May 2019 Naples Market Report
Naples Real Estate Market Report
Month Ending April 2019
Brought To You By Barry Brown
Coldwell Banker Residential Real Estate
So far, so good. Inventory is down and sales and prices are up and trending in the right direction. My Complete May 2019 Naples Market Report is as follows:
The number of units for sale was down 74.2% from last month at 6,212 and down 7.2% from the start of the year. At the same time the number of months of inventory decreased to a 5.2 month supply which represents a neutral market. The number of units for sale should continue to drop through the summer and then increase in the fall as sellers are looking towards the upcoming season. The number of months of inventory, which is the function of sales, should increase as we go through the summer, decrease in September to reflect summer sales and then increase as new listings come on the market in anticipation of next season.
Closed sales have been up the last three months with April up 17.9% over March and 64.4% since the first of the year. New construction sales dropped to 8.2% of the total sales which is the lowest it has been since March of 2017. If this continues, it will be good news for the resale market, but only time will tell. It is worth pointing out that builders do not report all of their sales so the real numbers are significantly higher.
As always, everybody wants to know about prices which still remain mixed but mostly positive. The median sales price is up .2% from last month and 3.0% since the start of the year while the average sales price is up 15.6% and down 1.9% for the same periods. The average price per square foot has been trending upwards since last August whereas April was down marginally at .4%. or $9.00 per square foot at $261.00. When we look at housing by price range we again see a mixed bag with prices by price range both up and down while prices by housing type are all up.
The picture becomes a little clearer when we look at individual communities. Note that I am using two years of listing and sales history as the trends are statistically more accurate due to the larger sample size.
When looking at the future, one has to consider the list price trend which has been down for the last two months. However, this is not a concern as this is normal for this time of year. On the positive side is even though sellers are asking less, they are not willing to give their properties away as indicated by the sales to list price ratio which continues in the 96% range.
The question as always is: “what does the future hold?” First of all, even with the experts forecasting a slowdown for 2019, there is no reason to think that sales in Naples will be lower than last year. The same should be true for prices which generally reach their peak in May or June and then drop off slightly through the end of the year. List prices follow a similar pattern, peaking in January and then dropping off till the fall when sellers begin pricing for the upcoming season. As long as they remain strong and the sales to list price ratio continues in the 96% range, I see prices remaining strong throughout the year with a full year appreciation in the 3% range.
In summary, If you are looking to sell, now is a great time as inventory is low and you will have less competition. If you are looking to buy, now is also a great time as prices are lower than they will be next year and sellers are more motivated in the summer.
The opinions are those of the author and should not be considered to be a recommendation. They along with the data are presented to help you make an informed decision. The source of the data is the Naples MLS and Board of Realtors. If you would like to see any other communities included, just let me know.
I hope the above has been helpful and informative and you enjoyed my May 2019 Naples Market Report. If I can be of any assistance, please let me know.
Barry L. Brown
Coldwell Banker Residential Real Estate
550 Fifth Avenue South
Naples, Florida 34112
P.S. If you are thinking of putting your home on the market and would like a no obligation Comparative Market Analysis, please give me a call. I would love the opportunity to earn your business. You might also want to visit my website, www.barry4homes.net, as an updated market report with more community trends is posted every month. Please feel free to share my May 2019 Naples Market Report with any who may be interested.