Hello Naples Friends! If you're thinking about buying, selling or just want to see what's going down in Olde Naples, then you're definately going to want to read this post!
Here are the major take aways:
- How the Olde Naples real estate market is gearing up for the 2015-2016 season.
- What you can do to best position yourself as a buyer and/or a seller.
- What's up with Olde Naples new construction.
Currently there are:
- 117 active listings in Olde Naples.
- 19 Olde Naples properties currently pending contract.
- 174 Old Naples properties sold during the past year.
Olde Naples in an undersupply situation with only 8 months of inventory available.
Indications the Old Naples market is slowing down:
- Market times are on a big rise! Total market time for the 174 properties sold was only 100 days while pending properties is calculating today at 133 and active listings are totatling 166! 17% of the inventory went on the market during the past 30 days which is typical for this time of year but sways the 166 days in a positive favor so this is a big indicator current buyers are not happy with the increase in prices.
- Sales are down 24% compared to the year before even though average price per foot has gone up only 4%.
- Contract back outs are on the rise, up 38% from the year before. This is probably due to seller's confidence and inflexibility when it comes to property condition issues that arrise during the inspection period. Property condition is the biggest reason why contracts don't pan out.
- Price reductions are on the rise, up 37% from the year before.
- Price increases are down 94% from the year before.
Despite the decrease of sales, sellers are still bullish on the market and not negotiating as loosely as they did the year before. There's a slight uptick in list price to sales price ratio suggesting seller's confidence is still on the rise.
Note to buyers: You will see a mix of negotiating behaviors and strategies this year. Your smartest sellers want your deal to happen. Some sellers and some agents are blinded by the increase in sales price and think there is a long line of buyers behind you. They will be happy to see you go should you not be willing to pay their price. If you fall in love with an Old Naples property this year and money is no object, by all means, go forward with your deal. If you want to be as price conscious as possible, do not be surprised if your first or second negotiation is a miss. You may thank yourself in the future if you keep your target in site and stay your course.
Note to sellers: There's no better time to price right and play nice. I am seeing some very confident behavior which is not necessarily helping some sellers attract a contract that closes. I'm not saying it's time to panic but I am saying if you're asking top dollar and something is broken, show some good will and agree to fix it. Now is the time to have your property in excellent showing condition. You may be competing with remodeled or new properties this year. Don't be affraid to make it pretty if you want all of the money. There will be two kinds of buyers this year. Those who are buying on emotion because they can and want to and those who want to make a sound financially responsible purchase. Remember why you're selling and listen to your smart agent who will help you meet your objective (provided you shared it with them).
Olde Naples New Construction:
This segmeant of the market is FAR different than the Old Naples market as a whole. That's why I seperated this out.
Olde Naples (New Construction 2014 and newer):
- 37 active.
- 19 sold during the past year.
- 1 pending
There is a 23 month Olde Naples new construction inventory right now. This is an OVERSUPPLY! There is a 28% increase in market time. Despite the slow down in properties sold, prices are still on the rise. The current inventory is priced at $1,053/ft. Of the new construction homes sold last year, list price per foot increased 6% and 19% over the year before. Confidence is strong here too with list price to sales price ratios tightening, up to 96%.
Of the 37 new homes available, 10% of them have not started, many of them are incomplete and just a handful are being shown furnished. At the peak of the market it is rare for a builder or investor to furnish but they will do so to better capture the hearts of their buyers and capture top dollar in a slowing market. I am seeing evidence where list prices were raised to include furniture. Some homes are staged and some homes are being marketed by showing past units completed with furniture as examples or even more interesting, furniture that has been digitally implemented for aesthetic appeal. Other enticements from owners offering new construction are evident too suggesting they may be more in tune with the current buyer behavior.
Note to Buyers: Some builders have recognized the bump in inventory and will be somewhat accommodating. Understand that if you think it's really over the top, them most likely somebody else does too so don't play too hard to get if you really like it. There have been 6 Olde Naples new construction properties that went under contract and then backed out. This could be due to property condition or the buyer's wish to renegotiate something once they came to terms. Be careful here.
Not all builders build the same quality of product. Just because it's new doesn't mean you shouldn't get an inspection. Pay special attention to the quality of craftsmanship and the care they take during construction. By and large, the most reputable builders in town keep the neatest worksites. They take care in covering materials during the time of construction. If you're walking into disaster sites that may be a sign you're not looking at construction being orchestrated by a maticulously conscious contractor. If you like new construction, don't forget to check out what's available in Park Shore, Moorings, Coquina Sands, Aqualane Shores and Port Royal. I know some incredibly magnificent new construction homes for sale in Port Royal!
For more information about Olde Naples or to set an appointment to buy or sell your Olde Naples property, contact me direct!
Shannon Lefevre, PA