South Naples real estate popular.
South Naples, an area of Naples that has long been overlooked, now seems to be having its time in the sun.
According to the August 2015 Market Report released by the Naples Area Board of REALTORS® (NABOR®), South Naples real estate experienced the highest increases in overall pending sales, closed sales and median closed prices of all geographic areas reported in August.
NABOR defines South Naples as neighborhoods south of Davis Boulevard, west of SR/CR 951, east of the U.S. 41 and 5th Ave. S. intersection. Some of the larger neighborhoods in this area include, Lely, Treviso Bay, Isles of Collier Preserve, Lakewood, Kings Lake, Eagle Creek, and Isle of Capri.
It’s evident that South Naples is changing for the better. Road construction is widening and adjusting the traffic pattern at the intersection of East Tamiami Trail and Collier Boulevard (aka 951); Fresh Market, Panera Bread and Outback are just some of the popular establishments that have recently opened; and developers are seeing the area’s potential with new communities taking shape.
Despite a 5% decrease in overall inventory for homes in the South Naples region from 575 homes in August 2014 to 547 homes in August 2015, broker analysts agree that the South Naples market is gaining in popularity as buyers are attracted to its investment potential and renewed growth.
Pending sales (homes under contract) in South Naples jumped 26% from 112 pending sales in August 2014 to 141 pending sales in August 2015. Closed sales in this region increased 9% from 1,482 closed sales in the 12 months ending August 2014 to 1,610 closed sales in the 12 months ending August 2015.
Interestingly, the median home price in South Naples experienced the highest increase of all geographic areas with a 21% increase from $179,000 in the 12 months ending August 2014 to $217,000 in the 12 months ending August 2015 despite the fact that inventory decreased only 5% from August 2014 to August 2015.
Rick Fioretti, NABOR® President Elect, pointed out that the 52% increase in the days on market for homes in South Naples from 63 days to 96 days may be a result of natural market correction. “New construction in the South Naples area is impacting neighboring home values favorably. Add the increase in commercial development near the 41 and 951 exchange and the result appears to be that home sellers realized their properties may have been undervalued and are now pricing them higher.”