Naples Market Report | May 2019
Home Sales in May Shifted to the East
Naples, Fla. – In tempo with a recent shift in sales from high-end homes near the beach to homes under $500,000 in areas east of the beach, overall closed sales during May in the Naples area increased 9.8% to 1,165 closed sales compared to 1,061 closed sales in May 2018. Closed sales were highest in East Naples (34114, 34117, 34120, 34137), which reported a remarkable 21.7% increase.
While inventory levels decreased 13% to 5,905 homes in May 2019 from 6,785 homes in May 2018, over 2,000 homeowners reduced prices during May according to the May 2019 Market Report released by the Naples Area Board of REALTORS® (NABOR®).
“Nearly 30% of active listings had a price decrease in May,” said Coco Amar. “This was most apparent in the City of Naples , which reported a 24.9% decrease in its overall median closed prices.”
Broker analysts reviewing the May report noticed a shift in sales from the traditional high-end market to homes under $500,000 earlier this year. The trend continued to be reflected in the May report, which showed closed sales for homes between $1 million and $2 million decreased 8.9% in May, while closed sales of homes between $300,000 and $500,000 increased 10.8%. Incidentally, closed sales increased in every price category reported except the $1 million to $2 million price category.
The May 2019 report showed closed sales of single-family homes up 12.8% compared to a 7% increase in closed sales for the condominium market. Interestingly, the decrease in closed sales for the $1 million to $2 million price category appeared in its condominium market, which saw a 23.1% decrease, while its single-family homes closed sales actually increased 3.6%. In comparison, the $300,000 to $500,000 price category reported a 12.6% increase in sales of condominiums and a 9.6% increase in sales of single-family homes.
“Despite a shift in buyer interest, sales of properties over $2 million continue to perform well,” said Jeff Jones, NABOR® President. This is reflected in a 1.2% increase in closed sales during May for homes over $2 million.
While the median closed price for May 2019 increased 6.9% to $355,000 from $332,000 in May 2018, Amar pointed out that the median closed price for single family homes in May 2019 actually decreased 3.5% to $415,000 from $430,000 in May 2018.
Geographically, closed sales in East Naples (34114, 34117, 34120, 34137) continued to expand as development in the Collier Blvd and U.S. 41 corridor continues to grow. According to Wes Kunkle, commercial interest is high in all areas off the east trail (i.e., property on U.S. 41 heading east from Naples to Everglades City). “This is an ‘Opportunity Zone’ area and its commercial footprint is getting bigger each year.”
An Opportunity Zone provides businesses with permanent exclusion from taxable income of capital gains from the sale or exchange of an investment if it’s held for at least 10 years. There are currently five Opportunity Zones in Collier County: three are located in Immokalee; one in the Naples Manor community west of Collier Blvd, north of U.S. 41 East and south of Rattlesnake Hammock Rd; and another is identified as land in Golden Gate, west of Collier Blvd, south of Golden Gate Pkwy and east of Santa Barbara Blvd.
“I kind of see East Naples and South Naples as the last growth frontier for the Naples area,” said Mike Hughes. “A lot of our future growth will be in these two areas. It should be noted that the zip code 34114 saw a 56.2% increase in closed sales in May 2019 compared to the previous May.”
Upon reviewing the report, Bill Coffey, added that there were “over 4,000 more showings this May compared to showings in May 2018!”. Not surprising, and according to the report, this represented an average of 641 showings each day during May.
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This report was provided by the Naples Area Board of Realtors® (NABOR®)