DOWNING-FRYE: VISITORS ARRIVING DAILY

“The hurricanes and the Presidential election created significant headwinds on the pending sales and closings for the months of October and November,” said Mike Hughes, V. P. and Gen. Mgr. of Downing-Frye Realty, Inc. “Looking forward, hurricane season is over, the election is behind us, and Downing-Frye agents eagerly anticipate the holiday season and 2025. Several years ago, the inventory of single-family homes and condos was very low in Southwest Florida. At the end of December 2021, the Naples Area Board of Realtors reported an inventory of 1,042 homes for sale. The most recent Naples Area Board of Realtors numbers show an inventory of 4,746 homes for sale. This increase in listings has given buyers substantially more properties to view. The low December 2021 inventory was primarily caused by low interest rates, the pandemic and the significant increase of remote working. Our recent inventory is getting closer to the level of inventory that we have seen historically through the years.”

BONITA / ESTERO: OCTOBER ACTIVITY

The Bonita Springs/Estero Realtors® reported October 2024 figures as compared to October 2023: For single-family homes: new listings were down 23% and pending sales were down 20.8%. The median sales price of $725,000 was up 4.3% and the average sales price of $914,163 was down 0.3%. Inventory was up 34.8% to 601 single-family homes for a 5.7-months’ supply. For Condominiums: new listings were down 4.5%, and pending sales were down 40.6%. The median sales price was down 12.1% to $404.499 and the average sales price was $529,816, down 5.5% from October 2023. Inventory was up 57.5% to 701 condos for a 7.9-months’ supply. On average, sellers received 95.7% of list price for single-family homes and 95.2% for condominiums.

NAPLES AREA: RESILIENT MARKET

There were 17,031 showings of properties In October, showing that the housing market in Naples was remarkably resilient even as it faced interruptions from two major hurricanes. Also, there were 1,179 new listings in October, a 13.9% increase compared to September. More inventory means more competition. The overall median closed price in October was $568,500, a 3.6% decrease from $590,000 in October 2023. In the single-family home market, the median closed price increased 3.2% to $727,500 from $705,000 in October 2023. And for condominiums, the median closed price decreased 8.1% to $413,750 from $450,000 in October 2023. Overall inventory continues to rise, and we are almost back to pre- pandemic (2019) levels. For October, inventory increased 30.9 % to 4,746 properties from 3,627 properties in October 2023. And while new listings were down 6.6% compared to October 2023; they rose 13.9% compared to September 2024.

MARCO ISLAND AREA: INVENTORY UP; SALES DOWN

The Marco Island Area Assoc. of Realtors® reported October 2024 figures as compared to October 2023: The inventory of single-family homes was up 16%, condo inventory was up 29% and the inventory of lots was down 18%. Closed sales of single-family homes were up 9%, condos were down 4% and lots were down by 50%. The median sales price for homes was down 27%, condos were up 26% and lots were up by 53%.

FLORIDA: INVENTORY UP; PRICES EASE

Florida’s housing market in October reported higher inventory levels and easing statewide median prices compared to a year ago. Closed sales of existing single-family homes statewide totaled 18,671, down 5.6% year-over-year; existing condo-townhouse sales totaled 6,499, down 19.9% over October 2023. The statewide median sales price for single- family existing homes in October was $415,000, up 1.2% from $410,000 one year earlier. For condo- townhouse units, the median price was $315,000, down 2.2% from $321,990 in October 2023.

USA: PENDING SALES INCREASE IN OCTOBER

Pending home sales in October increased 2.0%. Compared to one month ago, pending sales grew in all four major U.S. regions, led by the Northeast. Year-over-year, contract signings rose in all four U.S. regions, with the West showing the highest increase. “Homebuying momentum is building after nearly two years of suppressed home sales,” said NAR Chief Economist Lawrence Yun. “Even with mortgage rates modestly rising despite the Federal Reserve’s decision to cut the short-term interbank lending rate in September, continuous job additions and more housing inventory are bringing more consumers to the market.”

Sources: The Bonita Springs-Estero REALTORS®/SWFLMLS, Naples Area Board of REALTORS®, National Assoc. of REALTORS®, Florida REALTORS® and Marco Island Area Assoc. of REALTORS®

What International Buyers Are Looking for in the Florida Market

A detailed look at where international clients originate and what they’re buying in the Sunshine State. Plus: A profile of the Florida international buyer.

Florida Realtors® has released its latest report on the state’s international buyer and seller transactions, the 2024 Profile of International Residential Real Estate Activity. International buyer purchases of Florida residential properties between August 2023 and July 2024 declined 44% compared to the prior 12-month period, in terms of sales counts. High prices and interest rates continue to strain the housing market. International buyers in Florida also face an unusually high level of competition from domestic out-of-state buyers in a high price, high interest rate environment.

