Luxury Home Sales Increase

The new year started with a surge in Luxury Home Sales in the Naples area.  Closed sales of luxury properties, homes above $1 million, increased 123 percent over closed luxury sales in January 2017 according to the latest market report released by the Naples Area Board of Realtors.

Also, pending sales, or new contracts written, for homes priced above $1 million increased 67 percent in January compared with last January.

Mike Hughes, vice president and general manager for Downing-Frye Realty Inc., believes the significant increase in luxury home sales could have something to do with Hurricane Irma which hit Southwest Florida last fall.

 “The storm blew in a lot of business,” Hughes said. “I believe that some buyers who would have purchased in the fourth quarter of 2017 delayed their decision until the first quarter of 2018. It looks like we are off to a good start this year with respect to sales.”

January 2018 Versus January 2017

Closed sales increased 11 percent in January of this year in Collier County compared to January of last year.  Additionally, there were 671 single-family and condominium sales in January, which represents an 11 percent increase compared to last year during the same time period.

Also, for homes prices less than $300,000, market statistics show a 10 percent decrease.

And, there was a 23 percent decrease in the number of single-family homes sold in the under $300,000 range. Also, pending sales declined 24 percent year-over-year.

In addition to closed sales and pending sales increasing for the month, the overall median closed price increased 19 percent up to $375,000 in January.  Additionally, the median closed price of homes over $300,000 was $505,000.  However, the median closed price for homes above $2 million decreased by the same percentage, 19 percent, during the same time period.

Most notably, the Naples Beach area saw a significant increase in pending sales up more than 50 percent compared to last January.

While closed sales of condominiums increased 23 percent in January, single-family home closed sales fell 1 percent, according to NABOR reports.  And, in North Naples, there were 150 closed sales of condos which was a staggering increase of 150 percent compared to last January.  Finally, the median closed price in North Naples increase a whopping 428 percent!  The increase was largely due to 79 closings from new construction luxury high rise condos priced between $1,800,000 and $2,500,000 in the area.

Overall Real Estate Sales For the Twelve Months Ending Jan. 2018

Bottom Line:

With prices rising and inventory shrinking, there are fewer options for homebuyers.  As a result, most buyers are facing tradeoffs when they are making their purchasing decision.  On the other hand, for those considering selling their home, now is the perfect time to put your property on the market. If you are in the luxury home sales market, with the median homes sales falling, now is the time to consider a home purchase.

More Information About Naples Area Real Estate:

More: January 2018 Existing-Home Sales

More: NABOR releases annual market report for 2017

February 25, 2018 Posted by Matt