Naples, Fla. (June 16, 2017) – Overall closed sales of homes in May shined brighter than any other month previously reported in 2017, with an impressive 23 percent increase to 1,027 closed sales in May 2017 from 838 closed sales in May 2016. Likewise, overall pending sales (homes under contract) also outperformed activity reported in the last four months. Leading broker analysts who reviewed the May 2017 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), are quite confident that real estate agents will be very busy this summer.
“If May’s momentum continues, this year will turn out better than last year,” said Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc. “Home sales during the summer months have become stronger over the past few years. We are no longer seeing a huge disparity in activity between winter and summer like we once did.”
One familiar obstacle summer buyers will face again this year is a reduction in available inventory. Whereas the market saw a 26 percent increase in inventory in January 2017 to 6,393 homes from 5,091 in January 2016, the May report showed only a 4 percent increase to 5,404 homes in May 2017 from 5,207 homes in May 2016. Inventory increases are leveling off. Many broker analysts who track activity on a daily basis report that they have witnessed upwards of 900 listings disappear from the Southwest Florida MLS since May 1st.
“This type of behavior is short sighted,” said Hughes. “Those who let a listing expire at the end of our winter season are missing a huge opportunity to sell their property during the summer months.” Hughes added that our area attracts a variety of buyers during the summer such as international travelers, families from Northern states, and those relocating from other parts of Florida.
Comparatively, the overall median closed price decreased 8 percent in January, while the May report showed an increase of 5 percent to $355,000 in May 2017 from $338,000 in May 2016. Incidentally, January’s median closed price was $314,000. If the logic behind removing a listing at the end of season is based on old beliefs that a property will obtain a higher sale price during the winter months, then sellers need to examine the May statistics more closely. According to NABOR reports, there were 424 more closed sales during May than January.
“Buyers during the summer are more serious,” said Wes Kunkle, President and Managing Broker at Kunkle International Realty. “In season, we get a lot of traffic, but it’s mostly lookers. In the summer, people are ready to buy. They ask real buyer questions, and most often have financing in place.”
As noted by Coco Amar, a managing broker at John R. Wood Properties, activity in the $2 million and above price category has really picked up strength this year. As reflected in the report, overall pending sales in the $2 million and above price category increased 52 percent in May. There were also 78 closed sales of homes in this price category in May 2017, up from 36 closed sales in May 2016. And while the overall median closed price for homes above $300,000 increased 8 percent to $590,000 in May 2017 from $547,000 in May 2016, the overall median closed price for this top reported price category decreased 8 percent to $2,950,000 in May 2017 from $3,220,000 in May 2016.
The May report also showed overall inventory increased 4 percent to 5,404 homes in May 2017 from 5,207 homes in May 2016. Homes in the $300,000 and below price category had the highest inventory increase of all other price categories, reporting a 12 percent increase to 1,551 properties in May 2017 from 1,391 properties in May 2016. While still an increase over last year, the rate of the market’s overall inventory increase is tempering. In fact, brokers are concerned that housing options in some geographic areas, such as in the Central Naples single family market, may start to pinch sales as this area experienced a 50 percent increase in single-family closed sales during May, but had only an 8 percent decrease in inventory.
The NABOR® May 2017 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® May 2017 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:
CATEGORIES May 2016 May 2017 CHANGE (percentage) Total homes under contract (pending sales) 921 1,027 12 Total closed sales 838 1,027 23 Median closed price (month/month) $338,000 $355,000 5 Median closed price >$300K (month/month) $547,000 $590,000 8 Total active listings (inventory) 5,207 5,404 4 Average days on market 73 98 34 Single-family closed sales 396 485 22 Single-family median closed price (month/month) $432,000 $435,000 1 Single-family inventory 2,744 2,734 0 Condominium closed sales 442 542 23 Condominium median closed price (month/month) $276,000 $289,000 5 Condominium inventory 2,463 2,670 8
According to Kathy Zorn, broker/owner of Better Homes and Gardens Real Estate Pristine, “Buyers who are looking for a condominium in the Naples Beach or North Naples area this summer may encounter some challenges as these areas are running low on inventory.” Zorn pointed out that in North Naples there was a 47 percent increase in closed sales of condominiums during May, a 26 percent increase in pending sales of condominiums during May, and only a 9 percent increase in inventory. The situation is even more alarming on the beach, as both pending and closed sales of condominiums increased by double digits, but its inventory rose only 1 percent in May.
