Mid-Year Market Report 2018
1230 & 1240 Gulf Shore Boulevard South Currently on the Market
Mid-Year Market Report 2018 Presented by: The Team at Gulf Coast International Properties™ Timothy P. Savage, P.A. | Principal
Old Naples Average MLS Closed Sale-Single Family Homes First Half of the Year 2014-2018
Gulf Coast International Properties™ presents its annual Old Naples mid-year report for 2018. 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. 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.”
MID-YEAR REPORT 2018 | 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 are being recreated and selling for premiums, 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.
Old Naples City Dock
“I am always meeting couples from around the world that have moved to Old Naples and tell me their favorite thing about the area is that they feel as if they are on vacation every day. The area offers the luxury of being within walking distance to high-end shopping, dining, entertainment, and beaches all in a very safe environment and beautiful weather.” ~ GCIP Professional
3 | OLD NAPLES
Old Naples Sales â€“ an Historical Perspective $133m
Total MLS Closed Sales $ for January thru June 2018
Total MLS Closed Sales $ for January thru June 2015
Increase in Total Closed Sales in 2018 vs 2015
Price Per Square Foot for January thru June 2018
Price Per Square Foot for January thru June 2015
Increase in Price Per Square Foot in 2018 vs 2015
Average Closed Sale Price for January thru June 2018
Average Closed Sale Price for January thru June 2015
Increase in Average Closed Sale Price in 2018 vs 2015
Average Days on Market for Properties Sold January thru June 2018
Average Days on Market for Properties Sold January thru June 2015
Increase in Average Days on Market for Properties Sold in 2018 vs 2015
Highest MLS Closed Sale Price for a Property in January thru June 2018
Highest MLS Closed Sale Price for a Property in January thru June 2015
MID-YEAR REPORT 2018 | 4
A HEALTHY START TO THE YEAR Gulf Coast International Properties™ believes the Old Naples single-family home market (year-to-date) remains strong in comparison to 2017, which was, historically, a great year. With total sales for the first half of 2018 totaling $133m and an average sale price of $3.8m, the market continues to remain robust. Thus far, the highest sale year to date is $10.5m beach front (not part of the averages), and 9 homes have closed for above $5m. While number of sales was down over past years, the average prices are up and this is mainly attributed to a lack of available single-family inventory and buyers focusing on top quality and locations. In fact, we currently are at a record-low number of available single family properties in the Old Naples area. Specifically, west of 3rd Street South, we currently have less than 20 available properties, which would explain the lower number of total sales. Equally as important is that properties actively listed have seen a slight decrease in “days on market” over last year. That, along with the number of current pending sales, and the rising number of specs selling pre-construction in the Old Naples area, solidify the prediction of a strong 2018-2019 market. Going forward, rates are still low with expectations that they will be on the rise sooner rather than later. The equity market is still strong creating purchasing power. We expect to see a continued increase in the cost of construction due to increases in material costs combined with higher labor expenses. That being said, Gulf Coast International Properties™ believes that the second half of 2018 will continue to be a strong market, particularly with new construction sales.
301 1st Avenue South SOLD
5 | OLD NAPLES
ON THE NEW CONSTRUCTION FRONT 2018 has produced new construction records. One surprising occurrence this year is that new homes are selling prior to completion, and in some cases before construction even begins. What this tells us is that buyers are vying for prime locations and are not waiting for a finished product thus ensuring that they get a home in these prized “sweet spots”. Two notable exclusive listings to Gulf Coast International Properties™ that were pre-sold are 87 6th Avenue South listed at $9,295,000 and 110 Gulf Shore Boulevard listed at $7,995,000. This solidifies how buyers are looking for new homes, in key locations, built with the highest quality construction, and with the latest design concepts. Many buyers like that they can be a part of the finishing process of a home with a fixed cost. This eliminates assembling an entire team together and designing a custom home where the budget can be harder to control and delays can cost valuable time. Comparing 2018 to 2017 total number of sales is up with 11 to date; total sales volume is up at $60M; average sale price is just shy of $5.5M. Price per square foot has averaged up with a few more high quality sales, and as we mentioned earlier, construction costs are continuing to rise and we expect these costs to be passed on to buyers by builders and developers. We have also seen an increase in “off MLS” sales as buyers have gotten more aggressive with their searches and are not necessarily waiting around for an opportunity to present itself.
New Single Family Home Sales January thru June 2014-2018
Source: Southwest Florida MLS
170 9th Avenue South Currently on the Market
MID-YEAR REPORT 2018 | 6
LAND/TEAR DOWN SALES It has been extremely slow in 2018 for lot/tear down sales in Old Naples, primarily due to the lack of availability. Because of the success in the new home market, lot values have risen in the prime locations (within 3 blocks to the beach or close to 5th and 3rd). Some of these transactions occurred without the properties ever hitting the market. However, average lot price sales are down since 2017 with the drag in the market being specifically located in the northeast quadrant of Old Naples. In some respects Old Naples has the appearance of a new development with new homes going up on every street and avenue. This activity in new builds has severely depleted the availability of lots/tear down opportunities for the future, continuing to limit supply. As a result of this, the market is now looking at 1990’s/early 2000’s construction as viable possibilities for new development.
Lots / Tear Down Sales January thru June 2014-2018
Source: Southwest Florida MLS
VISION FOR THE NEXT 6 MONTHS The team at Gulf Coast International Properties™, with both our headquarters and satellite offices located in this community, believes that the single-family real estate market in the next 6 months will continue to remain strong with high buyer demand and lower inventories, especially in the prime locations within Old Naples. With new construction prices hitting an all time high and lot availability very low we should see some buyers turning toward the resale market for remodeled homes or renovation projects offering stronger values. This trend is also making the condominium/villa market more appealing, with lower prices and remodel ready units in a similar location. Both the numbers of sales and the average sale prices have shown stability, which our firm sees as both healthy and normal as the laws of supply and demand support pricing. It is important to keep in mind that Old Naples is an incredible place to live unlike any other. Within a short walk one can enjoy tennis, pristine beaches, boating, live music and theater, shopping, dining and much more. It’s difficult to find a better lifestyle given the glorious year round warm weather in Naples. 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 every day and in every way. Discover the Gulf Coast International Properties™ difference and let us help you Live Exceptionally.
For more information, please visit www.gcipnaples.com.com
239.434.2558 ◆ 1144 Third Street South ◆ 691 Fifth Avenue South ◆ Naples, Florida 34102 411 Park Avenue ◆ Boca Grande, Florida 33921
The most comprehensive luxury real estate network in the world. All information herein is subject to change and no representation is made to its accuracy. © 2018 by Gulf Coast International Properties™ An equal opportunity company. If your property is presently listed with another Agency, or is currently being marketed by Gulf Coast International Properties™, please consider this a matter of information and not an intent to solicit.