Happy New Year Naples Friends! I hope everybody had a fabulous holiday season and you’re fully ready to take advantage of the busiest time of year when it comes to Naples real estate. You can expect big changes over the course of the next 4-6 months as those looking for tax shelters and escapees from Winter’s harshest environments seek refuge in Naples, Florida. Today I’ll be covering what happened in December compared to last year and give you some buying and selling insight to help maneuver through the market changes. I hope you enjoy my Naples real estate market update for December 2019!
1046 listings were taken during the month of December 2019. That’s a 5% drop compared to last year. This is a sign the Naples real estate market is strengthening. In fact, new listings were down 4% between October and December 31st this year which could make it tough for some buyers to:
- Find the type of Naples property they’re seeking.
- Negotiate the deal they want.
- Easily identify motivated sellers.
If you’re thinking about buying Naples real estate this season, pre-season results didn’t help your position. We will see a fresh batch of real estate hit the market in January but it may not be as much as we need or want this year. Call me today and let me know what you’re trying to do. I have some pretty good knowledge of a few pocket listings and I’ll give you a terrific strategy to accomplish your objective.
If you’re thinking about selling, let’s chat about what’s happening in your neighborhood or building. You might be really surprised at how your location has performed this pre-season and that could lead to more cash in your pocket! I’ll give you a realistic analysis and then you can decide if the timing is right for you.
936 sales closed in December 2019 up an incredible 29% compared to last year. Buyers I represented expressed a more serious tone about accomplishing sales objectives and while there are still a few who are trying to get a deal, there seems to be a higher amount of buyers who are more concerned with getting a terrific property under contract.
Agents are marveling over how busy they were during the pre-season. Some years this sales traffic increases all the way through the season and sometimes there’s a little lull in traffic as buyers sit back in January and wait for discounts.
During good years, I’ve seen many buyers get burned for waiting too long and ultimately end up paying way more than they would’ve had they pulled the trigger earlier. In other years, patience pays off. Many of my clients call and ask for the best advice on whether or not they should strike or pass. If you tell me where you want to be, I can give you sound advice that pays dividends.
Terminations are up 2% compared to last December but down over 2% for the pre-season as a whole. Terminations shrink when the market strengthens so here’s another sign buyers may want to strike sooner than later if the goal is to buy this season.
Expired listings are down 1% for the month of December and 2.5% for the entire pre-season. This is another positive for sellers who want to sell and buyers who want an ample amount of choices.
Back On Market
Contract backouts are up 19% this December. Stories of short appraisals and property condition battles are circling a little more this year. The property condition struggles are a real concern when sellers feel like they already gave more concessions than they wanted to get the deal together. Buyer demands increase when they feel like they paid more than they should’ve and don’t want to pay for costly repairs.
Sellers are feeling a little more confident they’re going to reach their sales objectives with 5% more owners extending their listing contracts with their current agent.
Pending sales are up almost 20% compared to last December and pre-season sales were up 21% overall compared to last year. Most of us are convinced this has everything to do with an early winter coupled with the tax fiasco some of our favorite fans are experiencing back home. Pre-season results typically set the tone for Naples Sellers. Strong results build the seller’s confidence and that’s proven by several of the statistics I’m seeing right now.
If you have already identified a property you would consider buying and it is priced well, it’s time to strike. It may even be time to strike if it’s not priced well depending on where it is located. Call me for details.
There are 12% more price increases this December compared to last December. When price increases rise, we normally see a reduction in price decreases and less accommodation at the closing table. Keep in mind not all Naples neighborhoods are doing well. It’s still possible to get a great deal but you’ll want an agent who can steer you in the right direction.
There’s good news for buyers here! While increases were up in December, they’re down 7% compared to pre-season 2018. Make sure you understand which direction your favorite neighborhoods and buildings are moving because they aren’t all increasing or decreasing the same way.
12% fewer decreases happened this December too. This is another sign the market is strengthening. There are some neighborhoods and high-rise buildings that haven’t seen their share of success and these can be real opportunities for buyers. I know a few of these locations where the first buyer who writes a contract is going to get the best deal. If you’re thinking Naples beachfront, you should give me a call.
Withdrawn From Market
December results are virtually unchanged from the year before but overall pre-season withdrawn listings are down nearly 7%. That means there are more sellers who think they can sell and are willing to fight the good fight.
Clearly we’re seeing some things happening on the global front which is affecting our stock markets today. This type of uncertainty always causes a little ripple in our corner of the world and poses the question of how buyers and sellers are going to react. Will sellers opt for a good reduction now opposed to waiting until March? Will they listen more intently to buyers brave enough to make offers today or will all of this blow over and we’ll go back to business as usual. It’s certainly a great time to be watching the Naples real estate market so if you haven’t signed up to get property updates, you should get on it!
I’m off to an inspection on a fabulous home in Old Naples. Shoot me an email or give me a jingle if I can help you out!
Shannon Lefevre, PA
Your Naples Smart Girl!