Naples real estate season week 1 results have resulted in one hectic first week in 2021. Today I’ll go over what’s happening with the real estate market and the most current inventory report and what it might mean for you if you’re thinking about buying or selling Naples property this season. Let’s get started!
Naples’s new Listings
Naples’s new listings are down 25% compared to last year. I expected our new listings this year to be less than years past because of the number of properties that stayed on the market through the summer and were successfully sold. Many locations are looking at stark undersupplied inventory scenarios as we roll into high season causing many buyers to ask for more options. This is going to cause more sellers to consider selling but they’ll likely be coming on at higher prices. Those already on the market will be extremely confident during negotiations. I see evidence already and have been tasked to look deeper for new buying opportunities for several buyers. Unfortunately, many requests can’t be filled which means we already have a fair amount of people waiting. More on this later.
Buyers: Your best options could be what’s available to you right now. Hunting for off-market properties is going to put sellers in an ultra power position and they are extremely accustomed to starting conversations with, “Hey, you approached me” types of attitudes. Sellers are going to want to be compensated if you reach out. Also, some sellers will start a conversation about selling but if they have no place to go, they will retract.
Sellers: If you’re thinking about selling, now may be an excellent time depending on your location and your idea as to what your property is worth. We will see some part of the current market find themselves in disappointing situations because they are overvaluing their property. Listing agents are seriously duking it out for new listings which means they get more aggressive about telling you unrealistic values in efforts to get your business with the full intention of talking you down later if it doesn’t work out. Be wary of big numbers and ask for lots of proof and reasoning. You can ask us. We’ll tell you the true value and offer lots of documentation as to why we came up with our number.
New Trend Alert
Twice this week I found myself in conversations with relatively new agents touting how amazing they are because they’ve seen some success early on. This is equivalent to that pre-teen/early teen kid who thinks they know everything. Are there any parents out there who can relate? These are the same agents who are making terrible mistakes with their current listings but will likely get away with it now while the market is hot. They will eventually find themselves in a way different market sitting in the pile of bridges they’ve burned along the way.
Sellers: it pays to list with experienced agents who know your market, your product, how to build relationships, and the basic rules of negotiations in southwest Florida!
Sold listings are up 59% compared to last year. Naples experienced an extraordinary second half last year with a record-breaking pre-season. The first week of this year continues that trend by trouncing our highest record-breaking week set back in 2005 with 223 sales during the first week. This year we had 278 sales.
I’m already hearing some very interesting cues from some of our great Naples real estate leaders offering points of caution. For those of us who have experienced similar markets, we know this market has some good ingredients to shove the market right off the rails. With many of our tried and true prospect bases lining up, we also have new prospect bases building interest in Naples real estate. Let’s all try to remain calm and cordial and keep our eye on our objectives. My team and I are really good at helping you keep your objectives in perspective. Call us for additional insight!
Listing terminations are down 28% compared to last year. These are typically folks who have grown tired of trying to sell or maybe they hate their agent. Sometimes agents terminate their own listings to hide their market times. Obviously, in stronger markets, we see less gaming and more happy sellers. Here we are.
Expired listings are down 22% compared to last year. It’s hard to expire when you already sold. This is another testament to a stronger market. Historically, we see fewer expired listings this time of year. This number typically increases after Easter. During the past 3 years, sellers are extending through June and even into the deep summer months due to strong traffic.
Back on Market
Back on market listings are up 8% this year. These are listings that re-enter the market from either a failed transaction or re-entry due to temporarily being off the market for a short period of time. 33 of those back on market listings are from failed contracts this year. Property condition issues are the biggest reason for failed contracts today. In markets like this one, it’s common for some sellers to refuse to perform work. This sometimes makes the buyer angry enough to punt out of the deal.
Sometimes the buyer is at fault for requesting unreasonable repairs because they feel like they paid more than they wanted to when they went into the deal. They try to use property condition as a chance to renegotiate the deal. If the seller and/or seller’s agent feels like they’re being taken advantage of, they’re going to push back and not concern themselves with a buyer’s termination.
