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The Naples real estate market, say several brokers and agents, is ready to pounce on a hotbed of activity in early 2017, given pending and closed sales data.
“Now that we are past the election and the economy responded positively, we are looking forward to a strong and busy season,” says Naples Area Board of Realtors President Dominic Pallini, also a broker at Vanderbilt Realty.
Yet one ongoing issue, exacerbated in high-priced Naples more than in most other markets in the region, is the growing inventory glut, according to the December Naples Area Board of Realtors Market Report. Inventory in Naples on a year-over-year basis rose 40% in November, from 4,095 properties for sale to 5,733 properties, the report shows. The November tally is up 300 properties from October.
“One year ago we had 4.24 months of inventory marketwide,” says Cindy Carroll with real estate appraisal and consulting firm Carroll & Carroll. “The November 2016 statistics show an 8.02-month supply. That's a 60% increase in months of inventory year over year.”
And the glut isn't only confined to the higher end of the market.
Wes Kunkle, president and managing broker at Kunkle International Realty, says many of his investor clients have added to the area's lower end inventory.
“When investors who bought between 2009 and 2012 start to re-enter the market, this is a sign that price appreciation is good and it's a great time to sell,” Kunkle says in the report.
One way to break down the glut, say area brokers and agents, is to get listing prices more in line with the reality of an over-supplied market.
“The number of properties selling under 30 days is increasing, while those in the 30 to 90 day and 90 day and up segments are stagnant,” says Naples-Park Shore Coldwell Banker Managing Broker Jeff Jones in the report. “This tells me that there are still properties improperly priced out there.”
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