Naples Real Estate Update January 2020
Good Morning Naples Friends! If you were like me traveling to and from the Naples airport this holiday season, you know first hand how busy our fabulous airport gets. At this point, I think it’s pretty safe to assume visitors weren’t just coming to enjoy our terrific weather!
After analyzing the results between January 2020 in comparison with January 2019. Huge differences in the market with a very clear picture we are having a much stronger year than 2019! If you’re planning a Naples real estate purchase or sale, you’re going to want to read this first!
The Naples Real Estate Numbers
Listings taken during the month of January were down 23% compared to last year. Anytime there is softening in the market, some owners will pull their properties off the market while others will pause before listing. We’ve seen evidence of both those scenarios this year. This number also includes those who try to game the market time. In slower markets, it’s very common for agents to pull a property off the market for a short period of time and re-list to make it look like a new listing. We see less of this when properties are selling or garnering enough buyer attention.
Sellers: If you have thought about selling anytime during the past year but exited or held off for a better market, call me today to see if now is a better time to reach your objective. You might be surprised!
Buyers: If we keep seeing activity like this, you may see more listings activity. Be prepared to strike! Some buyers are losing properties which will cause them to act faster when new properties hit the market. Over the course of this past year, you may have had a couple of weeks or even more than one month to react. In faster-moving markets, you may have a day or two. I recently showed an amazing condo in Le Ciel Venetian Tower this week. I don’t see it lasting very long at all.
Sales are up 20% compared to last January. The most interesting factor here is the fact Naples enjoyed a very strong pre-season. Sometimes when we see a strong pre-season, we see a lull in activity in January and February and a possible strong late and post-season. January closed with a hefty increase in sales over last year. This is causing problems for slow-moving buyers.
By the way, we sold our latest St. Maarten Pelican Bay listing in 13 days while our toughest competitor is still on the market and has recently reduced! Ask me how we did it!
Buyers: This is not the year to stall! If you’ve been watching listings over the past year, some of the best properties are moving. If you have your eye on something, it’s time to let me know what it is so I can help you get it. It is NOT wise to wait til March this year. There are too many buyers pulling the trigger.
Sellers: Happier days are here again but it’s not time to go crazy with your prices. We have a great amount of data to show you what your property is worth. Call us for a true and accurate assessment.
Terminations are down 18% compared to last year. This is another strong sign owners are happy with their agents and also with the activity of their listings. This is a definite sign of a strengthening market.
Buyers: Signs of strength typically lead to seller confidence which leads to less talking points for you when you make an offer. If we’re in for another run-up, you’re going to want to make those offers sooner than later to avoid paying more than you want to pay.
Sellers: List with an agent who can show you actionable results. With an increase in sales comes confident listing agents who fall back to lazy habits. Now is the time for active results. List with an agent who has a definitive plan to get your property sold and doesn’t sit back after collecting a few good checks. We see this trend when the market heats up. It starts with an agent’s inability to answer a telephone preventing showings and sales. Ask me more about this!
Expired listings are down 2% providing an additional data point of proof the market is stronger than last January. More sales results in fewer expired listings…it’s not rocket science.
Buyers: Sometimes lengthy market times can increase the motivation of a seller to cut a good deal. Naples real estate market time is one of the most misunderstood data points. Ask me about the differences and what high market times can mean because it isn’t always what you think.
Sellers: The odds of selling your property are higher this year but you need an agent who can help you avoid a failed listing by leading you to a successful sale. Call me to see how we can assist you.
Back On Market
The back on market data point is the only data point showing weakness with an increase in 14%. Impeachment discussions, global altercations, stock market wiggles and the coronavirus all played a role in some buyers opting out.
Back on market listings also includes properties that re-entered the market after nearly giving up.
Seller’s confidence builds in a stronger market. They are more apt to say, “no” to unreasonable repair requests because they think they can get a better deal and in stronger markets, they do get a better deal.
Extended listings are up 3% which means fewer agents/sellers are playing the market time game. This is another seller confidence data point not necessarily to be confused with longer market times. This also means sellers are more confident with their current agents’ ability to get the job done. Most people continue a relationship with their agent if the agent is getting favorable results and they have more confidence they can sell.
Pending sales are up 33% compared to last year. BOOM! If sales performance is what happened 30-45 days ago, pending sales data is proof of what happened 1-5 days ago (typically). Buyers are not waiting for postseason discounting and if this traffic keeps up, prices could start to stabilize in some areas and increase in other locations.
Buyers: This is another reason why I think you should make your selections now and write those contracts. If sellers are more confident, they tend to be tighter at the negotiating table first and then increase prices. I’m already seeing evidence of this.
Sellers: Now is a great time to check out what is going on with the inventory in your neighborhood. Call me today and I’ll tell you exactly what is going on so you can make the best decision.
Price increases are down 31% which is largely due to our lack of new construction. Developers can’t increase what already sold.
- 487 new construction properties in Naple built between 2019-2020 are available.
- 259 new construction properties are currently pending.
- 671 sold during the past year.
Naples is in a new construction availability state of emergency with technically only 7 months of inventory at this time.
Buyers: If you have your eye on new construction in Naples, call me today for additional advice or stay tuned for my Naples new construction report coming out soon.
Sellers: Have a new home or condo you want to sell? Ask me about how to compete with developers and my effective tools I use to sell new construction. My results will blow you away.
Price decreases are down 20%. Nearly 500 fewer prices reduced this January providing yet another data point of a strengthening market. If we continue down this path, we can expect more price increases and higher prices as new listings hit the market. We can also expect average discount rates to decrease.
That’s not the most intriguing factor. 79% of the price reductions taken this week were less than 3%. Last year we saw an enormous amount of price reductions north of 5% and a huge number of price reductions marked down 10% or more. This past week there were only 6 reductions at 10% or more.
9 properties reduced this week are already under contract. This is a good example of how the buyer prospect base is watching closely!
Buyers: Be responsive B. E. responsive!
Sellers: If your property isn’t selling, it may not be your price! Check out my post on Naples market conditions and scroll down to see what is preventing Naples real estate sales!
Listings withdrawn from the market are unsurprisingly down 2% following the consistency of the other current market trends. Why withdraw when you’re already under contract right? We see fewer of these as the market heats up which clearly it has this season so far.
2 years ago I wrote a post about what happens when the Naples real estate market heats up. It’s a good time to re-visit if you haven’t done so already. Weirdly, it was my most popular post last year. I’m looking forward to your questions and comments and of course, give me a jingle if you’re thinking about selling. If you’re thinking about buying, hop on a plane, Jane. Formulate a plan, Stan. You don’t need to be coy, Roy. Just listen to me. 😉
Shannon Lefevre, PA
Your Naples Smart Girl!