Naples Luxury Market Insight 2.7.19

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Good Morning Naples Friends!

Today I’m going over big changes I’m seeing with the Naples luxury market. Subtle changes and lots of whispers about big transactions are swirling around town. Is it hype, hysteria or heresy. Find out here!

Naples Luxury Market Statistics

  • January 2018 – 3 sales – highest sale – $7,875,000 (mine by the way)
  • February 2018 – 9 sales – highest sale – $16,100,000
  • March 2018 – 10 sales – highest sale -$14,900,000
  • April 2018 – 13 sales – highest sale – $15,250,000
  • January 2019 – 9 sales – highest sale – $22,500,000
  • 2019 pending sales over $5,000,000 – 19

Naples luxury closings priced north of $5,000,000 are up 300% compared to this time last year. Pending contracts are up too and that’s just counting what is actually listed in MLS. There are some really nice pocket pending properties and some pretty large contract negotiations going on I’m not counting.

Naples Luxury Buyers Thrives On Buying Traffic.

If a Naples luxury market sits still for longer than normal, getting something to sell is rough! Take the homes on the Strand at Bay Colony, Nothing has sold since 2015 but one went under contract January 11th and shortly after another pocket deal went under for nearly double the price.

Then consider that amazing unit in Sancerre that sold last year. It was gorgeous but it still took 249 days of market time and only sold for $1,160/ft. Fast forward a few months when nothing else is on the open market and something else goes under contract privately at $1,732/ft.

Remington at Bay Colony saw their fair share of peaks and valleys. In 2016 they were the market leader in sold price per foot in the $1,800’s, shortly after a huge glut of inventory and stalled sales for a year. After some reduction, completely sold out.

Buyers Are Striking Earlier This Year!

The buzz is definitely on already so if you were hoping to wait til the end of March or April for some after season discounting, you may be in trouble especially if the property you have your eye on is exceptional.

True Story:

Back in January, I spoke to two different buyers about the same property. It was priced high and neither party wanted to go for it. The listing agent hinted toward discussions with the seller about a price reduction.
I instructed both buyers to submit a reasonable offer at that time even though it would be considerably lower than the list price. I explained the agent was intelligent and could talk facts with the seller. I also explained if they waited for the price reduction they would likely compete with other buyers. Neither bit.
The property was reduced yesterday. Both of my buyers are ready to do something but there are already 2 written offers. I know that will chase one of them away for sure. It’s unclear if the other will try to compete.
One client was not that committed so I don’t worry too much about them but the other buyer was specifically interested. There is not a viable plan “B” for them at this time and they may end up waiting years for a similar opportunity.

How To Mitigate Missed Opportunities

Call me. 99% of you have bought and sold several properties. You like all of my past clients know the difference between somebody who knows what they’re talking about and somebody who doesn’t. Typically it takes less than 3 minutes for people to decide to work with me. I’ll hear your objective and pitch a plan of attack. It’s really that easy.

In the meantime, the weather in Naples is GLORIOUS! I hope you’re enjoying it or planning a trip down soon. My calendar is getting full. Make sure you save your space so I can take the best care of you.

Best Regards,

Shannon Lefevre, PA
Your Naples Smart Girl!

 

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