the SW Florida real estate market. Median closed prices in the single-family home market increased to $425,000 (13 percent) in October, while median closed prices in the condominium market increased to $250,000 (4 percent). Interestingly, the median closed price for condominiums in the $2 million and above price category dropped 42 percent in October to $2,545,000, while the median closed price for single-family homes in the same price category increased 22 percent to $2,237,000.
Geographically, there was a decrease in median closed prices for condominiums in all areas except North Naples in October. North Naples Florida remains one of the top spots for buyer demand.
There’s been a loss of inventory in the under $300,000 market but for a good reason. Some of those homes are now “bracket creeping” and moving into the $300,000-$500,000 price category. That is creating even greater demand for Naples Florida homes under $300,000 where traditionally demand has always been higher.
Here’s a great chart to see the changes in the Naples Florida real estate market.
| CATEGORIES | Oct 2016 | Oct 2017 | CHANGE |
| Total homes under contract (pending sales) (month/month) | 702 | 623 | -11% |
| Total closed sales (month/month) | 556 | 561 | 1% |
| Median closed price (month/month) | $315,000 | $342,000 | 9% |
| Median closed price >$300K ((month/month) | $459,000 | $480,000 | 5% |
| Total active listings (inventory) | 5,426 | 5,010 | -8% |
| Average days on market | 85 | 104 | 22% |
| Single-family closed sales (month/month) | 295 | 301 | 2% |
| Single-family median closed price (month/month) | $375,000 | $425,000 | 13% |
| Single-family inventory | 2,849 | 2,432 | -15% |
| Condominium closed sales (month/month) | 261 | 260 | 0% |
| Condominium median closed price (month/month) | $240,000 | $250,000 | 4% |
| Condominium inventory | 2,577 | 2,578 | 0% |
According to some local experts, if the hurricane hadn’t happened and the market had kept the same pace as it did last September and October, we would have seen 400 more sales and been on track for a 6 percent increase in total closed sales year-to-date.
We hope our Naples Florida real estate market report has been informative. We’d love to help you with your next real estate purchase or sale. Give us a call at 239.293.0246; we always answer the phone.
