Strong demand exists for high-end condos

The luxury home market continues to grow in Naples, with buyers showing more interest in high-end condos, according to a recent Market Report the Naples Area Board of Realtors released.

The report tracks all sales made by its members in Collier County through the Southwest Florida MLS, excluding Marco Island.

The 12-month rolling numbers are remarkable for properties above $1 million, especially in the condominium market, where the data shows a 60 percent increase in closed sales over the last 12 months.

As reflected in the report, there were 56 closed sales of condos above $1 million in the North Naples area in February — 211 percent more than in February 2017.

With an increase in demand for high-end condos came a 16 percent decrease in inventory for condos priced at $1 million to $2 million, compared to last year.

There is not a lot of develop-able land that is left as far as high-end condos on the beach. The region has pretty much built out a lot of that choice land along the beach, so that’s becoming less and less of an option.

However, condos in the $300,000-and-less market had the highest increase reported among all price categories and home types, with a 6 percent increase in inventory, the report showed.

The report showed a 3 percent decrease for overall inventory to 6,286 properties compared with 6,466 properties in February 2017.

Overall closed sales increased 10 percent to 672 homes sold compared with 613 homes sold in February 2017. The overall median closed price was $364,000 — 9 percent more than last year’s figure.

The greatest decrease in price appeared in the category of $1 million to $2 million. That 12 percent drop was to $1.33 million from $1.5 million in February 2017.

The report showed 44 of the 52 homes purchased in the $2 million price category were cash purchases.

Overall pending sales in February decreased 3 percent, but they increased 14 percent in the $1 million-and-above price category and 39 percent in the $2 million-and-over category.

To learn more about the real estate market in SWFL or to get involved in purchasing real estate in the area, contact an expert member of the 9 Core Realty team today!

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