01 Apr Shadow Wood at the Brooks Real Estate News | April 2024
As of April 1, 2024, there are 21 active listings in our area multiple listing service (MLS) in Shadow Wood. That is 10 less than last month.
For comparison, last year on April 1, there were 10 listings in Shadow Wood.
There are 12 single-family homes on the market, listed from $770,000 to $3,450,000. The average list price is $1,614,408. The average days on the market is 75 days; the average total days on the market is 75 days.
In the condo market, there are 9 active listings ranging from $575,000 to $950,000. The average list price is $703,533. The average days on the market is 90 days; the average total days on the market is 131 days.
A reminder, you have access to the most comprehensive website devoted to Shadow Wood, www.ShadowWoodRealty.com. I’ve included maps, floor plans, photos, and descriptions of each neighborhood within this desirable community.
Please contact me for all your real estate needs in Shadow Wood. With over 35 years of helping buyers and sellers in SWFL, my experience will be invaluable in this fast-moving, low-inventory market.
Your Shadow Wood REALTOR®,
Ed Gongola
Summary of Shadow Wood Home Sales
If you are considering selling your Shadow Wood home, here are some statistics that may help you decide to place your home on the market.
SHADOW WOOD CONDOs
- Within the last 12 months, there were 22 sales; the average sales price was $670,682; and, these condos were on the market an average of 32 days; combined days on the market is 78.
- During the 12 months previous, there were 27 sales; the average sales price was $620,144; and, these homes were on the market an average of 17 days; combined days on the market is 71.
SINGLE-FAMILY SHADOW WOOD HOMES
- During the last 12 months, there were 42 sales; the average sales price was $1,673,000; and, these homes were on the market an average of 44 days; combined days on the market is 97.
- During the 12 months previous, there were 56 sales; the average sales price was $1,680,893 and, these homes were on the market an average of 17 days; combined days on the market is 80.
For a list of SHADOW WOOD homes sold in the last 12 months, click here.
For a list SHADOW WOOD homes that are pending at the moment, click here.
April 2024 Market Update
DOWNING-FRYE: BUYERS HAVE A WIDER SELECTION
“So as our winter season starts winding down, what are we seeing in the market right now? First off, this is the time of year when we see a lot of price decreases,” said Mike Hughes, V. P. and Gen. Mgr. of Downing- Frye Realty, Inc. “Most of the changes right now are price decreases. With respect to pending sales, per the latest BER (Bonita/Estero Board) market report, we find that the pending sales are up slightly in the Bonita/Estero market over last year for the same period. If we jump over to the NABOR (Naples Board), we find that the pending sales are running slightly behind last year. Both the Naples and Bonita boards have reported a significant increase in listings for sale. As of their last released market reports, BER reported an 85% increase in listings and NABOR reported a 66.6% increase in listings compared to the same period the previous year. Easter has come and gone so now the local Realtors are starting to prepare for what we hope is a busy summer season. We do get a lot of visitors looking for property over the summer. This year they will have a wide selection to choose from.”
BONITA / ESTERO: RESURGENCE IN ACTIVITY
Recent improvements in inventory and shifts in buyer-seller dynamics are shaping the market landscape. The rising growth in Southwest Florida is bringing in new buyers from out-of-state, out- of-country, and even from the east coast of Florida. When understanding the statistics, New York is leading the pack followed by states like Michigan, Minnesota and Ohio.
Lifestyle preferences, economic growth, and currency strength were identified as key drivers behind the increased interest in the local real estate market. Additionally, apartment complex developments in Bonita Springs and Estero are not only being built but are benefitting from potential buyers settling on renting.
NAPLES AREA: COMPETITIVE AND FAVORABLE PRICING
The overall median closed price in Naples increased 5% to $625,000 in February from $595,188 in February 2023. (The median closed price in February 2019 was $335,000.) Total closed sales were down 9.3% this February compared to last February, while total pending sales were down 5.2% and new listings were up 24.9%. While February’s report showed an average of 69 days on market, it is nowhere near the 101 DOM reported in February 2019. Interestingly, average days on market during February was highest in the $5 million and over condominium market (99 DOM). The February Market Report showed a 103.4% increase in inventory for properties under $300,000, which could be due to investors off-loading rental properties in order to capitalize on the winter selling season.
MARCO ISLAND AREA: MORE INVENTORY
The Marco Island Area Assoc. of Realtors® reported February 2024 figures as compared to February 2023: The inventory of 602 properties was up 25%; the number of sales (77) was up 26%; the median sales price for homes was $1.4M (down 12%) and for condos was $730K (down 51%), and the sales volume was $105M (down 2%).
