BRRRRRR… that may be the understatement of 2014!
The New Year ushered in an early start to a white winter for most of the country yet it also kicked off the Naples real estate selling season! February usually gets all the praise for being “the” month to be in our gulf side paradise but this year January has stolen its thunder. The beaches and restaurants have been packed since New Year’s Day!
The wave of good cheer in Naples has carried over from the end of 2013 when we experienced a year in real estate that was unprecedented. The Naples Area board of Realtors reported their 2013 results:
- The overall closed sales in the $300,000- $500,000 category and $ 2M + category increased 27 % in 2013
- The median closed price for single family homes in the $ 0-$300,000 category increased 17%.
- The overall inventory decreased 18 % from 6,557 properties (2012) to 5,403 properties (2013).
- Inventory in the condo market decreased by 23%; condos in the $2M+ segment increased 62%
Downing Frye Realty a local brokerage with over 500 agents closed 3, 857 transactions in 2013 as compared to 3,644 transactions in 2012.
- 79% of the sales in 2013 at Downing-Frye Realty were priced between $ 0-$500,000.
- In January of 2014 (Jan 1 -14) 128 pending sales exist at the brokerage of which 15 are above $ 1Million.
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Renovated Properties Seal the Deal in Naples, Florida
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Emerging Naples Real Estate Trends:
Location:
For a long time buyers were exclusively interested in beachside condominiums. Today keen buyer interest and reduced inventory has elevated prices; the result beach view properties are currently priced in the mid $ 600,000’s. As prices in select neighborhoods such as The Mooring and Park Shore rise interest has shifted to trendy North Naples where buyers have traded in the downtown Naples establishments for the Mercato ; an open air shopping and eating destination that offers Whole Foods Market , Sur La Table , McCormick and Schmick’s and Blue Martini.
Property sales in this neighborhood increased 11% between November 2012 and 2013 and as the retail offering within Mercato and the surrounding area expands we expect the North Naples area to flourish.
Availability:
Building permits in Southwest Florida outpaces the nation for one and two family homes. In Collier County permits for single-family homes and duplexes rose 72 percent in 2013.
“Even though builders are taking out permits at a breakneck pace, they may have trouble keeping up with relentless demand over the coming two years”, Brad Hunter, chief economist of research group Metro Study
Builders that cater to all price points in Naples have seen a resurgence of buyer interest:
- Stock Development builds coach homes, villas and single family homes priced from $ 280,000 – $ 1M and reported that they begin the New Year with 325 new homes under construction.
- London Bay Homes caters to the multi-million dollar buyer and noted that the current demand for $2M + new homes is staggering. The developer credits the bullish stock market and improved economy as the cornerstone of the buyers resolve to part with their cash.
Southwest Florida Real Estate Growth:
The rise in population growth in Southwest Florida has accelerated the need for additional housing options. CLR Search reports that Collier County’s population increased by 27 percent in the decade since 2000, and population in our area rose three times faster than national figures. In a recent study by Pew Charitable Trusts Florida ranked fifth in projected job growth in 2014 with approximately 175,000 new jobs expected to attract even more buyer to our slice of paradise.
How can we expect this market to unfold? How much inventory will be added to our market to cope with the existing and looming buyer demand? We at Naples Meridian will seek to answer these and many more questions that arise as we navigate the wonderful world of the Naples real estate market in 2014!