Naples Real Estate Market Report October 2019
Naples Real Estate Market Report
Brought To You By Barry Brown
Coldwell Banker Residential Real Estate
The good news is that the Naples Market is holding its own. Sales are up for the year, there is a nice supply of homes on the market and prices are steady to slightly down. My Complete Naples Real Estate Market Report October 2019 is as follows:
Sales were down 104 units from last month which is to be expected given the cyclical nature of the Naples Market. The good news is that they are up 2.0% for the year and 3.3% for the last 12 months. At the same time the median days to sell increased from 74 to 76 days which is slightly higher than last September’s 67 days. I expect sales to increase slightly as we approach the season and the days to sell decrease proportionately. Both of which are positive.
The same holds true when we look at days to sell by price range and housing type, although homes priced over $2,000,000 are trending up.
The number of homes on the market dropped 189 units to 4,739 or 1.1% and is 3.8% lower than the end of last September. At the same time the number of months of inventory increased from 6.3 months to 7.0 months. I expect the number of homes on the market to increase into the low 5,000s and months of inventory to increase as we approach the season. This would indicate a buyers market but I do see this happening as I expect that sellers will hold steady and if history is any indication, list at a higher price as we approach the season.
The median sales price was up 1.6% in September but in general is about where it was at the start of the year. (1.5% lower). This is to be expected as prices drop during the summer and then increase as we get into the season. The average price per square foot increased from $221.00 to$237.00 but follows the same trend dropping from a high of $278.00 the end of January .
When we look at median sales prices by housing type or price range the picture does not look quite as good. However we have to remember that they reflect middle of the summer sales which are always a little lower.
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? All year I have been projecting year end appreciation in the 3% range as prices generally start to increase as in November/December. Now I am not so sure and feel it is worth repeating last months rant:
“Not with all of the extremely negative coverage that affects the real estate market, especially that of Hurricane Dorian. I understand the importance of keeping people informed but the over the top coverage to get ratings is reprehensible. And this does not mention all of the climate change reporting and how the oceans are going to rise flooding the coastal areas. One has to wonder why our former president just spent $14.9 million on an ocean front home on Martha’s Vineyard.
Furthermore an article that has been on the internet for the last two months titled “50 Housing Markets That Are Turning Ugly” listed Naples as the 40th worst market and also included 14 other Florida Markets. I take exception with this ranking for a number of reasons. First of all the list price decline over the last two years was 4.2% not 8.8%. Next I question using any of the summer months as prices are always at their lowest point and do not accurately reflect the Naples Market. Then I question why list price was used instead of the sales price as it shows a 2.8% gain and is a much better market indicator. And finally I question using averages instead of medians, as an average can easily be distorted by an exceedingly high or low price.“
Hopefully all of the negative reporting will not have a long term lasting effect but we will have to watch the next few months as many of the people I talk with are concerned with hurricanes, rising sea levels and the market in general. Please note that I am not saying that what happened in the Bahamas was not a tragedy, as it was and I encourage everybody to contribute what they can to help those people who have lost everything.
I hope my Naples Real Estate Market Report October 2019 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 October 2019 with them. You might also want to visit my website, www.barry4homes.net, as an updated market report with more community trends is posted every month. 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.