Hello Naples Friends!
I’m bringing you the latest changes on Naples real estate today. Grab a seat! This one is a doozy! Here’s what I’m covering:
- Shrinking Inventory.
- Get Ready To Rumble!
- Will There Be More New Listings?
- Price Reductions Galore!
- Neighborhood Activity Shifts
The Incredible Shrinking Inventory
April 1st (otherwise known as the first-day people can no longer sell their Naples real estate). We still have a huge group of people who think if their property isn’t sold by March 31st then they’re going to have to wait until next season. This is completely true when the market is at the bottom. We aren’t there right now though. That didn’t stop 95 listings from exiting the market at midnight this morning. Last year we saw over 1,200 listings exit the market in April alone. This pushed inventory levels down to grossly undersupplied levels in some of our best neighborhoods. It’s no fun when you’re wanting to shop while there’s nothing to buy.
We’re also seeing a sizeable increase in sales which is also typical for March-June depending on the year. This phenomenon trends also. Last year we saw a massive amount of sales all the way through summer because buyers are finding they can get better deals. Seasonal inventory is plagued with sellers only mildly interested in selling, they tend to punt out during the summer leaving a more target rich environment for sellers who are willing to negotiate. Yassss!
What to expect
Some of these listings will re-enter the market immediately, some owners will give up until next October or even January. If you’ve been following a listing that is no longer available, call me. I can find out if the seller is still interested in selling and if not, provide you with the closest alternative.
Expect more listings to exit the market over the next several months. If you’re having a tough time finding what you’re looking for like some of my other clients, you have choices. Watch incognito by signing up for property notifications accessible on every Naples neighborhood on this site. Want to be more aggressive? Call me. If I know exactly what you’re searching for, I can find it for you.
Pending sales were up 3% for the month of March this year compared to last year. This is likely due to the fact that there have been many people in town who have experienced a miserable winter. It’s been a tough year for quite a few of our Naples friends and they have had enough. It’s also because of this…
Get Ready To Rumble
We just put our Pelican Bay villa under contract last week. Yay us! Here’s the thing that weirded me out. The day before and the day we negotiated the contract we had 4 showings. All four buyers and showing agents browsed around as if they had all the time in the world to make a decision. You may have all the time in the world if you have not located your favorite property but if you have, you may lose it very soon if you haven’t already.
Here are some tips to prevent losing your property.
- Make an offer. Duh, right?! Even if it’s lower than what you think the owner will take if you and/or your agent can justify your price, it’s worth taking the shot. This is the time of year many buyers lose out because they were too chicken to go for it. These people are often disappointed when they see what the property sold for because they would’ve been willing to pay more.
- Start the dialog. If you’re too chicken to make an offer, at least start the dialog with me. It could be you are missing valuable points about the property that would make you reconsider your price. It might be the seller is open to your values and would take your offer. The fact is you don’t know until you know and I can get a pretty good gauge for you or at least prepare a compelling negotiating strategy to help you get your deal.
- Relationships are everything in this business and help me immensely in getting my clients what they want. Just last month I snagged an impossible deal in large part due to to the reputation and past experience I had with the listing agent. Experience Pays!
Will There Be More New Listings?
If you’re experiencing a feeling like your favorite neighborhoods are pretty picked over it’s because they are but don’t fret. We always see new listing inventory hit. In fact, we see a nice little bump in new listings in March as current owners decide they’ve either outgrown their current properties or determine now is the year to size down or punt completely out of Naples. These are what I call our “one last season” owners.
It’s short lived as we’ll see a smaller group of new listings hit in April. New listings will become fewer as the year goes on until October. I’ve also seen some wildly amazing properties hit during the off season so don’t go completely on autopilot. Some people score big time by keeping at least one eye on the game. New property alerts are an effortless way to accomplish this task.
Price Reductions Up 11%
Price reductions in March were up 11% compared to the last year. The size of the reductions is getting pretty crazy too. I’m seeing a ton of 6%, 7%, 8%, 9% and 10% drops and even one as high as a 39% drop. (Not an April Fools joke) I am amazed at the number of people who have already signed up for property notifications. These people are notified first and reaping fabulous rewards. This is the time to identify who REALLY wants your attention and wants out of their property now.
Pictured here are just a few of the price reductions we saw this week!
It isn’t always wise to wait for a price reduction especially if it’s a sizeable one and also if the property you want is extremely unique. You could easily find yourself competing with another buyer. This may result in paying more than you would’ve if you were solo.
Be ready to pounce if you get notified of a sizeable drop. It’s common for properties that have dropped substantially to go under contract within the first week or two. Be first to the table for the win.
What to expect
You can expect more price reductions as we slip further into April but last year there were more reductions in March. There will be some in May too but they will slow dramatically as the realization hits owners that they may have missed their opportunity.
Neighborhood Activity Shifts
Some Naples neighborhoods see enormous traffic during the peak season and die during the summer. There are other locations where buying traffic picks up in the summer. This tends to take some buyers by surprise. Shifts also occur when some neighborhoods see enormous success and prices run up forcing new buyers to look elsewhere due to new price points and lack of good inventory.
The graph illustrates how Collier’s Reserve was most active in April last year.
Here are a few examples:
January – March 6 homes sold.
April – June 12 homes sold.
January – March 5 homes sold.
April – June 10 homes sold.
January – March 86 properties sold.
April – June 125 properties sold.
January – March 27 properties sold.
April – June 39 properties sold.
January – March 9 homes sold.
April – June 17 homes sold.
Last year we saw an enormous amount of buying traffic. This coupled with the group of sellers who exited the market after season made for some pretty slim inventories. Unless we’re at the direct peak or deep valley, it’s challenging to pre-determine how a market will perform. Call your agent to see if it’s better to give the listing a rest or keep marketing. If you’re thinking about entering the market but unsure if it’s a good time to sell, call me. I’ll provide a detailed history of your neighborhood and let you know what to expect.
The percentage of buyers who know it’s more advantageous to buy offseason compared to during season has increased exponentially over the past several years. Some are under the impression that August and September are the new April and May meaning if you wait til August and September you’ll get a way better deal than if you purchase in April and May. I don’t think so since many sellers are already looking forward to October and a whole new group of buyers entering the market.
By the way, some of you are NOT getting my emails. If you want to get these updates directly to your email:
Ok, that’s all I have for you today at least that I can talk about on a public post. Want to know additional details? I’m just a text or call away! Give me a jingle if I can help you and don’t forget to book those appointments in advance to give you the most care possible.
Shannon Lefevre, PA
Your Naples Smart Girl!