Naples Florida Real Estate - Part 2
Real Estate Listed for Sale
Naples has around 8,000 homes listed for sale, meaning Naples now has just a 13 month supply of homes listed for sale That is a significant drop, from just a few months ago. Also the 13 month supply is a very misleading statistic, as over 50% of the real estate listed for sale is priced significantly above current market values, and do not have a lottery's change of selling.
The supply for homes that are priced right, is closer to three months.
For an example of Naples' overpriced listing phenomenon, the following chart compares recent selling prices, average list prices and the highest priced listing of certain sized condos within a few communities.
Naples Off-Market Real Estate Pricing
Recent Selling Prices vs. Avg. List Price vs. Highest Priced Listed
| Recently | Avg List | Highest $ | % Higher Than Sold | ||
| Condos & Sq. Ft. | Sold Price | Price | Listing | Avg List | High Priced |
| FIDDLER'S CREEK - 2408 | 414,375 | 576,058 | 945,000 | 39% | 128% |
| HIGH POINT - 1015 | 172,000 | 197,391 | 299,900 | 15% | 74% |
| MARINERS COVE - 1100 | 276,950 | 380,380 | 499,000 | 37% | 80% |
| POSITANO PLACE - 1067 | 157,667 | 178,338 | 315,000 | 13% | 100% |
| SAPPHIRE LAKES - 1406 | 154,750 | 196,950 | 278,900 | 27% | 80% |
| SHERWOOD - 1656 | 169,975 | 224,200 | 299,000 | 32% | 76% |
| STRATFORD PLACE - 1580 | 145,725 | 179,650 | 299,000 | 23% | 105% |
| VINEYARDS - 2050 | 327,667 | 431,736 | 595,000 | 32% | 82% |
| WORLD TENNIS - 965 | 81,000 | 149,665 | 184,995 | 85% | 128% |
Active List prices at Jan. 2, 2008. The source of the above information is the
proprietary database compilation
of SunshineMLS, LLC. The accuracy
of this information is not warranted or guaranteed.
Because of the Naples home sales surge, the number of homes listed for sale has been decreasing. Naples has seen a 35% 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. Here is a very typical example of the wide range in asking prices for condos with the same floor plan.
Homes Listed For Sale in the Cedar Hammock Community
1232 Sq. Ft., 2 Bedroom
(Listings For Sale at May 7, 2009)
| List Price | Furnished | View |
| $187,000 | Yes | Golf Course /Lake |
| $195,000 | Yes | Golf Course /Lake |
| $197,500 | Yes | Golf Course /Lake |
| $199,000 | Yes | Golf Course /Lake |
| $215,000 | Yes | Golf Course /Lake |
| $229,900 | Yes | Golf Course /Lake |
| $239,900 | Partly | Golf Course /Lake |
| $259,900 | Yes | Golf Course /Lake |
| $358,000 | Yes | Golf Course /Lake |
| $389,000 | No | Golf Course /Lake |
| $170,000 | ----> Recent Avg Sold Price | |
There could easily be a $20,000 difference in the value of the above listed properties due to differences in upgrades, quality of furnishings and other factors. But unless there is liquid gold that pours out of the faucets of the highest priced listings, the next condo sold will be one of the lower priced listings.
Why are many properties listed at such high off-market pricing? Very simply, the higher priced sellers wants more money.
This phenomenon exists in virtually every Naples community. So while Naples might have 9,000 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.
The Most Recent Deals
Because the majority of homes listed for sale in the Naples area are priced significantly higher than their true value, it would be difficult for someone without extensive market knowledge to get a sense of what is really for sale in the area by Searching Naples Listings Online.
Discounts off of list prices, for homes that are selling, average 9%. But many aggressively priced homes sell at full list price or higher. But this is for the homes that are selling. As explained above, the majority of homes are listed at prices that have no chance of selling as long as better deals are still available.
Have Naples Home Prices Hit the Bottom?
"Tom, I don't know what any of the above information means. Just tell me, are we at the bottom or not?"
There are many examples where a buyer bought at a price in the last six months, where subsequent buyers ended up having to pay more for a very similar comparable property. It is getting increasingly more difficult to get an aggressively priced seller, to sell at previously closed comps prices.
Whether those sellers will eventually accept an offer based on closed comps, or stay firm in their price is unknown. I am not referring to the the majority of sellers that have no chance of selling. I am referring to those aggressive priced sellers.
But there are also just as many examples in other communities, where sales are lacking, because pricing has not adjusted to the new price points (see examples in the section below). Those sellers either need to come down in pricing, or wait for pricing trends to meet their asking price.
So to answer the question as to whether prices have hit the bottom: In some cases, in some communities, and property types, it appears they are past the bottom, and in other communities it appears not quite yet.
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 about Naples real estate, as the pricing and trends are very dynamic.
Except for some very unique property classes, prices in the area generally rose and fell relative to each other. For example, take a look at condo sales in two different communities. Village Green is located in the heart of Olde Naples, Winterpark is about 10 minutes away. Village Green commands a higher price per sq. ft. because of its location.
When Winterpark condos were selling in the $100 sq. ft. range prior to the price run up, Village Green was selling in the $200 sq. ft. range. During the price run up, prices in both communities doubled. Winterpark has recently been selling below $100 sq. ft., with good activity. Village Green, on the other hand has had slow sales, suggesting pricing remains too high.
Selling Price Per Sq. Ft.
Winter Park vs. Village Green
The source of the above information is the
proprietary database compilation
of SunshineMLS, LLC. The accuracy
of this information is not warranted or guaranteed.
Most buyers can easily understand the concept that Naples home values generally rose and fell relative to one another. But interestingly, many listing agents who are in the profession, have difficulties grasping that basic concept.
To make an intelligent buying decision, on a Naples purchase, a buyer needs this type of information for any purchase consideration.
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.