Naples is a beautiful coastal city located in the southwestern part of Florida. The Naples housing market has been experiencing some interesting trends in recent times. Although there has been a slight decrease in median sale prices, Naples remains an attractive location for homeowners. In this report, we'll take a closer look at the latest housing market data for Naples, including sales, prices, and supply trends, as well as provide a forecast for what we can expect in 2023.
Naples Housing Market: House Prices & Trends | Redfin
According to Redfin, in August 2023, the median sale price for homes in Naples showed a 3.1% increase compared to the previous year, amounting to $670,000. This signifies a positive trajectory in the Naples housing market, which is an essential factor for both buyers and sellers to consider.
The average time a property spends on the market has seen a slight increase, with homes now selling after 49 days on average. While this is an increase from the previous year's 30 days, it still indicates a relatively brisk pace in the Naples real estate market.
During August of the present year, 176 homes were sold, a slight dip from the 183 homes sold during the same period last year. This data provides insights into the demand and supply dynamics in the Naples housing market.
Competitiveness and Pricing
The Naples housing market is characterized as not very competitive according to Redfin's Compete Score™. Multiple offers on properties are rare, with homes selling for approximately 5% below list price on average and going pending in about 44 days.
Moreover, the sale-to-list price ratio for all home types in Naples is 95.3%, indicating a strong position for sellers in the market.
Naples Migration & Relocation Trends
When it comes to migration trends, Naples attracts a notable influx of individuals from various areas. Chicago, Miami, and New York are among the top cities from which people are relocating to Naples, reflecting the city's appeal.
On the other hand, Sarasota, Tampa, and Jacksonville are the preferred destinations for individuals leaving Naples, suggesting interesting shifts in migration patterns within Florida.
Thus, the Naples housing market presents a promising scenario for both buyers and sellers. With a 3.1% increase in median home prices compared to the previous year and a relatively fast sales pace, Naples continues to be an attractive destination for real estate investments. However, potential buyers should act swiftly due to the moderately competitive market and the tendency for homes to sell close to the list price.
Naples Housing Market Forecast 2023-2024
Naples, along with its neighboring areas of Immokalee and Marco Island, forms the Naples-Immokalee-Marco Island Metropolitan Statistical Area (MSA). This MSA boasts a vibrant housing market that has experienced notable trends and forecasts. Let us take a closer look at the current state of the market and its forecast for the near future.
Unraveling the current state and future projections of this market is essential for both potential buyers and sellers, and Zillow's comprehensive data offers valuable insights into average home values, market changes, and forthcoming forecasts. Let's delve into the specifics of the Naples-Immokalee-Marco Island housing market forecast for 2023.
The housing market in Naples-Immokalee-Marco Island has witnessed fluctuations in recent times. As of now, the average home value stands at $603,517, showing a 0.6% decrease over the past year. Homes typically go pending in around 37 days, indicating a moderate pace of sales. This data is up to August 31, 2023.
Market Forecast and Sales Data
- 1-year Market Forecast (August 31, 2023): The market forecast for the coming year suggests a 6.5% increase in housing market activity.
- Median Sale to List Ratio (July 31, 2023): The median sale to list ratio is 0.966, reflecting the relation between listing prices and actual sale prices.
- Percent of Sales Over List Price (July 31, 2023): 7.7% of the sales were above the listed price, indicating a competitive market.
- Percent of Sales Under List Price (July 31, 2023): Approximately 78.6% of the sales were below the listed price.
- Median Days to Pending (August 31, 2023): The median days for a property to go pending is 37 days.
Assessing House Prices in Naples, Florida
Given the 0.6% decrease in average home value over the past year, there is a slight dip in house prices. However, it's important to consider the overall market forecast, which predicts a 6.5% increase in the market for the coming year. This suggests that the market might pick up and prices could stabilize or rise in the near future.
Is Naples a Good Place to Buy a House?
Considering the market dynamics and the upcoming 6.5% growth forecasted by Zillow, Naples presents potential opportunities for homebuyers. The median days to pending being 37 days indicates a balanced pace, offering buyers reasonable time to make decisions.
Naples Real Estate Investment Overview
Naples, Florida, is a popular real estate investment destination due to its location, thriving economy, and desirable quality of life. The city has been experiencing steady growth in population and housing demand, making it an attractive market for real estate investors. In this section, we will discuss Naples real estate investment overview and seven reasons why investors should consider investing in this market.
Naples Real Estate Investment Overview
Naples is known for its upscale homes, beachfront properties, and high-end condominiums. The city offers a unique combination of natural beauty, excellent climate, and world-class amenities, making it an ideal place for people looking to invest in a vacation home or rental property. The city's real estate market has been growing steadily over the past few years, with prices continuing to rise due to strong demand and limited inventory.
In recent years, the Naples real estate market has experienced steady appreciation in property values, making it an attractive investment opportunity for both local and international investors. The city's high-end real estate market has been particularly strong, with luxury homes and condos selling at a premium. Additionally, Naples has a thriving vacation rental market, with many tourists flocking to the city's beaches and attractions throughout the year.
