Naples Home Inventory Up and Prices Hold Steady in February

Naples, Florida – With the total inventory up 131.4 percent to 2,835 properties from 1,225 properties in February 2022, buyers looking for homes in Naples in February had more options. Broker analysts examining the Naples Area Board of REALTORS® (NABOR®) February 2023 Market Report, which monitors home listings and sales in Collier County (aside from Marco Island), attribute some of the increase in inventory to Hurricane Ian as many sellers were forced to address and remedy damage caused by the storm before the property was ready to welcome buyers. The overall median closed price for February was $600,000, which is the same as the median closure price for January.

Thanks to ongoing trust in the Naples real estate market, the difference in sales activity from year to year continues to narrow. From 1,480 prospective sales in February 2022 to 1,241 pending sales overall in February 2019, a 16.8% decline was seen. From 824 closed sales in February 2022 to 682 closed sales overall in February, a 17.2% decline. Additionally, the number of showings fell by 15% in February, from 43,032 to 36,574.
Adam Vellano, a Naples Sales Manager at Compass Florida, stated that the February report “revealed to us that there are still a significant number of sellers who listed their property prematurely instead of fixing storm-related issues because they didn’t want to “miss out” on winter buying season.” Buyers today are less willing to accept and pay full price for a Naples home with major defects, so this choice is backfiring.

In response to Vellano’s comments, Wes Kunkle, President and Managing Broker at Kunkle International Realty, added, “We’re not seeing ‘as is’ arrangements anymore like we did last year. The number of contracts that were canceled increased in February, which indicates that sellers must either address the issues discovered during checks or be more receptive to price negotiations.

The NABOR® February 2023 Market Report contains a market overview, price ranges, geographic segmentation, and comparisons of single-family house and condominium sales (via the Southwest Florida MLS). These general (single-family and condominium) findings for 2023 are included in the NABOR® sales statistics displayed in chart format:

Broker analysts were initially taken aback by the report’s pending sales data because it showed several sales contracts that were repeatedly cancelled during the month, even though days on market for February grew by 129.2 percent to 55 days from 24 days. The brokers debated possible explanations for this behavior and came to the conclusion that, in addition to the factors mentioned above by Vellano and Kunkle, “people are sitting tight because there is some uncertainty surrounding interest rates, banking stability, and increased concern that we may still encounter a recession.”

Sherry Stein, CRB, Managing Broker, Berkshire Hathaway HomeServices, stated that “many people are watching the news with concern about our banking system.” A real estate purchase may be considered a good investment option in the present environment.

Although the majority of home sales in Naples are cash transactions, as opposed to the majority of America [62.1% in February], the uncertain financial market may benefit our housing market if high-net worth families choose real estate as a more secure location to invest their money.
If you’re thinking about buying or selling a home, consult a Naples REALTOR® who can give you a precise market analysis and guidance on how to make the most of the current market conditions. Your upcoming purchase or sale in the Naples region can be successfully handled by a REALTOR®. On Naplesarea.com, you can search for your ideal property and locate a Naples REALTOR®.