Rich's Market Report: Values Remain Strong While Inventory Expands...

Greetings and welcome to this month's Market Report!  I hope all is well with you and thanks again for your referrals.  It's the highest compliment I can receive!

It's that time of the year when the traffic starts to die down a bit and the pace slows down.  For those who are snowbirds and just headed north, have a great summer.  For those of you still residing in the north, here come the days you look forward to all year long. Born and raised on a lake in northern Indiana, I would have probably already launched the ski boat and pontoon!  Nothing like summer in the Midwest and I'll be paying a visit back home again this August!

Under the category of, You Can't Make This Up...Did you hear what fell from the sky into a home in Naples last month?  Yikes!

NASA has confirmed that a nearly 2-pound chunk of a jettisoned pallet of used batteries that crashed through the roof and two floors of a Florida man's house last month came from the International Space Station.

The space administration said in a blog post Monday that in March 2021, ground controllers used the International Space Station's robotic arm to "release a cargo pallet containing aging nickel hydride batteries from the space station following the delivery and installation of new lithium-ion batteries as part of power upgrades on the orbital outpost." The total mass of the hardware released from the space station was about 5,800 pounds, NASA said.

According to NASA, the hardware was expected to "fully burn up during entry through Earth's atmosphere on March 8, 2024." However, a piece of the hardware "survived re-entry" and crashed through a home in Naples, Florida.

I thought I had enough to worry about!  Oh well!  On we go into our review of last month's (March 2024) Market Data!

Positive shifts and trends in the Naples area housing market during March continued to attract buyers and sellers. The March 2024 Market Report by the Naples Area Board of REALTORS, reported a 67.6 percent increase in inventory to 5,283 properties from 3,153 properties in March 2023. While home prices continue to appreciate steadily, up 6 percent in March to $649,000 from $612,000 in March 2023, there were also 2,667 price decreases during March, the highest number of decreased reported in over five years. According to broker analysts, these decreases are not placing downward pressure on prices; they are an indication that sellers are taking steps to stay competitive.

March’s data shows a familiar trend that we haven’t enjoyed for some years. Compared to activity in the years leading up to the pandemic, March’s data reflects behavior that we would consider normal. Visitors get familiar with our real estate market during winter season to make certain they like the area well enough to purchase a residence here and to identify the communities that will meet their lifestyle needs. Then, they return during the summer to look for the right home, in the right location, at the right price and make a purchase.

Closed sales in March decreased 14.2 percent to 893 from 1,041 closed sales in March 2023. While some analysts point to interest rates as the primary factor home sales have simmered recently, total price increases of homes over recent years are far more financially impactful than interest rates to a home buyer considering our average lower loan-to-value ratios and amount of cash.

Despite rising home prices and an increase in insurance rates, cash offers on homes have surged. The report shows 63 percent of transactions reported in March were cash sales. Naples has a very high cash market.

The enduring appeal of Naples to the affluent home buyer, coupled with lower luxury home prices in the Naples area compared to other luxury markets and the steady growth in Naples area property values is driving sales now more than ever. There were 32 homes sold in the $5 million and above price range and 126 homes sold in the $1.5 to $5 million price range in March 2024.

People were buying anything during the pandemic. But today they are looking for homes they desire and in locations or communities that can offer the lifestyle they prefer. Buyers are now finding more homes to choose from. For example, in the $500,000 to $1.5 million price range, there were 2,404 homes for sale in March 2024, an increase of 71 percent from March 2023 when there were 1,406 for sale in that price category. Pre-sale activity for the new, ultra-high end properties like the Ritz Carlton Residences and Rosewood Residences have been remarkable, a reflection of the strong demand for luxury residences.

The NABOR® March 2024 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. NABOR® sales statistics are presented in chart format, including these overall (single-family and condominium) findings for 2024:

Closed sales of single-family homes in East Naples (east of Collier Boulevard or 34114, 34117, 34120, 34137) continues to outpace single-family home closed sales reported in all other areas in Naples. There were 206 single-family home closed sales in this area during March, with another 249 single-family homes that came on the market (new listings) during the month.  This is an area I believe to be under the radar and with great upside!

The Naples Beach area ( 34102, 34103, 34108) reported the highest number of condominium new listings in March (188) and the highest inventory of condominiums (859); but the North Naples area (34109, 34110, 34119) reported the highest closed sales of condominiums in March (130).

As always, please don't hesitate to call with any questions around the world of SWFL real estate. I am here when you need me!

Kind regards...

Rich Townsend
"Your Realtor for Life"
Richard Townsend LLC
Downing-Frye Realty, Inc.
cell: 239-289-8530
[email protected]
www.napleshomesbyrich.com