NAPLES & SWFL REAL ESTATE
April 2023 SWFL Real Estate Newsletter
Season is officially over now that we are into the 2nd half of April, but it’s still quite busy in Naples as more people stay in town longer and visit later in the year. The Naples real estate market closed out the season with some solid sales stats with almost $3,000,000,000 of residential real estate sold, but of course, it was more relaxed compared to the frenzied sales activity we experienced over the last two seasons.
If you’re still in town, don’t forget to check out the US Open Pickleball Championship, which finishes Saturday (tomorrow!). It’s played at the East Naples public pickleball facility with 65 courts. This event is considered the biggest pickleball party in the world, with 2,800 players, 5,000+ matches, and over 35,000 spectators! You can also watch the championships Saturday night on the CBS Sports Network (my family and I will be watching, we are big pickleball fans!).
Enjoy this month’s newsletter!
March 2023 Market Statistics
This March, the Naples real estate market was noticeably more subdued than the last two years, with fewer and more selective buyers ready to commit. Also, with quite a few flood-damaged waterfront properties and hotels out of commission this season, such as the Ritz Carlton Beach Resort, fewer residents and visitors made it here this season, eliminating some potential sales. As building repairs are being made throughout the off season, we expect our population to be back to normal next season and busier than ever.
I have said this before, we are returning to a more balanced real estate market, where it can take some time for matches to be made between properties and buyers. Many sellers who listed this season with an aspirational price have been reducing their price, often multiple times and sometimes within a short period, resulting in a March price reduction ratio of 52% (30-37% is more typical in past years). In general, values have not been declining in Naples; however, buyers are resistant to prices that are above comps from the last year. It seems there are a considerable number of buyers on the sidelines waiting to enter the market, carefully considering their options. Most neighborhoods have an increasing level of inventory as we come out of historic low levels of properties on the market.
Naples has achieved a new level of prominence over the last 3 years and so many new residents have discovered SWFL. Many have moved here full-time becoming Florida residents and in addition to our amazing winter weather and top quality of life, they are enjoying of our favorable income tax (or more accurately, lack of it) and homestead property tax protections. Regardless of their length of stay each year, now that they have landed here, they don’t want to leave and have friends and family who want to join them! This all bodes well for Naples and Southwest Florida in maintaining market values in more challenging economic conditions and increasing values over the longer term.
- Median sales prices are up 7% from last March and hit an all-time high at $615,000. The month-by-month chart from the previous three years looks quite linear, showing a steady incline with a surge and pullback in mid-2022…but a continued upward trend in late 2022 and 2023.
- Median sales price per square foot shows median values holding steady around $325 to $350/SF… although the West of 41 neighborhoods have median sales prices in the $700 to $2100/SF range.
- Homes for sale in Naples held steady, with just under 3000 homes on the market, roughly half the pre-pandemic level of 6000 homes.
- Supply is at 3.7 months and has been slowly increasing since hitting a low point in DEC 2021 of 0.9 months but not back to the pre-pandemic level of 7 months.
- New listings were somewhat restrained compared to last year’s peak listing month of March, with 17% fewer new listings hitting the market.
- We had 1127 pending sales, 10.5% below last March, last year’s peak month.
- Total sales were down 15.5% from last March but showed a significant increase from a slow SEPT to JAN, where most Naples was in storm recovery mode.
- Properties sold at a median of 2.6% below their last asking price, down from last March when more properties were sold over asking, and the median was 100%.
- Properties sold in a median of 25 days on the market, up significantly from last year but still less than half of the pre-pandemic median time on the market, around 60 days.
- Just over $1B of volume closed in Naples in March, down 16% from last March but up from the SEPT low of $466M.
Including previous months published market reports for Naples, Bonita/Estero and Marco Island.
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Area Real Estate News Summary
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