Impressive Naples Real Estate News for May

Overall, May closed with impressive Naples Real Estate statistics.  And, it was the best month so far this year.  Closed sales showed a 23 percent increase up to 1,027 from 838  compared to the same time last year.  Similarly, pending sales (homes under contract) also hit its highest level of the year at a 12 percent increase.

Additionally, according to leading analysts at the Naples Area Board of Realtors (NABOR), the strong activity we saw during the month of May is expected to continue into the summer months.

“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.”

Year-Over Year Highlights:

Naples Market Trends:

Once again, buyers should anticipate limited inventory to continue.  Unlike January, which had a 26 percent increase in inventory, the May report showed a small increase of 4 percent from 5,207 homes up to 5,404 homes in May 2017.  Homes in the $300,000 and below price range had the highest increase in inventory at 12 percent.

Additionally, the overall median closed price decreased 8 percent in January.  In contrast, the May report showed an increase of 5 percent increase to $355,000 in May 2017 from $338,000 in May 2016.  Also, for homes above $300,000, the median price increased 8 percent up to $590,000.  However, for homes priced above $2 million, the medial sales price decreased by 8 percent down from $3,220,000 to $2,950,000.

On the other hand, pending home sales above $2 million showed a staggering increase in May, up 52 percent.  In addition, there were 78 closed sales of homes above $2 million compared to 36 closed sales in May 2016.

And, in North Naples, activity was the strongest.  There was a 47 percent increase in closed sales of condos during May. Also, there was a 26 percent increase in pending sales of condos  and only at 9 percent increase in inventory during the month.

For those interested in condos on the beach, inventory only grew 1 percent and both pending sales and closed sales increased by double digits.  Thus, buyers should expect prices to continue to rise along the beach.

Lastly, 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 more closed sales in June of last year and the year before than there were in January and February of this year.  So, if that’s not impressive Naples real estate news for the month, I don’t know what is.

Additional Articles:

May 2017 NABOR Market Report

2017 Q2 Homeownership Opportunities and Market Experience (HOME) Survey

Forbes 2017 American Dream Index

Is Naples still a seasonal market?

Florida is now the third largest state in the country by population.  And, since we do not have a state income tax, we continue to see people choose Florida as one of their top places to retire.  If you live in the state for 6 months and a 1 day you qualify for state residency. Hence, you are saving money as soon as you qualify to be a “full-time” resident.  In addition, compared to other states, our property taxes are significantly lower.  The fact that May is showing much more activity than years past may indicate the area is becoming less seasonal.

Moreover, Naples is a highly desirable location for second homes.  We average more than 300 days of sunshine a year and the temperature rarely falls below 70 degrees.  Finally, Naples and the surrounding communities of Marco Island ranked the #1 Happiest, Healthiest U.S. City for the second consecutive year by the Gallup-Heathway’s State of American Well-Being Community Rankings.

About Matt Klinowski

July 9, 2017 Posted by Matt