http://napleshomesbyrich.com/blog/archive_202501/sort_entrydatetime-desc/ Greetings and welcome to this month's Market Report!  I hope all is well with you and thanks again for your referrals.  It's the highest compliment I can receive!Before we get to last month's data, here is a story regarding residential new construction in SWFL. Southwest Florida has hit its lowest point in new construction since the start of the decade, according to the FGCU stats, with a couple of exceptions: The months right after Hurricane Ian's destruction and the start of the pandemic - when economic activity was all but shut down in Collier, Lee, Charlotte, Hendry and Glades counties.For Collier, the drop is more dramatic, with the low points even falling below the pandemic and Ian eras. The Naples area has largely been on a slide since summer. The 145 permits in September were the lowest since November 2014, and with December numbers still untallied, Collier already had been on pace on having its lowest annual numbers since 2014. October had 200 and November finished with 160. By comparison, May 2021 featured 489, the high point of the decade.  For the full article, click here:    https://www.naplesnews.com/story/money/2025/01/13/notable-shifts-sw-florida-new-home-construction-on-downward-slide-naples-collier-fort-myers-cape-lee/77514079007/OK...onto my report!The Naples area housing market ended the year strong, dispelling whispers of falling values and reluctant buyers. The overall median closed price during December decreased only 4 percent to $600,000 from $625,000 in December 2023. This decrease was driven largely by a 13.9 percent decrease in the median closed price for the condominium market to $447,750 from $520,000 in December 2023. The median closed price in the single family home market increased 2.3 percent to $767,500 from $750,000 in December 2023. Both sellers, whose confidence in the Naples housing market was demonstrated in a 26 percent increase in new listings for December; and buyers, whose appreciation of the increased inventory resulted in a 7.4 percent increase in pending sales during December, reaped the benefits of a housing market that is delivering on its reputation.According to the December 2024 Market Report by the Naples Area Board of REALTORS® (NABOR®), 15,459 new listings were added to the market (a 15.7% increase) in 2024. Also a significant year-end achievement, 10,090 properties went under contract (pending) and 7,966 homes transferred ownership (closed). For December, overall closed sales increased 4.6 percent to 594 closed sales from 568 closed sales in December 2023. Of all sales recorded during December, 57.9 percent were cash sales. Overall inventory increased 35.7 percent to 5,695 properties from 4,198 properties in December 2023. With more options for buyers, days on the market increased 42.4 percent to 84 days compared to 59 days in December 2023. Before you freak out regarding the increase in days on market, remember that during the 10 years prior to the pandemic, the days on market averaged 90 to 120 days.  We are also at 8.6 months of inventory in December, and on the path toward a more traditional and balanced market. ("Months of inventory” is calculated by dividing the inventory by the number of closed sales in one month.) The Cool Breeze of Change To provide equitable comparisons during 2024, broker analysts at NABOR® used market report data from 2019 as it was the last year when activity was not influenced by a pandemic or hurricane. But one factor will make it difficult to continue this practice: the balance of inventory has shifted. In 2019, the majority of the area’s inventory was in the $300,000 and below price category (1,535 properties in December 2019 compared to 427 properties in December 2024). But today, most of the inventory available is in the $500,000 to $1.5 million price category (1,216 properties in December 2019 compared to 2,609 properties in December 2024). When interest in homeownership in Naples spiked following the pandemic, properties on the low end sold fast.  The demand resulted in an increase in overall home values for our area. Where we sit today, there are now fewer single family homes for sale priced below $300,000 than single family homes for sale priced above $5 million. Selling the Dream The number of home sales in December could have been higher for our area, but many homeowners are not willing to surrender mortgages they obtained when interest rates were very low.  