By Robert Nardi, Broker/Owner
Closed sales of homes in Naples during the first quarter of 2023 exceeded closed sales reported in the first quarter of 2019 (pre-COVID), when inventory levels were nearly three times the current level. According to the March 2023 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), overall inventory in March increased 92.4 percent to 2,900 properties from 1,507 properties in March 2022. While historically low at 3.6 months of inventory, inventory in Naples has continued to grow since it bottomed out at 0.8 months in December 2021.
Closed sales decreased 16.5 percent to 1,017 closed sales from 1,218 closed sales in March 2022, but compared to March 2019, closed sales increased 2.6 percent. Pending sales in March decreased by 14.5 percent to 1,377 pending sales from 1,611 pending sales in March 2022; compared to March 2019, pending sales increased by 22 percent. At the same time, new listing growth was relatively static in the first quarter of 2023. New listings during March decreased by 17.9 percent to 1,369 new listings from 1,667 new listings in March 2022, but compared to March 2019, new listings for the month slipped by only 2.5 percent.
Lastly, driven by the condominium market, which had a 5.9 percent increase in its median closed price, the median closed price in March increased 7.3 percent to $615,000 from $573,000 in March 2022. Compared to the single-family market, the more significant growth in the condominium market was due to its affordability. Therefore, demand is higher because buyers most likely could afford a condominium at a lower price than what a single-family home would cost them, driving the higher median price.
The NABOR® March 2023 Market Report compares single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. NABOR® sales statistics are in a chart format. Please send an e-mail request to Robert Nardi at Robert@NardiRealty.com to receive your copy.
What does this mean?
Buyers today are facing high-interest rates, rising property and flood insurance rates, and low inventory levels; these factors are not diminishing demand for those who wish to live in Naples. Even though we have a 3.6-month supply, it should not discourage protentional buyers. It comes down to where the buyer wishes to purchase. Inventory numbers could fluctuate at any time. From all indicators, some areas of Naples could have an over-year supply of homes like Port Royal. My thoughts are that inventory should become available at a faster rate. However, some sellers are still sitting on the fence because they fear a possible recession may impact their home’s value. However, they must realize that what they paid for it twenty years ago is a much smaller number than what they could get now. These sellers would be wise to jump off the fence and toss their property into the ring. It indeed could be a great time to sell!
Searching for a loan
If you wish to purchase in today’s market, there are still a lot of opportunities to find a lower interest rate or find programs out there that could assist you in purchasing. My best advice is to seek out a mortgage broker.
Tell the mortgage broker about your work life and what organizations you work for or have worked for. Are/Were you in the military, a firefighter, or a first home buyer? Some programs could assist you with your down payment, get discounts on the interest rate or do both! The most important tool you can use when you buy a home is a pre-approval letter that lists your rate and what you are qualified for. Therefore, there will be no guessing about what you can afford or cannot afford. You can buy with confidence.
If you shop for new construction, some builders discount interest rates as low as 4.99% if you finance through their mortgage company. Hence, when you walk into a new home sales center, ask the sales associate about discounted mortgage rates.
Lastly, if you have an investment account, the other possibility is to speak with your financial advisor. With an investment portfolio, you could borrow against it and receive a reduced interest rate than the standard. You would then have to pay monthly, including principal and interest. The interest paid could be deposited directly to your investment account based on loan terms. Therefore, you would be paying yourself the interest! You must ask your financial advisor. The possibilities are endless.
Seasonal Rentals
If you, your friends, or your family wish to book a seasonal rental for 2024, they should do it as quickly as possible to get the best selection for the next season. By this time, many rental agencies know who will or will not be returning next year. If you are interested in booking, please contact Sheri Martin, Rental Administrator for Nardi Realty, at 239-571-6189 or via email at sheri@teamonesource.com. Or you can always search for your rentals at www.BuyNaples.Net. Enjoy exploring and have a healthy and happy summer!
3400 TAMIAMI TRAIL N. STE 103, NAPLES, FL 34103
239-293-3592 | NardiRealty.com