NABOR Report

*Naples, Fla. (May 26, 2017) – Inventory decreased for the second consecutive month and prices continued to remain stable in April, setting into motion a burst in end-of-season sales for homes in the market’s sweet spot – the $300,000 to $500,000 price category. Activity in that price category for both single-family and condominium homes in the resale market continued to outpace all other price categories during the month of April according to the April 2017 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). And while overall closed sales for the month decreased 5 percent, closed sales for homes in the sweet spot saw a 14 percent increase.

Phil Wood, President & CEO of John R. Wood Properties, pointed out that the April report showed a 41 percent increase in pending sales for homes in the $2 million and above price category. “There were 10 sales over $5 million in April,” said Wood. “This was a good sign we had a very strong season. I think April’s activity sets us up for a good summer.”
Overall inventory in April increased 8 percent to 5,920 homes in April 2017 from 5,480 homes in April 2016. Most notable was a remarkable 35 percent increase in the $2 million and above condominium inventory for April. However, April’s inventory decreased by 470 homes from March’s level, which was 6,390 homes.
The group of brokers reviewing the April Market Report added that homes that are unrealistically priced influenced April’s average days on market, which showed an increase of 35 percent to 97 days in April 2017 from 72 days in April 2016.
“There appears to be a number of sellers who, when pricing their homes, refuse to take into account the added competition from the new construction market,” said Jeff Jones, Managing Broker at the Naples-Park Shore office of Coldwell Banker®. Several other brokers collectively surmised that, in many cases, the selling price is typically 8 to 10 percent below the original asking price. Dominic Pallini, NABOR® President and Broker at Vanderbilt Realty, said, “an influx of new homes onto the market creates additional competition that many sellers don’t take into consideration when pricing their homes to sell.”
In response, Jones said, “Prices overall have remained relatively flat over the last year. Only the homes in the $300,000 and below price category increased in median closed price in the 12-months ending April 2017 from $207,000 to $219,000. There were actually minor decreases in all other price categories above $300,000.”
The last frontier of growth is eastern Collier County where buyers seeking single-family homes have more affordable options. This area, which includes 34114, 34117, 34120 and 34137, saw a 17 percent increase in closed sales to 122 single-family home closed sales in April 2017 from 104 single-family home closed sales in April 2016.

The NABOR® April 2017 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® April 2017 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:

 

CATEGORIES
April 2016
April 2017
CHANGE
Total homes under contract (pending sales)
1,084
1,075
-1%
Total closed sales
947 902 -5%
Median closed price
$325,000 $355,000 9%
Median closed price >$300K
$559,000 $525,000 -6%
Total active listings (inventory)
5,480 5,920 8%
Average days on market
72 97 35%
Single-family closed sales
429 404 -6%
Single-family median closed price
$434,000 $419,000 -3%
Single-family inventory
2,877 2,986 4%
Condominium closed sales
512 498 -3%
Condominium median closed price
$262,000 $296,000 13%
Condominium inventory
2,597 2,934 13%

*Naples Area Board of Realtors Report April 2016-April 2017