If you currently have a home for sale in the Naples market, brokers recommend against terminating the listing during the summer. In fact, there were 875 closed sales in June 2015 and 832 closed sales in June 2016, both higher than the number of closed sales in January (603) and February (613) of 2017.
As a highly desirable second-home location that rarely falls below 70 degrees, Naples will always increase in population during the winter months and then decrease during the summer. But according to county growth reports, the permanent residential population in Naples is also growing steadily. When asked, several brokers say that a large majority of the next season’s part-time residents, along with a host of new permanent transplants, prefer to do their home buying during the summer. So before you pull your home off the market, seek guidance from your Naples REALTOR® who can help you market your property correctly to appeal to summer buyers. A REALTOR® can also locate properties that match summer buyer needs and negotiate a purchase price that reflects the market
Naples, Fla. (May 26, 2017) – Inventory decreased for the second consecutive month and prices continued to remain stable in April, setting into motion a burst in end-of-season sales for homes in the market’s sweet spot – the $300,000 to $500,000 price category. Activity in that price category for both single-family and condominium homes in the resale market continued to outpace all other price categories during the month of April according to the April 2017 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). And while overall closed sales for the month decreased 5 percent, closed sales for homes in the sweet spot saw a 14 percent increase.
Phil Wood, President & CEO of John R. Wood Properties, pointed out that the April report showed a 41 percent increase in pending sales for homes in the $2 million and above price category. “There were 10 sales over $5 million in April,” said Wood. “This was a good sign we had a very strong season. I think April’s activity sets us up for a good summer.”
Overall inventory in April increased 8 percent to 5,920 homes in April 2017 from 5,480 homes in April 2016. Most notable was a remarkable 35 percent increase in the $2 million and above condominium inventory for April. However, April’s inventory decreased by 470 homes from March’s level, which was 6,390 homes.
The group of brokers reviewing the April Market Report added that homes that are unrealistically priced influenced April’s average days on market, which showed an increase of 35 percent to 97 days in April 2017 from 72 days in April 2016.
“There appears to be a number of sellers who, when pricing their homes, refuse to take into account the added competition from the new construction market,” said Jeff Jones, Managing Broker at the Naples-Park Shore office of Coldwell Banker®. Several other brokers collectively surmised that, in many cases, the selling price is typically 8 to 10 percent below the original asking price. Dominic Pallini, NABOR® President and Broker at Vanderbilt Realty, said, “an influx of new homes onto the market creates additional competition that many sellers don’t take into consideration when pricing their homes to sell.”
In response, Jones said, “Prices overall have remained relatively flat over the last year. Only the homes in the $300,000 and below price category increased in median closed price in the 12-months ending April 2017 from $207,000 to $219,000. There were actually minor decreases in all other price categories above $300,000.”
The last frontier of growth is eastern Collier County where buyers seeking single-family homes have more affordable options. This area, which includes 34114, 34117, 34120 and 34137, saw a 17 percent increase in closed sales to 122 single-family home closed sales in April 2017 from 104 single-family home closed sales in April 2016.
The NABOR® April 2017 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® April 2017 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:
CATEGORIES April 2016 April 2017 CHANGE (percentage) Total homes under contract (pending sales) 1,084 1,075 -1 Total closed sales 947 902 -5 Median closed price (month/month) $325,000 $355,000 9 Median closed price >$300K (month/month) $559,000 $525,000 -6 Total active listings (inventory) 5,480 5,920 8 Average days on market 72 97 35 Single-family closed sales 429 404 -6 Single-family median closed price (month/month) $434,000 $419,000 -3 Single-family inventory 2,877 2,986 4 Condominium closed sales 512 498 -3 Condominium median closed price (month/month) $262,000 $296,000 13 Condominium inventory 2,597 2,934 13
Several brokers commented that financing has become more complex in the last year and may be one reason the days on market have increased. For the 902 homes that closed in April 2017, the majority (65.3 percent) were cash sales and only 34.7 percent were conventional (financed) sales, a statistic that signifies the seasonal wealth factor.
According to Lauren Melo, PA, Licensed Real Estate Broker with Florida’s Realty Specialists, who works with many first-time homebuyers including Millennials interested in purchasing REO properties (real estate owned by lenders and bank-owned foreclosure properties), “REO inventory is very low, and 90 percent of it is priced above $150,000.”
On the commercial side of the real estate market in Naples, Bill Poteet, owner and broker at Poteet Properties, said the area has dramatically low industrial property options. “Naples has plenty of office and retail space available, but not much in terms of large commercial space.”