Dr. Shelton Weeks, Lucas Professor of Real Estate and Director of the Lucas Institute for Real Estate Development & Finance at Florida Gulf Coast University stated, “Historically, a 7 percent interest rate is very good. If we look at the data today, the job market is strong, but inflation is not under control yet so there is some probability of rate increases this year.” The NABOR® December 2024 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. NABOR® sales statistics are presented in chart format, including these overall (single-family and condominium) findings for 2024: According to the December report, the $500,000 to $1.5 million price category reported the highest number of closed sales (3,862) during 2024. The East Naples area (34114, 34117, 34120, 34137) reported the highest number of single family home closed sales (1,542), for the year with a median closed price of $650,000. The North Naples area (34109, 34110, 34119) reported the highest number of condominium closed sales (1,073) for the year, with a median closed price of $489,000. The December report also showed 1,076 price decreases for the month, which could make properties more attractive for buyers during season. In fact, median closed prices for condominiums in the Naples Beach area (34102, 34103, 34108) decreased 29.6 percent in December to $950,000 from $1,350,000 in December 2023. A relatively new standout that may continue to impact the cost of condo ownership in Naples is the new law requiring residential condominium associations to complete structural integrity reserve studies for buildings that are three or more stories tall. It also requires associations to have sufficient reserves to cover major repairs and to conduct a survey of reserves every decade. Depending on the age of the property, the findings of these reports could result in condominium associations assessing higher fees on owners to fund the reserves and repair costs. Assessment increases may be a factor in the median closed price decrease for condominiums in the Naples Beach area during December. Make sure you work with a REALTOR® who understands these new laws and can obtain projected assessment costs from an association before you view a property.  I make it a habit to also check with a development’s clubhouse operator to find out what’s included in monthly fees and whether there are any major renovations planned in the near future that could result in a member dues increase.  As always, please don't hesitate to call with any questions around the world of SWFL real estate. I am here when you need me! Kind regards... Rich Townsend"Your Realtor for Life"Richard Townsend LLCDowning-Frye Realty, Inc.cell: 239-289-8530rich@napleshomesbyrich.comwww.napleshomesbyrich.com http://napleshomesbyrich.com/blog/12/rich's-market-report:-more-inventory-but-prices-steady/ Thu, 30 Jan 2025 03:59:13 -0500 Greetings and welcome to this month's Market Report!  I hope all is well with you and thanks again for your referrals.  It's the highest compliment I can receive!Happy New Year and welcome back to our snowbirds.  We can tell you are back as we see the car carriers unloading your autos and the increased hustle bustle within the community.  I, for one, am happy to say farewell to 2024.  With two hurricanes within 13 days and a polarizing election, I'm ready to turn the page!In case you missed it, a national magazine has confirmed what Neapolitans already know: Naples is the best place to live in the United States.  Naples ranked No. 1 in U.S. News & World Report's 2025-2026 Best Places to Live rankings of 150 major cities. Fort Myers was ranked in the top 40.  U.S. News - considered a global authority in rankings and consumer advice - says that, to make the top of the list, "a place had to have good value, be a desirable place to live, have a strong job market and a high quality of life."  Naples in recent years ranked high as well, coming in at No. 6 on the 2023-24 list of the 150 list of Best Places to Live.  U.S. News said its rankings were based on how well cities meet American retirees’ expectations, with measures including happiness, affordability, health care, desirability, retiree taxes and job market.OK...let's move into review of the November 2024 market data and conclusions...A 23 percent increase in new listings during November was a welcome addition to the Naples housing market’s overall inventory, which rose 32.4 percent to 5,368 properties from 4,052 properties in November 2023. A Fading Shadow The COVID pandemic and multiple hurricanes cast a shadow over the Naples housing market making it difficult to examine and compare data to activity within the last five years. To provide historic perspective void of these market disruptions, NABOR® began comparing monthly data to data from corresponding months in 2019 (pre-COVID). But this long shadow is finally fading as November’s market report shows improvement and stability in several significant areas. Inventory is finally up to where it was in April 2020.  More new listings are expected in December too, which will provide many great, new options for buyers who visit during the 2025 winter season. Overall median closed price decreased 1.7 percent to $575,000 from $585,000 in November 2023. This decrease was fueled by the condominium market, which reported a median closed price decrease of 10.8 percent. Alternately, the single-family home market’s median closed price in November increased 2.8 percent. Months supply of homes in November was 8.1 months compared to 5.5 months in November 2023. This figure illustrates the number of months it would take for all active homes in the inventory to sell. It is calculated by dividing the number of homes for sale by the number of homes sold in the given month. According to real estate experts, 12 months of inventory is historically considered a balanced market for Naples. There were 1,288 price reductions in November.  