How’s the Naples real estate market? As you might imagine, I get that question a lot.
What’s the answer? Plain and simple … it’s balanced and stable. But that being said, there’s also more to it.
The year started off slow for the most part. Inventory of listings for sale was high and sales were sluggish. Now, halfway through the year, we’ve seen a turnaround. We saw an upswing in sales in April and May. Year-to-date sales are on par with 2018 and ahead of the prior two years.
Overall inventory market wide is 7.2 months, creating a level playing field for both buyers and sellers. Selection is still robust for buyers, and sellers have lost little to no value since late 2011.
Pricing has stabilized, at least for now. Sellers need to understand that we are not in an appreciating market and that their homes should not be priced above recent closed sales.
I get it. Balanced and stable are not exciting words, but our market has been trying to find direction for several months. While we are seeing positive signs, movement in either direction is possible.
Since 2010, we’ve been climbing our way out of the recession. For a few years, it was a nice and steady pace. Then we peaked in 2014 and 2015, followed by a slight decline in 2016. And for the last three years we’ve been fairly level.
Here’s a look at the total number of sales by year (January through May):
2010 = 4,885
2011 = 5,183
2012 = 5,285
2013 = 5,612
2014 = 6,202
2015 = 6,216
2016 = 5,143
2017 = 5,767
2018 = 5,959
2019 = 5,949
Let’s break it down further by price range, January through May, for the last three years:
2017
0-$249,999 = 1,676
$250,000-$499,999 = 2,483
$500,000-$749,999 = 683
$750,000-$999,999 = 312
$1 mil-$2 mil = 360
$2 mil-$5 mil = 206
$5 mil+ = 47
2018
0-$249,999 = 1,571
$250,000-$499,999 = 2,594
$500,000-$749,999 = 711
$750,000-$999,999 = 297
$1 mil-$2 mil = 480
$2 mil-$5 mil = 254
$5 mil+ = 52
2019
0-$249,999 = 1,616
$250,000-$499,999 = 2,652
$500,000-$749,999 = 711
$750,000-$999,999 = 296
$1 mil-$2 mil = 403
$2 mil-$5 mil = 217
$5 mil+ = 54
When looking at these numbers, the lower price ranges are up in sales. Sales of properties priced below $500,000 is up 2.5%. Sales of properties priced between $750,000 and $5 million are down 11.2%. And sales of properties over $5 million are up 3.8%.
A Closer Look at Naples Single-Family Homes 2019
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A Closer Look at Naples Condos in 2019
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Reviewing New Listings & Months of Inventory
Here’s a look at the total number of listings by year (January through May):
2010 = 10,346
2011 = 9,171
2012 = 8,557
2013 = 8,546
2014 = 8,876
2015 = 9,006
2016 = 10,158
2017 = 9,625
2018 = 9,666
2019 = 9,262
Let’s break it down further by price range, January through May, for the last three years:
2017
0-$249,999 = 2,283
$250,000-$499,999 = 4,133
$500,000-$749,999 = 1,405
$750,000-$999,999 = 562
$1 mil-$2 mil = 728
$2 mil-$5 mil = 420
$5 mil+ = 94
2018
0-$249,999 = 2,150
$250,000-$499,999 = 4,320
$500,000-$749,999 = 1,375
$750,000-$999,999 = 552
$1 mil-$2 mil = 724
$2 mil-$5 mil = 441
$5 mil+ = 104
2019
0-$249,999 = 1,999
$250,000-$499,999 = 4,036
$500,000-$749,999 = 1,318
$750,000-$999,999 = 565
$1 mil-$2 mil = 768
$2 mil-$5 mil = 459
$5 mil+ = 117
When looking at these numbers, new listings in the lower price points is on a downward trend. New listings below $750,000 are down 6.3%, while new listings above $750,000 are up 4.8%.
We have to watch this carefully because sales in the lower price ranges are up but new listings are down and the opposite is happening in the higher price points.
That being said, let’s look at inventory levels now by price point for June 2019:
0-$249,999
Single-family homes = 2.4
Condos = 4.8
$250,000-$499,999
Single-family homes = 5.3
Condos = 7.4
$500,000-$749,999
Single-family homes = 8.0
Condos = 8.9
$750,000-$999,999
Single-family homes = 9.8
Condos = 10.2
$1 mil-$2 mil
Single-family homes = 10.9
Condos = 9.4
$2 mil-$5 mil
Single-family homes = 15.0
Condos = 13.1
$5 mil+
Single-family homes = 19.7
Condos = 19.2
In the Naples condo market, we have more inventory under $1 million, while in single-family homes, we have more inventory over $1 million.
Based on these numbers, we have a “possible” seller’s market in the $500,000 and under market; a “possible” buyer’s market in the $2 million and up segment; and a balanced market overall in the $500,000 to $2 million range.
If you are considering moving to Naples or selling your Southwest Florida home, I’d love to chat with you.
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Alysia Shivers | Naples Homes for Sale | 239.877.9732
https://aroundtownwithalysia.com | Facebook | Twitter | LinkedIn | Pinterest
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