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Naples Florida Housing Market 2019: Home Prices & Trends

How is The Naples FL Real Estate Market 2019?

If you are looking at buying a house in Naples real estate market as a potential investment opportunity, you must read till the end. Naples, Florida is a small, upscale beach town in southwestern Florida. It is notable as one of the wealthiest cities in the country. Yet it stands out as one of the better real estate investment opportunities, as well. Let’s learn more about the Naples housing market and find out whether Naples is a good place to invest in real estate or not.

For real estate investors, Naples, Florida has a track record of being one of the best long term real estate investments in the nation. Naples is home to around twenty thousand people. The Naples housing market includes the broader Naples-Marco Island metropolitan area. That’s home to around three hundred thousand people. Here are ten reasons to consider buying Naples housing market properties. Let us now discuss the latest market trends and find out what are the overall prospects of Naples real estate investment in 2019.

Naples FL Real Estate Market

Original Photo via Pixabay

Naples Real Estate Market Forecasts 2019 & 2020

The median home value in Naples is $320,300 on Zillow.com. Naples home values have gone up 1.1% over the past year and Zillow predicts they will fall -1.4% within the next year. The median list price per square foot in Naples is $195, which is lower than the Naples-Immokalee-Marco Island Metro average of $204. The median price of homes currently listed in Naples is $406,990 while the median price of homes that sold is $317,500. The median rent price in Naples is $3,750, which is higher than the Naples-Immokalee-Marco Island Metro median of $3,700.

Naples Real Estate Market Forecast

Graph Credits: Zillow.com

According to LittleBigHomes.com, the Naples real estate market forecast for the 12 months ending with the 3rd Quarter of 2019 is positive. Their accuracy of the Naples real estate market trend prediction is 85%. Accordingly, they estimate that the probability for rising home prices in Naples is 85% during this period. If this Housing Market Forecast is correct, home prices will be higher in the 3rd Quarter of 2019 than they were in the 3rd Quarter of 2018.

Naples Housing Market Forecast 2019 – 2021

The Naples housing market forecast for the 3 years ending with the 3rd Quarter of 2021 is also positive. The accuracy of the Naples housing market trend prediction is 83%. Accordingly, LittleBigHomes.com estimates that the probability for rising home prices in Naples is 83% during this period. If this Housing Market Forecast is correct, home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.

Check this page each quarter for updates to the Naples Real Estate Market Forecast.

Naples Real Estate Market Trends

Naples real estate market trends indicate a decrease of $5,000 (-2%) in median home sales and a 0% rise in median rent per month over the past year. The average price per square foot for this same period fell to $211, down from $213. Trulia has 4,035 resale and new homes for sale in Naples, FL, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.

The median sales price for homes in Naples for Mar 1 to May 29 was $325,000 based on 2,405 home sales. Average price per square foot for Naples was $211, a decrease of -1% compared to the same period last year. The median rent per month for apartments in Naples for May 4 to Jun 4 was $2,500.

Naples Real Estate Market Trends

Graph Credits: Trulia.com

Data by Redfin.com shows that the Naples housing market is not very competitive. The average sale price of a home in Naples was $359K last month, up 4.1% since last year. The average sale price per square foot in Naples is $194, up 1.0% since last year. Multiple offers are rare. Homes in the Naples housing market sell for about 5% below list price and go pending in around 83 days. Hot Homes in Naples, FL can sell for about 1% below list price and go pending in around 29 days.

Naples Housing Market Statistics

  • Median Sales Price: $325,000 (Trulia)
  • Price Per Sqft: $211
  • Median Rent Per Month: $2,500
  • Median Household Income: $55,111
  • Home Owners: 81%
  • Single Residents: 36%
  • Median Age: 50
  • College Educated: 40%
  • Transportation: 98% people commute by car

There are 8,905 homes for sale in Naples, ranging from $12K to $79.5M on Realtor.com. 336 of which were newly listed within the last week. Additionally, there are 2,774 Naples rental properties, with a range of $795 to $250K per month. In February 2019 the housing market in Naples, FL was a buyer’s market, which means there were roughly more active homes for sale than there were buyers.

Naples Housing Market Trends

Realtor.com | Sale-to-List Price Ratio: 95.97%

Homes in Naples, FL sold for 4.03% below asking price on average in February 2019. On average, homes in Naples, FL sell after 102 days on the market. The trend for median days on market in Naples, FL is flat since last month, and flat since last year.

