Area Real Estate News & Market Trends

You’ll find our blog to be a wealth of information, covering everything from local market statistics and home values to community happenings. That’s because we at Poteet Properties care about our community and want to help you find your place in it. Please reach out if you have any questions at all. We’d love to talk with you!

 

Feb. 24, 2020

January 2020 Sales are UP!

January has come and so have some buyers.   Closings were up but the biggest story is the low number of available properties this year compared to last year.  We entered the year with 5671 available properties to purchase.   Last year at the same time we had 7773 properties for sale.  That is a significant difference.  What should happen is prices will firm as inventory declines and the demand increases.   Additionally, some of the properties that have been slow to move should see more interest from potential purchasers.

Luxury housing did well which is always good, but this is a small section of the overall market.   The weather has been fabulous and although this is not scientific, some feel that some of the buyers are taking advantage of the great weather playing golf, going to the beach, and boating instead of purchasing a new home.   Conversely those who have been holding open houses this past month reported great buyer traffic.   Interestingly, for those properties I held open houses, those looking consists predominantly by women.   

Other good news include the median closed price rose to $343,000 and pending sales were up by 33 percent which should be a great indicator for February’s report.   Lastly, the months of inventory dropped to 6.6 months.   Those looking to purchase this year should move quickly on those properties they want because competition for these properties will most likely significantly increase.    Additionally, it is a great time to list if you plan to sell.  It is a Seller’s market.

Posted in Market Updates
Jan. 13, 2020

Naples "Live long and Prosper

Live long and prosper? Naples among top places in U.S. for that, says Parade magazine

Dave Osborn (Reprint) Naples Daily News

Naples has its traffic snarls, red tide, pythons, alligators and more. 

Even so, it ranks among the top eight U.S. cities to help live a long and healthy life.

Parade magazine ranks Naples at No. 4 on the list, the only Florida city to make it.

"What’s not to love about Naples?" Parade says in the article. "The small town (population approximately 22,000) features high-quality health care and loads of leisure pursuits and good-for-you food—all set in a chill backdrop of Gulf of Mexico watersports, golf and sun."

The story quotes Dan Buettner, who co-founded Blue Zones Project, which has studied why people live longer in some regions compared to others. The term "Blue Zones" first appeared in a 2005 National Geographic cover story Buettner wrote, identifying five regions that included Sardinia, Italty, and Loma Linda, California.

“People in the Blue Zones don’t have better discipline or a greater sense of responsibility,” he told Parade. “They simply live in environments that make healthy lifestyle choices easier, or unavoidable.”

Buettner has visited Naples and thinks highly of the community. When he stopped by Florida Gulf Coast University in 2018, he referred to Naples as the "happiest place" in the U.S., and among the healthiest.

The other seven regions and cities to make the Parade list: 1. Southern California Beach Cities; 2. Breckenridge, Colorado; 3. Minneapolis; 5. Portland, Maine; 6. Charleston, South Carolina; 7. Pittsburgh; 8. Iowa City, Iowa.

The Parade went on to say that Naples boasts white "sugar sand" beaches so "who needs sugar?"

"An unusually high number of Paradise Coast residents say in surveys that they’re low in stress and rich in supportive, loving relationships," the Parade article said.

"Having strong social ties — there are multiple retirement communities and recreation centers here — can extend lifespan as much as quitting smoking, one research review found."

Dec. 27, 2019

2019 Florida Realtor PAC

2019 has been a magical year for me.  I had the privilege to serve as Chairman of the Florida Realtor PAC Trustees.   Our mission is to represent the political interests of the 187,000 Realtors doing business in Florida.  We advocate for private property rights, affordable and available property insurance, affordable housing, fair housing practices, clean water, fair property taxes, and issues affecting our real estate businesses.   Along the way while performing my responsiblities I have had the pleasure to meet the President of the United States, the Vice President of the United States, both of our US Senators, several of our US Congressmen and Congresswomen, Florida's Governor, Florida's Lt. Governor, Florida Attorney General, Florida CFO, and Florida Secretary of Agriculture, the Speaker of the Florida House, the President of the Florida Senate, along with a long list of Florida House and Senate members.   It has been an amazing year.   I publicly want to thank Florida Realtor President Eric Sain for allowing me to serve and all the 2019 Florida Realtor PAC Trustees for their dedication to the Realtor organization.  I will cherish this year forever.

