April 2008 Market Report
Note: If you are not familiar with the recent history of the Naples Florida real estate market you should review the complete Naples Real Estate Background Report before continuing with this update.
Sales are Up
The number of homes going under contract in the Naples area through mid Aprils this year, was 3.5% higher than the same period last year. And buying momentum has continued to build. As sales through mid April of this year have surged 15% over the same period last year.
Number of Homes Going Under Contract
By Week - 2007 vs. 2008
But, many of the more desirable second home communities have seen a two to three time surge in the number of home sales. Legends Country Club, a desirable second home golf course community with homes ranging from $160s to $500s (at least for now) saw home sales doubled or triple over the previous year.
Legends Country Club
Homes Sales for the Six Month Period Ending March
2007 and 2008 vs. Available for Sale
| Sold 6 Month Period Ending | Months | |||
| March 2007 | March 2008 | For Sale | Supply | |
| Low Rise Condos | 5 | 12 | 26 | 13 |
| Mid Rise Condos | 11 | 20 | 21 | 6 |
| Single Family Homes | 3 | 17 | 18 | 6 |
| Total | 19 | 49 | 65 | 8 |
Based on recent sales, and the total number listed for sale, the Legends has only an 8 month inventory of homes available for sale.
Many communities and property types are showing increased sales and shrinking inventory. Here are some examples of communities and property types within the Naples area that have increasing sales and lowering inventory - far below the 34 month average inventory of home availability for the entire Naples area.
Naples Area
Homes Sales for the Six Month Period Ending March
Years 2007 and 2008 vs. Available for Sale
| No. Of Homes Sales | ||||
| 6 Months Ending March | Homes | Months | ||
| Neighborhood - Property type | 2007 | 2008 | For Sale | Inventory |
| Aqualane Shores - Single F | 7 | 18 | 28 | 9 |
| Arbor Trace - High Ris | 3 | 7 | 16 | 14 |
| Autumn Woods - Single F | 4 | 8 | 22 | 17 |
| Bears Paw - Low Rise | 3 | 6 | 11 | 11 |
| Blue Heron - Villa At | 4 | 8 | 15 | 11 |
| Carlton Lakes - Low Rise | 7 | 17 | 23 | 8 |
| Cedar Hammock - Low Rise | 2 | 11 | 22 | 12 |
| Cedar Hammock - Mid Rise | 4 | 12 | 23 | 12 |
| Emerald Lakes - Low Rise | 4 | 9 | 20 | 13 |
| Forest Glen - Low Rise | 8 | 22 | 28 | 8 |
| Glades - Low Rise | 7 | 20 | 59 | 18 |
| Glen Eagle - Single F | 5 | 11 | 22 | 12 |
| Huntington Lakes - Low Rise | 9 | 13 | 36 | 17 |
| Ibis Cove - Villa At | 4 | 8 | 13 | 10 |
| Imperial Golf Estate - Low Rise | 6 | 10 | 27 | 16 |
| Island Walk - Single F | 13 | 19 | 40 | 13 |
| Island Walk - Villa At | 10 | 24 | 41 | 10 |
| Kensington - Low Rise | 5 | 8 | 15 | 11 |
| Kensington - Single F | 1 | 8 | 10 | 8 |
| Lely Golf Estates - Low Rise | 5 | 9 | 23 | 15 |
| Lely Resort - Single F | 23 | 47 | 164 | 21 |
| Longshore Lake - Single F | 8 | 14 | 43 | 18 |
| Moorings - High Ris | 17 | 18 | 43 | 14 |
| Moorings - Low Rise | 10 | 15 | 57 | 23 |
| Naples Heritage - Low Rise | 3 | 6 | 6 | 6 |
| Naples Park - Single F | 29 | 40 | 160 | 24 |
| Park Shore - Mid Rise | 4 | 7 | 19 | 16 |
| Park Shore - Single F | 8 | 16 | 57 | 21 |
| Pelican Bay - Mid Rise | 10 | 12 | 23 | 12 |
| Pelican Bay - Single F | 15 | 18 | 30 | 10 |
| Pelican Marsh - Low Rise | 22 | 23 | 55 | 14 |
| Sapphire Lakes - Low Rise | 9 | 11 | 25 | 14 |
| Sterling Oaks - Low Rise | 1 | 7 | 13 | 11 |
| The Strand - Single F | 10 | 13 | 26 | 12 |
| Vanderbilt Country C - Low Rise | 5 | 11 | 37 | 20 |
| Village Walk - Single F | 9 | 10 | 23 | 14 |
| Village Walk - Villa At | 2 | 8 | 11 | 8 |
| Winterpark - Low Rise | 3 | 9 | 25 | 17 |
| Wyndemere - Single F | 6 | 8 | 16 | 12 |
Why are Naples home sales trends contrary to US housing trends?