Naples Housing Market Trend

Graph Credits: Realtor.com

The median list price in Naples, FL is $449,000 on Movoto.com. The median list price in Naples was less than 1% change from May to June. Naples’s home resale inventories is 5,307, which decreased 3 percent since May 2019. The median list price per square foot in Naples is $224. May 2019 was $224. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in June.

Naples Real Estate Market Trend

Graph Credits: Movoto.com

Naples, FL Single Family And Multi-Family Homes

Following the housing market decline in 2007, single family rental properties became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate. Single family rental homes have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units.

As per the data from the real estate company called Neigborhoodscout.com, the median house price in Naples, FL is $1,041,352, which indicates that home prices in Naples are well above the national average for all cities and towns.  Large apartment complexes or high rise apartments are the single most common housing type in Naples, accounting for 58.77% of the city’s housing units.

Other types of housing that are prevalent in Naples include single family detached homes ( 31.63%), duplexes, homes converted to apartments or other small apartment buildings ( 6.61%), and a few row houses and other attached homes ( 2.46%). This particular housing mix is relatively uncommon and characteristic of cities that are compact and walkable, and which often have a lively downtown.

Dwellings in Naples tend to be quite small (one, two, or no bedrooms) and owner occupied. In fact, 56.02% of the homes in Naples have two or fewer bedrooms. Currently, there are 3,843 single family homes for sale in Naples, FL on Zillow. Additionally, there are 733 single family homes for rent in Naples, FL. Under potential listings, there are about 29 Foreclosed and 146 Pre-Foreclosure homes. These are the properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).

Naples, FL Foreclosures And Bank Owned Homes

The percent of delinquent mortgages in Naples is 0.7%, which is lower than the national value of 1.1%, according to Zillow.com. With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth. The percent of Naples homeowners underwater on their mortgage is 6.0%, which is lower than Naples-Immokalee-Marco Island Metro at 6.1%.

  • Foreclosures in Naples = 522 (RealtyTrac)
  • Homes for Sale in Naples = 2,960
  • Median List Price = $399,900 (0% ⇑ vs Mar 2018)

There are currently 522 properties in Naples, FL that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 2,960. In April 2019, the number of properties that received a foreclosure filing in Naples, FL was 34% lower than the previous month and 17% lower than the same time last year.

Home sales for March 2019 were up 0% compared with the previous month, and down 100% compared with a year ago. The median sales price of a non-distressed home was $0. The median sales price of a foreclosure home was $0, or 0% higher than non-distressed home sales.

Naples Home Prices And Real Estate Appreciation

Naples real estate appreciated 82.04% over the last ten years, which is an average annual home appreciation rate of 6.17%, putting Naples in the top 10% nationally for real estate appreciation.

Over the last year, Naples real estate appreciation rates have trailed the rest of the nation. In the last twelve months, Naples’s real estate appreciation rate has been 5.81%, which is lower than appreciation rates in most communities in America. In the latest quarter, the real estate appreciation rates in Naples were at 0.95%, which equates to an annual appreciation rate of 3.86%.

The above statistics on real estate appreciation in Naples were taken from NeighborhoodScout.com. You can visit their page for more information. Relative to Florida, their data shows that Naples’s latest annual real estate appreciation rate is lower than 90% of the other cities and towns in Florida.

Where Should You Buy Real Estate In Naples, FL?

There are 102 schools in Naples, FL. There are 37 elementary schools, 20 middle schools, 14 high schools and 31 private & charter schools. There are 85 neighborhoods in Naples. Some of the best neighborhoods in or around Naples, Florida are Old Naples, Lely Resort and Park Shore.

Royal Harbor has a median listing price of $1.3M, making it the most expensive neighborhood. Lakewood is the most affordable neighborhood in Naples, with a median listing price of $160,000. Here are the 10 best neighborhoods in Naples to invest in real estate because they have the highest appreciation rates (List by Neigborhoodscout.com).

Is Naples Florida a Good Place To Invest in Real Estate?

Investing in real estate is touted as a great way to become wealthy. Is Naples rental property good for investment? Planning to invest in the Naples real estate market? Many real estate investors have asked themselves if buying a property in Naples is good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.

We have already discussed the Naples housing market 2019 forecast for answers on why to put resources into this sizzling market. Here are the top 10 reasons to invest in the Naples real estate in 2019.

