Naples Florida Real Estate Update

MORE GOOD NEWS!

Recently released statistics, from The Naples Area Board of Realtors [NABOR], report more good news! Closed home sales, as well as sales pended, have increased 5% over the past 12 months. This data tracks all home and condo sales in Collier county excluding Marco Island, which has its own board. In addition to the increase in sales, our inventory is way down...an overall decrease of 17% less than what was active a year ago! There is so much data--so many statistics...but, to simplify and make the outline more concise I wanted to concentrate on the numbers which were the most striking to me.

• Overall pending sales increased 55% in the $500,000 to $1 million category February 2001 to February 2012.
• Closed sales increased 13% in the $1 million to $2 million category 12-month ending.
• Overall closed sales increased 70% in the $2 million plus category during that same time period.
• Median closed sale prices are up 5%.
• Inventory decreased 17%.
• Over all pending sales in the $300,000 to $499,999 range are up 11%.
• Naples Beach [which includes zip codes 34102, 34103 & 34108] pending sales increased 17% and closed sales increased 20% 12-month ending.
• 855 homes pended last month in the "under $300,000" price range. Presently there are 646 homes active in this price range. That equates to approximately a 9 month absorption rate.
• The overall market experienced 8,349 closed sales for the 12 months ending February 29th 2012 compared to 7,929 closed sales for the previous 12 month time range.

A year ago, as released by NABOR on their site NaplesArea.com on March 18th, 2011, home prices were up 10%. With the current trend of low inventory, low interest rates and continued demand from both investors and foreign buyers as well as baby boomers looking for a vacation home or permanent Florida residence, I feel confidant that number could double this year! What I have referred to as the 'trickle up' effect is now causing low end prices to increase, pushing middle pricing higher and demand for middle pricing to gain great strength. ~And, well priced luxury real estate is also breaking records!

Lower inventory and increased demand creates an urgency that effects value. A perfect example: Chip Harris had a listing in Old Naples, on and off the market, for approximately 4 years. Like so many sellers, they got into the trap of continuing to chase the market down with price reduction after price reduction. This is not uncommon as many agents will agree. Last month they received 4 offers within 24 hours of another...One of the buyers who did not get his offer accepted wanted to keep his contract in back-up position. Chip then called other owners in the same complex, and that buyer ended up paying more for another unit in the same building! Cindy Carroll, a principal of the appraisal firm of Carroll & Carroll was recently quoted as saying, "The market is on fire!" I couldn't agree with her more!

For additional information about a particular Naples neighborhood or statistics about a certain price range, please contact a member of The Harris Peppe Team today at 239.370.0574

Thank you, and make it a great day,

The Naples Real Estate Blogger

More Naples Real Estate Updates

A Diminishing Inventory in Naples Florida Real Estate

The Naples Daily News article from the weekend paper touted the continuing market stability of our local real estate values. According to The Naples Area Board of Realtors, key indicators such as 'pending sales, current inventory and the median closed price' show signs of real estate stability during these otherwise challenging economic times. Their report further states pending sales were up 2% in July 2011 when compared to July 2010. Another contributing factor is the decrease in non-traditional sales such as short sales and foreclosures. In one of my recent posts about waterfront homes in Naples I calculated that there were 214 homes for sale in the Naples MLS with direct or indirect gulf access. Of those only 12 were short sales and there weren't any foreclosures reported. According to NABOR, 'inventory continues to drop at a rate of 19%. Across the board we currently have less than a 9 month supply of inventory'. This is the lowest seen since NABOR began tracking absorption rates in April 2007. Since April 2007 inventory in Naples has declined over 5,000 residential units. Thanks mostly to smart money investors who are taking advantage of the great values!

Here is a synopsis of one aspect of our market which I believe will help illustrate the current trends in a very popular price range here in Naples, as an example:

Currently Active Single Family Homes priced below $500,000=1,300

When you add to that general search criteria more specific search parameters such as: Year Built 2000 or newer, homes with a private pool, located in a gated community, that number goes from 1,300 Active listings down to only 158 Homes for Sale in all of the NA zones in Naples. Now, take into consideration all homes that meet the very same specifications that have closed in the past 12 months: and there have been 298 closings. That equates to approximately 24.8 closings per month. Based on those closed sales and today's current inventory, we are left with only a 6.37 month absorption rate in that priuce range and specifications! Typically a 12 month absorption rate is considered a 'healthy market, therefore it is this writers' belief that we are experiencing a stabilizing real estate market in Naples Florida.

For additional information about homes for sale in all price ranges, please contact a member of The Harris Peppe Team today! 239.370.0574

Thank you, and make it a GREAT day!

The Naples Real Estate Blogger

data derived from the Naples area MLS is believed to be accurate but not guaranteed.

Downtown Naples Update

What's happening in Old Naples?