The practice of aspirational pricing by sellers to 2020-2021 levels is quickly fading as those sellers continue to reduce their prices down to realistic market levels.  If the Naples market continues on this path, we should expect to see more unit growth in 2025  and home prices will likely return to the mean and pace inflation. Pre-Season Boost Overall pending sales increased 10.7 percent in November to 732 pending sales from 661 pending sales in November 2023. Overall closed sales decreased 18.4 percent in November to 448 closed sales from 549 closed sales in November 2023. Days on market increased 40.7 percent to 83 days from 59 days in November 2023. Incidentally, days on market during November 2019 was 92 days. We know many homes were pulled off the market during late spring through early fall.  I anticipate we will start to see many of them return to the market in the next month or so, which will likely cause the days on market to increase because people will need more time to view all the new options. According to Dr. Shelton Weeks, Lucas Professor of Real Estate and Director of the Lucas Institute for Real Estate Development & Finance at Florida Gulf Coast University, “I don’t think we will see interest rates go below 6.25 percent. If we end up at 6.5 percent in 2025, many buyers will be very happy. Rates are historically very good, and if the stock market continues to perform well, then we should expect more people will feel confident in investing in a second home in 2025.” The NABOR® November 2024 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. NABOR® sales statistics are presented in chart format, including these overall (single-family and condominium) findings for 2024: Condominium Market Outlook Mandatory milestone structural inspections on most condominiums in Naples have been completed and they have done very well.  Southwest Florida is not facing the same challenges as the east coast of Florida where many condos built before 1992 did not adequately fund reserves to pay for necessary structural repairs. In November, the Naples condominium market enjoyed a 27.9 percent increase in new listings, which thereby boosted its inventory 41.7 percent to 2,709 condominiums from 1,909 condominiums in November 2023. The cost of living in an older condominium may increase as associations begin to replenish their reserves.  The Insurance Obstacle A home with an old roof may cause insurance coverage issues for the buyer. In some of these cases, instead of delaying a sale until a roof is replaced, sellers are reducing prices.  I recommend sellers and buyers work with a seasoned real estate professional to identify any characteristics that could impact insurability. We can access association classes that provide information on contributing factors influencing the cost of homeownership like home and flood insurance, building codes, new condo/HOA codes, and changing FEMA guidelines. For example, small independent insurance brokers can sometimes offer coverage options that the large insurers don’t offer.  Working with a realtor professional who can navigate the Naples market and who has relationships with auxiliary professionals in areas like inspections, financing, and insurance will make a big difference for both sellers and buyers in 2025.  There are many new companies offering coverage options in Florida now and the added competition will eventually help to reduce price spikes. As always, please don't hesitate to call with any questions around the world of SWFL real estate. I am here when you need me! Kind regards...RICH http://napleshomesbyrich.com/blog/10/rich's-market-report:-naples-rated-1-city-in-us!/ Tue, 07 Jan 2025 04:39:58 -0500 Greetings and welcome to this month's Market Report!  I hope all is well with you and thanks again for your referrals.  It's the highest compliment I can receive!In case you did not know, real estate sales activity has been slow.  Since the Covid peak in 2021, there has been a downturn in showings and sales for about 2 years now.  Last year (2023) actually held the distinction of the lowest annual sales since 1995!  That was until this year.  Annual real estate sales nationally have fallen even further, making in 2024 the lowest in 29 years.  See the chart below. So why is this?  What's the reason(s)?  There are many theories.  One thing for sure is that inventory has risen and buyer appetite has fallen off.  Additionally, as I've said often in my newsletters over the last year, there are a bunch of sellers who are over priced in the current marketplace.  They are living in the past of market high prices of 2021.  Check out the full article here:  https://wolfstreet.com/2024/10/23/demand-destruction-for-existing-homes-sales-in-2024-to-plunge-below-4-million-homes-lowest-since-1995-as-supply-spikes/In Naples we have fared pretty well considering we had 2 hurricanes in a span of 3 weeks this fall, and a record breaking 3rd one just 2 years ago!  Naples remains as one of the top destinations in the country to live.  