Sales of homes above $1 million in Naples during the first quarter of 2018 drove the market, increasing 61 percent compared to the same quarter of 2017, according to the First Quarter 2018 Market Report released by the Naples Area Board of Realtors. NABOR tracks home listings and sales within Collier County (excluding Marco Island).
January’s results led some to question expectations for the year when compared to last, yet in February the market gained its stride, accelerating in March with closed sales shooting ahead to end the first quarter on a very impressive note. According to NABOR monthly reports, January had 672 closed sales, February reported 672 closed sales, but March kept agents very busy with 942 closed sales, driven by a strong high-end which included a number of new construction condominiums just delivered.
Pending sales in the first quarter of 2018 increased 3 percent to 3,177 compared to 3,097 in the first quarter of 2017. Although pending sales for both single-family homes and condominiums over $1 million increased by double digits, it was the $2 million and above condominium market that raised eyebrows among brokers who reviewed the reports.
Tourism was up in our area this season compared to last year, so it’s not surprising that we would end with strong pending sales for the quarter. But experts weren’t expecting to see a 109 percent increase during the quarter in pending sales for condominiums over $2 million.
Coco Amar, a managing broker at John R. Wood Properties, said the condominium market offers some very good investment opportunities, especially at both ends of the market. “The top and bottom price categories are where both the inventory has grown and the prices have dropped.”
As reflected in the market’s year ending statistics (the 12 months ending 1Q 2018 versus the 12 months ending 1Q 2017), there was a 69 percent increase in closed sales of condominiums in the $2 million and above market, and a 17 percent decrease in the median closed price to $2,450,000 from $2,962,000 in 2017. Despite rocket sales in this high-end sector during the 1Q 2018 (179 percent increase) and a drop in median closed prices for the first quarter (24 percent decrease), the inventory increased 5 percent. Similarly, median closed prices for condominiums in the $300,000 and below price category dropped 1 percent to $199,000 from $200,000 in the first quarter of 2017, but inventory increased 3 percent in 1Q 2018.
The NABOR First Quarter 2018 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges and geographic segmentation and includes an overall market summary.