- Naples housing market is driven by second home buyers, and the pace of purchase vs. the prior year is strong.
- Investor buyers are beginning to re-enter the market.
- Many foreign buyers have been snatching up values.
- A large percentage of second home buyers are cash buyers.
- There is a group of truly motivated sellers willing to deal.
- Savvy buyers so far this season have been finding excellent values. The best value homes are rolling off those listed for sale. High priced sellers with no chance of selling remain listed for sale.
There has been an increase in the number of home sales within desirable second home communities. A possible leading indicator on future available supplies and values.
These sales trends are not consistent for neighborhoods appealing mostly to the local working force. Take for example the sale of single family homes in Golden Gate, a community consisting primarily of local working residents. Homes sales have continued to decreased for the six month period ending March vs. comparable periods, and there is a 5 year supply of homes for sale (avg. list price = $230.000).
Golden Gate Single Family Homes
Homes Sales for the Six Month Period Ending March
Years 2006, 2007 and 2008
The source of this information is the proprietary database compilation of SunshineMLS, LLC. The accuracy of this information is not warranted or guaranteed.
The Most Recent Deals
If you are unfamiliar with Naples and pricing, then it will be difficult to get a sense of pricing by Searching Naples Listings Online, as most listings are over priced. But good deals are being sold every day to those in town looking to buy.
Depending on how aggressively priced a seller is, determines the amount of the discount off of list which should be expected. Discounts off of list prices range from 0% to 25%, and average 10%. A buyer who paid full list on a very good deal, got a better value than a buyer who got 25% off on a bad deal.
A way a getting a sense for current Naples home values is by looking at recently sold properties. Except by the occasional overpriced purchased, by an uninformed buyer, the best values in the area are the ones being sold.
Check out the price range that might interest you, to see examples of recent sales.
Whether it is a Second Home Community or a Community with
Working Residents
the Best Values are the Homes Being Sold
Except by the occasional overpriced purchase by an uninformed buyer, the best values in the area are the ones being sold. Check out the price range that might interest you, to see examples of recent sales.
Recently Sold Properties
- Under $250,000 Click Here
- Under $500,000 Click Here
- Over $500,000 Click Here
Prices Roll Back Four Years
Prices are down anywhere from 30% to 50% off of peak prices reached in the Fall of 2005. For much of the area, prices are now at levels seen 4 years ago. See example of one particular community:
Sapphire Lakes Price Index Condos
Selling Prices per Square Foot and Date
The charts above show selling prices per sq. ft within a particular community. It can only be viewed as a general representation of a particular niche and can not be applied to any other community. The source of this information is the proprietary database compilation of SunshineMLS, LLC. The accuracy of this information is not warranted or guaranteed.
Pricing Trend Index
***** Disclaimer *****
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 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, and compares that to a trend line. In Naples, homes prices between communities and neighborhoods can vary greatly based on location and amenities. The selling averages in any particular community could be higher or lower than the examples shown here, but in most cases have followed a similar trend.
The charts compares selling prices as dollars per square foot to 6% growth lines. This does not suggest prices should grow at, below or higher than 6%. The 6% growth lines provides scope and scale to the information.
Single Family Home Price Index vs. Condo Price Index
Average Selling Prices per Square Foot by Quarter vs. 6% Trend Lines
Single Family Homes: 1,600 to 3,000 sq. ft homes, similar communities. Condos: Similar size, similar communities. MLS Disclaimer: The source of this information is the proprietary database compilation of SunshineMLS, LLC. The accuracy of this information is not warranted or guaranteed.