When you open a map of Collier County, and realize that a lot of it even spills over to the reverse side of the map, you can visualize the size of our county. It is the largest county, land-wise, east of the Mississippi River! Then when you isolate the streets that typically outline the neighborhood of Old Naples, you really become aware of what a treasure our downtown area is indeed. Less than a mile wide, the MLS zone of NA 06, also known as Old Naples and sometimes spelled Olde Naples, runs from the golf course at the historic Beach Club Hotel south to 14th Avenue South, where Aqualane Shores begins. Within this magical rectangle lies several neighborhoods and shopping districts, but for those of us that know Naples, we just refer to it in general as "Old Naples". This is where Naples began. The history of Naples is rich, and that could be an entirely separate blog post, which I will attempt sometime. For now, since I work downtown, and really enjoy selling in Old Naples, I thought I'd do an update of what is currently happening in the Naples Real Estate market downtown!

HOMES:

• Presently there are 83 Single Family Homes on the market in NA 06
• The prices range from $549,000 to $13,900,000.
• There aren't any 'Short Sales' or Foreclosures currently listed in *MLS.
• Currently there are 22 homes under contract, approximately half have had their conditions met and are scheduled to close.
• Year to date there have been 18 closings ranging in price from $330,000 for an older home, about 7 blocks to the beach and 12 blocks north of 5th Avenue South to a beach front cottage which recently closed for $6 million.
• Average sale price in the past 12 months=$1,732,252.
• Median sold price in the past 12 months=$1,375,623.
• 36 of the 83 homes for sale were built 2000 or newer. The least expensive is listed at $1.4 million and is located on 3rd Avenue North, 4 blocks to the beach, built in 2008 with nearly 3,500 sq ft of LA.
• Only 5 of the 36 newer homes were completed in the past 12 months. Prices of these brand new homes start at $1.8 million up to $13.9 million, with homesite premiums depending upon lot size, and distance to the gulf.

CONDOS:

• Presently there are 182 Active condominiums listed in Old Naples.
• The condos for sale start at $112,450 for a 1 bedroom up to $3.2 million for a luxury condominium with amazing amenities.
• Currently 20 condos are under contract and there have been 34 closings year to date. The sold prices have ranged from $75,000 to $1,550,000.
• The average sold price of condos in NA 06 in the past 12 months has been $528,000.
• The median sale price was $396,998.
• There has only been 1 condo sell that was listed at or above $2 million in nearly 2 years!

There are some very good buys right now in Old Naples, but the bottom prices are creeping upward in single family homes due to a lack of inventory in the lower range. ~And, condos in communities with amenities [i.e. pool] are also going fast in the lower price ranges. The high end condominiums are still seeing buyer resistance. The list to sale ratio in both homes & condos over the past 12 months has been 93%. This is contrary to what a lot of media outlets are reporting about Naples. Again, taking a broad stroke of Naples skews the actual results in specific areas such as Old Naples. Old Naples is a treasure and it always will be. Call us today to request additional information about this charming beach front community! Your home in paradise is just a phone call away! 239.370.0574

Thank you and make it a great day!

The Naples Real Estate Blogger

*all information derived from the Naples MLS and is deemed accurate but not guaranteed.

Cannot Be Duplicated!

Royal Harbor Treasure!

Undeniably, one of the very best waterfront values in all of Naples Florida!

This professionally decorated, custom home boasts over 4,200 square feet of living area and has 4 bedrooms plus a den and 4 full baths. Additionally there is a library, an exercise room, a craft or hobby room, and separate formal living room & dining room as well as a family room which opens from the gourmet kitchen to the beautiful outdoor Lanai, pool & spa and built in grill. All new impact curtains exceed the 2011 Dade/Broward wind requirements for a CAT 5 Hurricane. The 60' deep water dock will accommodate a large vessel and features direct gulf access...In minutes you will find yourself in Naples Bay, the Gulf of Mexico, or the wonderful backwaters of the 10,000 Islands! Please join me today, Sunday February 20th at my open house from 1PM to 4PM, at 2031 Tarpon Road in Royal Harbor, or call The Harris Peppe Team to arrange a private showing of this immaculately kept waterfront residence in one of Naples finest communities! Drastically reduced to under $2 million! 239.370.0574

Thank you, and make it a GREAT day!

The Naples Real Estate Blogger

Gordon River Views

There is definitely something for everybody in Naples Florida. Check out this spacious 1st floor two bedroom, two bath condo with a 28' boat dock included! This fabulous condominium is located in Mariners Cove--a hidden treasure right on the Gordon River, within walking distance to all the downtown amenities.

The low condo fees include general insurance, professional management, a reserve fund, water & sewer, basic cable, exterior & interior pest control, lawn care and recreation maintenance such as the boat docks, and lovely riverside pool area. Pets are approved up to 35 lbs. and there is a very flexible rental program which allows for 12 leases per year with a 30 day minimum. Perfect for the investor looking to offset the debt with a nice income while enjoying their Naples vacation home throughout the year!

If you are interested in viewing additional details about this great condo click HERE to see a virtual tour, or call 239.370.0574 for an appointment today!

Say Hello to a Good-Buy!

