Naples Florida Real Estate
Welcome to the Naples Real Estate Guide, where you will find Naples Florida home sales trends, homes listed for sale and much more on the Naples Florida real estate market. For purchasing or selling Naples real estate, just call or send an email.
Naples Real Estate Sales' ARE ON FIRE!!
January 2010 continued with the meteoric rise in the number of Naples homes sales. With January 2010 home sales 45% higher than 2009s. Following the dramatic upswing of year 2009 which were 50% higher than year 2008. This is an incredible pace of home sales, most likely unmatched anywhere else in the country. Year 2009 home sales followed the normal seasonal sales curve, but at a much higher pace than recent years.
Naples Florida Real Estate Sales
Number of Monthly Homes Sales
2010 and 2009 vs 2008
The source of the information in the chart above, and those shown below is from the proprietary database compilation of SunshineMLS, LLC - Naples' Multiple Listing Service. The accuracy of this information on Naples Florida Real Estate is not warranted or guaranteed.
Only the real estate boom years of 2003 to 2005 had more home sales than 2009. And I predict year 2010 home sales will exceed 2009s. And because of this continuing high demand, year 2011 values will very likely be higher than they are now.
Naples Florida a Decade of Real Estate Sales
Yearly Total Home Sales
Who are all these buyers, where do they come from, and what is their motivation in buying Naples Florida real estate? Approximately 50% are local residents, who can now afford a Naples home due to rock bottom pricing, and they include many investor-only buyers. The rest are second home buyers, jumping on the great deals available.
Second home buyers come mostly from the Northern climates, looking for relief from their winter weather. Also there is a fairly high concentration of foreign buyers, due to low pricing and favorable exchange rates on their money.
Where Naples Second Home Purchasers Live
And buyers are paying cash. Naples has always had a high percentage of cash buyers vs. other real estate markets. The number of buyers using mortgage financing was virtually the same in year 2009 and year 2008. But the number of cash buyers ski-rocketed because of the affordability.
Naples Cash vs. Mortgage Buyers
2009 vs 2008
As I mentioned earlier, it is not just second home buyers jumping on the hot home values in Naples, there has been a lot of recent investment buying in the area. Most are buying to hold. But hundreds have bought to flip. And they have been making some jack. Flips have occurred in all area, and all price ranges. Here is just a small example of the hundreds of recent successful flips in the Naples real estate market.
Naples Florida Real Estate Flips
Bought and Sold within the Past 12 Mos.
Now here is the shocker. Only half of those original purchases were foreclosed properties. The rest were purchased from normal sellers. So if anyone is thinking that the only great deals are bank foreclosures, then they are missing out on a huge potential opportunity in the Naples real estate market. At least for now.
Naples Florida Home Sales
The surge in the Naples Florida real estate sales can be attributed to current low price levels. Some homes in Naples have recently been selling at price levels not seen in over a decade. And they have been selling quickly. Properties priced under $200,000 have been very hot sellers. More homes sold in that price range during 2009 than any other year in a decade!
Naples Florida Real Estate Sales Under $200k
Yearly Sales - A Decade's Worth
Foreclosed Properties are Hot Sellers
Foreclosed homes represents a hot selling real estate segment in the Naples area. They exist throughout the Naples area, but are concentrated mostly in workforce communities such as Golden Gate City and Golden Gate Estates areas. Eighty percent of of homes sales in those communities are either foreclosed or short sale properties
There is no secret list of foreclosures. They are listed for sale like any other property, and the list continues to get smaller.
Current List of Naples Foreclosed Homes >>>>>> See Listings
Foreclosed homes accounted for 30% of homes sales in 2009. But the total availability is now only a small percentage of homes listed for sale.
Naples Florida Foreclosed Home Sales
Foreclosed homes in desirable second home communities are rare, and if a great value, will sell in days. Half of all all foreclosed properties sell in 20 days or less. Twenty-five percent sell in the first week.
