Annual Market Review for 2018

Bring Your Highest Expectationsâ„¢ ANNUAL MARKET REVIEW FOR 2018 Naples / Bonita Springs / Estero / Marco Island Market Area

Bring Your Highest Expectations™

NAPLES, BONITA SPRINGS AND ESTERO Closed Sales The overall number of closed sales increased compared to 2017, up 6% from 11,872 to 12,599.

Properties priced at $1 million and above increased 19% over 2017 with 1,388 sales versus 1,169 in 2017. Properties priced at $5 million and above posted a 26% increase, with 88 closings in 2018 compared to 70 in 2017.

Inventory Levels and New Listings During the second half of the year, following twelve months of modest year-over-year decreases in available inventory, inventories started to grow when compared to the prior year. Despite that fact, months of supply held between 6.1 to 8.1 months over the course of the year, reflecting continued balanced market conditions. As of January 1st, the market remains in check with 7.7 months of available inventory.

The number of new listings placed on the market in 2018 was down 3.9% from 19,307 to 18,556. Even with this decrease in new inventory, the number of total available listings compared to a year ago has risen by 18%, from 6,822 to 8,027.

The supply of condominiums increased 15% while single family home supply increased 20% over the same period last year, each still showing balanced months of inventory at 7.8 and 7.5, respectively.

Pended Sales The overall number of sales pended during the year was up by 6.5% to 16,251. This increase was mainly due to growth in the $1,000,000 to $2,500,000 price range, while other price categories reflected fewer pending sales when compared to the prior year. It is important to note that not all pended sales close.

However, this benchmark, along with current inventory has proven to be the best leading indicator of market direction.

Summary In summary, closed sales volume in Naples, Bonita Springs and Estero has posted two years of YoY growth, and median price continues to increase, albeit at a rate slower than prior years. Months of supply reflect balance between the number of active listings and the pace of sales. However, inventory has increased for both single family and condominium product while new listings are generally down, indicating longer market exposure for existing listings. Considering these emerging trends, as well as a supply of new homes not reflected in this report, resales could experience challenges in some areas.

John R. Wood Properties, Bring Your Highest Expectations.

“The source of this real property information is the copyrighted and proprietary database compilation of Southwest Florida MLS, Marco Island MLS, Copyright 2019, and the proprietary compilation of that data by John R. Wood Properties, its employees, and professional statisticians hired by the Wood firm. Accuracy of the information is not guaranteed; it should be independently verified if any person intends to engage in a transaction, relying on such data.”

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MARCO ISLAND Closed Sales The number of closed sales in 2018 was consistent with 2017 with 846 and 853 sales, respectively. Properties priced above $1 million increased 5.8% when compared with 2017, with 164 sales at the end of 2018 vs 155 at the end of 2017.

Inventory Levels and New Listings With 701 listings on the market at year’s end, inventory increased 15% compared to the same time last year when the year-end inventory was 610, the lowest since 2014. The supply of condominiums increased 12% over the same period, and single-family inventory increased 9%.

Months of supply at of the end of 2018 was 9.9, an increase of 16% when compared to the same time last year. Six to twelve months of supply is generally considered a balanced market.

The increase of inventory over the past year has outpaced the rate at which new listings were added to the market, indicating a longer time on market for existing inventory.

Pended Sales Although pended sales are up from 2016, the number of sales pended during 2018 was static with the prior year at 1,035. It is important to note that not all pended sales close. However, this benchmark along with current inventory has proven to be the best leading indicator of market direction.

Summary Although the pace of closed sales only decreased slightly, inventory rose at a faster rate, moving months of supply a bit further from the center of what would generally be considered a balanced market. Sellers should consider these factors when pricing properties for sale this season.

John R. Wood Properties, Bring Your Highest Expectations.

“The source of this real property information is the copyrighted and proprietary database compilation of Southwest Florida MLS, Marco Island MLS, Copyright 2019, and the proprietary compilation of that data by John R. Wood Properties, its employees, and professional statisticians hired by the Wood firm. Accuracy of the information is not guaranteed; it should be independently verified if any person intends to engage in a transaction, relying on such data.”

Bring Your Highest Expectations™

ANNUAL CLOSED SALES UNIT HISTORY

Naples, Bonita Springs, Estero 15,000 12,942 13,384 13,202

12,000

10,693

11,372

12,007

11,650 11,872

12,599

9,000 6,000 3,000 0

2010 2011 2012 2013 2014 2015 2016 2017 2018

Marco Island

1,200

978

1,000

1,006

977

900

861

853

846

781

800 631

600 400 200 0

2010 2011 2012 2013 2014 2015 2016 2017 2018 John R. Wood Properties, Bring Your Highest Expectations.

“The source of this real property information is the copyrighted and proprietary database compilation of Southwest Florida MLS, Marco Island MLS, Copyright 2019, and the proprietary compilation of that data by John R. Wood Properties, its employees, and professional statisticians hired by the Wood firm. Accuracy of the information is not guaranteed; it should be independently verified if any person intends to engage in a transaction, relying on such data.”

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ANNUAL CLOSED SALES UNIT HISTORY OVER $1 MILLION

Naples, Bonita Springs, Estero 1,500

1,388 1,186

1,200

1,253

1,163 1,072

956

900 600

627

706

786

300 0

2010 2011 2012 2013 2014 2015 2016 2017 2018

Marco Island 200 171

150

140

94

100

143

149

155

164

95

69

50

0

2010 2011 2012 2013 2014 2015 2016 2017 2018 John R. Wood Properties, Bring Your Highest Expectations.