This is one of the best buys in Naples Florida, priced below $300,000. It is NOT a short sale or a bank owned property...It is just a well priced listing with a motivated seller looking for offers! Beautifully appointed and easy to show...Call today to see this lovely 3 bedroom coach home situated on a lake in a wonderful gated community with resort amenities. Click HERE for details! September is typically a slow month for real estate sales in SW Florida...why not come on down now and beat the rush! Interest rates are still at record lows, inventory in the 'under $300,000' price range is evaporating. Call The Harris-Peppe Team today for a list of all our Super September buys!

Inventory Down. Sales Up!

It's the first day of a new month and a new quarter. We completed our month-end reports yesterday and we are also carefully reviewing the year-to date statistics in each of the markets that we are most active. We found a few interesting conclusions based on data from our local MLS that I thought I would share. Keep in mind, these findings are inclusive of all geographic areas in Naples. Certain market segments are holding there own better than others, and indeed, certain areas are quite active and showing strong signs of leveling off. More than just a few local real estate gurus are predicting we may be at or near the bottom.

• Residential Sold Listings peaked in June of 2005 with three subsequent spikes in the next 3 years in March 2006, May 2007 and May 2008. The most recent peak in May 2009 marks the first time since September 2005 that closings in the Naples MLS exceeded 700 units!

• Residential Pending Sales By Month, which is typically the best barometer for determining what is happening "now" shows a marked improvement when tracking pendings June 2005 through to the present. The average number of pending per month over the past four years has been 475, but in April and May of this year we exceeded 1000 each month!

• Residential Median Sold Price Per Month indicates the "middle" (half sold above this price, half sold below) from June 2005 to May 2009 at $352,006. However, if all listings priced at $300,000 or less are taken out of this equation, the Residential Median Sold Price By Month dramatically becomes $515,718. (keep in mind, 4 years ago you'd have been hard pressed to find any listings priced under $300,000 in Naples Florida. Today approximately 40% of our inventory is listed under $300,000).

• When duplicating this same search, but only going back 12 months to June 2008 another interesting result occurs. The Residential Median Sold Price By Month hit a low of $175,000 last month. However, once again when we eliminate all closed sales of listings priced below $300,000 from the search criteria the median price for this date range is back up to $517,371.

• Currently, Naples MLS inventory is down to under 9,000 Residential Active Listings. Just one year ago, in June 2008, we had a 33.76 month supply in inventory. But, when we take our current inventory and chart it with the current 12 month trend of pendings and closings we calculate that as of June 30th, 2009, we have a 20.79 supply in months of Active Residential Listings.

There is a strong demand for well priced listings; today's buyers are looking for value. Interest rates have remained stable. ~and We feel very lucky to be selling real estate in Naples Florida. Chip & I have had a good 1st and 2nd quarter. Year-do -date pendings and closed sales exceed 2008.

Please don't hesitate to contact us should you have any comments or questions concerning the current state of the real estate market here in Naples Florida. The Harris Peppe Team is happy to provide you with details about any specific communities or condominiums. We hope to hear from you soon and look forward to earning your business. Please call us anytime at 239-370-0574 direct. Thank you...have a super month!

1031 Exchanges

Today I attended a seminar on 1031 exchanges. I've been selling for over 27 years, and I have done my fair share of exchanges, but I went to the class anyway just to see if I could pick up any *new info to share with my customers. The class was given by a gentleman named Marshall Beene who is an exchange account coordinator with U.S. National 1031 Exchange. An investor in real estate understands how important it is to preserve wealth and assets. The investor is fortunate to have this tax code which gives them the ability to defer taxes on their gain and rollover equity of "like kind" properties. Thus, the investor continues to build wealth through real estate investments and maintains the hard earned equity. First of all, let me define what an IRC 1031 Tax deferred Exchange is: A 1031 Exchange is a transaction which specifies if an asset (a form of real estate such as land or a commercial building) is sold and the proceeds of the sale are then reinvested in an asset of a similar kind, therefore no capital gain or loss is recognized, allowing the deferment of capital gains taxes that would otherwise been due on the first sale. The actual law is Title 26, section 1031 of the Internal Revenue Code. All clients should refer to their CPA for tax or legal advice, but if you have basic questions about what an IRC 1031 Tax Deferred Exchange is we welcome your call. Many of these questions can also be answered by logging onto http://www.usnational1031.com/ Okay, now for the *new info...I thought this was interesting...If you, an investor, purchased a property for $200,000. and the current market value is $500,000...BUT, if you have taken equity out of the property over your time of ownership, you will still owe capital gains on the estimated $300,000 difference--known as gain (less added improvements, less depreciation, less selling expenses,etc...I'm just trying to keep the example simple) even if your current mortgage debt is $400,000 or more...The tax due on the sale is based on the estimated gain on the sale regardless of whether you have refinanced or gotten equity out of the property. In this instance, it would be better to consider a 1031 exchange and "roll" the sale into another like kind property of equal or greater value and continue to build wealth rather than get "stuck" owing taxes on a property you now have little or no equity in. Again, I always recommend you call your CPA, but I thought that in today's market there might be a few investors out there in similar situations that might find this info helpful. If you own an investment property here in Naples Florida and want more info about the 1031 exchange and how it could benefit you, please call The Harris-Peppe Team today. 239.370.0574

Thank you, and make it a great day,

The Naples Real Estate Blogger