FLORIDA: INCREASED ACTIVITY IN FEBRUARY
Florida’s housing market had more new listings, more inventory and higher median prices in February compared to a year ago. Closed sales of single-family homes statewide last month totaled 19,040, up 2.2% from February 2023, while existing condo- townhouse sales totaled 7,471, down 2.5% year-over- year. In February, the statewide median sales price for single-family existing homes was $415,000, up 5.1% from the previous year; for condo-townhouse units, it was $325,000, up 3.2% over February 2023. Statewide inventory in February was higher than a year ago for both existing single-family homes, up 36.5%, and for condo-townhouse units, up 73.3%.
USA: PENDING HOME SALES INCREASE
Pending home sales increased 1.6% in February. Month over month, contract signings climbed in the Midwest and South but sank in the Northeast and West. Compared to one year ago, pending home sales declined in all U.S. regions. “There will be a steady rise in inventory from recent growth in home building. Additionally, many sellers, who delayed listing in the past two years, will begin to put their homes on the market,” said NAR Chief Economist Lawrence Yun.
Study: Mid-April is Prime-Time for Sales
Realtor.com found the week of April 14 will be the best time to sell due to the mix of marketing conditions. Sellers on a national level could get $34,000 more than at the start of the year.
Sellers nationwide will likely see the best conditions for listing prices, buyer demand and sales pace from April 14 to April 20, making it the best time to sell, Realtor.com said.
A recent survey from Realtor.com found the seven-day time frame to have lower chances of price reductions and competition from other sellers. Since most home sellers take a month or less to get a home ready to list, now is the time to start prepping, Realtor.com said.
“Spring is generally the high season for home sales, and buyers tend to be more plentiful earlier in the year,” said Realtor.com Chief Economist Danielle Hale. “Because listing a home is a process, sellers should start preparing now so they can list their home at a time when conditions are likely to be most favorable, giving them the best chance of selling their home quickly and at a competitive price.”
Realtor.com detailed why the April time period is the best time to sell:
Above-average prices – The prices of homes listed during this week have historically been 1.1% higher than the average week and are typically 10.4% higher than at the start of the year. If 2024 follows last year’s seasonal trend, the national median listing price could be $7,400 higher than the average week, and $34,000 more than at the start of the year.
Above-average buyer demand – The more buyers looking at homes, the better it is for offers and sales. Historically, this week saw 18.4% more views per listing than the typical week, but in 2023 this week got 22.8% more views per listing than the average week during the year. Demand will in part depend on mortgage rates – falling rates may increase spring demand, while steady or rising rates may prompt some buyers to hold off.
Faster market pace – Thanks to above-average demand, homes tend to sell more quickly during this week. Historically, homes actively for sale during the week of April 14 sold 17%, or about 9 days, faster than in the average week. In 2023, this week typically saw homes on the market for 46 days on average, 6 days faster than the year’s average. With inventory levels remaining low, sales may happen more quickly as buyers compete for fewer properties.
Less competition from other sellers – With past seasonal trends likely to persist, there would be 13.7% fewer sellers in the market this week compared to the average week during the year. Active inventory was 14.8% higher in February versus last February, but still 39.7% lower than pre-pandemic levels. This gap means there will continue to be opportunities for sellers entering the market this spring.
Below-average price reductions – Price reductions tend to be lowest in late winter and early spring as buyer activity ramps up. Historically, about 24.6% fewer homes have had a price decrease this week compared to the average week of the year. In 2023, this week saw about 8,000 fewer listings with price reductions compared to the average week of the year.
Key factors for the 2024 housing market and tips for getting ready
The 2024 housing market is expected to behave according to typical seasonality but will likely offer slightly better conditions than in 2023. According to Realtor.com’s survey, it took most recent sellers (72%) between two weeks and three months to prepare their home for sale, with the sweet spot being between two weeks and a month (37%).
For almost half (48%), it took less time than expected to list their home, while 11% said it took more time than they expected. Other factors for buyers and sellers to consider:
Prices tend to peak later in the year – but so will competition. By the end of June, prices have historically reached near-peak levels (+13.8%) compared to the beginning of the year, while the number of new sellers increased by even more (+49.3%). By entering the market earlier, sellers can head off that competition, increasing the odds of a successful close and favorable terms. Working with an experienced agent can help sellers prepare for and navigate their local market dynamics. Realtor.com® RealChoice Selling lets sellers get proposals from multiple agents in their area to compare and pick the right professional who can help with their sale, and all without a commitment.
Mortgage rates will determine the level of market activity. Mortgage rates are expected to ease to the mid-6% range later in the year, and once rates decline, we’ll likely see an increase in potential buyers based on a recent Realtor.com® survey of Americans looking to buy this year, welcome news for those on the fence about selling. Homeowners wondering about whether they can get a good price if they sell this spring can use the Realtor.com® RealEstimate tool to see their home’s value over time, as well as the tool’s Proceeds Calculator to see how much money they could make selling.
