By Robert Nardi, Broker/Owner
Evidence of growing confidence in the Naples real estate market revealed itself in January as new sellers entered the sales market. New listings in January rose 74.5 percent compared to December 2022 and 3.2 percent to 1,338 new listings from 1,297 new listings a year ago, according to the January 2023 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). But the rise in home options during January did not stymy home values as median closed prices rose 11.1 percent to $600,000 from $540,000 in January 2022. An even number of single-family homes and condominiums made up the increased inventory. Therefore, Buyers have more options. Closed sales in January decreased 33.8 percent to 555 homes from 839 in January 2022. But the spike in new listings is a good turn of events as they pushed inventory up 122.7 percent to 2,699 properties from 1,212 properties in January 2022.
Pending sales in January were remarkably higher than pending sales not only in December (682) but also compared to January 2019 (660) and January 2020 (892). Compared to last January’s phenomenal sales activity, pending sales decreased 20.5 percent to 1,092 pending sales from 1,373 pending sales in January 2022.
Pent-up demand was evident in January. While showings decreased 20 percent compared to January 2022, they nearly doubled compared to December’s reported showings. Of course, another factor contributing to increased contracts (pending sales) during January was the 1,092 price decreases reported for the month, which brought the overall percent of current list price value down to 95.8 percent, a 4.2 percent decrease from 100 percent in January 2022. The first price reductions occurred with investors. They wanted to move their inventory.
The NABOR® January 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 chart format and if you wish to receive a copy, please e-mail Robert@NardiRealty.com.
What does this all mean?
Buyers have more of an opportunity to purchase with a more considerable inventory. However, depending on the property location, they may still have competing offers. Beachfront or near-the-beach properties are at high demand. It astounds me the number of multiple offers these properties can manifest. What is also apparent is most offers are all cash. We are talking about properties $2 million or less. Paying cash used to be “king,” but now everyone is offering it. So, it does not set an offer apart from others. Hence, having an experienced REALTOR® is essential who can create a strategy that will produce an accepted offer.
Interest Rates
Interest rates continue to inch up, and when this happens, it mentally prevents people from making a move unless an incident in life pushes the decision along, like birth or death. Generally, potential Buyers want to avoid making a move because their current mortgage rates are relatively low, generally from 2.75% to 3.75%. The higher interest rates are a deterrent. Luckily, this does not affect Florida like other states because we are primarily a secondary market. Hence, our market continues to push forward while other housing markets in the United States are stalling.
Do you think about a rental for next season?
Having a rental for the season is a great way to “test the waters.” It is less expensive than purchasing property and allows people to explore Naples and its surrounding areas. Nardi Realty will be able to start booking rentals for next season starting Mid-April. The reason is that we give the current tenants the “first right of refusal.” If they pass on their current rental, it will become available and offered to “next in line.” Therefore, if you are interested in seasonal rentals, call Sheri Martin, Rental Administrator, at 239-571-6189. You will be placed on a list and contacted if the rental becomes available. Seasonal rates can go from $4000 to $100,000 monthly (Yes! $100,000 is not a typo). Other expenses include Tourist Tax (any rental less than six months and one day is considered a short-term rental and will be taxed at 12%), application, background check, and cleaning fees.
Enjoy and have a fantastic April!
3400 TAMIAMI TRAIL N. STE 103, NAPLES, FL 34103
239-293-3592 | www.NardiRealty.com