       

           

  

Posted in Government Issues
Dec. 23, 2019

Merry Christmas

It's two days before Christmas and all the roads are full of wall to wall traffic.  I hear the locals starting to complain how their community has been invaded and can't get around as fast as before. However, I don't hear them complaining about the jingles in their pockets from all that our winter residents and guests spend while visiting.  There is always a cost to be part of paradise because everyone wants to be here.  For us the snowbirds and tourists are the cost.  Thank goodness they are.  It is the reason we have so many outstanding restaurants.   It is the reason our town is full of small boutiques, jewelers, specialty stores.  Those towns without tourism usually get their retail filled by category killing big box and chain stores, plus Amazon.  Mom and Pop stores are a dying breed in those communities.  Yes, Naples is lucky to have a lot more choices.  So I am perfectly fine with taking an extra 5 minutes to drive to the store, go to work, or to movies if that is the price.  I welcome all those who have made their way south to visit our shores.  I only have one request from them, when you leave Naples, leave it in a condition better then when you arrived.  That means dine at our restaurant, shop at our stores, play some golf, and free up some of your green tender.  After all it is the Christmas season and spreading your wealth is a very festive thing to do.   To all to those who just arrived, Merry Christmas and may you enjoy your holiday stay with us.

Nov. 22, 2019

Buyers are back

Republished with permission from the Naples Area Board of Realtors

Buyers are Back: Homes Under Contract Soar 24% in October

Contacts:  
Jeff Jones, NABOR® Media Relations Committee Chair, (239) 597-1666
Marcia Albert, NABOR® Director of Marketing, (239) 597-1666
Naples, Fla. (November 22, 2019) - As predicted by a group of Naples real estate brokers, buyer activity began to rise in October with a remarkable 23.7 percent increase in overall pending sales (homes under contract) to 987 pending sales during October 2019 compared to 798 pending sales in October 2018. Sellers also felt a surge in showings (up 40 percent compared to October 2018), and the number of price reductions slowed to just 15 percent of the properties available in October's overall inventory compared to September, which saw 26 percent of its inventory's prices reduced. Price reduction activity is an important behavior for buyers to watch as it is an indication of how eager sellers are to sell.

Closed sales during October increased 9.7 percent to 758 closed sales compared to 689 closed sales in October 2018, according to the October 2019 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island).
 
"These pre-season pending sales numbers are setting us up to have a good winter sales season," said Dominic Pallini, Broker at Vanderbilt Realty. "Inventory is also going up yet prices have been holding steady."
 
Even though October's overall inventory decreased 17.7 percent to 5,351 homes for sale from 6,500 homes for sale in October 2018, there were actually 362 more homes that came onto the market in October compared to September. According to Pallini, a fair amount of the new inventory is in the new construction market where builders are pricing homes aggressively and offering sweeteners to agents and buyers via incentives.
 
"A large majority of the new construction over the last year appears to be in the market's "sweet spot", which is the category of homes priced below $500,000," said Jeff Jones, Broker at Keller Williams Naples. "This influx of new construction is probably why the median closed price in that price range hasn't shifted much."
 
According to Tom Bringardner, Jr., President/CEO of Premier Commercial, "median closed prices in the upper end of the market [homes priced at $2 million and above] rose 8 percent" in October 2019 to $3,200,000 from $2,962,500 in October 2018. However, when 57 percent of the market's available inventory are homes priced under $500,000, and the majority of new listings every month are also in this range, it's easy to understand how the overall median closed price reported for the entire market appears to be decreasing.
 
The overall median closed price decreased 3 percent in October to $329,950 from $340,000 in October 2018. But it's important to remember that there are also three times as many properties for sale under $300,000 than properties for sale over $2 million in Naples.
 
"Inventory has kept prices attractive which drives demand," said Budge Huskey, President, Premier Sotheby's International Realty. "The under $500,000 market is driving our overall market today. This is naturally bringing the median closed price down."
 
The NABOR® October 2019 Market Reports provide 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:
Posted in Market Updates
Oct. 25, 2019

September 2019 Market Report

The Good, the Bad, and the Ugly - September 2019

This past month was not without its challenges.  In the middle of the month a monster Hurricane off the east Coast flirted with visiting Florida.  It was not until the week before the impending arrival did our area know that it was moving away from us and would not be a threat.  This did not remove the lack of business during the week plus timeframe.   The "Good" in September was in the area of closed sales, up by 12% for Single Family homes.   The "Bad" was the days on market going up by 10%.  The "Ugly" is the large decrease in overall inventory.  Although this may in the future influence the days on market in a positive way, pending sales and closed sales will be negatively affected until more inventory can be added to the market.  The market price dropped too, but should turn northward in the future as a result of lower inventories.   If you are thinking of listing your property, now may be a great time.  Scarcity of product almost always help prices rise.

 

 

 

Posted in Market Updates
Oct. 10, 2019

Short term Rentals in Collier County

Collier County Short Term Rental Policy

Since it was determined earlier this year that Collier County Government does not have the right to place a prohibition on short term rentals for frequency and duration, Collier County Government has been in discussions with stakeholders groups including Naples Area Board of Realtors to find solutions to problems that sparked the initial conversation about a prohibition.   Noise, parking, trash, etc. were the main issues presented to the Commission last spring.  The Realtors were in full agreement that these issues need to be addressed but also contended this was an enforcement issue and banning short term rentals would damage private property rights for those who wanted or needed to rent their property on a short-term basis.    

