October 2017 Naples Market Report

October 2017 Naples Market Report


October 2017 Naples Market Report

Brought To You By Barry Brown
Broker Associate
Coldwell Banker Residential Real Estate
239-298-0522

Irma did her best and Naples came through with flying colors.  Yes, there was a lot of landscaping torn up that still needs to be disposed of, pool cages, lanai screes and carports with minor storm damage that needs to be repaired, and some roof tile and shingles that need to be replaced, but thankfully there was no structural damage and only a three foot storm surge. This lack of damage is not surprising considering how new most of the homes and condos are and that building codes were designed to protect us from as much hurricane damage as possible.  Following is my complete October 2017 Naples Market Report.

That being said, the real estate market took a major hit. Closed Sales were down 327 units at 415 from August or 42.5% which can be directly attributed to Irma.   At the same time the number of homes on the market decreased 5.9% to 4,492 units which was due to the large decline in new listings.

Most of the year we have been experiencing a soft market with both the average and median sales prices hovering around an average increase of 5%. At the same time the average sales price per square foot has dropped to $235 or by 6%. When we look at sales prices by price range and housing type with the exception of single family homes we see mostly price decreases. However as always it is best to look at the trends in specific communities. Here we find that gains and loses are split almost evenly.

October 2017 Naples Market Repot - Slales Price Percentages by Dollar Range and Housing Type for Four Different Periods

The real question is what does the future hold. Without Irma, I would have held to my original forecast of a slight gain in value in the 5% range. With Irma, I am not so sure.

It will take another month or so for Naples to look like it always has and at least that long for most of the minor damage to be repaired. This alone should put a damper on sales for the rest of the year. Then you have to question whether all of the sensational hurricane reporting on TV and the Internet has scared away buyers, and if so enough to make an impact on prices.   And finally, what are sellers going to do? Lower prices due to fewer buyers or increase prices due to lower inventory?   When I go back and look at closed sales after Wilma, which hit in October of 2005, I don’t see any effect on prices although sales were down 25% to 35% in December and January.

At this point I believe that sales will be down through the end of the year and hope that the average and median sales price remain relatively stable. If so, then 2017 should end up relatively flat and 2018 should be another good year with increases in the number of units sold and the average and median sales price.   However I would like to reserve judgement for a few months before making a forecast as the next few months could go either way as there are just too many unknowns.  

If you are looking to buy or sell make sure to gather all of the facts. Not only a CMA, but take a look at all of the listings, pendings and solds as well as any listings that recently expired or terminated.   Condition and prices can very greatly by community and you should have all of the facts before making a decision.

I hope my October 2017 Naples Market Report 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 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 October 2017 Naples 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. The source of the data is the Sunshine MLS and Naples Board of Realtors.

 

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