Welcome to the thirteenth edition of my series, The 2019-2020 Naples Real Estate Forecast. I’ll be talking about the Port Royal Naples, Florida real estate forecast for 2019-2020 and what it means to you. Thinking about buying or selling Port Royal real estate this year? Take a peek!
In This Post
• Current Port Royal inventory levels
• Projected inventory levels
• Comparison of last year’s inventory report
• New Construction Report
• What sellers can expect
• What buyers can expect
Port Royal Inventory
- Current – 12 months
- Projected – 18 months
- Last August report 14 months
While current inventory levels are stable, we could see an oversupply in the near future which is going to continue to cause havoc on market times and values.
Port Royal Fast Facts
- Active market time up 20% compared to what sold over the past year.
- 18 Port Royal homes exited the market since April and have yet to return.
- The average list to sale price ratio is 93%
- 15% of the homes sold in less than 43 days.
Average list prices are 27% higher for pending properties compared to the average active list price suggesting the enthusiasm of buying ambitiously priced listings is fading.
Buyers are watching and striking reasonably fast when something at a good price hits the market. For example, 6 homes over the past year went under contract within 42 days or less.
We are definitely approaching that point in the trend when some sellers determine they’re not going to get their price. When markets like Port Royal start to slip, some sellers choose to keep what they have and exit for real. Some of the best, most luxurious homes disappear in fading markets. If you want something truly exceptional like a Port Royal beachfront property, you need to do it now before they disappear for what could turn out to be for years.
New Construction Report
2 of the 5 new homes in Port Royal have adjusted their price down to capture consumer attention but it’s still slow with an average market time of 476 days (an increase of 33%). New home buyers aren’t crazy about those $2,000+/foot prices though which could be part of the cause for the stall. In fact, list prices compared to the list prices on what sold during the past year are up 46% overall…mmm ok.
Port Royal Lot Activity
There are 5 years of inventory for vacant lots in Port Royal right now suggesting more than a little concern for where the Port Royal new construction market is heading. I’ve said before, “If the Port Royal market starts to soften, investors and builders will pull out and new construction will become a scarcity as the remaining product gets picked off.”
Hint, if you’re in the market for a new home in Port Royal, cut your best deal sooner than later.
Some Lot Owners Are Punting Projects
Some of our builders and investors are changing direction midstream and opting to sell recently purchased lots instead. Many of these recently sold lots are back on the market for higher prices with owners hoping to recoup holding/closing costs or make a little profit on the way out.
One builder is listed for less than what they paid back in ’18 again proving the Port Royal building industry is getting skittish. It’s getting a little easier for the buyer who likes the adventure of building their own masterpiece with the intention of enjoying their end result.
Is this a temporary setback in preparation for an election year?
We saw this same funny phenomenon back in ’16 when everybody was sure there was going to be a different party in office. I saw builders punt out and after the election, they strolled right back in. Ultimately, Port Royal and the rest of the Naples real estate market performs well when the overall economy is strong. Election years tend to throw a wrench in the activity though so be on the lookout for excellent deals. Some lucky folks got tremendous savings back in ’16 but ’17 buyers weren’t as lucky.
It’s going to be an interesting year so if you have a serious interest in getting a great property at a fabulous price, don’t hit the snooze button. Most serious Port Royal buyers have already signed up for Port Royal listing updates or have asked their agent to keep them apprised of good reductions or new listings best fitting their requirements. This is why so many went under contract so fast this past year.
Additionally, the jet traffic has certainly picked up but the open house options aren’t reflecting a busy pre-season as of yet. Agents don’t pack their open house schedules if they don’t think they’re going to be well attended unless sellers demand. That means now is a GREAT time to check out some properties. If sellers think you’re the only one at the plate, they’ll accommodate you better at the negotiating table. Do you want to pay 92% list today or 97% in January? When we’re talking about a 10 million dollar property, that’s a pretty nice swing your direction.
There is an enormous amount of agents throughout Collier County who have a “market as is” philosophy. If your home and furnishings are in perfectly new condition, this works great. If it’s been a while since the soft elements of your home like draperies and furniture have been updated, it’s time for a more creative approach if you want to get all of your money on the sale of your Port Royal home.
This doesn’t mean you need to spend enormous money on expensive remodeling or furniture either. Give me a jingle to see what we can do to make your home glisten among your competition and why we’re able to sell your home faster with less discounting!
Buyers aren’t just looking for deals!
Sure, they don’t want to overpay but they value exceptional properties. They’re willing to pay market value and even more but there has to be stronger reasons than years past. This is when you want to hire an agent who knows how to entice buyers away from their screens to inside your home. Ask your neighbors who are already on the market. If showings are slow…they have a marketing problem. Call me to avoid this.
Smart sellers transition away from hiring the beauty pageant agent and opt for an aggressive one who knows how to pre-negotiate. Pre-negotiations are everything when a buyer has more choices. If a buyer has 2 options to choose from, the beauty pageant agent loses every time because they don’t do anything to swing the buyer towards your direction. The beast agent goes after that buyer with the split decision and makes it easier for the buyer to say yes to their listing. You want that agent on your side. Give me a call.
There’s an agent in town who consistently does nothing to get my buyers to the table. He doesn’t call for feedback, he’s hardcore about justifying the full list price and he certainly doesn’t offer any compelling reason to bring an offer. This may work in an awesome market but it doesn’t bring great results during a correction. He’s asked for feedback twice during the past couple of weeks though which gives me huge intelligence. He didn’t do anything to help get my buyers on his property but he’s put more effort into selling his listings than he has in the past decade. Do you think sellers tolerate this? They sure do because they don’t know.
Shannon Lefevre, PA
Your Naples Smart Girl!
P.S. Have you subscribed to my site for important season announcements? You should do that! Don’t forget to sign up for new listings and price reduction alerts for Port Royal!
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