The number of foreclosed properties coming to market is decreasing and there are more foreclosed homes under purchase agreements, then there are listed for sale.
Learn more about Naples Florida Foreclosures.
Naples Florida Real Estate Prices
The number of homes listed for sale in the Naples area has decreased 40% over the past 12 months, the number of homes sales are up 50%, investors are buying and flipping properties. Homes in many communities are being sold at higher prices than those sold just a few months ago.
There are many signs that indicate Naples Florida home prices are bottoming and in some cases increasing. That is not to say that every community has had a home sold at bottom prices. There are many communities where sellers refuse to sell at market prices. These sellers may not have to wait much longer before real estate market prices climb to their list price.
Homes, communities and pricing vary greatly throughout Naples. A comparison of price changes grouped by similar communities is a good of measure of changing home values. The following chart tracks home prices per square foot for a particular niche within the Naples real estate market. It tracks the average square foot selling price by quarter, for similar size and type properties in the area sold since January 2001.
In Naples, homes prices between communities and neighborhoods can vary greatly based on location, styles, condition and amenities. Home sales in any particular community could be higher or lower than the examples shown here, but in most cases have followed a similar up and down trend.
The charts compares selling prices as dollars per square foot to 3% growth lines. This does not suggest prices should grow at, below or higher than 3%. The 3% growth lines are to provide scope and scale to the information.
The charts below presents averages and trends of similar properties. It can only be viewed as a general representation of a particular niche. This information should be used only for general discussion and review purposes and not for determining the merits of any specific buying or selling decision. The selling prices per sq. ft. are representative of the communities included in the sample, and can not be applied arbitrarily to other areas in Naples.
Single Family Home Price Index vs. Condo Price Index
Average Selling Prices per Square Foot by Quarter vs. 3% Trend Lines
Single Family Homes: 1,600 to 3,000 sq. ft homes, similar communities. Condos: Similar size, similar communities.
Real Estate Listed for Sale
Because of the Naples home sales surge, the number of homes listed for sale has been decreasing and is now under 8,000 listings. Naples has seen a 40% reduction in the number of homes listed for sale for year 2009. But while there are still plenty of sellers wanting to sell, there are only 2,000 or so homes that could be considered actually for sale. As the majority of properties listed for sale are listed a prices significantly higher than recent sales.
So while Naples might have 8,000 sellers wanting to sell, the real number of truly available for sale is much lower. The average days on market for homes that are selling has been in the 45 day range. These are either new listings that are priced to sell, or properties that had price reductions.
Advice for Buying Naples Florida Real Estate - Buy Smart
If you been thinking about buying real estate in the area for your own personal use and enjoyment, then nearly every community has a few attractive low price leaders. A buyer needs to work with someone very knowledgeable, that is k-n-o-w-l-e-d-g-e-a-b-l-e, about Naples real estate, as the pricing and trends are very dynamic.
Prices of homes in the area rose and fell together. When price were skyrocketing, no area got left behind. When prices fell, they all fell. For example, each mark on the chart below represents the selling price per sq. ft. within three totally different communities over several years. The selling price that they were at one point in time, is where they all are currently.
Selling Price Per Sq. Ft.
The source of the above information is the
proprietary database compilation
of SunshineMLS, LLC. The accuracy
of this information is not warranted or guaranteed.
The price of homes within a community sell within a range based on condition, views, upgrades, etc., and how motivated the seller is. But obviously all homes within an upscale neighborhood sell for more than the homes in a more affordable community. But whether the home was in an upscale neighborhood or a more affordable neighborhood, prices changed together.
The goal of any buyer should be to ensure that they end up with the best price possible, regardless of which property type the buyer prefers.
Advice to Sellers
To sell you need to be totally informed and competitively priced. If you are not willing to sell at the current low values, then it would most likely be worth it to wait. If you need to sell, then you are going to have be aggressively priced, and in some cases might have to compete with foreclosure pricing.
Give me a call for a fair and honest assessment.