Naples Real Estate Market Report Through October 2018
Naples Real Estate Market Report
Through October 2018
Brought To You By Barry Brown
Coldwell Banker Residential Real Estate
Following is my Naples Real Estate Market Report Through October 2018.
All is good, the number of units for sale decreased and the number of units sold and both the average and median sales price were all up last month. This is tempered somewhat as current prices are still below the highs we saw the first few months of the year, however we are still ahead of last year.
The number of units for sale decreased from 4,928 to 4,781. At the same time the number of months of supply increased from 8.1 to 8.4 which one would consider being the low end of a buyers market. However, this is not a concern as the months of supply always increases before dropping once we get into season.
The number of closed sales increased from 650 to 674 units or 3.7%. However they were up 66 units or 10.9% over last October which one would expect due to Irma in October. The median number of days that it took to sell a property from last month decreased from 68 to 61 days. This has ranged from 60 to 70 days since May and I expect it to continue into next year.
Both the average and median sales prices were up from last month with the average up .7% at $570,324 and median up 4.6% at $348,500. This is below the $360,000 median price range we saw in January through April but above $330,000 range in May through September. The good news is that the median sales price is up 7.4% from the first of the year. The average price per square foot also parallels sales prices with October coming in at $244.00. Note that the median price trend is a better indicator than the average.
Again sales prices are better than they appear on the surface. Wanting to get a better understanding of the market I looked at each of the sales that closed in August, September and October which helped to clear up the picture.
First of all, my feeling is that prices were impacted to some small extent by Irma and the red tide. However the biggest factor is that 76% of the sellers made money in October. Note that I excluded new construction and those where the seller acquired the property through a short sale or foreclosure. The reason being is that builders do not report their costs and the profit margins on foreclosures and short sales are exceedingly high even with many requiring a significant amount of work. Clearly many sellers are happy with the profit they are making.
Also interesting is that 38% of the homes sold in October had a price reduction. While 10% better than September and 20% better then August, there is no question that overpricing has an effect, i.e. over priced homes miss buyers that would have looked at them when they first came on the market and potential buyers may wonder if there is something wrong with a home that has been on the market too long (in Naples one that has been on the market more than one season) or feel that the seller may be desperate and will be willing to take less.
The general consensus is that the market has been slow all year even though the numbers have been good. I feel that for the most part this can be attributed to new construction, i.e. 81 units or 12% of the sales in October were from new construction and this is just the tip of the iceberg as most of the major builders do not report their sales.
When we look at sales prices by housing type or price rage we still see more gains than losses:
A better picture of prices begins to emerge when we look at price trends by community and housing type. But even this can be misleading due to sample size and that it does not consider location, view, upgrades, condition, etc.
Also positive is that the median list price showed a nice increase in October and has been holding fairly steady since March. Also positive is that the list to sales price ratio continues to hover in the 96% range.
The question as always is: “what does the future hold?” First of all, there is no reason to think that unit sales will deviate from historic patterns, which means that we should see a slight uptick in November and December and should end up well ahead of 2017. 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 fall when sellers begin pricing for the upcoming season.
In summary, If you are looking to sell, there are people who dream of owning a home in Naples and will be looking for next season. If you are looking to buy, now is a great time as you will have a nice selection to choose from and prices are lower than they will be next year.
I hope my Following is my Naples Real Estate Market Report Through October 2018. I hope it is both useful and informative. 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 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 Naples Real Estate Market Report Through October 2018 with family, friends and neighbors.
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.