1. The Low Tax Rate

Florida doesn’t have an income tax. More importantly, it doesn’t make up for this with a sky-high property tax rate like Texas. Instead, they have a moderately high income tax. The modest property tax rate combined with the affordable real estate market means that the average property tax bill for Florida properties was less than two thousand dollars in 2018.

2. The Landlord Friendly Jurisdiction

Florida, like other southern states, is friendlier to property owners than tenants. Florida doesn’t have rent control laws, and there are no state laws limiting security deposits. You can begin evictions if someone is three days late on rent.

The law says you can give someone an unconditional notice to quit the property if they intentionally damage the property. Lesser, repeated violations of the lease qualify for a seven day quit notice, but evictions in these cases do require going to court.

3. Naples is The Buyer’s Market

The Naples housing market has cooled off lately. This has created a buyer’s market. Home prices only went up one percent last year in the Naples real estate market.

Home prices are expected to fall one to two percent in 2019. That makes this a great time to buy Naples real estate investment properties. This is especially true for condos that cost less than 300,000 dollars.

4. The Geography Constraints

The potential supply of housing in the Naples real estate market is limited by geography. The city sits on the Gulf Coast, so the city cannot expand west onto the water. The Everglades are located to the east and south, and the city cannot grow that way, either.

The city can fill-in and build up, but both of these options are expensive. That will protect the value of a Naples real estate investment property over the long run.

5. The High Rental Rates

The average rent for apartments in the Naples housing market is 1500 a month. The median rent for upscale properties in the Naples housing market is 3700 dollars a month.

This rental rate is skewed upward by the premiums you can charge for oceanfront properties. You can charge even more for properties that overlook the Everglades or cater to the ecotourists flooding the area.

6. The Rules Restricting Competing Rentals

The state of Florida failed to pass statewide laws regarding short-term vacation rentals. This forced AirBnB and similar short-term rental services to come to agreement with Florida counties on a case-by-case basis. The Naples real estate market is notable for its stringent restrictions on short-term rentals unless the property is in a zoned tourist district or planned unit development.

If you can find a Naples real estate investment property in these areas, you’ll be able to charge a premium for the unit because you aren’t competing with permanent residents renting out a spare bedroom.

7. The Way the Market Prevents Renters from Buying

The average price of properties in the Naples real estate market is roughly 320,000 dollars. This is about fifty percent higher than the state average. The median household income is around 90,000 dollars a year, but that’s skewed upward by the large number of rich who live here and the sizable retiree population.

For long-term residents who aren’t this wealthy, the expensive real estate market prevents them from buying homes. On the flipside, the high median age means there are many retirees who come to live here part of the year or live here for several years before retiring to a nursing home.

This creates a large rental population that is almost immune to economics; they’ll live in active adult communities based on its location and amenities. The massive number of properties owned by people who live here part time also creates significant demand for rental units available to those who live here full time.

8. The Lower Carrying Costs

We mentioned that Florida has reasonable property tax rates. Florida has some of the highest homeowner’s insurance rates in the country thanks to all those hurricanes. One of the benefits of buying Naples real estate investment properties over those on the Atlantic coast is that the insurance premiums are lower.

Collier County was in spot 57 on a list of Florida counties based on property insurance rates. The only reason the average property tax bill was higher than average was that the cost to insure a property is proportional to its cost, and the Naples housing market was 50 percent more expensive that average.

Factor in the lower property insurance rate, and a Naples real estate investment property comes with a 25 percent higher than a comparable home inland.

9. The Opportunities for Bargain Hunters

Homeowners in the Naples real estate market tend to be much older than average; the average resident is 65 or older. This creates significant turnover as people die or sell beloved beach homes to move into assisted living. That’s aside from the normal turnover driven by job losses, divorces and bankruptcies.

10. The Best Rental Properties Are Abundant

If you’re going to snap up Naples real estate investment properties, the best ones to buy are low-maintenance beach condominiums. Ironically, these are the properties most readily available in the Naples real estate market. The prices for fee heavy condominiums and luxury condominiums have declined because of the recent influx of inventory.

This is a significant improvement over other rental markets where the most abundant properties are bank foreclosures and distressed sellers behind on a mortgage; those properties typically have to be fixed up before they can be rented out.

You’ll find that the Naples housing market has a far lower percentage of underwater homeowners and foreclosures than average. However, you can find a number of distressed sellers and foreclosures by moving inland. Chokoloskee has a foreclosure rate ten times that of Marco Island.

