Naples Real Estate Market Report Through August 2018

Naples Real Estate Market Report Through August 2018


Naples Real Estate Market Report Through August 2018
Brought To You By Barry Brown
Broker Associate
Coldwell Banker Residential Real Estate
239-298-0522

 

There can be little question that the Naples real estate market is going through a market correction. The number of homes on the market, the number of homes sold and both the average and median sales price are all down and have been trending that way for most of the year. But the news is not all bad and in fact is on the positive side. The complete Naples Real Estate Market Report though August is as follows:

The number of homes on the market is down from 5,009 to 4,682 which is normal although we are 6.5% lower than August of last year. The good news today for sellers is that they have less competition while the good news for buyers is that the number available should increase through February until it starts to decline again.   This is reinforced as the number of new listings closely follows historical norms with the exception of September and October which were significantly down do to Irma.

Sales in August were down 42 units or 5.5%. However we are still up 1.5% for the year and this should increase significantly due to low sales last fall due to Irma.

Again sales prices are better than they appear on the surface. Wanting to get a better understanding of what was going on, I looked at each of the sales that closed in August which definitely 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 79.0% of the sellers made money.   Note that I excluded new construction and those where the seller acquired the property through a short sales 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. When you consider these, the percentage with a gain increased to 84.0%. Clearly many sellers were willing to settle for a smaller profit.

Naples Real Estate Market Report Through August Sales By Year - August Sales Profit by Price Range Table

Also interesting is that 57.9% of the homes sold in August had a price reduction. 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 to long (in Naples one that has been on the market more than one season) or felt that the seller may be desperate and will take less.

When we look at sales prices by housing type or price range, we see mostly declines. However don’t feel too sorry for the sellers as most of them made money, and some quite a bit.

Naples Real Estate Market Report Through August Sales By Year - Price Change Percentge Change by Housing Type

Naples Real Estate Market Report Through August Sales By Year - Price Change Percentge Change by Price Range

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 has been holding fairly steady since March and that the list to sales price ratio continues to hover in the 96% range.   The fact that nationwide prices have increased by 6.9 % according to Core Logic also bodes well for Naples as many potential buyers have a home to sell up north.

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 decrease through October and then a slight uptick in November and December and barring a hurricane, we 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 Naples Real Estate Market Report Through August 2018 has been helpful and informative. If I can be of any assistance, please let me know.

Best Regards,

Barry

Barry L. Brown
Broker Associate
Coldwell Banker Residential Real Estate
550 Fifth Avenue South
Naples, Florida 34112
239-298-0522
www.barry4homes.net
barry4homes@aol.com

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 August 2018 with family and friends.  Hopefully they will find it informative and helpful.  

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.

 

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