Naples Real Estate Market Report Second Quarter 2019
Naples Real Estate Market Report
Brought To You By Barry Brown
Coldwell Banker Residential Real Estate
We are halfway through the year and the real estate market is holding its own. Inventory is down but not low, sales were down for the month but still up for the last 12 months and the median sales price was down from last month but up from the start of the year. It’s important to remember that the Naples market is very cyclical and you need to look at the trends, not just the current numbers. Following is my complete Naples Real Estate Market Report Second Quarter 2019.
The number of units for sale at the end of the month dropped 2.7% to 5,455, but is still 6.5% higher than June of last year. This represents a 6.4 month supply which falls between five and seven months and is generally considered a balanced market. Although a little tight in some areas, it still provides potential byers a nice selection. Expect the number of units for sale to increase into the 7,000 range before they start to drop next January.
The number of units sold dropped 23.1% to 904 units which is a larger decrease than normal. However, sales for the last 12 months are still 4.0% higher than the prior 12 months. Expect this to drop into the 500 to 600 range per month before increasing next season. The median days to sell is also trending upward and at 73 days is higher than it has been since August of 2013 while the average is holding steady at 107 days. Given historical patterns I expect for both to stay in the same range for the rest of the year.
Although sales in Naples look like they are weakening, the experts expect sales to remain strong throughout the country for the rest of the year. Halfway through the year the chief economists for realtor.com, the National Association of Realtors and Fannie Mae predict a strong market and cite lower mortgage rates, higher wages and a larger inventory as the supporting factors. This bodes well for Naples as many buyers need to sell their home up north before buying in Naples.
Prices are also mixed with the median sales price down 5.3% from last month at $339,950 while the average was up 3.0% at $652,559. The good news is that both are up from the first of the year at 3.0% and 20.5% respectively. Also positive is that the average price per square foot continues to hover in the $280.00 range at $277.00 and is up 14.9% from the first of the year.
When we look at prices by price range and housing type we see that prices for the most part are trending up.
Sales and list prices in the 38 communities I monitor show mixed trends. List prices are down in 57.8% of the communities while sales prices are up in 52.% which shows just how community driven Naples really is.
Equally important to the future are the list price and the sales to list price ratio trends. The median list price was down 6.7% from last month at $349,000 and is down 7.9% from the first of the year. Historically the list price will increase as we go through the year so it will bear watching. The sales to list price ratio has been holding steady in the 96% range which means that sellers are willing to negotiate but not willing to give their home away. Both are still positive and are not a concern at this time.
The question as always is where are prices going. Based on Naples market trends and past history I agree with the experts that the full year median sales price appreciation will come in between 1% and 3% and lean towards the top end.
In summary, If you are looking to sell, now is a great time as you will have more competition later in the year. If you are looking to buy, now is also a great time as you will have a nice selection to choose from and prices are lower than they will be next year.
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. I hope my Naples Real Estate Market Report Second Quarter 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 give me a call. I would love the opportunity to earn your business. If you know of anybody who would like a copy of my Naples Real Estate Market Report Second Quarter 2019 please share it with them.