Old Naples Annual Report 2015

OLD N A PLES

Annual Market Report 2015

111 5 T H AV E N U E S O U T H

L I V E E XC E P T I O N A L LY ™

1 | OLD NAPLES

OLD NAPLES SINGLE FAMILY ANNUAL Market REPORT

2015

Presented by:

The Team at Gulf Coast International Properties Michael A. McCumber P.A. and Timothy P. Savage, P.A. Principals

Gulf Coast International Properties presents its annual Old Naples Report for 2015. This sought after report continues to be preferred not only by our discerning clientele, but for industry experts as well. World class integrated marketing efforts coupled with exceptional results has earned us the reputation as Naples premier boutique real estate firm. As the proven Old Naples market leader, Gulf Coast International Properties associates strive to exceed our client’s expectations through uncompromising integrity and concierge service.

Our award winning locally owned and operated multi-generational firm exemplifies the Naples reputation for luxury living. Specializing in exclusive one of a kind estates, Gulf Coast International Properties invites you to experience the difference to“Live Exceptionally.”™

For more information please visit: www.gcipnaples.com

ANNUAL REPORT 2015 | 2

Old Naples: Life in the Village Old Naples is the heart of the charming seaside City of Naples, Florida, and one of the most desirable neighborhoods in the United States. Its unique village atmosphere, beautiful beach and vibrant downtown area draw visitors from all over the world.

Building height restrictions throughout Old Naples and single-family home zoning all along the beachfront instill a small town ambiance to this most prestigious, cosmopolitan neighborhood. Historic cottages from the 1920s and slowly disappearing, modest “tear-down” bungalows built in the mid-1900s mix with a growing number of magnificent new homes. A wide range of older and newer garden condominiums and villas situated right in the downtown area provide a more affordable, care-free living option many enjoy.

Open beach access at the end of every avenue spill out to an exquisite tropical beach ranked as one of the best in the United States, punctuated by the iconic Naples Pier.

Clusters of fine boutiques and world-class restaurants offer fabulous options for the most sophisticated tastes. In this one by two mile area, walking and riding bikes are the favorite modes of getting around through lush tropical landscaping. Scenic boating through Naples Bay and out to the warm waters of the Gulf of Mexico, superb tennis facilities, and an in-town golf course are just some of the favorite activities that also include numerous concerts, plays, art shows and special events throughout the year.

Old Naples is the epicenter of the City of Naples, and the main reason Coastal Living magazine ranked Naples in the top two of “America’s Happiest Seaside Towns” and the “most walkable” on their list.

Naples also ranked in the top ten small towns in America by Smithsonian magazine for “high concentrations of museums, historic sites, botanic gardens, resident orchestras, art galleries and other cultural assets common to big cities.” All of us living here know that Naples truly is a very special place, and the village of Old Naples is its heart.

“Virtually every week I meet a couple in an Open House who bought their first Naples home out in a suburban planned community because that is where they had friends. Now that they have a sense of the area, they want to find a home in the village of Old Naples because they are always driving here for the restaurants, activities, shopping and the beautiful beaches. They would have saved a lot of inconvenience if they had first discovered the distinct pleasures of living in Old Naples.”

—GCIP Agent For more information please visit: www.gcipnaples.com

3 | OLD NAPLES

Average Sale Price

48

%

Average Lot Sale Price

2015 $3.1m 2014 $2.1m

91

%

Sales Volume

2015 $2.1m 2010 $1.1m

108

%

2015 $247m 2010 $119m

Average New Home Sale Price

46% 2015 $3.5m 2014 $2.4m

Source: Southwest Florida MLS (excluding beachfront sales)

For more information please visit: www.gcipnaples.com

ANNUAL REPORT 2015 | 4

Total MLS Sales

41

%

2015 $79m 2010 $56m

Highest Sale Price

Average Days on Market for Sale

55

%

2015 $131d 2010 $294d

45

%

2015 $9.3m 2010 $7.5m

Properties Selling Over $3,000,000

350% 2015 $36 2010 $8

For more information please visit: www.gcipnaples.com

5 | OLD NAPLES

Old Naples Single Family MLS Sales 2011-2015

2011

2012

2013

2014

2015

Source: Southwest Florida MLS

Naples’ Hottest luxury Market Unquestionably the hottest luxury real estate in Naples over the last 5 years has been Old Naples. Across the board, values have increased along a steep trajectory. Just from 2010 to 2015, or a 5 year period, total sales dollars nearly tripled from $95.4m to $247m. Average sale prices also have realized impressive results as $1.56m in 2010 has leapfrogged to $3.13m this past year, more than double. Effectively every major metric has improved drastically, from average days on market for a sale (down 163 days since 2010) to average lot price ($1.1m to $3.5m) and new home price (up 46% since 2010 to $3.5m).

