Naples Real Estate Update 5.6.24
Naples Real Estate Update 5.6.24
Hello Naples Friends! Today, I’m catching you up on all the things you need to know about Naples real estate, including:
• Current Inventory Levels
• Buyer Behavior
• Seller Behavior
• Thank you
Current Inventory Levels
Some inventories in the 29 areas I follow have dramatically changed over the past week. For example, Park Shore is down 14 active listings this week due to 17 properties exiting the market through expired, withdrawn, or terminated listings. Point #2 of my Post Season Predictions said I expected some owners to take their properties off the market. As we stand, Park Shore leads the pack in failed listings over the past couple of weeks, but Moorings, with 15, and Pelican Bay, with 13, are close behind.
This weird phenomenon occurs for a few reasons. Some owners are coming to grips with the idea that they missed the peak of the market and are disappointed that they aren’t going to get their perceived value. Others fear their high market time will sway buyers away from their property. Some owners feel they need more confidence their property will sell during summer. Unfortunately, many believe they’ll come back next season and be able to get their price then. In a depreciating market, clearly, this won’t be the case, and disappointment will cause a whole new set of decisions.
The most unfortunate part about all of this is that shadow inventory will cause unnecessary pressure on pricing and kick off our pre-season with what will likely be considered an instant surprise glut of offerings. There are better ways to begin positive real estate conversations with our new batch of pre-season buyers. Motivated sellers will compete, and unmotivated sellers will be easier to identify. Big inventories can also scare or stall a buyer or cause unrealistic opportunists.
Sellers should ask their agents whether their location is seeing failed listings. Less competition is a great thing! Get your property sold while others are taking a break so you don’t have to deal with the chaos that comes next October!
Here’s a rundown of how many developments and subdivisions I follow are performing. As a result of last week’s activity, both Park Shore and Mediterra were able to drop from an oversupplied market to a stable market…for now.
Buyer Behavior
Some Buyers are Stalling
If you’ve ever spent time on TikTok, you may have encountered an account where a guy finds weird and gross stuff in the grocery store and says, “Who’s buying this?” If you haven’t seen him, he’s pretty funny. I so badly want to do a real estate version of this because some of our pricing and marketing are simply outrageous. Quite frankly, I don’t blame buyers for looking and passing. As a result, we’ve seen many price reductions as we find our way to the currently acceptable value buyers are demanding.
Back To The Beach!
Everybody can agree that Hurricane Ian was a jerk. While buyers in the past have behaved skitshly for about a year after a big storm, they never have fully abandoned their dreams of living on or close to the water until Ian. Luxury golf course locations, especially those located further east, performed exceptionally well because of the fear Hurricane Ian instilled. It took a good 17 months before the enthusiasm of living “on the beach” became a goal for many again. As a result, we are starting to see lower inventory levels in locations close to the beach and rising inventory levels in golf course locations positioned further east. Curious! Don’t you think?
Seller Behavior
Sellers are negotiating!
Referring back to my post-season predictions, I also expected some after-season deals. 2 properties this past week sold for nearly 16% off the full list price. A beautiful condo in Enclave at Park Shore shaved over $1,600,000 off the list price at the closing table. Meanwhile, a home in Naples Park listed for $1,049,900 was closed for $885,000. Those are sizeable haircuts! Just last week, I showed a property in Pelican Bay. I delivered feedback that the buyer would talk it over with his wife and that I’d know more shortly. Later that day, the buyer called back to let me know he thought the market was headed in the wrong direction and didn’t want to be upside down on the property, so he was going to pass. I delivered the additional information to the listing agent, who said something like, “Hey, the Seller really wants to sell. Get me a number!” I haven’t heard “get me a number” in well over a decade! That’s crazy!
Price Drops Are In. Price Increases Are Out.
Since January 1, 2024, Naples real estate agents have encouraged their selling clients to drop their prices more than 9,000 times. This is an unprecedented amount! Compared to the 1,297 price increases, it’s pretty easy to see where the market is moving. Still, some sellers and agents are still incredibly disillusioned about what their properties/listings are worth. The toughest market is an uncertain one, and while everybody is speculating on what’s around the corner, nobody knows for sure. Election years have the ability to cause uncertainty, especially when both parties are ultra-passionate about who they want in office or, in extreme cases like this one, who they don’t want in office lol. Here are some stats I ran for my newsletter. If you haven’t signed up already, you’re missing some of my best content I don’t share on my blog! You can sign up at the bottom of this page!
Thank You!
I continue to marvel at how lucky I am to have the opportunity to work with some truly amazing people. So many of my past and current clients have been so smart and kind! Considering that REALTORS as a whole are, in a way, getting dog-piled on with the NAR lawsuits and such, I feel extraordinarily grateful to have had the luxury of being your real estate agent of choice. In a world where treating people like trash is becoming more common and acceptable, I sincerely appreciate those of you who have remained kind, compassionate, and considerate. I am really lucky to serve you.
Best Regards,
Shannon Lefevre, PA
Your Naples Smart Girl!
239-595-6223