Naples Real Estate Investment

Maybe you have done a bit of real estate investing in Naples but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. If you are a home buyer or real estate investor, Naples real estate investment definitely has a track record of generating one of the best long term returns in the U.S. through the last ten years. If you invest wisely in Naples real estate, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate.

Most investors naturally gravitate to residential property investment. When looking for the best real estate investments, you should focus on markets with relatively high population and employment growth. Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.

You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Naples, FL. While the Naples housing market is noteworthy for having the second highest proportion of millionaires in the U.S., you don’t have to have a million dollars to invest in the Naples real estate market. There are a number of opportunities real estate investors can take advantage of in this unique housing market while enjoying all of the benefits of owning Florida real estate.

Buying an investment property is different from buying an owner-occupied home. Whether you are a beginner or a seasoned pro you probably realize the most important factor that will determine your success as a Real Estate Investor in Naples, FL is your ability to find great real estate investments in that area.

According to real estate experts, buying in a market with increasing prices, low interest, and low availability requires a different approach than buying in a cooler market.

We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.

Naples real estate investment

Other Best Places To Invest In Real Estate

Another market that we suggest is the housing market in Buffalo, NY. Ignore the Big Apple and look to west if you want to buy rental real estate in New York. The Buffalo housing market offers a surprisingly good deal with low prices and relatively high rental rates.

The Buffalo real estate market 2019 is dominated by older homes. A majority of homes in the Buffalo housing market were built before World War 2. Interestingly, this also means that there are many small apartment buildings designed to serve a population that rented small units close to their jobs.

For example, roughly a third of homes are single-family detached homes, while almost half take the form of small apartment buildings. This creates an excellent opportunity for those in the market for Buffalo rental properties. You could buy a small apartment building with multiple tenants for the cost of a single rental property in a more expensive New York real estate market.

Another market that we suggest is the housing market in Topeka, KS. Topeka housing market is an affordable, stable market seeing slow growth in rental rates and property values. Better yet, the legal and tax environment is favorable to property owners, while other parts of the country seem intent on destroying their rental markets.

Topeka is trying to revitalize downtown. The demand for lofts by young professionals is far higher than the supply. There is a shortage of luxury housing in downtown, as well. This creates an excellent opportunity for those who want to renovate properties to meet this niche.

Home prices in Topeka grew six to seven percent last year. The median home value increased almost ten thousand dollars since 2016. Why would the Topeka real estate market 2019 see steady appreciation when there is tepid demand? This is because there is almost no pressure to build anything new, though the population is stable and slowly growing.

Let us know which real estate markets you consider best for real estate investing! If you need an expert investment advise, you may fill up the form given here. 

One of our investment specialists will get in touch with you to discuss all facets of searching for, buying, and owning a turnkey investment property.


*Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.

References:

Tax rate
https://www.kiplinger.com/slideshow/taxes/T006-S001-10-tax-friendly-states/index.html

Landlord friendly                                                                                                        https://www.mashvisor.com/blog/5-most-landlord-friendly-states
http://www.landlordstation.com/blog/top-landlord-friendly-states

Buyer’s market
https://www.zillow.com/naples-fl/home-values
https://naples.floridaweekly.com/articles/naples-buyers-market-strong-to-start-the-year

Rental rates
https://www.zillow.com/naples-fl/home-values
https://www.rentcafe.com/average-rent-market-trends/us/fl/naples
https://en.wikipedia.org/wiki/Naples,_Florida

Restricting competition
https://www.naplesnews.com/story/money/business/local/2019/03/30/collier-countys-decision-crack-down-vacation-rentals-stirs-opposition-concern/3303361002

Prevents renters from buying
https://www.trulia.com/real_estate/Naples-Florida/market-trends
https://www.zillow.com/fl/home-values
https://datausa.io/profile/geo/naples-fl
https://www.neighborhoodscout.com/fl/naples/real-estate

Carrying costs
https://www.reviews.com/homeowners-insurance/florida

Best rental properties
https://naples.floridaweekly.com/articles/naples-buyers-market-strong-to-start-the-year
https://www.realtytrac.com/statsandtrends/foreclosuretrends/fl/collier-county

Market Data, Trends and Statistics
https://www.movoto.com/naples-fl/market-trends
https://www.littlebighomes.com/real-estate-naples.html
https://www.redfin.com/city/12171/FL/Naples/housing-market
https://www.neighborhoodscout.com/fl/naples/real-estate
https://www.realtor.com/realestateandhomes-search/Naples_FL/overview
https://www.realtytrac.com/statsandtrends/fl/collier-county/naples


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