May 2019 real estate figures show that there has been a shift in the market from high-end homes near the beach to homes under $500,000 further east away from the Gulf of Mexico. Closed sales overall in May 2019 numbered 1,165 as compared to 1,061 in May 2018, an increase of 9.8%. Closed sales were highest in East Naples, (zip codes 34114, 34117, 34120, 34137) which showed a 21.7% increase from 2018.
The $300,000-$500,000 price category home reported a 12.6% increase in sales of condominiums and a 9.6% increase in sales of single family homes. A decrease of 23.1% in closed sales for the $1 million to $2 million price category was observed in the condominium market, while single family homes in that price range saw an increase of 3.6%. According to Jeff Jones, Naples Area Board of Realtors® (NABOR®) President, sales of properties over $2 million will continue to perform well, despite the shift in buyer interest.
Inventory levels decreased 13% to 5,905 homes in May 2019 as compared to 6,785 homes in May 2018. While the median closed price for May 2019 increased 6.9% to $355,000 from $332,000 in May 2018, the median closed price for single family homes specifically decreased 3.5% from $430,000 to $415,000.
Those close sales in East Naples (zip codes 34114, 34117, 34120 and 34137) continue to expand as developers are creating communities and building homes in the Collier Boulevard and U.S. 41 corridor. According to Wes Kunkle, President and Managing Broker at Kunkel International Realty, commercial interest is high in all areas off the east trail (ie property on U.S.41 heading East from Naples to Everglades City). “This is an ‘Opportunity Zone’ area and its commercial footprint is getting bigger each year”. An Opportunity Zone provides businesses with permanent exclusion from taxable income of capital gains from the sale or exchange of an investment if it’s held for at least 10 years. There are currently five Opportunity Zones in Collier County. “I kind of see East Naples and South Naples as the last growth frontier for the Naples area” said Mike Hughes, VP and General Manager of Downing-Frye Realty, Inc. “A lot of our future growth will be in these two areas”.
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