July 23, 2017
Foster Team 2nd Quarter Market Update
July 23, 2017
The 2017 2nd Quarter Selling Season is behind us!
The Naples Area Board of Realtors held their 2nd Q marketing report on the Naples area real estate market on July 21st. In the following Foster Team update, I will try to provide a snapshot of the comments from the meeting.
The real estate market is on a positive trend this 2nd Q, but has been erratic, with buyers jittery from the election, and the uncertainty in our country. Stock market losses loom even when the market is ok – making a buying decision is a risk for many. Good news is the positive trend in our real estate market is one of the biggest drivers of the economy – generating spending in all levels of the market place.
New construction data is difficult to pin point and merge with the firm data, since developers don’t post all available units, pending sales, or the closed sale in the new communities. Condo sales are up overall. $1M - $2M up 15%: $3M - $4M up 30%. New constructions have been influential.
The collective thought is that the new construction in our marketplace has an impact on existing resale properties – and buyers are redirecting their efforts and plan, and are buying new.
The shift in interior décor from heavier Mediterranean to Costal contemporary has been a nemesis to sellers in today’s market. Refurbished, updated homes and condominiums are selling first - original condition properties experience longer days on market, and lower sale prices. New construction sales on all prices levels are active – but obscure and difficult to measure in the MLS.
Determining an appropriate listing price on properties in this shifting market is critical to the equation. Buyers are savvy and have extensive electronic information at their fingertips. The market is repositioning itself. Sellers have to take an aggressive position in the list price of their properties. Considering the competition and the major transitioning the RE market is experiencing.
Sellers list properties on comparables sales data. Included in the comps are refurbished properties, and original condition listings that have sold – usually at a lower price. Seller’s agent must watch the market, communicating to their Sellers market adjustments and shifts.
Sellers of Homes and Condos are becoming more realistic about price reductions on list prices. Reductions are up in both categories.
Keeping pace with buyers is a real concern. They have seen “The new Market” – like it and want it - their sights are set on the new product in both homes and condo market. Buyers are also younger with a different vision.
The technology of new construction with impact windows and doors has become more important to buyers now that it’s available and they have a choice.
Appraisals are coming in stronger, with fewer contract failures due to low appraisals.
Inspection issues can cause contract failure when people get stuck over smaller dollar amounts and the contract fails.
One of the strongest segments of increase are condos in the $1M to $2M, and $2M to $3M – is north Naples. No surprise – lots of new product!
Ava Maria has experienced the largest increases in sales percentages. Affordable homes for working families.
If friends or family are considering buying or selling a property anywhere in Naples, Bonita Springs, Estero or Marco Island please consider calling or emailing me. I have been helping buyers and sellers in this market place since 1996 - when we moved to Pelican Isle. My experience base covers not only Pelican Isle where I make my home, but all existing and new communities in our area.
The FOSTER TEAM : ‘Three Generations & 21 years Committed to Serving Our Clients Real Estate Needs'
Realtor, Downing Frye Naples
Realtor | LCAM
The Foster Team
Downing-Frye Realty, Inc.
This is not a solicitation - if your property is currently listed with another agent disregard.
Contact us for a free market analysis on your home or neighborhood!