Buyer beware! If you try to re-negotiate to try to get a better deal, the seller could already have a backup in place which will likely prevent you from having a second shot if you later decide you really did want the property. In this case, the listing would just stay pending because it is still under contract with a different buyer now.
Listing extensions are down 46% compared to the year before. You don’t need to extend a listing contract when it’s sold. This is another consistent point to watch to show where a market is headed.
Pending sales are up 48% compared to last year with one priced at nearly $40,000,000 going under contract! That’s BIG for this market! 71 properties sold within the first week of market time as well. If you’re on the hunt for something specific, do yourself a favor by calling me to get up to the minute updates on new properties hitting the market and alerts when overpriced listings drop within range of fair value.
Many listings are going under contract within the first day of hitting the market which means there is already pent-up demand and people are on point ready to purchase. Contact me today to get the first alert on new listings to better your chances of getting a real shot at a terrific property!
Listing increases are up 62% compared to last year. Price increases seem to always start with new construction and a handful of “crazy” sellers. We’re seeing more sellers bump up this year which could lead to a real trend of price appreciation or disappointment. Lots of inexperienced buyers and buyer’s agents like to buy at yesterday’s prices and while some succeed, many fail. I’m already hearing from several buyers about how they “should’ve done it last year” or even two years ago. Don’t look back, we’re not heading there anymore.
Price decreases are down 62% this year. Both of these trends should give buyers a real cause to do something now. It also fuels my personal belief that the market values have a real chance of increasing substantially this season. This could mean today’s buyers are going to get better deals than those who wait until March and April to purchase. Many of you are aware of the end of season deals. This is not the best year to use that strategy especially with more buyers staying well into June ( a new phenomenon).
Naples Inventory Report
Here’s an example of what has happened since my December Naples Inventory Market Report I wrote on the 9th of December:
- Aqualane Shores 5 months (December – 7 months)
- Audubon 1.91 months (December – 3.5)
- Bay Colony 5.8 months (December – Less than 7 months)
- Collier’s Reserve 2 months (December 3)
- Grey Oaks 2 months (December 3)
- Mediterra 5 months (December 8 months)
- Moorings 3 months (December 4 months)
- Naples Cay 10 months (December 11 months)
- Old Naples 4.78 months (December 6 months)
- Park Shore 5 months unchanged.
- Pelican Bay 3.87 months (December 5 months)
- Pelican Marsh 2.23 months (December 2.76 months)
- Pine Ridge 3 months (December 3.89 months)
- Port Royal 5.63 (December 7.82 months)
As you can see, we did NOT get that increased inventory we typically get at the beginning of January which normally increases our inventories in our favorite markets. Here’s what you can do to strengthen your opportunities to acquire real estate this season.
Purchasing From Afar
It isn’t a good idea to book your flight and hotel and take several days to make it to Naples expecting the listing you like to still be available. Unless there are several options, I would strongly encourage you to negotiate your offer from afar and come down to approve. Ask me how I protect my buyers who are purchasing sight unseen properties.
For those of you looking to buy with your brain this year, it may take some time and more than one attempt to make a purchase you are going to be happy about. Ask me how I can help you accomplish your goal of buying without overpaying and how to get the most upside on the properties you’re considering.
Having a hard time falling in love with the properties currently on the market? Call me today to find out what I know about what’s coming on the market and let me help you snatch the next property you’d be proud to purchase.
That’s all for today Naples friends. I hope you enjoyed my post. If I can answer any questions, show you some fabulous properties or help you accomplish a terrific sale, I’m just a text, call or email away!
Shannon Lefevre, PA
Your Naples Smart Girl!
- Aqualane Shores
- Audubon Real Estate
- Bay Colony Real Estate
- Collier’s Reserve
- Coquina Sands
- Grey Oaks
- Gulf Shore Boulevard
- Kalea Bay
- Naples Cay
- Old Naples Real Estate
- Park Shore Real Estate
- Pelican Bay Real Estate
- Pelican Marsh
- Pine Ridge
- Port Royal
- Quail West
- Royal Harbor
- Talis Park
- The Dunes
- Twin Eagles
- Vanderbilt Beach