While sales prices are higher, the significant decline in transactions have pulled international buyer dollar volume to a multi-year low of $7.1 billion. Dollar volume in 2024 was 54% less than the recent high-water mark of $15.3 billion in 2022. Among those from the countries with the most dollar volume in 2024, Canadians purchased the most in dollar terms by a significant margin. In total, Canadian dollar volume in 2023 was $1.3 billion. Dollar volume decreased for British and Columbian buyers, while Argentine buyers bucked the trend, increasing spending to $608 million.

Higher prices and rising condo fees prohibited buyers of all kinds from closing deals over the past year. Roughly 67% of respondents reported at least one of their international clients ultimately chose not to buy a Florida property, up from 62% in 2022. Cost of property was the top reason cited (47%) as the reason buyers did not close. Florida remains a bargain compared to many other options for international buyers looking to purchase in the United States, though competition for property remains strong offering little discount.

Florida has strong appeal and a positive reputation worldwide, yet most international buyers still want to visit before taking the plunge. In 2023, 93% of respondents visited Florida at least once before making a purchase. This compares to 92% 2022 and 89% in 2021 when international buyers were hindered by travel bans in place during the pandemic. Here are highlights from the 2024 report:

$7.1 Billion

Residential purchases (non-commercial) international buyer dollar volume between August 2023 and July 2024, which is 54% lower than the recent high-water mark of $15.3 billion in 2022 (August 2021 through July 2022). While sales prices are higher, the decline in transactions have pulled international buyer dollar volume to a multi-year low.

10,900

Number of existing homes purchased in Florida by international buyers, which is 3% of existing-home sales (44% lower from the prior 12-month period level of 19,500)

69%

Share of international buyers whose primary residence is abroad (Type A) (also known as Type A international buyers)

Florida’s top-5 buyer countries by sales

Canada (17% of international buyers)
Argentina (10%)
Colombia (7%)
Brazil (6%)
United Kingdom (5%)

Florida’s top-5 international buyers by dollar volume

Canada ($1.3 B)
Brazil ($695 M)
Argentina ($608 M)
United Kingdom ($317 M)
Colombia ($307 M)

Top international buyer destinations

Miami-Ft. Lauderdale-West Palm Beach (49% of international buyers)

Orlando-Kissimmee-Sanford (11%)

Tampa-St. Petersburg-Clearwater (7%)

Cape Coral-Ft. Myers (6%)

Naples-Immokalee-Marco Island (5%)

North Port-Sarasota-Bradenton (4%)

$469,000

International buyer median purchase price ($395,000 for all Florida existing-homes sold)

67%

International buyers who paid all-cash (50% among all U.S. international buyers)

74%

International buyers who intended to use the property for vacation, residential rental, or both uses

54%

International buyers who purchased single-family units

93%

Percent of international buyers who visited Florida at least once before making a purchase

67%

Percent of international buyers who were referrals of personal and business contacts and former clients, or who were former clients

23%

Respondents who reported clients (either non-U.S. citizen or U.S. citizen) seeking to purchase property abroad

41%

Percent of respondents who speak a language other than English

66%

Percent of respondents who “have not had problems” working with international buyers

2024 Profile of International Residential Transactions in Florida (.PDF)

Housing Market Shows Resilience During Active Hurricane Season

The housing market in Naples during October was remarkably resilient even as it faced interruptions from two major hurricanes. There were 1,179 new listings in October, a 13.9 percent increase compared to September. More inventory means more competition. As such, the overall median closed price in October decreased 3.6 percent (year over year), which was fueled by an 8.1 percent decrease in the condominium market. Broker analysts reviewing the October 2024 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), agree that storm-ready homes and storm-familiar residents help the Naples housing market rebound quickly after a storm and these safeguards strengthen its reputation as a desirable homeownership destination.

A Month of Distractions

“October was an outlier month this year for home buyers because of the election too,” said Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc. “So, in addition to being distracted by the two storms, buyers were also distracted by the election and what it could mean for the economy. In the end, sales were down 21.6 percent for the month, but there were some positives too.”

Overall inventory continues to rise, and we are almost back to pre-pandemic (2019) levels. For October, inventory increased 30.9 percent to 4,746 properties from 3,627 properties in October 2023. And while new listings were down 6.6 percent compared to October 2023; they rose 13.9 percent compared with September 2024.

