Naples July 2019 Market Watch

Naples Market Watch Alert: We typically consider the month of July hot when we talk about the weather, not when we talk about real estate. However, based on the Naples housing market activity, real estate sales were just as hot as the temperature! Overall closed sales increased 7.1 percent over July of last year, according to the latest Naples Area Board of Realtors report. There were a total of 829 closed sales in July of this year compared to 774 in July 2018. And despite a 14.8% reduction in overall inventory compared to last July, overall median closed prices have not increased.

Naples Market Watch July 2019 Highlights:

• Overall inventory decreased 14.8 percent compared to July of last year
• Total closed sales increased 7.1 percent, up to 829 versus July of 2018
• Single family closed sales increased to 435, which was a 14.8 percent increase
• Condo sales remained flat compared to the same month last year
• Number of Days on Market increased by 3 percent up to 96 days
• Median Sales Price fell slight to $326,200 which was a 0.1 percent decrease

In spight of a 14.8 percent decrease in overall inventory, there was virtually no impact on the median closed price for the month of July. Additionally, just over a quarter of the Naples Homes on the market saw a price reduction.

Closed Sales Market Watch:

The July report shows there was a significant increase in single family homes sold compared to last July. Sales increased by 14.5 percent. Condo sales remained flat during the month.

Further, if you look at the breakdown by price range for all Naples properties you will see there was increased activity in sales for properties priced below $500,000 this July compared to last July.

Most notable was the 11.1 percent increase in closed sales for homes priced between $300,000 and $500,000.  And, the number of closed properties in Naples below $300,000 rose by 4.9 percent compared to last year during the same time.

Also noteworthy is the significant decrease in closed sales of luxury properties priced between $1,000,000 and $2,000,000 where there was an 8.5 percent decrease in closed sales.

Additionally, for Naples Condos in the $1 million to $2 million price category, there was a 10 percent decrease in the median closed price during July.

And, closed sales of Ultra Luxury homes priced above $2,000,000 remained relatively flat compared to last year.  There was only 1 less transaction during July of 2019 over last year.

So if you are looking to buy a Luxury home or condo in Naples, it’s likely you will have more room for negotiating a good price. Sellers will need to start adjusting their list price if they haven’t done so already.

Days on Market:

Typically, the reason a home remains on the market too long is due to the property being overpriced. In July, it took an average of 96 days for a property to close. If your home has been on the market for a while and you have no showings or very few showings, you should talk to your realtor about your list price.

Also, the new July 2019 ShowingTime report, a monthly supplemental report which shows the number of times properties are shown, indicated that local REALTORS scheduled over 17,000 appointments to show Naples 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.

According to Mike Hughes, Vice President and General Manager of Downing Frye Realty, Inc., “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 meager buyers – 17 showings per listing in July compared to 13 in January – and values are not decreasing.” 

Days on Market by Price Range in Naples Florida:

The overall days on market increased to an average of 96 days. However, if you look at the data based on the various price ranges you can see Luxury homes (homes priced above $1 million) takes almost 20 days longer to go to contract. And, if you look at luxury properties priced above $2 million, the average days on market goes up to 148 days, which is almost 5 months.

Affordability can be a challenge in Collier County. So, it’s not surprising to see homes priced below $300,000 are closing quicker than homes priced above $300,000.

Naples Housing Inventory:

Finally, there were 935 new listings added to July’s inventory. However, the increased inventory did not keep up with the number of buyers entering the market.

At the end of July, there were 5,200 homes on the market compared to 6,100 in July 2018.

So supply is hovering around 6 months worth of Naples Homes for Sale. Typically, a healthy market is between 6-7 months worth of properties available for sale. Having said that, inventory varies by price range and location. An experienced real estate professional will help you navigate the various communities and locations to ensure you are maximizing your investment your a home buyer and if you are selling property, they will help you price your home in alignment with the market.

Highlights by Location:

Geographically, closed sales activity was the highest in the Naples Beach area (34102, 34103, 34108), which saw a 25 percent increase in overall closed sales and a 40 percent 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 percent to $632,500 from $497,000 in July 2018.

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