The Naples Condo Market Is Performing!

The Naples Condo Market Is Performing!

Hello Naples Friends! Today, I’m shining some light on the Naples condo market and what could be brewing to be a COLOSSAL misconception fueled by new Florida legislation, increased insurance rates, and a huge media push to clickbait all of us into believing the Florida condo market is ground zero for disaster. The media would like you to believe the entire condo market in Florida is failing. This could cause many of you to build false expectations about what you can accomplish if you’re purchasing or what you can collect if you’re selling. Let’s dive into the truth about the vitality of the Naples condo market now!

TRUTH—Some older buildings, three stories or more, across Florida, have financial problems. An overwhelming majority of them are located outside of the Naples market, primarily due to the age of our buildings and how they were managed before this legislation became law.

Headlines in the news are reading this way:

• Florida Condo Market “Catastrophic” As Owners Rush To Sell Homes ~ Newsweek
• Thousands of South Florida Condo Owners Forced To Sell Due To Rising Costs ~ CBS
• Florida Condominium Market Is Becoming A Disaster Zone ~ Yahoo Finance

Naples Market Facts

Naples High-Rise and Mid-Rise Statistics

• 476 Active Listings
• 5.93 months of inventory
• 85 pending
• Avg. market time 39 days

Naples Single-Family Home Statistics

• 2,067 Active Listings
• 5.95 months of inventory
• 465 pending
• Avg market time 112 days

As you can see from some simple statistics, not only is the mid-rise and high-rise condo market not imploding as many would like you to believe, but it’s outperforming Naples single-family homes right now. Can you imagine the number of people reading these articles or hearing about them from their friends, neighbors, and advisors? I imagine it’s huge. Some of my clients have forwarded them to me, fearing their property values are disintegrating. As a result, many buyers will come to town thinking some of our best condo opportunities will sell for a fraction of the cost. Others will opt not to enter the market at all. To me, that’s unfair to both buyers and sellers. We are swimming in a sea of disinformation on every level. Working with an agent who will tell you the truth and help you uncover the information you need to make a sound decision pays.

An ounce of prevention

Sellers

Naples real estate inventories of every building type, from single-family to high-rise products, will increase dramatically starting as early as the second week of September. Many property owners did not accomplish their objective last season and opted to go off the market in hopes that pre-season will offer a better pool of buyers. Some sellers will come to grips with the idea the market is depreciating and will hop on the market at a lower price. Others will hold firm and wait until the election results to determine what to do next.

1. It would be best to go on the market today to beat the rush. You can adjust your price to respond to market conditions.
2. You should have everything required to assist a buyer with understanding your condominium’s structural integrity and financial strength. If you don’t know how to achieve that, call me. Many agents are not doing their due diligence and are creating an unnecessary stall between enthusiasm and offer, which can result in failed interest.
3. Hire an agent who knows how to get your property in front of willing buyers. John R. Wood Properties and Christie’s International Real Estate’s international exposure dominate for a reason. Call me to find out why.

Buyers

There will be good opportunities to purchase condos in the Naples market this year. If you are coming to town expecting a considerable fire sale, as these headlines suggest, you are setting yourself up for disappointment. The average discount these past 12 months is barely over 4% off the full list price. Contact me directly for the most significant discount or what you can expect on a specific property. Whether you’re deal hunting or looking for that prize second, third, fourth, or fifth getaway, you should lean on a REALTOR who has access to the off-market listings. There is more than average right now, and what you can find online.

Fees Fees Fees

We hear a lot about fees in many of these articles. Some poor lady works 15 jobs to keep up with her assessments. I’m just kidding. She didn’t work that many, but the sad story they illustrated was quite alarming. Not to discount that poor lady’s hardship, some fees are getting a little out of hand. I’ve seen 13 properties with a total annual fee of $100,000 or more. Three condos are pending, three are sold, six are active, and one is off the market. Most of those properties are penthouse units, and all but two are located in what I consider a luxury building.

The median condo fee I’m seeing is around $5,000/quarter, but some condo buildings have substantially less overhead.

Make sure you ask me about the fee structure and whether there are still any pending assessments. You’ll also want to know more about the culture of the building you’re considering. Ask me more about that, too!

New Construction

There are more new condo opportunities today than in decades, including a handful of new condos currently available at The Naples Beach Club. Not all of these offerings are available online, so don’t hesitate to contact Shannon for more information. Eight residences have sold at the Rosewood Residences of Naples, with two spectacular penthouse units still available. The other thirty-five million dollar penthouse is already pending contract. For off-beach opportunities, you might consider Epique at Pelican Bay!

That’s all I have for you about condos today! Please send me your questions or get on my calendar if you plan on using me to list or purchase your next Naples condo!

Best Regards,

Shannon Lefevre, PA
Your Naples Smart Girl!
239-595-6223