Selling prices for the majority of properties in the area will follow a similar curve for price escalations and drops. For example take 3 completely different communities. While you can see they are at different price points, they still follow the same trend line:
- Forest Glen - A gated, golf included community, built between 2000 and 2004. Showing the price per square foot trend for condos.
- Victoria Park - An un-gated single family home area. Built mostly in the 1980s.
- Winter Park - An un-gated low fees condo community built in the 1980s.
Forest Glen vs Victoria Park vs Winter Park
Date Sold & Price Sq. Ft.
(Note: This chart is current through the Winter of 2008)
Higher Priced Properties
As shown in the above charts, much of Naples had a large run up and then run down in home values. Properties selling for $200,000 in late 2003, could be found selling for $400,000 by late 2005. But this was not the case for higher priced properties. A $1,000,000 property did not run up to $2,000,000.
The following chart shows the average selling price per square foot for those condos sold in the 10 highest priced beach condo buildings vs. condos sold in the 10 lowest priced beach condo buildings.
Beach Condo Price Comparison - Park Shore Area
Average Annual Per Sq. Ft. Selling Prices of Condos
In the 10 Highest Priced Bldgs vs. 10 Lowest Priced Bldgs
It can be seen that the relative priced difference between the two groups of buildings remained the same. But the values for these two groups of higher value properties, rose less than lower priced properties, and the subsequent decrease in values has not been as steep.
Affordability
Naples is much more affordable now than in just recent years. The price decreases represented above can been seen in nearly every community to some extent. Here are some examples of price decreases.
Condo Sales
Sold at Peak vs. Recent Sales
| Community- Area Sq. Ft. | 2005 | 2008 | Change |
| BLUE HERON - 1742 Sq.Ft. | $ 385,000 | $ 196,000 | 49% |
| CEDAR HAMMOCK - 1194 Sq.Ft. | $ 360,000 | $ 200,000 | 44% |
| EMERALD LAKES - 1022 Sq.Ft. | $ 290,000 | $ 160,000 | 45% |
| FOREST GLEN - 1432 Sq.Ft. | $ 415,000 | $ 220,000 | 47% |
| FOUNTAINS - 1082 Sq.Ft. | $ 265,900 | $ 115,000 | 57% |
| GLADES - 1010 Sq.Ft. | $ 231,800 | $ 90,000 | 61% |
| HIGH POINT - 1015 Sq.Ft. | $ 345,000 | $ 160,000 | 54% |
| HUNTINGTON LAKES - 1315 Sq.Ft. | $ 345,000 | $ 170,000 | 51% |
| KEY ROYAL - 1106 Sq.Ft. | $ 275,000 | $ 122,760 | 55% |
| LELY - 1129 Sq.Ft. | $ 269,000 | $ 129,500 | 52% |
| NAPLES LAKES - 1487 Sq.Ft. | $ 450,000 | $ 210,000 | 53% |
| SAPPHIRE LAKES - 1200 Sq.Ft. | $ 291,500 | $ 148,000 | 49% |
| SAPPHIRE LAKES - 1406 Sq.Ft. | $ 325,000 | $ 170,000 | 48% |
| ST CROIX - 1103 Sq.Ft. | $ 280,000 | $ 142,500 | 49% |
| STERLING OAKS - 1279 Sq.Ft. | $ 325,000 | $ 160,000 | 51% |
| THE STRAND - 1449 Sq.Ft. | $ 412,000 | $ 205,000 | 50% |
| THE STRAND - 1540 Sq.Ft. | $ 410,000 | $ 221,000 | 46% |
| THE STRAND - 2160 Sq.Ft. | $ 570,000 | $ 315,000 | 45% |
| TURTLE LAKE - 638 Sq.Ft. | $ 178,000 | $ 94,000 | 47% |
| WILDWOOD LAKES - 1042 Sq.Ft. | $ 272,500 | $ 122,400 | 55% |
| WINDSOR PLACE - 1200 Sq.Ft. | $ 335,900 | $ 154,000 | 54% |
| WOODMERE - 1076 Sq.Ft. | $ 255,000 | $ 133,900 | 47% |
MLS Disclaimer: The source of this information is the proprietary database compilation of SunshineMLS, LLC. The accuracy of this information is not warranted or guaranteed.
