2016 Naples Real Estate Market Report
Naples Real Estate Market Report
Year End, 2016
Brought To You By Barry Brown
Coldwell Banker Residential Real Estate
Unlike the previous seven years, we saw a soft real estate market in 2016. Inventory was up, sales were down and prices were marginally up. The downturn began in January and then leveled out in February and held steady throughout the rest of the year. This was not bad considering the soft economy, the nasty election and the fact the Canadian Dollar, the British Pound and the Euro were all down.
We ended up the year at 5,507 units in inventory which was up 39.2% over December of last year. The months of supply increased from 6.4 months in December of 2015 to 9.1 months at the end of year. This increase is healthy as it was extremely difficult to find a home that a potential buyer really liked. With more to choose from, they will not get discouraged and are much more likely to find a home they like and make an offer.
We finished up the year with 8,714 units being sold. This is down from the high in 2014 of 10,299 and ends the eight years of consecutive sales increases. Note that 2015 was slightly down from 2014 but was still higher than any other year going as far back as 2004. Like units for sale, this trend started in January of last year and the decrease has basically held steady since June.
Overall, the median price of homes sold in 2016 increased 4.95% over 2015. December’s average sales price was up 4.8% at $566,268 with the median faring even better at 11.1% and $350,000. The average price per square foot at $291.00 has also shown positive increases the last two months while the list to sale price ratio remains strong at 96% of asking price. When we look at sales prices by dollar range and by housing type we see mixed results . However this is still encouraging as it is significant improvement over August when losses outnumber gains by a factor of five to one.
It is not safe to assume that the prices for individual communities are showing the same trends, as prices are very community driven. Following are the twelve month median sales price trends for specific property types in a number of selected communities. Even these can be misleading as they do not reflect condition, upgrades, location, view, etc. The best way to determine what your home is worth is to get a comparative price analysis from a professional Realtor.
2016 ended up with the lowest sold financing type since I have been tracking statistics, which generally hovered between 65% and 68% until January when it dropped under 60%. I attribute this to our historically low interest rates and the fact that it made sense in the long term to invest money elsewhere.
As always, the question is “What does all this mean for the future?”. Last year in my Naples Real Estate Market Report I forecasted prices to be relatively flat with little or no price increase and then to start increasing as we entered the 2017 season. In fact we did see a modest price increase of 4.95% over 2016 largely due to the uptick at the end of the year. In 2017, I expect this to continue and see appreciation in the 5% to 10% range depending on the community and type of home. The decline in new listings is leveling out, the nasty election is over and buyers once again have confidence in the economy based on the increases that we have seen in the stock market since the election.
In summary, if you are looking to buy, do it now. Prices will only go up, mortgage rates are still extremely low and have already started to increase, and you now have a nice selection to choose from. If you are looking to sell, be patient. The market is still soft and it may take longer to sell your home, but it will if priced correctly! And remember, that the higher the price, the longer it takes to sell.
I hope my Naples Real Estate Market Report has been helpful and informative. 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 let me know. I would love the opportunity to earn your business. If you know of anybody who is looking to buy or sell, feel free to share my Naples Real Estate Market Report with them. The opinions are those of the author and should not be considered to be a specific recommendation. They along with the data are presented to help you make an informed decision.