Housing Market Trends in Naples
The Naples housing market has been experiencing some interesting trends in recent times. While there has been no significant surge in demand, prices have been steadily increasing, and inventory has been tightening. 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 is a beautiful coastal city located in the southwestern part of Florida. The Naples housing market is not very competitive, and homes in Naples receive one offer on average and sell in around 42 days. According to Redfin, the median sale price of a home in Naples was $746K last month, up 13.1% since last year, and in February 2023, Naples home prices were up 16.7% compared to last year, selling for a median price of $759K. In this blog post, we will explore the current state of the Naples housing market, its trends, and what they mean for buyers and sellers.
Home Prices
In February 2023, the median home sale price in Naples was $759K, a 16.7% increase compared to last year. This means that the housing market in Naples is still experiencing significant growth despite the pandemic's economic impact. This trend has been consistent over the past few years, with home prices increasing by 13.1% since last year. However, the median sale price per square foot in Naples is $415, up 7.1% since last year.
Competitiveness
Naples is not a very competitive housing market, with an average of one offer per home and an average time on the market of 42 days. The Redfin Compete Score rates Naples as 20 out of 100, which indicates low competitiveness. In comparison, some of the nearby cities like Sarasota and Tampa are somewhat competitive, with multiple offers and an average time on the market of 50 days. The sale-to-list price ratio in Naples for all home types is 95.6%, which means that homes are generally selling at or slightly below their asking price. This ratio has decreased from last year when the sale-to-list price ratio was 100%.
Migration & Relocation Trends
According to Redfin's migration analysis, 1% of homebuyers searched to move into Naples from outside metros. Chicago homebuyers searched to move into Naples more than any other metro, followed by New York and Boston. Around 63% of Naples homebuyers searched to stay within the Naples metropolitan area. Sarasota was the most popular destination among Naples homebuyers, followed by Tampa and Asheville. About 413 people left Naples for Sarasota in the first quarter of 2023.
What Does This Mean for Buyers and Sellers?
The current housing market trends in Naples suggest that buyers may have to be patient and strategic when looking for a home in the area. Homes are selling quickly but not as quickly as they were last year. Buyers may have some bargaining power as the sale-to-list price ratio has decreased. However, with the high median sale price per square foot, it is essential to be financially prepared for the Naples housing market.
Sellers in Naples can expect a high demand for their properties, with home prices increasing by 16.7% compared to last year. However, the market is not very competitive, and sellers may have to wait for around 42 days to receive an offer. The sale-to-list price ratio has decreased, so it is important for sellers to price their homes realistically to attract buyers.
In conclusion, the Naples housing market is experiencing significant growth, with home prices increasing by 16.7% compared to last year. Although the market is not very competitive, buyers may still have to be patient and strategic when looking for a home in the area. Sellers can expect high demand for their properties but should be realistic with their pricing.
Is Naples a Seller's or Buyer's Real Estate Market in 2023?
The following housing market trends are based on single-family, condo, and townhome properties listed for sale on Realtor.com for the last month. Land, multi-unit, and other property types are excluded. Located on the Gulf of Mexico in southwest Florida, Naples is known for its beautiful beaches, golf courses, and luxury real estate market.
According to Realtor.com, Naples is a seller's market in March 2023, with a median listing home price of $739K and a median sold home price of $645.7K. In this blog post, we will explore what this means for buyers and sellers in Naples, FL.
Market Trends in Naples, FL
The Naples housing market is seeing an upward trend in median home prices, with a year-over-year increase of 8.8% in March 2023. The median listing price per square foot is $393, which is higher than the national average of $161. However, the sale-to-list price ratio in Naples is 97.3%, which means that homes are selling for almost their full asking price. On average, homes in Naples are selling for 2.7% below the asking price.
Seller's Market
Naples is currently experiencing a seller's market, which means that there are more buyers than there are homes available for sale. This is reflected in the median days on market, which is currently 70 days. This is slightly up from last year, but down from the previous month. The limited inventory is creating a competitive market for buyers, which can result in bidding wars and multiple offers for desirable properties.
Homes for Sale
There are currently 5,736 homes for sale in Naples, with 564 newly listed within the last week. The inventory consists of a range of properties, from luxury waterfront estates to more affordable options. There are also 3,117 rental properties available, with a wide range of prices starting from $1.3K to $135K per month. Additionally, Naples has a variety of real estate options, such as open houses, price-reduced properties, foreclosures, and new home communities.
Newest Listings
Some of the newest listings in Naples include a 2-bedroom, 2-bath condo with 806 square feet listed for $169,900, a 4-bedroom, 3-bath home with 2,588 square feet listed for $599,000, and a 4-bedroom, 3-bath home with 1,332 square feet listed for $385,000. These properties represent the variety of options available in the Naples real estate market.
Conclusion
In summary, Naples, FL is currently experiencing a seller's market with limited inventory, resulting in higher prices and more competition for buyers. The median listing price per square foot is $393, which is higher than the national average, but the sale-to-list price ratio is 97.3%, indicating that homes are selling for almost their full asking price. The median days on market are 70 days, slightly up from last year, but down from the previous month. The real estate market in Naples offers a variety of options, from luxury waterfront estates to more affordable properties, making it a desirable location for buyers and sellers alike.
Naples Housing Market Forecast 2023-2024
The Naples Metro Area housing market has seen a surge in home values, with the average home value reaching $592,111, up 12.7% over the past year. Homes are also going to be pending in just around 27 days, making it a seller's market. In this section, we will dive deeper into the current state of the Naples housing market and provide a forecast for 2023-2024. All data presented in this article is from Zillow's Naples Metro Area housing market report as of February 28, 2023.
Naples Housing Market Sales Trends
Despite the rise in home values, the Naples Metro Area housing market is experiencing a decline in home sales. According to a report by Florida Realtors, closed sales of single-family homes decreased by 21.2% year-over-year in February 2023, with the number of new pending sales down 7.6%. The decline in home sales could be attributed to a lack of inventory, which was down 34.7% year-over-year.
Naples Housing Market Forecast 2023-2024
The Naples Metro Area housing market is expected to continue its growth in 2023-2024, albeit at a slower pace. According to Zillow's forecast, home values are expected to increase by 3.1% in the next year, which is a more modest growth rate than the past year's growth of 12.7%. The demand for housing in Naples is likely to continue due to the area's favorable weather, beaches, and overall high quality of life. However, the limited inventory and rising mortgage rates could slow down the market's growth.
For buyers, the current state of the Naples housing market means that competition for available homes is high. It's essential to work with a trusted real estate agent who can help navigate the market and identify potential homes. It's also essential to have pre-approval for a mortgage loan to have a competitive edge in making an offer.
Sellers, on the other hand, have the advantage of the current seller's market. However, it's still crucial to price your home appropriately and work with an experienced real estate agent who can help maximize the value of your home. Additionally, staging and making small repairs can go a long way in attracting potential buyers.
In summary, the Naples Metro Area housing market is experiencing a surge in home values, making it a seller's market. However, the decline in home sales due to limited inventory could slow down the market's growth. Despite this, the demand for housing in Naples is likely to continue, driven by the area's high quality of life. Buyers should be prepared to navigate a competitive market and work with trusted real estate agents. Sellers can take advantage of the current seller's market by pricing their homes appropriately and making small repairs to maximize the value of their homes.
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.
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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.
Sources:
- https://www.zillow.com/naples-fl/home-values
- 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
