December 2019 Naples Real Estate Market Report

December 2019 Naples Real Estate Market Report


December 2019 Naples Real Estate Market Report
Brought To You By Barry Brown
Broker Associate
Coldwell Banker Residential Real Estate
239-298-0522

With eleven months in, it looks like 2019 will come in slightly higher than 2018.   The number of homes on the market, the number of units sold and the average and median sales price in November are all up. However it is important to point out that Naples is a very cyclical market as one can see from the following two graphs and that it is important to look at the previous month, previous year and current trend for all of the indicators before coming to any conclusions. When somebody tells you that sales and prices are up or down you need this information to know whether this good, bad or just normal.

Following is my complete December 2019 Naples Real Estate Market Report.  

The number of homes for sale increased 3.1% to 5,303 units which is still down 9.9% from November of last year. At the same time, the number of months of inventory increased from 7.1% to 7.7% which is lower than November of last year’s 8.8%. I expect the number of homes for sale to increase into the 6,000 range and the months of inventory to increase slightly as we enter the new year. This will represent a nice supply but should still be a neutral market not favoring buyers or sellers.

The number of homes sold decreased 8.9% last month to 695 units which is normal and is up 3.2% for the year at 9,268 units sold. This is the third year in a row that sales have increased and the second highest year in the last 14 years.   I expect that sales in December will remain strong and that 2019 will be up from 2018.   At the same time, the median days to sell dropped from 72 to 53 days which is good news. However this is a very large drop and will bear watching to see if this is the new normal. My guess is that this is just a one month blip.

Both the median average and median sales prices were up 4.6% and .9% at $539,397 and $333,333 respectively. At the same time the average sold price per square foot increased from $235.00 to $243.00 or 3.4%

When you narrow this down by price rage and housing type, you can see that the gains are in the mid and low end price ranges which correlates with the gains in single family homes and condos.

Zeroing in by community and housing type starts to give us a better idea as Naples is very community driven and not so much “location , location” with the exception of Olde Naples and west of 41.   But even this does not consider condition, upgrades, view, complex, etc.

The question as always is, where is the market going?  For the first three quarters of the year I projected appreciation in the 3% range as prices generally increase at the end of the year.   However prices have not increased as fast as normal which I attribute to all of the negative hurricane coverage and the large number of daily global warming/climate change articles on the internet. This has resulted in buyers being concerned with a hurricane hitting Naples and the possibility of their new home being under water.

Normally with list prices trending upward as they always at the end of the year and the sales to list price ratio holding steady in the 96% range, I would be a lot more bullish. However given where prices are after eleven months, I feel that we will see some price appreciation with 2019 in the one to two percent range.

I hope my December 2019 Naples Real Estate Market Report has been helpful and informative. If I can be of any assistance, please let me know.

Make sure that you read my year end report as I look into 2020!

Best Regards,

Barry

Barry L. Brown
Broker Associate
Coldwell Banker Residential Real Estate
550 Fifth Avenue South
Naples, Florida 34112
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 December 2019 Naples Real Estate Market Report with them.  If you would like me to add any additional communities to my web site report, just drop me a know and I will me more than happy to do so.

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.

 

 

 

 

 

 

 

Wordpress IDX Plugin