Naples housing market 2023

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Real Estate

With much of the less expensive housing found in the Immokalee/Ave Maria area, out east, it's the only geographic area that saw an increase in single-family home sales in the market overall. Sales were up by 34.1% over the year.

On the flip side, to the west there was a 24.8% decrease in sales nearest to the beach, where homes tend to sell for a premium.

“Migration is booming in eastern Collier County,” said Cindy Carroll, with Carroll & Carroll Appraisers & Consultants LLC. She described it as one of the “last vestiges of affordable housing in our county."

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Commenting on the year-end report, Adam Vellano, a managing director for Compass Florida in Southwest Florida, said, “One big reason we didn’t outperform last year’s sales is because buyers who had plans to eventually relocate to Florida moved up their timeline. The pandemic convinced a lot of people to buy sooner, so the high sales numbers we enjoyed in 2021 and 2022 were stolen sales from what would have taken place in 2023.”

Carroll agreed, adding that "rapid market advancement stopped in early 2022."

"On average, it takes 12 to 24 months for the market to readjust. What we are seeing now are more sellers accepting that this phase is over," she said. She noted there was a nearly 30% increase in the number of price decreases reported in 2023.

Higher interest rates impacted sales in a few ways.

“Intermarket sales – like downsizing or upsizing – by current homeowners in Naples didn’t occur at the same rate we once enjoyed in pre-pandemic years,” said Vellano. “People who are locked into a mortgage at 3% are very reluctant to let it go.”

Mike Hughes, vice president and general manager for Downing-Frye Realty in Naples, said the sense of urgency by buyers has definitely diminished, in large part due to higher interest rates.

"It isn’t like 2021 when a home would be listed and sold in the same day. Plus, many people today are hoping the Fed will drop rates again. But I always remind people that ‘if you see a property you like, there are likely many others who will like it too.’ As we say in the business, ‘marry the house and date the rate,’ as you can always look into refinancing if rates go down," he said.

With inflation showing signs of improvement and interest and mortgage rates expected to gradually decline this year, area Realtors are hoping for a better 2024.
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