Naples Real Estate Market Report November 2019
It’s been a wild Naples real estate pre-season! Check out the Naples real estate market results for November and how all that cold weather is affecting the Naples market so far this year! There are only 7 months of inventory currently available which means some markets around Naples are in high-demand. Conversations about slow market times and nothing to buy are both being had. It’s crazy!
November 2019 compared to November 2018
1,855 listings (down 4%) I didn’t see the number of listings I expected to see this pre-season. This can make finding the perfect property a little more challenging and affect your negotiating strength as a buyer.
In areas where the market is on the decline, some sellers will choose to sit out and will wait for a better time. I am seeing this in some areas like Pelican Bay and Collier’s Reserve. You can expect a slight peppering of new listings between now and January and then a slight uptick in January and again around March. If you’re scouting for something specific, you should call me directly for your best chance at snagging what you want.
809 sales (up 12%) We are experiencing a strong pre-season which could make seasonal buying tougher if inventories are light. In areas where not much happened, buyers are going to have exceptional buying opportunities. Naples’s pre-season activity is largely affected by both economic strength and cold weather. It got chilly in a hurry this year. The calls and emails from people who “aren’t doing it again” have already started. These calls are more customary around January and February so there’s no surprise here.
Naples Fun Fact – When a market goes stagnant, most buyers will watch and wait until documented price reductions occur before writing an offer. The guy who gets the best deal is usually first which means they go see the property, let their agents pre-negotiate and know which seller is willing to accommodate them the best and that buyer strikes while everybody else is on the sidelines. Sellers will accommodate lone buyers better because they don’t know if anybody else is behind them. Most everybody else gets the, “Well, you should’ve bought that one” speech. Many of the best deals I ever put together occurred just like this.
If you want a terrific deal on an amazing Naples beachfront condo, NOW is the time to do this.
There are several of you sitting on the sidelines. Pay very close attention. These neighborhoods statistics can change quickly and I see people miss often!
224 (Up 7%) Terminations occur for mostly 3 reasons. Agents gaming the days on the market system, angry sellers who want new representation and sellers who give up. Sometimes agents fire their sellers. This number is highest during poor performing markets. We will see more terminations as market times increase in certain segments of the market. See withdrawn from the market for more insight.
My average market time this year is 68 days. If you want to sell, call me!
395 (Down 4%) In changing markets we see this number increase because agents will let a listing expire and then they’ll re-list the same property again to start the market time over to make it look like a new listing. A ton of properties hit the market in October but were merely leftovers from the month or season before. Many of these have already re-listed or will re-list in January.
Market time is tricky in Naples and you owe it to yourself to find out the real story. Many buyers think big market times are bad but don’t factor price adjustments or how a property is being marketed. Call me to get the entire scoop before blowing off a property. Sometimes high days on market is because the property is a dog. High market times can also be caused by crappy marketing with crappy agents too and you can reap high rewards by knowing the story.
Contract Back Outs
165 (Same as last year) I’m only talking about the properties that were pending contract and went back on the market here because who cares about the rest of them. Properties that were withdrawn from the market because it was Thanksgiving is a non-story.
The highest contract back outs occur when it’s a terrible market. Reasons are typically tied to the economy, politics, etc. This figure didn’t change compared to last year suggesting nobody is going psycho about the upcoming election year…yet. LOL!
558 (Up 2%) Sellers didn’t get it sold during the first term of their listing agreement so they extended their listing contract with their same agent. Lower numbers suggest strength in the market and harmony with their agent choice. We see these numbers shrink as Sellers become more in tuned with depreciating markets and also when they still feel hope they can accomplish what they want to do. Many times these extensions come with a price adjustment or added perks to sweeten the deal. Offering to pay membership fees is an example.
1,186 (Up 22%) Boom! We’re having a stronger pre-season than last year and pre-season last year was good! This can hurt the next buyers in line in strong markets and help first buyers in weak markets.
To better your chances of making a GREAT purchase, go where everybody else isn’t provided there isn’t a BIG reason why people aren’t buying there. There are some BIG reasons why nobody is buying in some areas around Naples and if you don’t know them, you could be setting yourself up for disappointment.
Naples is a very close network of friends and family. It’s customary for one family to buy property in a particular neighborhood and have 3 more close friends or family members want to buy in the same location. That’s why areas like Grey Oaks and Pelican Bay thrive so well.
If you’re thinking Naples golf course communities, you owe it to yourself to ask a great agent about other viable alternatives so you can get the highest concessions at closing and end up with an exceptional property at a fraction of the cost. Naples golf course neighborhoods peak and valley at different times during the trend. Many of my buyers have been blown away over how much better they were accommodated just by entering a different gate.
188 (Down 12%) Buyers should be rejoicing in the fact there are few increases! When mindsets between Buyers and Sellers align it’s a glorious thing. The Vanderbilt Beach area is seeing some price increases which could be a reaction One Naples is gearing up. I think it might be a little premature for that.
1,366 (Down 15%) Anytime we are seeing an increase in buying traffic, not only do the number of price decreases drop but the amount of the decrease drops as well. I suspect the number of price reductions will rise in locations where limited buying traffic has taken place like our Naples luxury beachfront segment which is slow right now and poised for a correction. Have you seen what just happened in Moraya Bay?
Withdrawn From The Market
251 (Up 4%) We see this number rise especially when markets transition from a Seller’s market to a Buyer’s market. Sellers will withdraw instead of expiring or terminate. Owners come to the realization nobody is going to pay what they think their property is worth. They will sit out until they decide they’re ready to make a move or until the market turns back into their favor. Luxury property owners in Naples are big participants here. We saw this happen in Old Naples this year.
The Bottom Line
It’s not all good news for everybody all the time but when you’re working with a true advocate to help you accomplish the goal of buying or selling your Naples property, you’re going to be far better protected. Give me a jingle.
Shannon Lefevre PA
Your Naples Smart Girl!
Want to keep up with the trends? Check out my October Naples real estate report 2019.