Main Content

Buyers are Back: Homes Under Contract Soar 24% in October

Naples, Fla. (October 25,2019) – The Naples area housing market enjoyed another 7 percent increase in overall closed home sales for the third month in a row . This trend leads broker analyst Adam Vellano, West Coast Sales Manager, BEX Realty – Florida , to suggest that the consistent uptick in summer home sales illustrates that Collier County is becoming less seasonal.

Closed sales during October increased 9.7 percent to 758 closed sales compared to 689 closed sales in October 2018,
according to the October 2019 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home
listings and sales within Collier County (excluding Marco Island).

“These pre-season pending sales numbers are setting us up to have a good winter sales season,” said Dominic Pallini,
Broker at Vanderbilt Realty. “Inventory is also going up yet prices have been holding steady.

Even though October’s overall inventory decreased 17.7 percent to 5,351 homes for sale from 6,500 homes for sale in
October 2018, there were actually 362 more homes that came onto the market in October compared to September. According
to Pallini, a fair amount of the new inventory is in the new construction market where builders are pricing homes
aggressively and offering sweeteners to agents and buyers via incentives.

“A large majority of the new construction over the last year appears to be in the market’s “sweet spot”, which is the
category of homes priced below $500,000,” said Jeff Jones, Broker at Keller Williams Naples. “This influx of new
construction is probably why the median closed price in that price range hasn’t shifted much.”

According to Tom Bringardner, Jr., President/CEO of Premier Commercial, “median closed prices in the upper end of the
market [homes priced at $2 million and above] rose 8 percent” in October 2019 to $3,200,000 from $2,962,500 in October
2018. However, when 57 percent of the market’s available inventory are homes priced under $500,000, and the majority of
new listings every month are also in this range, it’s easy to understand how the overall median closed price reported
for the entire market appears to be decreasing.

The overall median closed price decreased 3 percent in October to $329,950 from $340,000 inOctober 2018. But it’s
important to remember that there are also three times as many properties for sale under $300,000 than properties for
sale over $2 million in Naples.

“Inventory has kept prices attractive which drives demand,” said Budge Huskey, President, Premier Sotheby’s
International Realty. “The under $500,000 market is driving our overall market today. This is naturally bringing the
median closed price down.”

The NABOR® October 2019 Market Reports provide comparisons of 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 presented in chart format, including these overall (single-family and condominium) findings:

Total closed sales (month/month) 689 756 +9.7%
Median closed price (month/month) $340,000 $329,950 -3.0%
Total active listings (inventory) 6,500 5,351 -17.7%
Average days on market 94 104 +10.6%
Single-family closed sales (month/month) 371 389 +4.9%
Single-family median closed price (month/month) $425,000 $395,000 -7.1%
Single-family inventory 3,376 2,675 -20.8%
Condominium closed sales (month/month) 318 367 +15.4%
Condominium median closed price (month/month) $265,000 $255,000 +3.8%
Condominium inventory 3,124 2,676 -14.3%

Jones noted that homes built prior to the current modern “coastal” era designs are lingering on the market due to the
growing unpopularity of the older Tuscan and Mediterranean home designs and architecture. In response, several brokers
wondered if this could explain why the days on market for homes in the Naples Beach area increased by a month in October
since many of the homes are not amongst the more popular modern designs and architecture.

Geographically, closed sales in October were highest (64.4 percent) in areas located in the 34109 zip code (east of
Goodlette Frank Rd., west of I-75, south of Immokalee Rd., and north of Pine Ridge Rd.). Other locations that
experienced sales increases over 50 percent month/month in October were 34117 (south of Golden Gate Blvd., and east of
Collier Blvd.), and 34112 (south of Davis Blvd., north of Rattle Snake Hammock Rd., east of U.S. 41, west of Collier

According to the October 2019 ShowingTime Report, a monthly supplemental report now released with monthly Market
Reports, REALTORS® in Collier County reported over 5,000 more showing appointments in October 2019 – a total of 18,531 –
compared to October 2018, which had 13,271 showing appointments, a statistic that indicates the heartbeat on overall
real estate market activity.

If you are looking to buy or sell a home in Naples, contact a Naples REALTOR® who has the experience and knowledge to
provide an accurate market comparison or negotiate a sale. A REALTOR® can ensure your next purchase or sale in the
Naples area is a success.