Southwest Florida's Health and Wellness Magazine Health and Wellness Articles
By Robert Nardi, Broker/Owner
Demand for the Naples lifestyle remains strong as closed sales in March increased 49.9 percent compared to those reported in February. Although closed sales decreased 36.5 percent to 1,205 in March 2022 from 1,899 in March 2021, the increase from February to March was a welcome result of a steady wave of new listings. According to the March 2022 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), new listings decreased only 4.3 percent to 1,637 new listings from 1,711 new listings in March 2021. If this wave of new listings remains steady during the coming months, it could mean more options for buyers navigating the area’s limited inventory.
The March report showed that inventory decreased 23.5 percent to 1,392 properties from 1,819 in March 2021. However, the good news is that March inventory increased 20 percent compared to inventory levels NABOR® reported in February (1,176 homes). In March, more homes for sale meant sellers enjoyed 43,206 showings that ultimately inspired 1,611 pending sales (homes under contract). The median closed price increased in March, up 39.6 percent to $575,000 from $412,000 in March 2021, and 62.7 percent of the month’s closings were cash sales. The NABOR® March 2022 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. If you would like a copy, please e-mail Robert Nardi at Robert@NardiRealty.com.
The March report showed about a third of the homes for sale (417) decreased in price during the month, a typical scenario where sellers list their property at a high price at the beginning of the winter season. Then as the season ends sometime after Easter, they reduce the listing price with the hope of selling their property before they head back to their primary home. There were 51 percent more price decreases in March than in February, indicating that they were too high for the market.
What does this all mean?
Higher mortgage interest rates and the increase in inventory are having a direct effect on slightly lowering prices. Condominiums and single-family homes are coming onto the market more rapidly. The season is over, and properties have been used or rented. Snowbirds and landlords decide to sell to “ride the wave.” As of today, there are 1422 properties available in Naples, Florida. Just three months ago, there were only 825 properties available for sale. Inventory has gone up 58%!
The median price jumped nearly 40% from a year ago, reflecting economic theory. When you have lower supply and higher demand, prices go up. Southwest Florida, for years, has been undervalued, and it was time for it “catch up” with other coastal cities.
Naples, FL, is in the news for its ideal weather, beaches, and quality of life. Recently, Healthgrades recognized Naples Community Hospital Health System as being in the Top 5% of Hospitals in the U.S. for Patient Safety Excellence. Impressive for Collier County, where there are only 370,000 inhabitants in season and 250,000 inhabitants out of season.
Advice
If you are a landlord or a snowbird and wish to sell, I would do it sooner than later. I do not believe that prices will go down significantly, but I think days on the market will be longer. There is always an unknown of other listings coming on the market, either the same model or square footage in your community or area, at a lesser price. Recently, I listed a single-family home, and a similar model came on the market for thousands less. There was no comparison because the newly listed house was barebones, builder-grade, and sat on an inferior lot. Yet, Buyers for my listing were throwing out low ball offers. It was like comparing apples to oranges, not apples to apples. However, Buyers see the prices going down slightly and think now they can get a deal. Prices are only going down because they were priced too high from the start. It is still a Sellers’ market and will remain that way for many more months until the market is in equilibrium.
My best advice is to find a REALTOR® that understands the market and can price your home based on comps, knowledge, and experience. They also have access to licensed handypersons, electricians, plumbers, housekeeping, professional staging companies, real estate attorneys, title companies, etc. Working with a skilled REALTOR® can be invaluable and make the selling process so much easier.
Any questions or need assistance, please feel free to contact me at 239-293-3592, send an email to Robert@NardiRealty.com.
239-293-3592 | www.NardiRealty.com