“The source of this real property information is the copyrighted and proprietary database compilation of Southwest Florida MLS, Marco Island MLS, Copyright 2019, and the proprietary compilation of that data by John R. Wood Properties, its employees, and professional statisticians hired by the Wood firm. Accuracy of the information is not guaranteed; it should be independently verified if any person intends to engage in a transaction, relying on such data.”

Bring Your Highest Expectations™

ANNUAL INVENTORY LEVELS

Naples, Bonita Springs, Estero 6,000

Condominiums 5406 5067

Single Family Homes

5305 4960

5,000

4264

4,000

4090

3887

3632 3613

3553 3109 2799 2807 2796

3,000

2908 2584

3188

3937

3269

2347

2,000 1,000 0

1/11/10 1/1/11 1/1/12 1/1/13 1/1/14 1/2/15 1/1/16 1/1/17 1/1/18 1/1/19

Marco Island 800

789

785

Condominiums 671

700 600 500 400 300

Single Family Homes

523

546

502

412 406

392 325

326 335

362 375 301 305

384 342 291

317

200 100 0

1/11/10 1/1/11 1/1/12 1/1/13 1/1/14 1/2/15 1/1/16 1/1/17 1/1/18 1/1/19

John R. Wood Properties, Bring Your Highest Expectations.

“The source of this real property information is the copyrighted and proprietary database compilation of Southwest Florida MLS, Marco Island MLS, Copyright 2019, and the proprietary compilation of that data by John R. Wood Properties, its employees, and professional statisticians hired by the Wood firm. Accuracy of the information is not guaranteed; it should be independently verified if any person intends to engage in a transaction, relying on such data.”

Bring Your Highest Expectations™

ANNUAL NEW LISTING HISTORY

Naples, Bonita Springs, Estero 25,000

22,612 19,652

20,000

20,392 18,630

17,800

18,433 18,715

19,307

18,556

15,000 10,000 5,000 0

2010 2011 2012 2013 2014 2015 2016 2017 2018

Marco Island 2,000 1,735

1,500

1,382

1,365

1,429

1,368

1,439

1,417 1,297

1,381

1,000

500

0

2010 2011 2012 2013 2014 2015 2016 2017 2018

John R. Wood Properties, Bring Your Highest Expectations.

“The source of this real property information is the copyrighted and proprietary database compilation of Southwest Florida MLS, Marco Island MLS, Copyright 2019, and the proprietary compilation of that data by John R. Wood Properties, its employees, and professional statisticians hired by the Wood firm. Accuracy of the information is not guaranteed; it should be independently verified if any person intends to engage in a transaction, relying on such data.”

Bring Your Highest Expectations™

ANNUAL PENDED SALES UNITS

Naples, Bonita Springs, Estero 20,000

18,433

17,801

16,604

15,000

15,148

15,307 15,294

14,718 15,041

16,251

10,000

5,000

0

2010 2011 2012 2013 2014 2015 2016 2017 2018

Marco Island 2000 1,674

1500 1,216 1,100

1,318

1,428 1,195 993

1000

1,036

1,035

500

0

2010 2011 2012 2013 2014 2015 2016 2017 2018

John R. Wood Properties, Bring Your Highest Expectations.

“The source of this real property information is the copyrighted and proprietary database compilation of Southwest Florida MLS, Marco Island MLS, Copyright 2019, and the proprietary compilation of that data by John R. Wood Properties, its employees, and professional statisticians hired by the Wood firm. Accuracy of the information is not guaranteed; it should be independently verified if any person intends to engage in a transaction, relying on such data.”

Bring Your Highest Expectations™

MONTHS OF SUPPLY

Naples, Bonita Springs, Estero 30

25

20

15

10

5

0 Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan 10 10 10 10 11 11 11 11 12 12 12 12 13 13 13 13 14 14 14 14 15 15 15 15 16 16 16 16 17 17 17 17 18 18 18 18 19

Marco Island 30

25

20

15

10

5

0 Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan 10 10 10 10 11 11 11 11 12 12 12 12 13 13 13 13 14 14 14 14 15 15 15 15 16 16 16 16 17 18 17 17 18 18 18 18 19

John R. Wood Properties, Bring Your Highest Expectations.

“The source of this real property information is the copyrighted and proprietary database compilation of Southwest Florida MLS, Marco Island MLS, Copyright 2019, and the proprietary compilation of that data by John R. Wood Properties, its employees, and professional statisticians hired by the Wood firm. Accuracy of the information is not guaranteed; it should be independently verified if any person intends to engage in a transaction, relying on such data.”

Bring Your Highest Expectations™

INVENTORY AND ABSORPTION LEVELS 2010-2018

Naples, Bonita Springs, Estero 16,000

Available Inventory

Closed Past 12 Months

14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan 10 10 10 10 11 11 11 11 12 12 12 12 13 13 13 13 14 14 14 14 15 15 15 15 16 16 16 16 17 17 17 17 18 18 18 18 19

Marco Island 1,600

Available Inventory

Closed Past 12 Months

1,400 1,200 1,000 800 600 400 200 0 Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Oct Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan 10 10 10 10 11 11 11 11 12 12 12 12 13 13 13 13 14 14 14 4 15 15 15 15 16 16 16 16 17 17 17 17 18 18 18 18 19

John R. Wood Properties, Bring Your Highest Expectations.

“The source of this real property information is the copyrighted and proprietary database compilation of Southwest Florida MLS, Marco Island MLS, Copyright 2019, and the proprietary compilation of that data by John R. Wood Properties, its employees, and professional statisticians hired by the Wood firm. Accuracy of the information is not guaranteed; it should be independently verified if any person intends to engage in a transaction, relying on such data.”