The new year came with some big purchases for Naples home buyers.
Closed sales of luxury properties — homes above $1 million — increased 123 percent over closed luxury sales in January 2017, according to the January 2018 market report released by the Naples Area Board of Realtors.
“Thank goodness for the luxury properties for sale; they are driving the market,” said Bill Coffey, broker manager of Amerivest Realty Naples.
Pending sales of homes priced above $1 million also increased 67 percent in January compared with last January, Coffey said.
The monthly NABOR report tracks all sales made through the Southwest Florida MLS, excluding Marco Island.
Mike Hughes, vice president and general manager for Downing-Frye Realty Inc., believes the reason for the sudden spike in luxury home sales could have something to do with Hurricane Irma, which hit Southwest Florida in September.
“The storm blew in a lot of business,” Hughes said. “I believe that some buyers who would have purchased in the fourth quarter of 2017 delayed their decision until the first quarter of 2018. It looks like we are off to a good start this year with respect to sales.”
NABOR reported overall closed sales for January to be up 11 percent in Collier County compared to January 2017.
There were 671 single-family and condominium sales in January, up 11 percent from last January, according to NABOR data.
Overall market statistics show a 10 percent decrease in closed sales for homes $300,000 and under in January compared to last January.
There was a 23 percent decrease in the number of single-family homes sold in the under $300,000 range, and pending sales, or new contracts written, declined 24 percent year-over-year.
The number of sales in the $300,000-$500,00 price range declined to 156 in January, a 4 percent decrease over the same month last year.
Naples Beach area stood out to buyers in the single-family home market, with pending sales up 51 percent over last January.
Median closed prices throughout Naples were also up in January compared to last January.
For the entire market, the overall median closed price increased 19 percent to $375,000 in January. January’s median closed prices decreased 19 percent in the $2 million and above price category.
The median price is the price at which half of the homes sell for more and half for less.
“For a long time we saw double-digit increases in median closed prices for single-family homes in the $0 to $300,000 market,” said Cindy Carroll, SRA of Carroll & Carroll Appraisers and Consultants LLC. “But for January, the report showed only a 4 percent increase year over year.”
The January report showed the median closed price f or homes under $300,000 was $255,000. However, the median closed price of homes over $300,000 was $505,000.
While prices continued to increase, Collier County inventory showed a decrease of 5 percent. That translated to 258 fewer homes on the market compared to last January’s inventory.
“There’s an ongoing shortage of housing inventory in many markets across Florida,” said Florida Realtors President Christine Hansen, brokerowner with Century 21 Hansen Realty in Fort Lauderdale. “January’s statewide home sales reflected the tight supply, and — when combined with rising median sales prices — it puts pressure on potential homebuyers.”
January was a hot month for condominium sales in Naples.
Closed sales of condominiums increased 23 percent in January compared to January 2017, while closed sales of single-family homes decreased 1 percent, according to NABOR reports.
“Lately, condo and townhouse sales growth has been outpacing that of single- family homes, and the reason is that the picture for condos and townhouses has been much more balanced. The single- family home market, by contrast, continues to be held back by inadequate levels of new construction,” said Florida Realtors Chief Economist Dr. Brad O’Connor.
Reports reflected 150 closed sales of condominiums in North Naples in January, a 150 percent increase over January 2017. The median closed prices in North Naples increased 428 percent.
According to a NABOR release, 79 closings from a newly built luxury high rise condominium in North Naples impacted closed sales, median closed price and days on market figures for the month.
Those 79 condominiums sold between $1.8 million and $2.5 million, NABOR reported.
To view the report, visit www.naplesarea.com.
Source: Jennifer Beeson; Naples Daily News USA TODAY NETWORK – FLORIDA