Sellers still stand to see favorable buyer attention. Demand tends to cool in the late summer and early fall, while by mid-August, the number of sellers with actively-listed homes typically increases 29% compared to the beginning of the year, increasing competition from other sellers. To help sellers keep a pulse on buyer interest in their area, the Realtor.com® My Home dashboard gives sellers real-time insights into demand signals from users searching on Realtor.com® for similar homes with a price range matching the home’s RealEstimate.
Methodology: Listing metrics (e.g. list prices) from 2018-2019 and 2021-2023 were measured on a weekly basis, with each week compared against a benchmark from the first full week of the year. Due to the onset of the pandemic, 2020 was an uncharacteristic year and has therefore been excluded from the analysis. Averaging across the years yielded the “typical” seasonal trend for each metric. Percentile levels for each week were calculated along each metric (prices, listings, days on market, etc.), and were then averaged together across metrics to determine a Best Time to List score for each week. Rankings for each week were based on these Best Time to List scores.
© 2024 Florida Realtors®
Rising Inventory and Competitive Pricing are Favorable for Home Sales
The overall median closed price in Naples increased 5 percent to $625,000 in February from $595,188 in February 2023, but there were also 2,264 price decreases reported. Brokers contend that price decreases may be one indication that sellers are shifting from aspirational pricing to realistic market pricing.
According to the February 2024 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), closed sales decreased 9.3 percent in February despite a 66.6 percent increase in inventory to 5,139 properties from 3,085 properties in February 2023.
Rising Inventory Brings Patience
February’s price decreases demonstrate that REALTORS® are counseling sellers about realistic market pricing. Although some sellers are still struggling to accept the fact that the pandemic buying frenzy years with climbing price increases are over. As more new sellers enter the market (up 24.6 percent to 1,668 new listings from 1,336 new listings in February 2023), those sellers with overpriced properties risk missing an opportunity to attract and sell to eager buyers.
According to the report, in February 2019 the median closed price was $335,000. Cindy Carroll of Carroll & Carroll Appraisers & Consultants, LLC., and broker analysts like Budge Huskey, CEO, Premier Sotheby’s International Realty, agree that “in the face of far more inventory and opportunity, home values are holding steady in Naples today. People are being highly selective and will wait until they find the right property.”
“There are currently two types of sellers: those who need to sell, and those that are aspirational,” said Adam Vellano, Managing Director of South and Southwest Florida at Compass Florida. “If sellers were to get aggressive, then we might begin to see some price compression.”
Jillian Young, President, Premiere Plus Realty, added that “listing agreements that limit terms to three or even six months and reflect aspirational home prices are impeding sales. A deep dive into NABOR®’s market stats show us that these properties remain unsold longer and, in some cases, take two or three agent cycles to finally convince the seller that the home is overpriced for today’s market. This factor is also causing our days on market [DOM] to increase.”
Insurance vs. Interest Rates
The February Market Report showed a 103.4 percent increase in inventory for properties under $300,000. Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., said that this might be because “investors are offloading rental property units to capitalize on the winter selling season. Also, the carrying costs on some of these properties has climbed in recent years. This increase in inventory, for buyers looking in this price range, is encouraging as their selection was quite limited a year ago.” Vellano believes “property insurance rates are influencing home buying decisions as much as interest rates.”
As many Naples residents are discovering, when home values increase, the replacement cost to insure them also increases. Insurance rates and association fees could increase for condominium owners by the end of 2024 as mandatory milestone inspections must be completed by year end. Inventory for condominiums increased 104.2 percent in February to 2,614 condominiums from 1,280 condominiums in February 2023.
Dominic Pallini, Broker at Vanderbilt Realty, Inc., said the shock of rising interest rates has subsided and regardless of Federal Reserve promises to drop the rate later this year “new homeowners are showing acceptance of 6.5 or 7 percent interest rates.”
The NABOR® February 2024 Market Report provides 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 for 2024:
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If you are looking to buy or sell a home in Naples, contact a Naples REALTOR® who has the experience and knowledge to provide an accurate market comparison or negotiate a sale. A REALTOR® can ensure your next purchase or sale in the Naples area is a success. Search for your dream home and find a Naples REALTOR® on Naplesarea.com.
The Naples Area Board of REALTORS® (NABOR®) is an established organization (Chartered in 1949) whose members have a positive and progressive impact on the Naples Community. NABOR® is a local board of REALTORS® and real estate professionals with a legacy of nearly 60 years serving 6,000 plus members. NABOR® is a member of the Florida Realtors and the National Association of REALTORS®, which is the largest association in the United States with more than 1.3 million members and over 1,400 local board of REALTORS® nationwide. NABOR® is structured to provide programs and services to its membership through various committees and the NABOR® Board of Directors, all of whose members are non-paid volunteers.
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.
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