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Luxury Home Buyers are Back!

Luxury Homes

January Home Sales Set the Stage for Solid 1st Quarter

Luxury home buyers are back in Collier County! Naples, FL. (February 21, 2020) – Despite a tug on inventory that resulted in a 26 percent decrease to 5,761 properties in January 2020 compared to 7,773 properties in January 2019, overall closed sales in Collier County rallied in January, especially in the luxury market. A 22 percent increase in January’s overall closed sales has many broker analysts optimistic that continued strong sales activity can be expected through the first quarter.

Aside from the 26 percent decrease in January’s month-end inventory compared to January 2019, we actually gained 360 more listings in January than what was available to buyers in December. Collier County has a 6.6-month supply of homes, which is much higher than many other hot markets in Florida. A recent Realtor.com analysis showed that other areas in Florida also experienced double-digit decreases in active listings for January including Tampa/St. Pete (20.2 percent decrease), Orlando (15.8 percent decrease), and Miami/Ft. Lauderdale/West Palm Beach (11.2 percent decrease).
“Unlike the first quarter of 2019, home buyers should move quickly, as time is not your friend this quarter,” said Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., “especially those in the high-end home market.” Hughes was referring to buyers interested in the $1 million to $2 million single-family home market in Collier County, which saw a 20 percent increase in closed sales year-over-year ending January 2020. According to the January 2020 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), there are currently 354 single-family homes on the market in this price category.
“A year ago, many economists were predicting a recession by the end of 2019, but they’ve since changed their tune and the affluent buyer is listening,” said Budge Huskey, President, Premier Sotheby’s International Realty. “It looks like many buyers are rebalancing their portfolios and pulling money out of the stock market to buy homes because they fear they won’t make the same returns as last year. The stock market inertia has reignited the luxury markets. Purchasing power is bringing back home buyers to the Naples area luxury home market. In essence, they believe now is the time to buy a luxury home in Naples.”
NABOR Board President Lauren U. Melo, PA, a Licensed Real Estate Broker with Florida’s Realty Specialists, agreed with Hughes and Huskey, adding that the report indicated that “showings of single-family homes in the $1 million to $2 million price category increased 109 percent in January 2020 compared to January 2019!”
For perspective and as noted by Spencer E. Haynes, Director of Business Development and Broker with John R. Wood Properties, “Seasonal visitors arrived earlier and spent more time during the 2019 holiday season looking for homes to purchase than in the previous holiday season.” This was demonstrated in the November and December 2019 Market Reports, which showed a 27 percent and 21 percent increase in pending sales, respectively.
Median closed prices increased 5.5 percent in January to $343,000 compared to $325,000 in January 2019. But this is still much lower than the median closed price reported in January 2018, which was $375,000. Interestingly, median closed prices for the 12-months ending January 2020 actually fell in all price categories except for the $2 million and above, which increased 6.1 percent.
The NABOR® January 2020 Market Reports provide 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:
CATEGORIES
Jan 2019
Jan 2020
CHANGE
Total closed sales (year/year)
594 722 +21.5%
Total pending sales (homes under contract) (year/year) 1,022 1,359 +33.0
Median closed price (year/year)
$325,000 $343,000 +5.5%
Total active listings (inventory)
7,773 5,761 -25.9%
Average days on market
96 107 +11.5%
Single-family closed sales (year/year)
318 361
+13.5%
Single-family median closed price (year/year)
$380,500 $437,500 +15.0%
Single-family inventory
3,903 2,842 -27.2%
Condominium closed sales (year/year)
276 361 +30.8%
Condominium median closed price (year/year)
$260,000 $270,000 +3.8%
Condominium inventory
3,870 2,919 -24.6%
Adam Vellano, West Coast Sales Manager, BEX Realty – Florida, noted that the report showed 1,885 price decreases in January, which he believes is “mostly old inventory that is finally coming to the buyer as a result of appealing price reductions.”
Responding to Vellano’s comments, Jeff Jones, Broker at Keller Williams Naples, added that “January’s price reductions represented 33 percent of active listings in January [5,761 properties], which is much higher than the 25 to 28 percent shown in the Market Reports over the last few months.”
Geographically, Melo was surprised to see that the median closed price for homes in the 34120 zip code was flat and remained at $300,000, the same as January 2019, as this is an area where a majority of new construction is taking place. Other areas with sales activity that stood out in January were Naples Beach, which had a 57.1 percent increase in closed sales of condominiums; South Naples had a 7.1 percent decrease in closed sales of single-family homes; and North Naples had a 2.3 percent decrease in median closed prices for single-family homes.
The term REALTOR® is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribe to its strict Code of Ethics.
If you are considering Buying or Selling in SW Florida, contact us. Call (239) 449-8484, E-mail: Mike@BeachToTee.com or Visit our website at at www.BeachToTee.com 

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HOA living: Is this lifestyle right for you?