Top Reasons to Invest in Naples Real Estate:
- Strong Rental Market: Naples is a popular vacation destination, which translates into a high demand for rental properties. Investors can enjoy high occupancy rates and attractive rental yields by investing in vacation homes or rental properties.
- Growing Population: Naples has been experiencing steady population growth, making it an attractive market for real estate investors. As more people move to the city, demand for housing continues to rise, which can translate into higher property values.
- Strong Economy: Naples has a thriving economy, with a diverse range of industries, including tourism, healthcare, and construction. The city's economy is expected to continue to grow, which can translate into higher property values over time.
- Desirable Location: Naples is located in Southwest Florida, offering easy access to some of the state's most popular attractions, including the Everglades, Sanibel Island, and Marco Island. The city's desirable location makes it an attractive place to live, work, and vacation.
- High-Quality Lifestyle: Naples is known for its high-quality lifestyle, with world-class amenities, including top-rated restaurants, shopping centers, and cultural attractions. The city's desirable lifestyle is a significant draw for both local and international real estate investors.
- Limited Inventory: The Naples real estate market has limited inventory, particularly in the luxury home and condo segments. Limited inventory can translate into higher property values over time.
- Stable Real Estate Market: Naples has a stable real estate market, with steady appreciation in property values over the past few years. The city's real estate market has been relatively resilient to economic downturns, making it an attractive investment opportunity for long-term investors.
While there are many advantages to investing in Naples real estate, there are also a few drawbacks to consider. One of the most significant drawbacks is the high cost of entry, particularly in the luxury home and condo segments. Additionally, property taxes and insurance rates in Naples can be relatively high compared to other Florida cities. Finally, investing in vacation rental properties can be challenging, particularly given the city's strict zoning laws and regulations.
In conclusion, the Naples real estate market offers many opportunities for investors looking to capitalize on the city's growing population, strong economy, and high-quality lifestyle. While there are some drawbacks to consider, the overall market conditions and long-term appreciation potential make Naples an attractive investment destination. Investors should conduct their due diligence and work with experienced real estate professionals to navigate the local market successfully.
Florida is a great place to invest in real estate with several affordable and growing markets. While there are investment opportunities in the Florida housing market, major metros are some of the most popular choices, like Jacksonville, Orlando, Miami, St. Petersburg, and Tampa. Another market that we suggest is the housing market in Lakeland, Florida. The Lakeland housing market presents the perfect balance of currently affordable real estate for buyers and future growth. We can expect the population of the area to grow rapidly, and the renting population will grow even faster. The time to buy real estate in Lakeland is now.
While the Lakeland FL real estate market is cheaper than Orlando and Tampa, it is not a good overall value given the lower average wages of its residents. That explains why U.S. News and World Report gave the city an index score of 5.5 out of ten. This is due to the average resident earning around $23,000 a year, several thousand less than the U.S. average. Median household incomes are no better.
You can also invest in another hot market in Ocala, Florida. Ocala is an affordable real estate market for investors who can still reap a decent return on investment. The area has recovered from the Great Recession, and several factors will insulate it from a future downturn. The Ocala housing market is buoyed by several near-recession-proof industries.
It is quite affordable for investors compared to the rest of Florida markets like Tampa where the median home value is $221,500. The median home price in Ocala in 2018 was around $150,000. You can buy several homes in the Ocala FL real estate market for the price you would of one mid-market condo in the Miami real estate market.
The Tampa real estate market has been seeing constant development for the last two years, a trend that does not seem to be stopping any time soon. The real estate in Tampa Florida has been estimated to grow rapidly during 2020. Investors are recommended to buy properties now and hold on to them until good price appreciation for maximum return on investment.
Tampa has the headquarters of four Fortune 500 companies which makes it a moderately attractive city for work and economic growth. In addition to this, many entrepreneurs and small businesses are also making their way to Tampa in search of better prospects and lesser expenses for running their start-ups. Acquiring residential spaces is one of the earliest priorities for such professionals when they move here.
Tampa, FL has a very diverse economy with financial services, STEM, health care, research, education, tourism, beaches, and military bases all making significant contributions to jobs and growth. These factors make the Tampa housing market a hot destination for real estate investors in 2019.
NORADA REAL ESTATE INVESTMENTS has extensive experience investing in turnkey real estate and cash-flow properties. We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in many other growth markets in the United States. We can help you succeed by minimizing risk and maximizing the profitability of your investment property in Naples.
Consult with one of the investment counselors who can help build you a custom portfolio of Naples turnkey properties. These are “Cash-Flow Rental Properties” located in some of the best neighborhoods of Naples.
Not just limited to Naples or Florida but you can also invest in some of the best real estate markets in the United States. All you have to do is fill up this form and schedule a consultation at your convenience. We’re standing by to help you take the guesswork out of real estate investing. By researching and structuring complete turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability.
Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process. They are well-informed about critical factors that affect your specific market areas, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates.
Let us know which real estate markets in the United States you consider best for real estate investing!
Remember, caveat emptor still applies when buying a property anywhere. Some of 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, Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.