Over Pricing Continues
Throughout the Naples area many homes listed for sale, are priced significantly above current market values. This is very confusing for buyers. When buyers asks, why is that home priced significantly higher than a similar comparable. There is a simple answer: That seller wants more money. And they have a listing agent that is willing to list at that price. Those sellers are just ignored.
Examples of Condos Asking Price Differentials
April 2008
| Recent Sold | High Priced | ||
| Community - Area Sq.ft. | Price | Seller is Asking | Diff |
| ASCOT AT LELY RESORT - 2040 | $ 327,000 | $ 489,000 | 50% |
| BRIDGEWATER BAY - 2133 | $ 379,000 | $ 495,000 | 31% |
| CARLTON LAKES - 1654 | $ 239,900 | $ 329,000 | 37% |
| CEDAR HAMMOCK - 1194 | $ 200,000 | $ 324,900 | 62% |
| CEDAR HAMMOCK - 1408 | $ 260,000 | $ 349,900 | 35% |
| COUNTRYSIDE - 1146 | $ 205,000 | $ 297,200 | 45% |
| EAGLE CREEK - 1534 | $ 170,000 | $ 295,000 | 74% |
| EAGLE CREEK - 2070 | $ 170,000 | $ 280,000 | 65% |
| EMERALD LAKES - 1022 | $ 160,000 | $ 299,900 | 87% |
| FALLING WATERS - 1349 | $ 163,000 | $ 249,900 | 53% |
| FOREST GLEN - 1170 | $ 175,000 | $ 294,900 | 69% |
| FOREST GLEN - 1432 | $ 220,000 | $ 389,000 | 77% |
| FOREST GLEN - 1567 | $ 195,000 | $ 299,900 | 54% |
| FOUNTAINS - 1082 | $ 115,000 | $ 195,000 | 70% |
| GLADES - 1010 | $ 90,000 | $ 169,000 | 88% |
| GLADES - 1220 | $ 115,000 | $ 154,900 | 35% |
| GLEN EAGLE - 1499 | $ 243,500 | $ 335,000 | 38% |
| HAMMOCK BAY - 2014 | $ 409,900 | $ 639,000 | 56% |
| HAMMOCK BAY - 2463 | $ 450,000 | $ 635,000 | 41% |
| HERITAGE BAY - 1232 | $ 208,888 | $ 364,900 | 75% |
| HIGH POINT - 1015 | $ 160,000 | $ 298,900 | 87% |
| HUNTINGTON LAKES - 1107 | $ 180,000 | $ 259,900 | 44% |
| HUNTINGTON LAKES - 1315 | $ 170,000 | $ 229,000 | 35% |
| LAKEWOOD - 700 | $ 95,000 | $ 146,500 | 54% |
| LEMURIA - 3074 | $ 575,000 | $ 889,000 | 55% |
| LES CHATEAUX - 2216 | $ 360,000 | $ 629,000 | 75% |
| LITTLE HICKORY - 1231 | $ 140,000 | $ 219,000 | 56% |
| LITTLE HICKORY - 1460 | $ 162,000 | $ 225,000 | 39% |
| MARINERS COVE - 1100 | $ 400,000 | $ 549,000 | 37% |
| MEDITERRA - 2503 | $ 655,000 | $ 899,995 | 37% |
| MEDITERRA - 2873 | $ 550,000 | $ 869,900 | 58% |
| MILANO - 1580 | $ 195,000 | $ 300,000 | 54% |
| MONT CLAIRE - 2060 | $ 500,000 | $ 675,000 | 35% |
| OSPREY POINTE - 2060 | $ 490,000 | $ 675,000 | 38% |
| PERIDOT AT SUNSTONE - 1247 | $ 180,000 | $ 242,842 | 35% |
| PINE WOODS - 1604 | $ 180,000 | $ 295,000 | 64% |
| PIPERS GROVE - 1928 | $ 250,000 | $ 349,900 | 40% |
| PORT OF THE ISLANDS - 1116 | $ 172,000 | $ 297,500 | 73% |
| POSITANO PLACE - 1067 | $ 180,000 | $ 398,000 | 121% |
| ROYAL WOOD - 1320 | $ 195,000 | $ 279,900 | 44% |
| SAPPHIRE LAKES - 1200 | $ 148,000 | $ 229,900 | 55% |
| SAPPHIRE LAKES - 1406 | $ 170,000 | $ 278,900 | 64% |
| SARATOGA - 1880 | $ 315,000 | $ 419,900 | 33% |
| ST CROIX - 1103 | $ 142,500 | $ 249,900 | 75% |
| STERLING OAKS - 1279 | $ 160,000 | $ 315,000 | 97% |
| THE QUARRY - 2091 | $ 304,990 | $ 495,000 | 62% |
| THE STRAND - 1449 | $ 205,000 | $ 300,000 | 46% |
| THE STRAND - 1540 | $ 221,000 | $ 314,900 | 42% |
| THE STRAND - 2160 | $ 315,000 | $ 459,900 | 46% |
| TURTLE LAKE - 638 | $ 94,000 | $ 169,000 | 80% |
| VISTA RIO - 1100 | $ 80,000 | $ 105,000 | 31% |
| WIGGINS BAY - 1326 | $ 285,000 | $ 379,000 | 33% |