Naples, Fla. (April 14, 2017) – It was a busy season for REALTORS® working in Naples as evidenced in the First Quarter 2017 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). As predicted by broker analysts at the beginning of the year, once sellers began to heed the advice of their agents and reset to reasonable list prices, buyers would react in stride with more solid offers. The statistics reflected this prognosis precisely, and resulted in an increase in overall pending and closed sales, making the first quarter of 2017 as solid as expected.
Noted by Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., and the 2016 REALTOR® of the Year, “The first quarter was a bit of a bumpy ride but the trend line for sales moved upward throughout the quarter with March coming in as a pretty strong month for sales activity. Overall, we ended the first quarter better than last year and I think the local brokers are cautiously optimistic that we might have a decent summer for sales.”
Quite a few broker analysts who reviewed the report agreed with Hughes and said the word on the street is that many buyers who didn’t make a purchase during the first quarter have plans to return to the area during the summer as they anticipate home prices may decrease.
Quarter over quarter, the report showed overall median closed prices increased only 2 percent, driven by a narrow 3 percent increase in the $300,000 and below price category. Yet all other price categories tracked by NABOR® showed decreases or no change at all. One exception were single family homes in the $300,000 to $500,000 price category, which jumped 14 percent in median closed price to $387,000 in the 1st quarter of 2017 from $339,000 in the 1st quarter of 2016.
Collectively, broker analysts agreed that activity in the condominium market during the first quarter of 2017 was impressive. In fact, condominium inventory increased 19 percent, while the single-family home inventory saw an 8 percent increase. The report also showed five times the number of condominiums under $300,000 were available in the first quarter of 2017 than single-family homes in the same price category.
“Inventory is up and prices have come down,” said Budge Huskey, President of Premier Sotheby’s International Realty. “This is an indication that some fundamental economic principles are taking effect in the Naples housing market.”
But according to Cindy Carroll, SRA, with the real estate appraisal and consultancy firm Carroll and Carroll, Inc., monthly inventory levels have increased through March, but at a progressively lower rate each month of the quarter. For example, Carroll said, “In a year to year comparison, single family inventory was up 24 percent in December, 19 percent in January 2017, 9 percent in February, and 8 percent in March. The same trend is mirrored in the condominium market. In the long view, overall inventory increased 35 percent between March 2015 and March 2016, and 23 percent between March 2016 and March 2017.”
However, Bill Coffey, Broker Manager of Amerivest Realty Naples, was quick to point out that a tempering of inventory levels does not mean fewer options for buyers in the coming months. “The condominium market was hot in the first quarter. Both inventory and closed sales increased 19 percent. And overall sales only lagged last quarter because properties were not priced properly, but now we are seeing price adjustments and the statistics are reflecting the correction. We currently have 8.89 months worth of inventory. In February we had over 9 months. This progressive reduction in inventory Cindy is talking about will not curb market activity greatly.”
The NABOR® First Quarter 2017 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® First Quarter 2017 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:
CATEGORIES 1Q 2016 1Q 2017 CHANGE (percentage) Total homes under contract (pending sales) 2,786 3,097 11 Total closed sales 1,929 2,205 14 Median closed price (quarter/quarter) $325,000 $330,000 2 Median closed price >$300K (quarter/quarter) $545,000 $510,000 -6 Total active listings (inventory) 5,651 6,389 13 Average days on market 77 95 23 Single-family closed sales 982 1,059 8 Single-family median closed price (quarter/quarter) $415,000 $410,000 -1 Single-family inventory 2,996 3,236 8 Condominium closed sales 967 1,146 19 Condominium median closed price (quarter/quarter) $262,000 $270,000 3 Condominium inventory 2,655 3,154 19
The Market Report also indicated a trend in how buyers are purchasing homes in Southwest Florida. “In March 2014, cash sales encompassed 74 percent of all sales for the month. In March 2015 it was 73 percent, then 67 percent for March 2016, and finally, in March 2017 cash sales accounted for 64 percent of all sales made in the month,” said Hughes. “In the past few years cash sales have been decreasing and more buyers are financing home purchases.”
Geographically, the market had some hot areas of action during the first quarter of 2017. Of note was Central Naples (34104, 34105, 34116), which saw a 74 percent increase in single-family home inventory to 634 single-family homes in the 1st quarter of 2017 from 364 single-family homes in the 1st quarter of 2016. And the median closed prices for single-family homes in South Naples (34112, 34113) increased 22 percent in the 1st quarter of 2017 to $386,000 from $317,000 in the 1st quarter of 2016.
