Hello Naples Friends,
It’s time for my Port Royal Naples, Florida market update. Some of you have already made it back. Welcome! We’ve been busy sprucing things up and making improvements all over town. Some of you are currently preparing to come down. Safe travels and hope to see you soon.
If you’re buying or selling a Port Royal home, here’s everything you need to know to get started.
The current Port Royal real estate market:
Active - 49
Pending - 2
Closed during past 365 days - 33
Closed year before - 38
Closed year before that - 38
Sales are down 14% over the past two years.
17 months of inventory exist which is up 3 months since my Port Royal report last November.
Lowest price listing is an off water, updated home listed for $4,500,000. Last year the lowest priced home was on the market for just under $4,100,000.
Highest priced listing is just under $61,000,000 with a recent price increase from $59,900,000….mmm..ok
There are 4 listings currently showing 30 days of market time or less but in actuality 2 of those listings are recycled.
2 Port Royal homes priced between $6,000,000 and $9,000,000 are currently under contract and sold relatively quickly compared to the average 254 day market time for the properties sold during the past 12 months.
Market time as a whole appears to be down 7% compared to sales during the past 12 months.
There are two segments of the market I’m really excited about!
New Construction availability in Port Royal:
2 homes with an expected finish in 2017.
6 homes built in 2016.
2 homes built in 2015.
3 homes built in 2014.
13 new or near new properties are available! Designs are changing too! Here’s what sort of design styles you can expect with these new construction Port Royal properties:
2 Costal Contemporary
4 Bermuda Contemporary
Bahamian, West Indies
3 Mediterranean Transitional
You’ll want to be careful while purchasing from afar. Technological advances are making it easier to market properties that simply don’t exist yet so don’t let virtual tours, photos and videos fool you. What you see isn’t exactly what you’re getting. It’s good to at least do a FaceTime visit through the house or at least let your Realtor take some video for you so you can see where the home is in the building process for homes under construction. You’ll also want to verify your surroundings too. Pools in front yards can throw you off with your orientation and that’s actually happening here. Due diligence is key to insure your expectations are in line with reality.
Builders in all locations in Naples come in all sorts of craftsmanship and quality. Port Royal is no different. Don’t let price and location trick you into believing everything is made from the same quality materials and pieced together by the same master tradesmen.
Beachfront Fans UNITE!
There are 6 Port Royal beachfront homes on the market today! Prices on the beach vary. Prices start at $14,900,000 and continue over $60,000,000 but there have been a couple of really nice price reductions within the last few weeks. If you’ve been half watching, it may be time to get serious about an offer.
Price per foot update:
Average price per foot sold last year was $1,416.
During the past 12 months that’s dropped to $1,326…or 5%.
We may continue to see this with the increase in inventory but keep in mind, that’s average for the whole neighborhood including off water lots. Beachfront price per foot and new construction is going to run substantially higher than the neighborhood average for all the obvious reasons.
Current list price per square foot average is coming in at $2,171.
That’s a big difference. If you’re a numbers geek like I am, you have to know many buyers will pay a premium for more waterfront footage or newer properties. Location to the club can also be a factor so if you’re having trouble understanding values, it’s good to work with an agent who can intelligently decipher what a fair offer looks like and somebody who has a great working relationship with the other agents in the area….hint hint, wink wink.
The signs sticking out most here:
There have been 10 sales with list prices over $10,000,000 during the past year. That’s down nearly 25% compared to the year before. There’s 26 homes listed over $10,000,000 on the market now or 31 months of inventory. That should be exceptionally troublesome for any seller listed over $10,000,000 and equally interesting to any buyer looking to spend over $10,000,000.
Pocket listings are dwindling meaning seller’s and agents are getting less confident about the market and putting properties on MLS to catch all eyeballs.
Terminations, expired, withdraws and contract back outs are all down from the year before. This tells me owners and agents understand the shift in the market.
Sales prices are down 5%. That tiny reduction is allowing sellers to capture 92% of their list price compared to 91% the year before.
Of the 49 listings in Port Royal, 13 homes have reduced their price. Some quite substantially while a couple were reduced so little it’s not even worth mentioning….yawn.
Port Royal Buyers:
You should feel very accommodated in the upper brackets right now. There’s been 1 sale during the past year for over $15,000,000. There are 15 homes priced over that sales price right now. There were 4 sales over $15,000,000 the year before that. That is crazy troublesome especially to spec builders. This is an excellent time to see if you can get something negotiated out! There could be some real deal making if you just stick a toe in and see what can be done!
If you don’t want to do the heavy lifting while negotiating, there are 3 homes right now priced under $1,000/foot. If you’re a price/square foot buyer, you may want to hit those first!
If high market times turn you on, then you may be interested in knowing there are 8 homes well past the one year mark. In fact there’s one that has passed the 2 year mark. Market times have a tendency to fool people into thinking there’s something wrong with the property. Here’s an embarrassing fact about our market. Many homeowners do not want to be inconvenienced with showing their property while they’re in town entertaining friends and family. The lion share of big money buyers are here during season and simply don’t want to be inconvenienced to come back after season. This can kill any opportunities for a deal and if the sellers aren’t that motivated, the clock runs up. Lofty list prices can also do the same but the end result means you’re still dealing with a less than motivated seller. Check pricing history for more details about whether or not a seller looks interested in selling and by all means, don’t hesitate to talk to your agent. Chances are they can find out what’s really going on provided you’re working with someone smart.
Port Royal Sellers
Some sellers are getting aggressive on pricing. Make sure your objective matches your price. If you want to sell this upcoming season, you have to be diligent and responsive if you’re not getting the traffic your property requires to land contract producing results. There are ways to increase the value of your home. If you don’t know what they are, call me. A client asked me the other day when season starts. The fake answer is October 1st or January 1st. The real answer is when it gets cold up north. It’s smart to go on the market now. The temperatures across most of our northern feeder markets are going to drop anywhere from 10-25 degrees this week. That’s when we start to see a shake up. Properties should be in the best showing condition possible. It’s been several years since you’ve had so much competition. You’ll certainly want an agent with a global reach and there is no other company with higher performance than John R. Wood who can deliver those results. Call me for details regarding how far our reach is and those who compete with us. The numbers are staggering.
Ok, that’s all for now. While you’re here you might as well check out:
Port Royal homes
Port Royal deals
Port Royal sales
To get your home listed or to set an appointment to see Port Royal or any of our other fabulous Naples communities, contact me direct!
Shannon Lefevre, PA