“Prices are beginning to reflect the added competition,” said Budge Huskey, CEO, Premier Sotheby’s International Realty. “Although prices remained stable in the single family market in October, we did see some downward pressure on condo prices during the month.”

The overall median closed price in October was $568,500, a 3.6 percent decrease from $590,000 in October 2023. In the single-family home market, the median closed price increased 3.2 percent to $727,500 from $705,000 in October 2023. And for condominiums, the median closed price decreased 8.1 percent to $413,750 from $450,000 in October 2023.

“I was expecting a rush of sales in October because interest rates dropped in September,” said Jillian Young, President, Premiere Plus Realty. “Unfortunately, the overall pending and closed sales statistics didn’t meet my expectations. But the interest rate drop did make a difference as cash sales were only 48.6 percent of all sales reported in October. For many years, cash sales have been above 50 percent.”

The Impediments That Remain

As identified by Molly Lane, Senior Vice President at William Raveis Real Estate, there has been an increase recently of home sales being contingent upon the buyer selling their home. “Power is beginning to shift to the buyer, but we are still only at 7.1 months of inventory, so we are not quite there yet.”

“A seller is chasing the market if they are not working with a REALTOR® to review prices of comparable new listings each month,” said Jeff Jones, Broker at Keller Williams Naples. “Every month a home doesn’t sell means the seller must carry the cost of homeownership. There were 1,003 price reductions on existing homes for sale in October too. Sellers need to stay competitive especially with our rising inventory.”

Sellers and buyers of condominiums may find some relief in the new year as state legislators may explore the possibility of delaying the deadline for mandated reserves. Structural studies are still required to be completed by December 31st, but associations won’t have to budget the money for reserves until they adopt their budgets for 2025. One option that may be explored during the 2025 Legislative Session is low or zero-interest loans for associations or condominium owners to help pay for special assessments.

The NABOR® October 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:

Hurricane-Ready Homes Abound

It’s been over 30 years since Hurricane Andrew tore through South Florida necessitating new building standards and regulations. Since then, Florida and Naples have continued to make storm water and infrastructure improvements a priority. As such, most homes today that are on or near the water in Naples can endure tidal surges and hurricane force winds.

“Storm hardiness projects, like the installation of new storm water pipes that were recently approved for the City of Naples to reduce street flooding, are a positive sign that we are continuing to move in the right direction, so our neighborhoods are safer and more resilient,” said PJ Smith, President of NABOR®, and the Broker/Owner of Naples Golf to Gulf Real Estate Services.

Jones pointed out that most homes in the Naples Beach area, which include a majority of the area’s luxury properties, are already 12 feet above sea level. These homeowners also tend to invest in added storm protections. Also, NABOR® increased its member education in 2024 to include resources and classes that provide REALTOR® members with information on several factors influencing the cost of homeownership like home and flood insurance, building codes, new condo/HOA codes, and changing FEMA guidelines.

View the October 2024 Market Statistics

Are Storms Chasing Buyers Away?

“Word on the street is that some job seekers are less eager to move to Florida because they fear being in the path of a future storm,” said Mike Bone, Area Sales Manager, D.R. Horton.

Brokers reviewing the report are concerned that national news coverage makes it appear as if damage from the hurricanes was widespread, even though the most significant storm damage was concentrated in a relatively small area along the gulf coast. The Naples beachfront and inter-coastal areas experienced some storm surge and high winds, while inland regions saw much less to no damage. The misinformation being reported may contribute to slower market activity in the last quarter of 2024.

Budge Huskey, CEO, Premier Sotheby’s International Realty, responded by stating that the “vast majority of our market was unfazed by the recent hurricanes.”

Hughes added that storm fatigue and street flooding is convincing a few sellers to move off the water, but not necessarily out of the area. “What’s impressive is that our market did not falter in terms of performance due to the storms.”

Jones added that the “insurance market in Florida is becoming healthier and reinsurance rates have been stable. Ten new insurance carriers have also entered the market and renewal rates have not increased significantly.”

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.

Why Choose Me As Your REALTOR®?

To learn more about me and my real estate business and Bonita Bay real estate specifically, I encourage you read the About Ed section as well as the Testimonial section of the site. Over the years, my clients have expressed their satisfaction in my services and I’ve showcased their kind words so you can determine if I am the right REALTOR® to represent you.

If you are curious as to my sales success, visit my Sold Homes page. This gives a clear picture of exactly what I’ve accomplished and, more importantly, what I can accomplish for you.

Shadow Wood at the Brooks Real Estate News | December 2024

01 Dec Shadow Wood at the Brooks Real Estate News | December 2024

Summary of Shadow Wood Home Sales

December 2024 Market Update