Nery Cardenas was moving to the Naples area to open a Medical Consulting practice. She needed a place rather quickly, and was inexperienced at dealing in commercial property.
She was delighted with the way Bill Poteet quickly came up with a list of appropriate commercial units, and came to a decision within 2 days.
She was especially pleased that Poteet handled all of the paperwork, the transactions and did the due diligence to make the process go smooth.
Watch the video below to learn more:
Poteet Properties is proud to announce the addition of Kimberle Ann Woodland as its newest Broker Associate. Ms. Woodland is a lifelong resident of Collier County and brings 20 years of local real estate experience with her. She is a graduate of Naples High School and attended Ringling School of Art and Design.
Ms. Woodland is a member of the National Association of Realtors and the Naples Area Board of Realtors. She served the local Board as a NABOR Director and chaired a number of committees. She has also been active on committees within the Florida Realtors organization. Ms. Woodland holds the Certified Residential Specialist (CRS) designation and is a Graduate of Realtor Institute (GRI).
Locally she has been involved with the Boys Scouts of America, Naples High School Band Boosters, and the Naples on the Gulf Kiwanis.
In Mid May, myself and approximately 8000 Realtors from around the United States swarmed our nation’s Capitol for the Realtor Party Convention and Expo. This is my favorite meeting of all Realtor meetings. I get to hear first hand from Senators, Congressman and women, Secretary’s of HUD, Treasury, Commerce, and more. Top economists including Dr. Lawrence Yun provide great information on the state of our economy, especially real estate.
At this year’s DC meeting I listened to numerous speakers discuss Congress’s current gridlock and what to expect in the coming months. I personally visited Senator Bill Nelson and Senator Marco Rubio as part of a Realtor leadership team from our great State of Florida. During a special luncheon for the Florida Realtors Major RPAC Investors I heard FHA Commissioner Carol Galante speak on her program’s status and the improvements needed to keep this valuable consumer product. She reported that this federal program much like Fanniemae and Ginnymae is now a cash cow for our US Treasury paying back the U.S. Government all billions that it borrowed during the financial crisis. The difference in this program between now and pre-recession is these government back lending programs are back to using conservative underwriting practices, thus fewer defaults in the loan portfolios. Preserving the mission of the FHA was one of our talking points with our U.S. Senators and Congressman.
FEMA was also there trying to explain all the recent changes it has made since Congress enacted the 5 year extension of Federal Flood Insurance (Biggers Waters) and the subsequent glitch bill entitled Grimm Waters that put a hold on excessive increases in your flood insurance premium. In my Land Use, Private Property, and Environment Committee meeting we discussed the Army Corp of Engineers recent push to regulate all waters, not just navigable. EPA is also pushing this discussion for if additional properties are added under the Corps jusrisdiction, EPA can also expand their regulatory reach. NAR is watching this extremely close to insure no adverse legislation comes from it.
Other issues we lobbied our elected officials was for was the extension of the mortgage debt forgiveness act, and the continuation of 1031 Exchanges for like kind investment properties. One of the Convention programs I missed was with Chris Matthews who reportedly wooed the crowd with his insights and perspectives. I did see David Plouffe & Steve Schmidt , two top Democract and Republican strategists, who gave a very forthright discussion on our government’s current malaise and what current issues both parties could come to agreement before 2016 elections. The discussion was sobering.
For our little center of the universe, Congress reported it was working on a Water Resource Bill which will help fund projects already approved in the Everglades Restoration Act. It has passed House and sits at the Senate for final passage, then on to the President’s desk for signature. This is expected to pass and be signed which will be great news for Southwest Florida.
Naples, Fla. (May 23, 2014) – The Naples area real estate market continues to show signs of growth as summer approaches with noteworthy performance in April as reflected in a report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). April closed sales are the highest for any month year to date. Both pending and closed sales in April are over 1000 units each, showing good momentum going into summer. The closed sales activity in the $1 million and above category continues to remains strong with a 25 percent increase from 714 units in the 12-months ending April 2013 to 951 units for the 12-months ending April 2014.
According to Brenda Fioretti, Managing Broker at Berkshire Hathaway HomeServices Florida Realty, the increase in pre-summer sales activity is not solely a result of seasonal residents shopping during a winter visit. “The sales in April, and the pending activity we are seeing today, are from serious buyers, not shoppers. Homeowners that list now can expect fewer lookers and more offers over the summer.”
