Good Morning Naples Friends!
While October is the official start of our Naples real estate pre-season event, this bewitching month has a history of surprising us in both ways. Today I’m going to tell you how Naples real estate performed in October 2019 and give you some insight as to what Buyers and Sellers are doing and saying. I’ll also shed some light on what may be coming down the pike for you if you’re thinking about buying and selling! Take a seat and let’s get started!
In This Post
- Sales comparison to 2018
- What I heard
- What I saw
- Down the pike
Naples Sales Comparison 2018-2019
Seriously, we couldn’t do that again if we tried! In 2017 we had 1,139 new listings. October is always a big listing month for Naples even during the peaks and valleys. The next big listing month will be January…don’t snooze till then…we’ll be adding new inventory every day. If you want to keep up with the market, sign up for new listing updates in all of your favorite neighborhoods and subdivisions.
Naples Closed Sales
Sales volume is up 12% compared to last year. Is the great tax squeeze other states are experiencing responsible for the additional sales results or cold weather hitting early? Perhaps it has something to do with early season buying to capture better discounting and first dibs on some of the best offerings of the 2019-2020 Naples real estate season! It’s likely a combination of all three! The car carriers were aplenty at the first of October which is customary for a sound economy.
I see this number increase when the market is sliding south. This is hardly a difference to even discuss.
Low numbers signal strength, high numbers signal weakness.
Back On Market
Low numbers signal strength, high numbers signal weakness. Back on market status Is when a property has been terminated, withdrawn, expired or pending and It goes back on the market.
Failed contracts are a big downer for all involved. Deals die primarily due to property condition issues but other factors can result like loan qualification or buyer’s remorse (depending on how the contract was written). I had a buyer punt this season because the listing information was gravely inaccurate which we discovered during the due diligence period. The disparity was so large the buyer determined they would not be able to utilize the property in their intended way.
You want somebody in your corner protecting your best interest. I had another buyer opt to take a hike this season as well. Radon and mold are the two most gruesome findings we see on reports. This home, despite its two year age, had both. The buyer who liked the property but didn’t love it said, “mmm, no thanks.” I’m glad I protected them with the terms of the contract which gave them the easy ability to take off. I wouldn’t have wanted to buy it either. Had I written that offer the way most agents write offers, they wouldn’t have had those outs. Get protection!
Extended listings are when agents are nearing the term of the end of their listing. During crap years it’s more common for Sellers to pin the blame of a no sale on the agent and we see less of these and more terminations. In stronger markets we see Sellers believing in their agents and the market and will be more apt to extend.
Pending sales were up 22% compared to the year before! This is another important strength factor considering what closed could’ve been pending for months!
Price increases were up 12% this year compared to last as sellers and developers gear up for what they think will be a more promising season.
Price decreases were down 6% but that’s not all…the amount of reduction also shrank this year compared to last. I’m seeing a ton of 1%-2% reductions compared to the 4%-6% reductions I saw last year.
Withdrawn status is when Sellers take their properties off the market either because they’ve given up or they need a break. Looks like 4% of our sellers have a little more stamina to hold out for their buyer this year.
What I Can’t Quantify Through MLS
- The number of Sellers who contacted an agent with hopes of selling for a higher value than what was suggested. We saw one seller opt to NOT sell for that reason.
- The number of deals that didn’t happen because the buyer and seller couldn’t come to terms on a price. We’ve seen one of those happen as well.
- The number of buyers waiting to purchase what isn’t on the market yet. We have several.
- The number of owners who will sell but haven’t hit the market yet. We have some of those too.
What I Heard
- I’ve heard some buyers express disappointment about expected discounts. A few have opted to wait to see if the market turns in their favor others are still hunting better options and getting them in some cases.
- I’ve heard complaints about lack of inventory in some sectors as anxious buyers are ready, willing and able.
- One client said they were going to wait until after the election to buy. Other than that nobody seems to be too concerned this year (so far). By this time last election, fear was in full force and it negatively impacted the Naples real estate market. The results of the election impacted the market in a tremendous way once the dust settled.
- I’ve heard the disappointment from sellers as to what they can expect for the sale of their property. Many have chosen to sell anyway, some have decided to wait for a better market.
- Battles with a few condo associations which could result in hefty assessments and potential lawsuits.
- Several smart clients are asking me about the safest material choices to use when remodeling to help strengthen their chances for high returns when they sell. I wish many others who are on the market now had done the same.
What I Saw
- I saw some sellers hold out for a better price and get it. Others held out and haven’t seen success yet.
- Have you checked out Mystique at Pelican Bay yet? I snuck through the models and took a peek at the building amenities a few weeks ago. Their light fixtures are badass and they’ve done some “unique to Naples” things you won’t find in the other Naples high rises. The most eye-opening feature I saw was the enormous use of granite used. We’ve become so anti-granite opting for quartz for so many years it seemed odd but Naples is so geared towards trendy materials and those big trend materials date quicker. I view this as a one-off, path less traveled option which will likely extend the useful life of the aesthetic value and require less in future remodeling assessments. If you haven’t taken a peek, give me a jingle and I’ll take you though!
- I showed Kalea Bay a few weeks ago….sales are still through the roof and price points make total sense! Those rooftop amenities are through the roof too and I never grow tired of the favorable responses I see from buyers. The second tower is coming around nicely and they’re talking about launching the 3rd building shortly. Call me to learn more about Kalea Bay!
- Some poor quality in some of the newer construction options in Old Naples. I’ve previewed and showed quite a few homes and condos in Old Naples in October…some of it was alarmingly terrible. Ask me about my favorite though because this one is a real gem!
- Battles in a few condo associations could result in hefty assessments and potential lawsuits. It’s important to read those condo documents! A Naples beachfront condo is in a big battle and could end up massively hurting their reselling potential in the future! Another building in a beachfront community is in a full uprising over some staffing decisions that could result in a lawsuit.
Down The Pike
Price Of Improvements Don’t Always Coincide With Increased Value
Some Naples neighborhoods and buildings are performing WAY better than others. Performance can have something to do with location and also how associations are running their business. Owners aren’t required to disclose what’s being discussed. They’re only required to disclose what has been passed in a formal vote. Don’t get caught buying in a location where plans are being discussed to impose heavy assessments on expensive renovations and improvements unless they’re going to greatly impact the value of your property!
- Naples One, the proposed new development across the street from Vanderbilt Beach is back in the news with a new plan and 20% fewer residences and now 2 high-rise towers instead of 1. Some residents are already complaining while those close to Stock Construction are singing praises. They haven’t made it through the community forums yet and I think they’ll have a few massive hurdles to scale before the plans get approved.
- Hey, we’re getting a Ferrari dealership! It’s about time…lol!
It’s going to be a very curious year for Naples real estate! Check-in often for clues as to where the market is headed or better yet, ask me directly.
Have you made your appointment to list or see property yet? Get on my schedule before it fills up!
Shannon Lefevre, PA
Your Naples Smart Girl!