There were a number of factors that contributed to this surge in Old Naples. Taking the 30,000 foot view, equity market returns combined with favorable interest rates and the appreciation of the Canadian dollar (Naples’ top foreign luxury buyer source) have converged to increase the ‘wealth effect’ for buyers. Secondly and more specific to Old Naples, the surge in sales has been due to the improvements to 3rd St S and 5th Ave S shopping and dining districts. Both more and higher quality locales have increased desirability.

On a more subjective level, Gulf Coast International Properties believes the average age has reduced, meaning active locations like Old Naples, with the beach, tennis, nightlife, bars and more, have a lot of appeal. In our opinion, while it was once perceived this way, Old Naples and Naples proper is no longer an exclusive enclave for the retired.

For more information please visit: www.gcipnaples.com

ANNUAL REPORT 2015 | 6

2014 vs. 2015 by Property Type Re-Sales

New Home Sales

Tear Downs & Lots

2014

2015

% Change

2014

2015

% Change

2014

2015

% Change

# Sales

19

17

-11%

38

28

-36%

28

28

0%

Average Sales Price ($MM)

$3.6

$3.5

-3%

$3.0

$3.9

30%

$1.9

$2.1

11%

Total Sales ($MM)

$68

$60

-12%

$112.8

$109

-3%

$52.2

$58.4

12%

Source: Southwest Florida MLS

old Naples sub-Market sales - 2014

vs.

2015

(beacHfroNt sales Not INcluded)

New Home Sales - Comparing 2014 vs 2015 new home sales in Old Naples is deceiving. While the average and total sales were nearly identical, 2015 price per sq. ft. was nearly $100 higher at $960/ft. Also, if you remove a beach block sale in 2014, the average drops to $3.4m. Old Naples as much as any market is impacted by location, whereby proximity to beach can change new home prices by $2m+ per sale. We anticipate comparable 2016 numbers to 2015 but are monitoring the supply of new construction homes coming online as we are at 33 units at this time.

Re-Sales - Still, if you are looking for the best and newest home, there is a lot of great choices. Resales in 2015 performed really well as buyers pushed back against the premiums for both lots and new homes. Still, Old Naples realized record re-sale prices with a $3.9m average, up 30% over 2014. While total volume was down vs. 2014, this was due to a drop in re-sale and overall inventory.

We expect this market to continue to do well given lot/ tear down and new home prices.

Lots and “Tear-Downs” - Classic supply and demand across all luxury real estate markets has been operating here. Buyers craving the Old Naples lifestyle have been willing to pay serious premiums for lots/ tear downs, which average sale of $2.1m about 11% about 2014 and actually double 2010 average sale price. We anticipate given low inventory levels and price premiums that both number of sales and average sale price will be flat vs 2015.

Gulf coast INterNatIoNal propertIes’ vIsIoN

for

2016

The team at Gulf Coast International Properties, with both our headquarters and satellite office in this community, believes that the single family real estate market for 2016 will level off while overall market conditions will remain strong. We came to these conclusions based on the steep upward sales trajectory since the downturn of 2008-2009 and macro level factors such as financing rates (increased), volatile equity markets and unfavorable foreign exchange rates. Its simply not sustainable to see 20-30% increases yearover-year on prices in perpetuity. Both the number of sales and average sale prices should stabilize and level off, which our firm sees as both healthy and normal as the laws of supply and demand drive pricing.

Going forward, its important to keep in mind that Old Naples is an incredible place to live. There are so many activities within a short walk, such as boating, hiking, tennis, beaching, live shows, shopping, dining and much more. Its difficult to find a better lifestyle given the glorious year ‘round warm weather in Florida or anywhere else. With that in mind, and regardless of year to year statistical analysis and pricing, this will not change. We remind our buyers and sellers of this everyday and in every way.

Discover the GCIP difference, and let us help you Live Exceptionally™.

For more information please visit: www.gcipnaples.com

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L I V E E XC E P T I O N A L LY ™

www.gcipnaples.com Port Royal’s ONLY Inter active Website visit www.gcipnaples-portroyal.com OLD NAPLES 1144 THIRD STREET SOUTH 707 12TH AVENUE SOUTH 239.434.2558 BOCA GR ANDE 411 PARK AVENUE 941.964.1778

International Network of Real Estate Professionals representing more than 80 countries All information herein is subject to change and no representation is made to its accuracy. © 2015 by Gulf Coast International Properties An equal opportunity company. Equal housing opportunity. This is not intended to solicit already listed homes.