Pat Pitocchi, NABOR® president and corporate trainer at Downing-Frye Realty, remarked that the April statistics show median closed prices in all neighborhoods have increased double digits. “Even as product from new construction enters the market, prices for existing homes in April shot up 14 percent overall. This is a good sign that homeowners contemplating selling don’t have to wait until the winter season to put their home on the market to see a good return. Great sales activity in Collier County is no longer limited to just the winter months.”
Cindy Carroll, SRA, with the real estate appraisal and consultancy firm Carroll & Carroll, Inc., agreed and said she anticipates strong sales activity through the summer and into fall. “Five key indicators signal that the uptrend in the market continues: 1) pending sales are up, 2) closed sales are up, 3) median closed prices continue to climb, 4) days on the market are decreasing, and 5) inventory is continuing to decrease. In addition, many people prepared to buy a home in Naples this past season were unable to because very harsh winter conditions affected their ability to sell a home up north and come down to look for a home here. As these northern homes sell, we’ll start to see an increase in sales over the next six months.”
“New construction is becoming an integral part of the Naples real estate market. Data compiled from the U.S. Bureau of the Census shows 4,290 single and multi-family housing units permitted in Collier County from 2012 to 2013,” said Fioretti.
“Our agents are showing buyers new construction homes,” said Phil Wood, President & CEO of John R. Wood Realtors. “There isn’t enough existing home inventory to go around. But not even new construction can keep up with the current level of demand.”
The NABOR® April 2014 Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® April 2014 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:
- Overall closed sales increased 4 percent from 9,385 sales in the 12-months ending April 2013 to 9,763 sales in the 12-months ending 2014.
- Closed sales for single-family homes in the $2 million and above market increased 56 percent from 25 in April 2013 to 39 in April 2014.
- The overall median closed price increased 14 percent from $219,000 in the 12-months ending April 2013 to $250,000 in the 12-months ending April 2014.
- The overall median closed price of homes $300,000 and under increased 13 percent from $149,000 in the 12-months ending April 2013 to $168,000 in the 12-months ending April 2014.
- The median closed price for condominiums in the $2 million and above market increased 8 percent from $2,700,000 in the 12-months ending April 2013 to $2,922,000 in the 12-months ending April 2014.
- The overall average days on market are at 93 for April 2014.
- Overall pending sales increased 3 percent from 10,678 in the 12-months ending April 2013 to 10,987 in the 12-months ending April 2014.
- Overall pending sales increased 13 percent for homes $2 million and above from 48 contracts in April 2013 to 54 contracts in April of 2014.
- Overall pending sales decreased 12 percent in the $300,000 and under segment from 762 in April 2013 to 672 in April 2014.
- Inventory of condominiums decreased 24 percent from 2,553 units in April of 2013 to 1,951 units in April of 2014.
- Inventory of condominiums in the $2 million and above market decreased 47 percent from 64 in April 2013 to 34 in April 2014.
- Inventory of single-family homes increased 2 percent from 2,167 units in April of 2013 to 2,206 units in April of 2014.
“Many seasonal residents who wanted to buy this winter but didn’t find anything during their visit have asked our residential agents to contact them when something new comes on the market,” said Tom Bringardner, Jr., President & CEO of Premier Commercial. “With a ready and eager buyer base in place, and 71 percent of home sales still made in cash, homeowners that list with a professional REALTOR® should have little trouble finding a qualified buyer this summer.”
The Naples Area Board of REALTORS® (NABOR®) is an established organization (Chartered in 1949) whose members have a positive and progressive impact on the Naples Community. NABOR® is a local board of REALTORS® and real estate professionals with a legacy of nearly 60 years serving 4,700 plus members. NABOR® is a member of the Florida Realtors and the National Association of REALTORS®, which is the largest association in the United States with more than 1.3 million members and over 1,400 local board of REALTORS® nationwide. NABOR® is structured to provide programs and services to its membership through various committees and the NABOR® Board of Directors, all of whose members are non-paid volunteers.
The term REALTOR® is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribe to its strict Code of Ethics.
William Poteet’s negotiation skills are very impressive.
The extensive knowledge that he had of his trade was the factor that made the biggest difference!
Carmen I. Vasquez
U.S. Prime Realty, LLC
I have trusted him with my business affairs in many ways and he has always been consistent and shown competence at the many services he has rendered for me. Bill has a level of honesty and integrity that I highly value. I trust his judgment and expertise in real estate management, leasing and other areas that he has represented me in Southwest Florida.
He is well connected and very knowledgeable about his profession.