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2016 Naples Real Estate Sales: What It Means for 2017

Agnes Zak

Agnes Zak is an award-winning Realtor with Premier Sotheby's International Realty who is passionate about helping her clients accomplish their goals a...

Agnes Zak is an award-winning Realtor with Premier Sotheby's International Realty who is passionate about helping her clients accomplish their goals a...

Feb 8 5 minutes read

Let’s get the less than stellar news out of the way right at the beginning.

Closed sales across the Naples area were down 13 percent in 2016 compared to 2015 while pending sales decreased 14 percent. Some of this is due to the inventory shortage we began the year with, while other factors include a rise in new construction building, Brexit and Zika fears, uncertainty during the presidential election, and a lower than normal Canadian exchange rate.

This is all according to statistics provided by the Naples Area Board of Realtors®.

Going forward into 2017, the numbers to watch - for both buyers and sellers - are inventory levels and median prices. We may have begun last year with little to no inventory, but we ended the year with big inventory gains in most price ranges.

Inventory Change By Price - 2016 Compared to 2015

Price

Single Family Homes

Condos

$0 - $300K

0%

47%

$300K - $500K

33%

41%

$500K - $1M

30%

44%

$1M - $2M

24%

74%

$2M+

20%

53%

What’s the bottom line here? Depending on your home and the price range you fall into, selling your home just became much more competitive. It will also mean that curb appeal, professional photographer, great staging, and all of the other elements that you need to get a buyer’s attention will become even more important.

The more homes there are on the market, the more buyers have to choose from. This means they’ll bypass homes that aren’t well presented. If they do give your home a second look, they’ll reject it if you’re overpriced. Competition impacts pricing. While median prices rose slightly in 2016 compared to the year before, it was due in part to lower than normal inventory.

Now that inventory levels are correcting themselves, be prepared for median prices to fall slightly or increase at slower rates than before.

Median Price Change - 2016 Compared to 2015

Median prices didn’t boom in 2016 but in some areas, there were increases. Less inventory meant less choices for buyers. A great listing could potentially receive multiple offers or offers higher than the list price. This, combined with a continually improving economy and local real estate market, helps bring overall prices and values up.

First, let’s look at median prices based on listing prices for 2016.

Price

Single Family Homes

Condo

$0 - $300K

9%

6%

$300K - $500K

0%

0%

$500K - $1M

-3%

1%

$1M - $2M

0%

0%

$2M+

-2%

1%

As you can see, median prices didn’t exactly soar in 2016 when compared to 2015. In some cases, they dropped. This shouldn’t be cause to decide to sit out the year and keep your home off the market. It simply means that when you’re ready to sell, you’ll need to be realistic about the price of your home and what you can reasonably expect a buyer to pay.

Let’s look at it by areas around Naples.

Area

Single Family Homes

Condos

Naples Beach

4%

13%

North Naples

5%

0%

Central Naples

2%

8%

South Naples

5%

7%

East Naples

11%

6%

Immokalee/Ave Maria

10%

19%

What does this tell us? The old adage of location, location, location is still important.

A word about what this means in 2017:

  • Additional inventory means more homes for buyers to look through and choose from.

  • The days of desperate buyers taking any home at almost any price are coming to an end. Multiple offers will likely only occur for the homes priced and presented well.

  • Median prices likely won’t increase much, if at all, this year but prices are still up from over the past several years.

  • It’s time to focus on old-fashioned real estate while utilizing the best new tools. Sellers need to price it right, stage it well, and give buyers a reason to view your home.

  • There are opportunities for sellers in the lower price ranges for single family homes where inventory isn’t currently keeping pace with the rest of the market. It’s worth noting, this range also saw the largest increase in median prices. 

To take a look at the numbers in more detail, click here to view the 2016 annual report.

For sellers, work with an agent who understands the market and knows how to make sure your home is competitive with buyers.

For buyers, you need an agent who can help you weed through all of your options and let you know when a home is priced well or it’s wildly off the mark.

Ready to make a move in 2017? Let’s talk!

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