In this monthly market update, Renee Hahn (William Ravis Real Estate) reviews key Naples‑area real‑estate metrics for September 2023. She reports that overall inventory rose to 2,793 listings (up 13.2% YoY and up MoM), with notable segment differences: sub‑$300k single‑family homes are now limited to manufactured homes, while $5M+ inventory has nearly doubled. Pending sales fell sharply (‑19% YoY, ‑9.4% MoM), creating a buyer‑favoring environment despite higher inventory. Median price is up 3% YoY but down 45.5% MoM, and median closed price shows similar mixed signals. September saw 723 price reductions and a 27.3% jump in new listings (937 vs 736 a year ago). Closed sales increased 5.4% YoY but dropped 16% MoM (587 sales). Days on market rose 48% YoY and 9% MoM, reflecting longer listing times, though renovated homes in prime communities still sell quickly. Hahn attributes slower buyer traffic and inventory churn to lower interest‑rate differentials and homeowner reluctance to move. She emphasizes the need for a balanced market to avoid further price erosion, notes that Naples remains healthier than many markets, and invites viewers to contact her (239‑287‑2576) or visit her market‑area webpage for more details.
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Hello from sunny Naples, Florida. This is Renee Han with William Ravis Real Estate bringing you the monthly market update for the Naples area. Let's start by looking at inventory. We always hit these 6 categories in our quick monthly overview. Inventory is both up year over year and month over month. So if you look at September of 2022, we were sitting at 2,468 properties on the market overall. This September, we were up to 2,793. So again, an increase month over month as well as year over year, which is always good news for, you know, the broader buyer pool, if you will. When you look at that within certain segments, the $300,000 and below single-family home market is now just limited manufactured homes. So as the prices have increased, it is virtually impossible to find anything other than a single-family home or a manufactured home at that price point. Conversely, at the $5 million and above, we've nearly doubled the inventory in the last year. That's pretty significant. So even though we're up year over year in these two categories, it depends on which segment of the market to see how much you're up. Or in some cases, the $300,000 and below for single-family homes is actually down in inventory. Let's flip over to pending sales. So pending sales is down. So inventory is up, pending sales down. We're down 19% year over year and we're actually down 9.4% month over month. So the number of homes that went under contract went down. Now, I always look at inventory demand availability. How do those two relate? You've got inventory going up, pending sales going down. Those aren't the directions that sellers like to see, but certainly more favorable to buyers at this point in time. If you think about the median price, that is actually up 3% year over year, but it's down 45.5% month over month. The other thing I'll mention, I say this every time, so I know I'm a broken record. Median closed price can very much be affected by the makeup of what is selling. So it doesn't necessarily mean that an individual or on the whole values are up or down. It just means for those that closed, we're up 3 point or 3% year over year, but we're actually down almost 6% month over month. So I don't give a lot of credence to that. I would say, again, going back to inventory and pending sales, you've definitely got some price favorability there. And in fact, If you look at September, there were 723 price reductions during the month. So, you know, obviously a combination of new listings plus price reductions, existing inventory, it made September a more favorable month for buyers, if you will. Let's take a look at new listings. So listings coming on the market, inventory is up. We already talked about, but look at new listings. It went up 27.3%. in September of 2023. So last year that time we were at 736 new listings, this year 937. So the, the pace at which new listings are coming on the market in September outpaced not only the prior year but the prior month. Let's look at closed sales. So closed sales increased 5.4% year over year, but it was a decrease of just over 16% month over month. So we had 587 closed sales during the month of September. And lastly, we'll talk about days on market. That continues to trickle up slightly, so it's 48% year over year, um, and just over 9% month over month. So again, as things are coming available, they are sitting on the market longer. That can be a combination of reasons, but when you're looking at that increase year over year, you have to remember where we were and what was going on in the crazy marketplace of the last several years. So that statistic alone is alarming, but then when you see the days on market, not so bad. I will tell you, I'm seeing more and more days on market, um, for a good number of homes. What's saving us and keeping the average down a little bit is that renovated homes in highly desirable communities that have a buyer pool that is, is ready to buy still sell pretty quick. So there can be a big split in what you're seeing there. We're getting ready to head into season. And as you can imagine, everybody is, is waiting on bated breath to see how the season shapes up. You know, certainly it's been a slower year this year. If you talk to agents, although inventory's gone up with those pending sales going down, obviously that means that buyer traffic has slowed down a little bit and thus closed sales and transactions has slowed down a little bit. My hope is going into the season that we can continue to try to keep a healthy balance between what's available, so the inventory, and what's the amount of buyer traffic. Because if that gets too heavily skewed, excuse me, skewed, then we could see some further price erosion, which, you know, again, is good for buyers but maybe not necessarily for sellers. The good news is on the macro level, we still still have a pretty healthy market in the Naples area compared to many others. The investments here in property continue to be, um, uh, do well. We have not reverted to pre-2019 prices for the most part. Certainly there's been a fair amount of settling, but still a pretty healthy market, and that's because inventory has remained low. I think the biggest culprit in inventory remaining low is that the amount of churn locally we're seeing has gone down. Some of that could be related to interest rates. If you're sitting in a home that is paying— where you're only paying about 3% interest now, you might double that if you go buy something else that could be local or coming from outside the area into Naples. So the amount of homes going on the market has also slowed down as people have really thought hard long about whether now is the right time for them to sell their home. So as long as we can keep inventory on pace with buyer demand and not have that get too far off the tracks, uh, we should still have a good healthy balanced market. As always, if you want to talk about your specific home or community, don't hesitate to reach out to me at 239-287-2576. After this recording, there will be a brief recording that takes you through the market area of my web page. I encourage you to go check that out. That's available to you anytime during the month and has really valuable information. So have a fantastic day and happy holidays as we head into the end of the year.
