Market Data

MARKET DATA

Inventory Hike Helps April Home Sales Swell

Naples, FL (May 31, 2024) – The payoff of months of rising inventory was finally realized in April as closed sales increased 3.8% to 999 from 962 closed sales in April 2023. This is the first month closed sales have exceeded past years’ monthly comparable sales since June 2021. According to the April 2024 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), the 2,365 price reductions in April stimulated sales in the right direction. Growth in inventory does not appear to be slowing down either, as new listings in April increased 16.3% to 1,335 from 1,148 new listings in April 2023.

Broker analysts believe, Interest rates are likely to stay above 5% for a long time and there is good news on the insurance front as nine new companies have recently entered the Florida market, and 19 others have said they will lower rates or at least not increase them in 2025.

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The New
Average

Demand for the Naples lifestyle increased during the pandemic, which depleted inventory for homes in the under $300,000 market – there were 315 homes for sale under $300,000 in April. Conversely, demand for luxury properties have soared, especially in the $500,000 to $1.5 million price category, which increased 68.1% compared to April 2023 and occupy the highest number of properties available (2,410) in the current inventory.

According to the report, closed sales influencing the overall average price growth was in the Naples Beach area. For April, the average closed price of single family homes in communities located in the Naples Beach area (34102, 34103, 34108) increased 61.6% to $4,309,475 from $2,666,512 in April 2023. That said, this area was also where a large majority of properties sold for less than original list price as the percent of list price received decreased to 93.3% for single family homes and 94.8% for condominiums. This indicates sellers are reducing prices to meet the market.

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Future Fit & Forward

According to the April report, the average monthly inventory in Naples is back to its familiar pre-pandemic level. April’s inventory increased 68.1% to 5,240 from 3,118 properties in April 2023. And the months supply of homes is up to 7.3 months. 

“Home values have doubled since 2019,” said Cindy Carroll of Carroll & Carroll Appraisers & Consultants, LLC. “And there’s no indication that homeowners are at risk of losing this growth in value.” Carroll went on to say that there will be spots in the county that will experience a slight loss in value, but nothing on a large scale or that would take us back to pre-pandemic prices. “I am unable to find anything in my research that is alarming. The thing we have to focus on now is re-educating our sellers on home prices today. Their home’s value has likely increased, but the number of price reductions each month tells me that prices are still starting out too high. If a home is not priced competitively when it’s listed, sellers will likely need to lower the price to meet the market.”

As more high-end buyers discover the allure of Naples, broker analysts do not foresee the median closed price decreasing dramatically. For April, the overall median closed price increased 4% to $450,000 from $425,000 in April 2023. Though price adjustments are moving the needle in certain markets. April reported 2,365 price decreases, which decreased the median closed price 3.2% in the single family home market to $793,750 from $820,000 in April 2023.

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Busting Assumptions

The cost to build is higher than before the pandemic too. According to Mike Bone, Area Sales Manager, D.R. Horton, “The average new construction entry level price today is around $450,000 in Southwest Florida.”

The heightened cost to repair or rebuild is a primary factor in rising insurance rates. Yet, with more buyers in Naples paying cash – 65.4% of all transactions recorded in April – insurance and interest rates may not be as great an obstacle as some assume.

Growth in overall closed sales in April is a positive omen that the Naples real estate market is on track to outperform sales in 2023. Historically, May has the highest number of closings.

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FREE MARKET ANALYSIS

Contact us today with any questions. We serve the Luxury, Waterfront, and inland residential markets of Naples and other nearby Southwest Florida communities. We would  be happy to offer a Complementary Comparative Market Analysis of your neighborhood or if you have any questions about the value of your home, please feel free to contact us at 239-571-2231 or 239-231-9222 or send us an email at [email protected] or [email protected].

May market Numbers will be issued approximately mid-June by Naples Area Board of Realtors (NABOR)

If your home is currently listed, this is not a solicitation of that listing.

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