HOA

What is the HOA lifestyle? Planned communities often come across as perfect when you compare them to traditional neighborhoods. Homeowners Associations are one reason for the dramatic difference. The 2016 Community Association Statistical Review documented 342,000 of these common-interest communities.

26.3 million planned home developments, condominium communities, and HOAs or similar community systems govern cooperatives. Residents agree to written guidelines and pay assessments to fund amenities and common maintenance expenses. It’s a popular concept but is HOA living right for you?

The Pros

  • The HOA enforce the rules.

    HOAs enforce community behavior, so you don’t have to become involved in neighborhood disputes. If your neighbor leaves a junker in the driveway, lights a bonfire, or makes too much noise, community management handles it.

  • You’ll have an attractive neighborhood.

    HOAs establish and manage community maintenance standards. Your fees pay for landscaping, maintenance, repairs, insurance, and amenities.

  • HOAs help protect property values.

    Residents must agree to community rules and guidelines. Failure to comply may lead to additional assessments or enforcement actions. This far-reaching ability to regulate resident behavior helps HOAs control the factors that lead to diminished property values.

  • You’ll have on-site recreation and other amenities.

    HOA communities may offer pools, golf courses, green spaces, and organized social activities. They help create a community to keep you active and involved.

The Cons 

  • You’ll have no control over the fees.

    If the HOA has a bad financial year with too many community projects and not enough cash, your fees may increase.

  • You’ll have to hold back your creativity.

    You’ll have to restrain your creative impulses. For community consistency, HOA guidelines usually restrict external paint colors and decor. That means no cerulean blue exteriors with fuschia trim.

  • You’ll have to go with the flow.

    Boards and/or management entities run HOAs. To provide input in their decisions, you must attend HOA meetings and stay involved. You may still have to go along with decisions you don’t like.

  • You’ll have to follow all the rules too.

    Everyone in an HOA-run community must follow the rules. That can mean anything from restraining your urge to party to complying with community remodeling guidelines.

HOA communities are a restrictive residential system, but they allow you to enjoy the perks of homeownership without the traditional hassles. You’ll have to decide if it’s a homeownership option that works for you. Give me a call if you’d like to learn more about HOAs or are ready to start your search for a new home.  I’ll be by your side through every step of the buying process to make certain you find the right home for you.

If you are considering Buying or Selling in SW Florida, contact us. Call (239) 449-8484, E-mail: Mike@BeachToTee.com or Visit our website at at www.BeachToTee.com 

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Five changes you can make so buyers fall in love with your home

buyers

Waiting for a Buyer? The real estate market is competitive and as a home seller, you want your home to stand out from the other listings in your area. It’s possible to delight potential buyers without carrying out major renovations.

Here are five changes you can make so buyers fall in love with your home.

  1. Repaint your walls

    You need to freshen up the paint before you open your doors to home buyers. The interior of your home should be as neutral as possible. Neutral colors such as beige or grey will do a better job of showing off moldings and windows and give potential buyers a sense of coziness.  Avoid bright whites and splashy colors.

  2. Improve curb appeal

    Buyers will see the exterior of your home first, which is why you’ll need to improve your curb appeal. Some buyers will choose not to go inside your home when the exterior is not appealing. Keep your lawn well-maintained, touch up the paint, remove clutter and debris, and improve the landscape. Also, consider pressure washing your home’s exterior and driveway.

  3. Fix the little things

    Home buyers don’t want to see obvious displays of neglect. Walk around each room in your home and fix the little things that you may have overlooked. Fix the loose doorknob, cracked tiles, chipped banister, and that leaky faucet. The more repairs you make, the happier house hunters will be.

  4. Consider kitchen improvements

    The kitchen, for many individuals, is the heart of the home and can make or break a buyer’s opinion of it. House hunters love a kitchen that looks and feels clean, fresh, and refined. Spotless appliances and surfaces make a positive impression. Clean or repaint stained surfaces. Empty the trash often, keep your sink clean, and ensure that your kitchen is free of bad smells.

  5. Allow in natural light

    A house bathed in natural light will always wow and delight home shoppers. Make the most of your windows by using lightweight curtains that match the wall colors. Give your windows and screens a thorough cleaning to invite in as much sunlight as possible.

When the time is right, reach out to me and we’ll schedule a meeting to discuss selling your home.

If you are considering Buying or Selling in SW Florida, contact us. Call (239) 449-8484, E-mail: Mike@BeachToTee.com or Visit our website at at www.BeachToTee.com 

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