The Naples, Florida $10,000,000+ Market Update 6/3/24

Good Day, Naples Friends! Learning about the $150,000,000 sale that took place in Palm Beach this past week has inspired me to catch you up on how the Naples, Florida, luxury market has been tracking. Today, I’ll cover some Naples luxury real estate statistics and other facts and tidbits that can help you understand what’s going on with the Naples luxury market and what it means to you if you’re planning on buying or selling.

In This Post

Naples Luxury Real Estate Statistics
Pricing Trends
Attitudes and Opportunities
Offer Strategies and Failures
Where To Buy

Naples Luxury Real Estate Statistics

Active: 154
Pending: 24
Sold: 49 Up 4%
Inventory Levels: 32 months
DOM: 209 up 9%
List Price to Sales Price Ratio: 92% Down 2.5%

An additional 30 properties priced at $10,000,000 and above have recently gone off the market. We might see those resurface again this upcoming pre-season, which could further our oversupply woes as we roll into the next peak selling season. Notably, some of those that went off the market for one reason or another re-entered the market and are now pending.

This is not the time to exit the market despite what 30 of your neighbors are thinking and if you don’t know why, ask!
Shannon Lefevre, PA

Pricing Up/Down and Staying the Same

Less than 18% of the owners with active luxury listings have dropped their prices to attract a buyer. Meanwhile, 41% of those who are pending, dropped their price to do the same and were successful in solidifying a contract. A small fraction of sellers have made sizable reductions to move their property, including one in the Strand at Bay Colony who dropped their price by 17% today to accomplish a successful mission.

Two price strategies are less appealing than doing nothing to spur traffic: increasing the price (often found in the history of new construction) and orchestrating a very small token price reduction, which can often accentuate the seller’s unrealistic expectations. These two strategies can become disastrous in a slowing market just ask the people who have been on the market for nearly 1,000 days.

Buy It Or Don’t

This leads me to a funny conversation I had with an agent. This poor guy was exasperated with the countless number of showings he had accompanied on an overpriced beachfront listing. After previewing it for a client and feeling disappointed regarding the condition of the property, I asked, Do you feel like you’re going to get your price? He just looked at me and said, “I don’t care. If you don’t like it, don’t buy it.” He was so worn out over being turned down he couldn’t even help himself. It helped that it was just the two of us, and we both had a great laugh about it, but that can be the mentality of some of our agents and owners after continuously being beaten down. Buy it or don’t.

An Abundance of Legacy Properties

Back in 2022, I was working with an Olde Naples beachfront buyer. After discussing prices and market conditions, it became alarmingly apparent that beachfront listings in both Olde Naples and Port Royal were becoming increasingly scarce. Due to Hurricane Ian, Naples saw a number of beachfront homes and lots hit the market that likely wouldn’t have been available. I fully suspect once those have been purchased, we will go right back to that scarcity issue we had back in 2022. In fact, up until this past week, I never heard any buyer talk about purchasing a legacy property. There’s no mystery some of our best properties stay in families for decades and decades without changing hands on the open market. Do not make the mistake of waiting too long to acquire a crown jewel for your family’s real estate portfolio.

Making An Offer

Two owners were gracious enough to discount their properties by 18% during negotiations last year, marking the best discounts made in the luxury segment of the market. This year, two buyers were able to beat that discount, with one buyer in Aqualane Shores getting 20% off the full list price and the other in Port Royal getting 22% off. It’s the assumptions and the ambiguity that get buyers and sellers in trouble in this market. We can count on a small percentage of buyers/investors who will FOAFO (fool around and find out.) Fortunately for us, many are not trying to kill a seller in the process and would like to remain amicable enough to acquire the property, but every once in a while, the smartest guy in the state shows up to show us how real estate is negotiated in Naples. Sometimes these people get lucky. Often, they get booted out of town. One thing is for certain, many new agents are treading uncharted territory and have no idea how to tip-toe around a seller without irreversibly screwing it up. You don’t want to work with that guy. There’s a way to go about getting an undocumented deal. Ask Shannon how!

Stay On The Beaten Path

If you’re buying Naples luxury real estate, my advice is to STAY ON THE BEATEN PATH! There are barely less than 20 developments in Collier County where you can find properties priced at $10,000,000 and above, but honestly, there are barely 10 developments where I would spend that much money. That location, location, location mantra is a real thing, and future price perception can make or break the value of your property.

In Closing

I hope you enjoyed my Naples luxury market update. As we approach the dog days of summer, you can expect some owners to welcome you with open arms. It will be a little more challenging to make appointments as local agents anticipate hitting their summer travel plans. While challenging, I should be able to get you into everything provided you give me enough notice of when you want to see properties! Remember, negotiating is typically best until about the 1st or 2nd week of September. After that, it depends on how many new listings we have!

Best Regards,

Shannon Lefevre, PA
Your Naples Smart Girl!
239-595-6223

The Naples, Florida $10,000,000+ Market Update 6/3/24