With that said, I am very grateful to be here and serve you with your real estate needs. I wish you and yours a wonderful holiday season of love and harmony.OK...let's take a look at our local October ending numbers:The housing market in Naples during October was remarkably resilient even as it faced interruptions from two major hurricanes. There were 1,179 new listings in October, a 13.9 percent increase compared to September. More inventory means more competition. As such, the overall median closed price in October decreased 3.6 percent (year over year), which was fueled by an 8.1 percent decrease in the condominium market. Broker analysts reviewing the October 2024 Market Report agree that storm-ready homes and storm-familiar residents help the Naples housing market rebound quickly after a storm and these safeguards strengthen its reputation as a desirable homeownership destination.A Month of DistractionsOctober was an outlier month this year for home buyers because of the election too.  So, in addition to being distracted by the two storms, buyers were also distracted by the election and what it could mean for the economy. In the end, sales were down 21.6 percent for the month, but there were some positives too. Overall inventory continues to rise, and we are almost back to pre-pandemic (2019) levels. For October, inventory increased 30.9 percent to 4,746 properties from 3,627 properties in October 2023. And while new listings were down 6.6 percent compared to October 2023; they rose 13.9 percent compared to September 2024.  Prices are beginning to reflect the added competition. Although prices remained stable in the single family market in October, we did see some downward pressure on condo prices during the month.  The overall median closed price in October was $568,500, a 3.6 percent decrease from $590,000 in October 2023. In the single-family home market, the median closed price increased 3.2 percent to $727,500 from $705,000 in October 2023. And for condominiums, the median closed price decreased 8.1 percent to $413,750 from $450,000 in October 2023. I was expecting a rush of sales in October because interest rates dropped in September.  Unfortunately, the overall pending and closed sales statistics didn’t meet my expectations. But the interest rate drop did make a difference as cash sales were only 48.6 percent of all sales reported in October. For many years, cash sales have been above 50 percent. The Impediments That Remain There has been an increase recently of home sales being contingent upon the buyer selling their home. Power is beginning to shift to the buyer, but we are still only at 7.1 months of inventory, so we are not quite there yet. A seller is chasing the market if they are not working with a seasoned REALTOR® to review prices of comparable new listings each month.  Every month a home doesn’t sell means the seller must carry the cost of homeownership. There were 1,003 price reductions on existing homes for sale in October too. Sellers need to stay competitive especially with our rising inventory. Sellers and buyers of condominiums may find some relief in the new year as state legislators may explore the possibility of delaying the deadline for mandated reserves. Structural studies are still required to be completed by December 31st, but associations won’t have to budget the money for reserves until they adopt their budgets for 2025. One option that may be explored during the 2025 Legislative Session is low or zero-interest loans for associations or condominium owners to help pay for special assessments. The NABOR® October 2024 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. NABOR® sales statistics are presented in chart format, including these overall (single-family and condominium) findings for 2024: Hurricane Ready Homes Abound It’s been over 30 years since Hurricane Andrew tore through South Florida necessitating new building standards and regulations. Since then, Florida and Naples have continued to make storm water and infrastructure improvements a priority. As such, most homes today that are on or near the water in Naples can endure tidal surges and hurricane force winds. Storm hardiness projects, like the installation of new storm water pipes that were recently approved for the City of Naples to reduce street flooding, are a positive sign that we are continuing to move in the right direction, so our neighborhoods are safer and more resilient.  Most homes in the Naples Beach area, which include a majority of the area’s luxury properties, are already 12 feet above sea level. These homeowners also tend to invest in added storm protections. Also, our local board of Realtors increased our member education in 2024 to include resources and classes that provide REALTOR® members with information on several factors influencing the cost of homeownership like home and flood insurance, building codes, new condo/HOA codes, and changing FEMA guidelines.As always, please don't hesitate to call with any questions around the world of SWFL real estate. I am here when you need me! Kind regards...Rich http://napleshomesbyrich.com/blog/9/rich's-market-report:-annual-sales-lowest-in-29-years??/ Tue, 07 Jan 2025 04:33:22 -0500