Real Estate Market Report

Jodee Bennett, SWFL Real Estate, Naples Trust Real Estate Services, LLC

A Good Time to Buy-Sell in Naples?

Whether it is a good time to buy or sell is a concern among homeowners and homebuyers alike. While the month’s supply of inventory is increasing, which is good for buyers, it is still far below five-to-six months, which is what experts say is an indicator of a balanced market. That being said, it is still a seller’s market even though mortgage rates are up, and buyers are not qualifying for as much as they were when rates were down.

Mortgage rates are instrumental when it comes to a buyer and seller’s decision to purchase or list a property. Now that rates increased, sellers are faced with fewer buyers. Buyers may be in a holding pattern due to higher rates, but inflation and a possible recession could also be making some buyers leery. Many buyers are communicating that they are afraid they will purchase at the top of the market and are waiting until the real estate market shifts with price reductions.

Even if the market softens, it may not turn into a buyer’s market as quickly as some buyers might hope. You can see from the graph below that the supply of housing during the market crash is different than what the supply is today. Notice, if you will, the blue bars depicting a lower inventory going into 2023 as compared to the higher supply of inventory shown in green during the fall of the market in 2008.

As mentioned above, the month’s supply is a marker to determine if we are in a balanced, seller’s, or buyer’s market. Inventory is beginning to rise, which is increasing the competitive conditions for sellers, but as of January 2023, we had 3.3 months of supply (see graph below) and this number is favorable for sellers. Also, there is still an influx of people moving to Florida and the median price of houses overall in the Naples area has increased again from the previous month (see graph below).

Statistics are pointing to a seller’s market, but it will not likely turn back to the times when mortgage rates were lower, and sellers were getting top dollar for their properties due to bidding wars and a surplus of buyers. Also, rates may come down, but there is no guarantee that the mortgage rate will drop by a significant degree which could mean that prices could stay flat for a while or at the most increase slightly; especially in places like Naples Park (Vanderbilt Beach) because the area is so sought after. Homeowners may also be discouraged from listing their homes due to higher rates — they don’t want to trade their low rate in for a higher one or buy when prices are high, keeping inventory low.

In reality, all we can do is go by the market statistics and right now, for sellers, the numbers say it is a good time to list a property. However, when it comes to the best time to buy or sell a house, it really comes down to what is happening in a person’s life — I always tell my customers, nobody has a crystal ball, but I am happy to provide you with the current market conditions to help you make the right decision for you. More importantly, I will always be transparent and present the facts as best as I can.

If you are looking to sell or buy a home in Naples, Bonita Springs, Estero, or Marco Island, contact Jodee , a REALTOR® professional who has the ability to provide you with an accurate market comparison in this fast-moving market, evaluate the use of contingencies, and help you negotiate. Please call 239.631.2561 or email jodee@coastalhome4you.com.