| WILDWOOD LAKES - 1042 | $ 122,400 | $ 249,000 | 103% |
| WILDWOOD LAKES - 909 | $ 115,000 | $ 179,000 | 56% |
| WINTERPARK - 1246 | $ 150,000 | $ 229,000 | 53% |
| WOODMERE LAKE CLUB - 1097 | $ 127,500 | $ 218,000 | 71% |
There are valid reason why two similar properties within the same community should be priced differently. Upgrades, views, location and many other factors can all affect the value of two properties with the exact floor plan. But it would be very rare for those differences to account for a 20% or more spread.
As outlined earlier, properties values throughout the area have risen and fallen together according to relative values. For examples look at various condo communities within the Pelican Bay area, a very desirable beachside community.
Pelican Bay Condo Communities
Date Sold $ Per Sq. Ft. Selling Prices
MLS Disclaimer: The source of the above information is the proprietary database compilation of SunshineMLS, LLC. The accuracy of this information is not warranted or guaranteed. There are many reasons why certain properties have higher values than other, and no blanket conclusion should made on the value of any individual property based on general trends.
For example, just because there has not been a condo sold in the Breakwater community for many months, does not suggest that values there have not followed the overall trends of other condo communities within Pelican Bay.
Available Inventory
The Naples area has approximately 11,500 homes listed for sale. A better description would be to say "Naples has approximately 11,500 owners that would like to sell their home." But, as most homes are listed at prices much higher than current market values, they have no chance of selling. So while there are 11,500 homes listed, most cannot be considered really for sale.
As mentioned at the beginning of this report, the supply of homes in some of the more desirable second home communities can actually be considered low.
Advice to Buyers
If you been thinking about buying in the Naples area for your own personal use and enjoyment, then nearly every communities has a few attractive low price leaders.
A buyer needs to work with someone knowledgeable, as the pricing and trends are very dynamic. Seller's asking prices are often crazy, but in many cases you can find very aggressively priced sellers.
Buyer's Frequently Asked Question
Q. Can I get a good deal on a foreclosed property?
Bring along your hammer, nails, paint brush and work crews.
Foreclosed
properties are owned by the “bank.” Mr. “Bank” has never stepped in
the property or looked at it. In many cases the previous owner did not have the
money to make mortgage payments and did not have the money to make
repairs and perform maintenance on the home. Especially since they knew they
would not be in the home for the long run.
Foreclosed properties are not necessarily the better priced homes. A
buyer that is just focusing on foreclosed properties will most likely
have a long search, and will be bypassing better value comparables
in many cases.
Find more
Advice to Sellers
To sell you need to be totally informed and competitively priced. Give me a call for a fair and honest assessment. We can work out the best strategy that meets your goals. It might be better now to wait and hold, or it might be better to price it right, and get it sold.