So, does anyone in Collier County have the right to regulate the frequency and duration of rental properties?   Yes, the City of Naples has its own ordinance that was grandfathered in before the State Legislature passed a bill prohibiting municipalities and local governments from banning short term rentals.  Additionally, properties located within HOA’s and Condominiums have the right to regulate and make rules limiting short-term rentals, but the County cannot not.  The difference is when you buy in an HOA or Condominium project you are also agreeing to abide by their rules.  When you close on one of these properties there is a document from the Condo Association and/or HOA that you sign.   

Back to the stakeholder’s group, soon they will be coming forth with an ordinance requiring short term rental properties to register.   This is good.  Short term rentals are required to pay tourist development tax and sales tax.  This helps pay for infrastructure and services needed to provide our out of area guests a great experience in Collier County.  It is not fair for some to pay the tax and others do not.

 They also are discussing requiring a local contact for the property.  Realtors think this is a good idea so should a problem arise, there is someone here to help correct it quickly.  This makes sense.

However, like all pieces of legislation, there are those who want more added to the ordinance.   Realtors are not favoring adding additional requirements.  One idea being proposed was requiring inspections.  This seemed to be obtrusive and an overreach by government to generate more fees with little return to the property owner.  

The County Commission directed staff to enforce local code ordinances.   I cannot tell you how that is going, but this is the direction staff should go.   If the renters are loud and violating our sound ordinance, then there are remedies in the code.  It there is a trash issue, again there are remedies in the code.   Illegal parking is easy to cure.  Again, there are fines and property owners will not want to pay them. 

Bottom line we have plenty of rules already that if County officials just enforce, we should not see many problems associated with short term rentals.  Collier County should keep the ordinance simple and easy to administer.   Collect the proper amount of taxes and have a contact person for each property should be the goal.  Anything more is government overreach.

Posted in Government Issues
Oct. 3, 2019

Is it time to Sell?

Some will tell you its always the time to sell, but most smart investors try to adhere to the adage “Buy low, Sell High.” Today's economy is showing signs of struggling to maintain its historic economic growth record. For the last 11+ years our economy has grown. The previous record was 10 years. That alone troubles economists. Add the current discussion on impeachment, this week’s losses in the stock market, some international economies in decline, and the effect of the Chinese tariff on our agriculture industry and retail industries, it makes you wonder if we are already there. I read a lot, listen to the so-called experts, and look at local sales to identify trends, but I still don’t know when the downturn is coming. Neither do the economists. Most are suggesting 2020-2021 for a market adjustment. Hearing news like this does make us uneasy and that’s when we need to use our minds and not our emotions. If you have a property that you have made good gains since you purchased it, you might consider selling now. This will put you ahead of any market adjustment coming. If you have not, then sit on it unless you get an offer you cannot refuse or sell if don't think you will get more gain from it. It is always a good time to get rid of poor performing properties in you portfolio.

If you are investing and you found the perfect location, buy it. Good locations are getting harder to find. We are no longer making land. Our downturns in the economy are usually no longer than a couple years. Property values generally bounce back quickly and unless you plan to sell or refinance soon, most adjustments in value are on paper, not from your pocketbook. So, getting the right location now still makes sense. Finally, in fluctuating markets, the savvy buyer and seller can make a lot of money. They just need to be smart and not let emotion cloud their judgement. It is also the time you need a Realtor who knows the market.

Posted in Market Updates
Aug. 2, 2019

June Market Report

JUNE - THE GOOD, THE BAD, AND THE UGLY.

No we did not have a spaghetti western in June.  Clint Eastwood did not appear, at least I don't think so.  However, the results of June were mixed.   Total number of sales were down compared to last year at this time, but 843 closed sales is still pretty good.  Inventory fell by 13%.  This will help some market as the cheaper priced properties were gobbled up by buyers.  You can see the this conclusion with the 1% gain in Median closed prices.  There is still plenty of product on the market for buyer to choose, plus none of these numbers reflect the new home market.   My ugly is the increase in days on market.  We can sort of justify it by saying summer is typically slower, thus you would normally see more activity the rest of the year.  Regardless, it's inching towards being over 4 months and sellers do not like that. 

 

 

Posted in Market Updates
July 2, 2019

May 2019 Sales Statistics

Under $500,000 leads market for May

The May Sales Report reflects more moderate buyers jumping in the market.  High end home sales declined while homes and condos under $500,000 rose in percentage of total sales volume.  Inventory in the under $300 market took a dip reflecting the hot market.  The overall total market inventory was reduced by 13%.  This is not surprising since it is the end of our sales season and the closings reflect sales contracts executed 30 to 60 days before the property closed.  A lot of the lower end market activity were in the Golden Gate Estates and Ave Maria markets.   Prices overall for the Greater Naples residential real estate market slipped a little over last year at this time, but still are considered strong prices as compared to other parts of Florida.   Commercial properties due in large part to a shortage of product and lack of new commercial developments are retaining their values.

 

Posted in Market Updates