Happy Valentine's Day Naples Friends!
Today I'm reporting on Naples sweetest neighborhood, Port Royal. As promised last week, I'll be digging into all of Naples luxury neighborhoods to give you the inside goodies of today's market.
I received a report from Trulia a couple of days stating the median price in Port Royal was $7,000,000. Well like much of Trulia the actual median price is $9,770,000. Ok so they were off nearly $3,000,000. Not all real estate offices report to them, that's why my numbers are always going to be more accurate.
Port Royal numbers that actually tell a story.
Here they are:
47 Port Royal homes are on the market right now. Average Price = $13,948,085!
31 Port Royal homes have sold during the past 12 months.
7 Port Royal homes are under contract.
Port Royal is technically in an OVERSUPPLY SITUATION with 18 months of supply.
Port Royal Buyers- This is a talking point in your negotiation!
Average sales price is $7,050,714.
31 Port Royal sales closed during the last 12 months.
Average closed price per foot = $1,282.
Port Royal homes sold 7% off list price.
Average market time for those sales was 252 days average market time today is 224 days which might suggest the market is getting hotter. I'm not sure about that. there are 14 Port Royal homes listed during the past 30 days which is typical for this time of year. Last year 7 Port Royal homes had closed between January 1st and February 7th. This year there's only 6.
List price per square foot is increasing. Of those Port Royal homes sold last year, average price per square foot was $1,383. This year it's $1,687. That's a 21% increase! The list price per square foot value of the Port Royal homes under contract stands today at $1,542 which is still 11% higher than those sold over the course of the last 12 months.
Back Out History- Since October 2014, 3 Port Royal homes went under contract and went back on the market.** One can only speculate as to why the contract didn't work out but an overwhelming majority of the reason why contract back outs occur in the Naples market has to do with property condition. It could be buyers are taking a position right now that if they're paying top dollar for properties at the time of their negotiation, they expect the property to be in "expected" condition or they want to be compensated for unexpected defects. If using a Naples Area Board of REALTOR's contract (nearly all Port Royal sales take place with this contract). The buyer typically has the right to do inspections and ask for repairs or a dollar amount to fix defective items. Once the seller has notice of buyer's request, the seller can either accept to repair and/or pay for defective items. They also have the right to reject the request. If the seller rejects the buyer's request, the buyer has the right to back out of the deal. Sometimes in a hot market sellers will be unaccommodating because they feel like either they can get a better price down the road or may even have a better back up offer already in play. It's not uncommon for a buyer in a hot market to move forward on the deal anyway.
Of those 3 Port Royal homes. Two are under contract again at the same list price. One is still available but has been reduced by nearly 7%.
Last year during the same time frame 0 Port Royal homes fell out of contract. Is this another sign of a less enchanted Port Royal buyer? Let's see if there are more signs?
Price Reduction History- Last season between October and February 5th there were 7 price reductions in Port Royal. This year there are 10. Listing agents and sellers are becoming responsive to the idea competition is getting tougher and/or buyers are getting harder to please.
Price Increase History- Last season between October and February 5th there were 6 Port Royal price increases the same for this year.
Port Royal Sellers- If your intention is to sell this season, it is imperative you list your Port Royal property with somebody who can detect early changes in the market. Too many professionals carry on about their day without noticing slight changes in a market before it is too late to capitalize on a good trend. You want an professional who can pinpoint the market value of your home with precision and expertise. This is not a good time to guess your property value.
Marketing is key meaning, you want somebody who can get your property in front of as many ready, willing and able eyeballs as possible and who can help you efficiently negotiate the best price for your property as timely as possible. You can expect more competition to hit the market as more new construction spec homes finish and enter the market. Contact me direct for my plan to get your home sold.
Port Royal Buyers- For the first time in awhile you have some interesting talking points when negotiating the purchase of your Port Royal home. Your message needs to be direct and contain an extremely intelligent and compelling argument if you want to get your best price. There are still buyers buying in Port Royal so this is certainly not a heavy discount/free for all type of market as of yet so go with a proven, respected professional who can help you get your point across without turning off the desire to get the deal worked out on the other side.
You have a terrific supply of Port Royal homes to choose from with new construction representing nearly 19% of the active market. It has been quite sometime before Port Royal buyers had a selection this incredible to consider including some of the most magnificent Port Royal beachfront homes to be acquired. There is additional inventory not listed on the open market. I can discuss with you should you have an interest. Please contact me direct if you're ready to purchase a Port Royal home.
Thank you for reading my Port Royal market update. I hope you'll consider using my services if you find yourself in the position to buy or sell property in Port Royal or any other Naples luxury location!
Shannon Lefevre, PA
Your Naples Smart Girl!
**Please understand, there is no guarantee the two contracts that fell apart had anything to do with property condition negotiations. The exact reasons as to why these contract died is confidential and will more than likely remain so.