Market Conditions — June 2023
Naples Housing Market Prime for Summer Buyers
Broker analysts reviewing the June 2023 Market Report by the Naples Area Board of REALTORS® believe a surge in summer travel contributed to the reduction in home sales in Naples during June. The report showed a 13.6% decrease in overall closed sales for the month to 837 closed sales from 969 closed sales in June 2022. Though the dip in closed sales appears temporary and may not linger into July’s closed sales data as overall pending sales (homes under contract) in June increased 0.8% to 800 pending sales from 794 pending sales, and June’s showings increased slightly from showings reported in June 2022. Fortunately, slow sales in June did not impact home prices as the median closed price reported in June increased 0.4% to $602,494 from $600,000 in June 2022.
Upon reviewing the report, Dominic Pallini remarked that he believes “a change in consumer sentiment is coming as people get more comfortable with higher interest rates. I think they went up too fast and it frightened a large segment of home buyers. But we’re starting to see more price negotiations and realistic list prices.”…
The percent of list price received during June decreased 2.9% to 96.2% from 99.1% in June 2022. “Last year, sellers were immobile on prices,” said Wes Kunkle. “But I haven’t heard of any bidding wars this year, and the drop in list price received indicates more price negotiations.”
“Buyer hesitation today is fueled by the three horsemen of the homebuying apocalypse: insurance, property taxes and interest rates,” said Jillian Young. “Despite these challenges, the Naples area remains a highly desirable lifestyle destination for high-net worth individuals. In the last year, there have been 193 home sales over $5 million.”
Overall inventory continues to rise compared to 2022 levels. June had an 8.2% increase in overall inventory to 2,659 homes from 2,457 homes. But according to the area’s top brokers, this increase was due to low sales for the month and not because of new listings, which decreased 28.2% to 860 new listings from 1,198 new listings in June 2022.
“Travel is the elixir that will make people feel inspired to buy again once they return home from summer vacations,” said Cindy Carroll. “It’s been 15 months since the market peaked [December 2021]. We’ve been through a pandemic and hurricane and still the monthly reports fail to indicate a market correction will happen anytime soon as median and average closed prices continue to hold steady.”
If you are looking to buy or sell a home in Naples, contact Taber Tagliasacchi at Calusa Bay Properties. As REALTORS® we have the ability to provide a virtual showing, an accurate market comparison or negotiate a sale. A REALTOR® can ensure your next purchase or sale in the Naples area is a success. Search for your dream home HERE.
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