Naples Market Report | July 2019
Spike in July Home Sales, a Sign of Heightened Buyer Interest
Naples, Fla. – Heightened showing activity in June led to a spike in July’s closed sales, which increased 7.1% to 829 closed sales compared to 774 closed sales during July 2018. And despite a 14.8% reduction in overall inventory compared to last July, overall median closed prices have not increased.
“26% of the homes on the market during July had price reductions,” said Jeff Jones. “The number-one reason a home lingers on the market is that it is priced too high. Those price reductions seemed to bring more buyers into the market.”
The July 2019 ShowingTime report, a monthly supplemental report that’s now being run alongside the monthly Market Reports, indicated that local REALTORS scheduled over 17,000 appointments to show a range of properties during July. On average, the report shows that a home for sale in Collier County is shown 17 times before it sells. Broker analysts believe the less inventory people have available to view, the more properties they want to see. This is why they believe now is a good time for sellers to enter the market so they have the opportunity to capture buyers who are looking at homes now.
“The late summer and early fall are a good time for a seller to list a home because there is a lot of interest from eager buyers – 17 showings per listing in July compared to 13 in January – and values are not decreasing,” said Mike Hughes.
Sellers added 935 new listings to July’s inventory, but this increase in inventory failed to keep up with the buyers entering the market. At the end of July, there were 5,200 homes on the market compared to 6,100 in July 2018.
“We have about a 6-months supply of homes, which is lower than we like during this time of year,” said Jones.
According to Coco Amar, the report showed one category where sellers seemed more open to negotiate home prices. “In the $1 million to $2 million price category for condominiums, there was a 10% decrease in the median closed price during July. This decrease in median price might have been precipitated by soft sales for condos in this price category as its sales decreased the most during July [-17%] compared to all other price and home type categories as compared to July 2018.”
Since January, median closed prices have decreased 2.9% to $335,000 from $345,000. But compared to last July, prices have held steady. July’s median closed price was $326,200 compared to $326,500 for July 2018. However, based on a rolling 12-month analysis, only condominiums priced above $2 million have seen a substantial increase in their prices, i.e., 13%.
Geographically, closed sales activity was the highest in the Naples Beach area (34102, 34103, 34108), which saw a 25% increase in overall closed sales and a 40% increase in single-family home closed sales compared to July 2018. Interestingly, the median closed price for condominiums in the Naples Beach increased 27.1% to $632,500 from $497,000 in July 2018.
“Land values are high right now,” said Amar, “which will make homes for sale in the resale market more attractive this fall.”
If you are looking to buy or sell a home in Naples, contact Taber at Calusa Bay Properties. Calusa Bay Properties is one of the top selling real estate firms in Southwest Florida. We specialize in new home construction within the Pelican Bay community. Click Here to Learn More About Calusa Bay Properties.
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This report was provided by the Naples Area Board of Realtors® (NABOR®)