REAL ESTATE NEWSLETTER: NOVEMBER 2023
Hoffmann Family Sells Downtown Naples Portfolio
Big news if you have yet to hear…The Hoffmann family has completed the sale of a portfolio of downtown Naples properties for over $186 million to M Development, based in Aspen, Colorado. The deal, encompassing more than two dozen transactions, involves prime real estate on Fifth Avenue South and Third Street South, renowned shopping and dining destinations. M Development, known for transformative projects in affluent communities, has already invested in Naples and plans a mixed-use redevelopment project near Fifth Avenue (Whole Foods, Restoration Hardware, restaurants, condos & more!).
While the deal is historic, it doesn’t surpass the 2021 Naples Beach Club hotel sale for over $363 million. The Hoffmanns retain leases for businesses in the sold buildings and remain committed to further investments in Naples, Southwest Florida, and beyond. Read more…
It will be interesting to see the impact on Old Naples considering this significant shift of real estate ownership and influence from Hoffmann to M Development. Have an opinion? Reach out, I would love to get your take.
Happy Thanksgiving
As the temperatures continue to gracefully dip, Naples further transforms into a haven of tranquility, offering our long-awaited break from the summer’s heat. The fall foliage may not paint the palm trees in hues of red and orange, but the subtropical landscape takes on a unique charm we so desire most of the year.
Happy Thanksgiving! Today, surrounded by family, I am reflecting on the sense of community that defines Naples. From charitable events to local traditions downtown, the fall/winter season is when neighbors come together to celebrate gratitude and the warmth of shared experiences.
Join us in embracing the spirit of the season in Naples, where the beauty of the surroundings is matched only by the welcoming embrace of the community.
Have a great Thanksgiving everyone!
~Matt, Lindsey, Parker (9) and Sydney (12)
NEW CONSTRUCTION PROPERTIES
October 2023 Market Graphs & Commentary
In this month’s newsletter market trend review, I have included only new construction properties located within 3 of Naples’ luxury regions located along the beach corridor, west of US 41. The charts show 3 trend lines spanning almost 6 years for 3 geographical regions separated within the MLS as shown below. Also, I compared the current statistics to those from OCT 2019, a benchmark of a pre-pandemic level of activity in Naples:
- NA07: Port Royal and Aqualane Shores area
- NA06: Old Naples
- NA05: Crayton Road area consisting of Coquina Sands, the Moorings, and Park Shore
AVERAGE SALES PRICE (6-month rolling average)
Based on a 6-month rolling average, the sales price for a new construction property in the Port Royal/Aqualane Shores area was $17.9M, in Old Naples it was $8.8M and in the Crayton Road area it was $5.9M. In OCT 2019 the average sales price was $7.5M in Port Royal/Aqualane Shores, and $3.7M in both Old Naples and the Crayton Road area.
AVERAGE PRICE PER SQFT (6-month rolling average)
Based on a 6-month average, the sales price per square foot for a new construction home in the Port Royal/Aqualane Shores area was $2,681/SF, in Old Naples it was $2,006/SF and in the Crayton Road area it was $1,432/SF. In OCT of 2019. these values were $858/SF for Port Royal/Aqualane Shores, and $828/SF for Old Naples and $571/SF in the Crayton Road area.
MONTHS SUPPLY (12-month rolling average)
This is one of the most important statistics regarding the current state of the real estate market since it combines the pace of sales with the number of properties currently available. The months of supply indicator measures how long it would take for all the properties on the market to be absorbed/sold if sales continued at the current pace and no additional listings came on the market. Generally 6 months of supply is considered to be a balanced market but within Naples ultra-luxury market, many consider around 12 months of supply to be a balanced market, below 12 months is a seller’s market and above 12 months is a buyer’s market.
The supply of new construction homes in Port Royal/Aqualane Shores continued to climb to 20 months, Old Naples ticked up to 6.7 months and the Crayton Road area ticked down to 13.8 months. In OCT of 2019, supply was only 3.9 months in Port Royal/Aqualane, 19.6 months in Old Naples and 6.1 months in the Crayton Road area. New construction supply is a bit different than “regular” inventory since listings are often put on the market well in advance of the property being completed.
HOMES FOR SALE
There are currently 58 new construction properties on the market in the 3 areas combined; 20 in Port Royal/Aqualane Shores, 15 in Old Naples and 23 in the Crayton Road area. In OCT 2019 there were 76 new construction homes available; 7 in Port Royal/Aqualane Shores, 49 in Old Naples and 20 in the Crayton Road area.
NEW LISTINGS (12-month rolling average)
Within the past 12-months, there were 76 new construction listings added to the market; 21 in Port Royal/Aqualane Shores, 27 in Old Naples and 28 in the Crayton Road area. In the 12 months prior to OCT 2019, there were 104 new construction listings added to the market; 9 homes in Port Royal/Aqualane, 48 in Old Naples and 47 in the Crayton Road area.
PENDING SALES (12-month rolling average)
Based on a 12-month average, there were 4 new construction contracts in Port Royal/Aqualane Shores, 6 in Old Naples and 14 in the Crayton Road area. In OCT 2019, the 12-month rolling average was 10 contracts in Port Royal/Aqualane, 32 in Old Naples and 35 in the Crayton Road area.
TOTAL SALES (12-month rolling average)
Based on a 12-month rolling average, there have been 4 new construction sales in Port Royal/Aqualane Shores in the last year, 9 in Old Naples and 15 in the Crayton Road Area. In OCT 2019, the 12 month rolling average number of sales was 9 in Port Royal/Aqualane, 30 in Old Naples and 33 in the Crayton Road area.
DOLLAR VOLUME OF CLOSED SALES (12-month rolling average)
Based on a 12-month average, there was $74.6M of new construction home sales in Port Royal/Aqualane in the last year, $65.6M in Old Naples and $87M in the Crayton Road area. In OCT 2019 there was a 12-month average of $69.8M in Port Royal/Aqualane, $122.3M in Old Naples and $108.9M in the Crayton Road Area.
AVERAGE DAYS ON MARKET (12-month rolling average)
Based on the past 12 months of sales, Port Royal new construction homes spent an average of 107 days on the market, Old Naples homes spent 155 days on the market and Crayton Road area homes spent 135 days on the market. The 12 months prior to OCT 2019, new homes spent 301 days on the market in Port Royal, 297 days on the market in Old Naples and 170 days on the market in the Crayton Road area.
AVERAGE PERCENT OF LAST SALES PRICE
The average amount of negotiation for new construction properties closed over the last 6 months is 5.1% in Port Royal/Aqualane Shores, 4.4% in Old Naples and 3.3% in the Crayton Road area. The average amount of negotiation for the 6 month period prior to OCT 2019 was 3.9% in Port Royal/Aqualane Shores, 6.9% in Old Naples and 3.7% in the Crayton Road area.
Southwest Florida & Naples Real Estate Market Reports
Each month our real estate newsletter includes previous months published market reports for Naples, Bonita/Estero and Marco Island.
Area Real Estate News Summary
Featured Listings
Search Current Inventory
Filter, view and discover Southwest Florida’s current market inventory (includes Marco Island, Bonita Springs, Estero and Naples properties). Below I have focused on Luxury Homes in this month’s real estate newsletter.
