Sunday, April 21, 2019

Let's Talk... Hot Off the Press!
Realistic Home Values Led to Strong Sales in March...

Naples, Fla. (April 18, 2019) - According to the March 2019 
Market Report released by the Naples Area Board of REALTORS® 
(NABOR®), which tracks home listings and sales within Collier 
County (excluding Marco Island), the median closed price of homes
decreased 5.6 percent to $340,000 in March 2019 from $360,000 in 
March 2018. Broker analysts reviewing the report clarified that the 
median closed price decrease was due, in part, to an increase in the
 number of closed sales of homes priced under $500,000 during 
the last year.

Another reason for the decrease in median home price 
is due to sellers pricing their homes appropriately - based 
on actual comparisons of recently sold homes - to gauge 
their home's estimated value rather than pricing their homes
based on unvalidated values.

Geographically, the median closed price for condominiums 
in the Naples Beach area (34102, 34103, 34108) increased 
13 percent to $805,0000 in March 2019 compared to $711,500 
in March 2018, the highest increase of all areas reported. The 
median closed price for single-family homes increased the most 
in South Naples (34112, 34113) by 2.6 percent to $410,000 in March 
2019 compared to $400,000 in March 2018. Inventory during March 
increased in only one segment and place: single-family homes in 
the Naples Beach area. This area's inventory increased by 4.1 percent 
and is where a large majority of "spec" home building is taking place. 

Brokers reviewing the March report also discussed their concern 
about how water quality issues and short-term rental limits might 
impact the Naples housing market moving forward. Adam Vellano, 
West Coast Sales Manager, BEX Realty - Florida, and a member 
of the NABOR® Water Quality Task Force, remarked that actions 
by the new Governor to fast-track many delayed water-quality 
projects, appoint a new South Florida Water Management Board, 
and request the Army Corps of Engineers modify Lake Okeechobee's 
scheduled releases so there are fewer in the summer, is already 
being met with positive response.

"If the county puts limits on rentals we may see a spike in 
inventory," said Mike Hughes, Vice President and General 
Manager for Downing-Frye Realty, Inc., who added that a
limit would be bad news for a good portion of our seasonal 
residents and the homeowners and investors who benefit 
from a healthy rental market. Huskey responded that "a 
move to restrict rental lengths to the term suggested could 
significantly impact sales in some areas of unincorporated 
Collier County." As it stands, his company already has an 
85 percent rental reservation rate for next season which 
shows confidence in the market.

The March 2019 Market Report showed overall closed 
sales decreased 1.7 percent to 973 in March 2019 compared
 to 990 in March 2018. This decrease was isolated to the 
single-family home market, whose sales in March 2019 fell 
by just 17 total sales compared to March 2018. The condominium 
market in March ended with 499 closed sales, the same number 
reported in March 2018. 

However, as Bill Coffey, Broker Manager of Amerivest Realty
Naples pointed out, the report also showed closed sales in
March increased 64 percent compared to February 2019,
which reported 595 closed sales; and it increased 65 percent
compared to January 2019, which reported 588 closed sales.

"Sales activity in the first two months of the quarter was down 
compared to last year, but the March report showed a sales 
resurgence which I think will continue into April," said Budge 
Huskey, President, Premier Sotheby's International Realty. 
"Once a seller finds their realistic list price, the home tends 
to sell. The proof is in the report, which showed that sellers 
received 95.3 percent of the final list price in March." 

Many brokers have reported an increase in contracts 
(pending sales) during March, which they feel contributed 
to the 10 percent decrease in overall inventory for March. 
It is important to remember that inventory during the first quarter 
of 2018 included many homes that were put back on the market 
after having been taken off the market for repairs following Hurricane 
Irma during the last quarter of 2017. As such, the report showed 
8.7 months of inventory for March 2019, down 11 percent compared 
to March 2018.

"When inventory was tight, there was more urgency to buy," said 
Wes Kunkle, President and Managing Broker at Kunkle International 
Realty. "But so far this year buyers have been spending time looking 
around more and at new construction too." Kunkle added that the 
Southwest Florida MLS showed "about 19 percent of the single-family 
closed sales in March were new construction." 

The NABOR® March 2019 Market Reports provide 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: 

As always if you have any questions please feel free to reach 
out to me.
I hope you have a fantastic day!

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