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Naples New Construction Luxury Report

By Shannon Lefevre

Real Estate Agent with John R. Wood Properties

November 17, 2017 11:16 AM

There's so much good news in my Naples new construction luxury report, it will make you feel like you won the lottery. For some of us, that's what it might take to get into a few of these amazing offerings this year. Let's get started!

Here's the current Naples new construction market snapshot:

Active: 284
Pending: 64
Closed: 165

Buyers, Start Your Engines!

While you're in the driver's seat with 20 months of active inventory this year, the race track is full of competitors. Keep your eyes on the traffic! That will have everything to do with how you maneuver to the finish line as a winner!

Because we are approaching our busiest time of year, there is already lots of traffic through these properties, and Buyers are already submitting offers.
Experts predict new construction in Naples will be more popular this year because of our recent weather occurrence. So far, they've been right.
Cold weather and snow in some locations are causing Buyers to pull the trigger faster this year.
A healthy stock market can lead to extra enthusiasm at the negotiating table.

What I love about the Naples new construction market right now:

For the most part, agents and sellers don't know what is happening.

Some of our luxury neighborhoods experienced huge increases in new construction throughout the past few years. It was a real problem.

Prices rose dramatically.
Sellers/Builders became inflexible.
Sellers/Builders stopped furnishing products.

Do you know what happened? Buyers handed Sellers/Builders their butts. They sure did. Then:

Sellers/Builders started furnishing their properties again.
Sellers/Builders were more accommodating at the negotiating table.
Sellers/Builders priced their properties more competitively.

Properties started to move again. Inventories shrank; today, we're somewhere off the top and in the middle.

This is reflected in the number of price increases (22 since October 1st) and price decreases (49 since October 1st).

The most difficult market is when nobody knows what's happening, so you have a real chance for some awesome deals and can choose from a fabulous selection. Weary small builders experiencing longer market times will likely be nervous, especially if they haven't seen a paper offer. Traffic is going to be a huge indicator this year. If traffic and offers are slow, you can expect accommodation. You can guess how that will go if traffic is heavy and paper is flying.

Smart Buyers will buy what is scarce early!

It's already happening in some locations. There are 33 pending contracts in Kalea Bay alone. OMG! So smart buyers come in, buy, and then other Builders/Sellers raise the prices on the next bunch, hence why the first Buyers were smart.

Smart Buyers will buy late when there are lots of products!

They know there will be end-of-season deals or at least more accommodation when the Builder/Seller is watching their traffic slow down, and they contemplate holding on to their properties through the summer months when we aren't very busy. (This changes to depending on markets, so make sure you call me directly to understand how that part works)

I feel we're going to see some Buyers enter the market in March 2018 and find their friends who purchased in November and December got way better deals.

Here's Where Buyers Lose Their Minds:

Emotion- Some buyers come here acting all business savvy and cool until one or both Buyers catch feelings about a property. Oh NO. It's ok. I'll have your back as your Buyer's Agent, but we do not want to set off any blaring alarms if you try to negotiate with your checkbook instead of your heart. Naples is a super diverse market with both emotional buyers and business-minded Buyers. That makes it easier to hide your motivation and can help you get a deal as long as you don't show your cards to the other side. Don't forget who you are. I see Buyers always talk and behave like one kind of Buyer and lose sight of their objective. I can remind you. I can help you weigh the advantages and disadvantages. I can even keep my mouth shut, depending on what you're looking for. You're the boss.
Buying Something, Your Friends Are Buying- If Billy jumped off a bridge...I've never said that to a client before, but I might this year. There are some things about the Naples market that don't change. The success of location is one of them. You might have one, two, or even three friends buying something in a location that isn't necessarily the soundest financial decision. Talk to a GOOD Agent about this BEFORE you do it. One of my clients purchased new construction a few years back without talking to me first. I'm not bitter about it, I'm sad for her. She had friends doing it, too, which sounded like a great idea. Buy, build, flip. Oops, couldn't flip sitting on the money and renting it out in a location where she has no interest in using herself. Now her money is tied up, and she can't afford a property she can use during the season. She jumped off that bridge right out of Naples.
Quality Means Everything! I was surrounded by a group of plumbers a week or so ago. "Ok, boys, what are you seeing"? One of the things that came up was the unanimous vote about one particular new development in town and how, even though the homes are only a couple of years old, they're already getting massive amounts of business due to crap plumbing work and fixtures. Naples is filled with amazing craftsmanship, but not all Builders build the same way or use the same quality of materials. One way to check the Builder's quality is to check their construction sites. Are they a disaster? Move on. I have a guy (LOL) who posts nothing on Facebook but videos and posts about what he finds during new construction inspections. This guy may STROKE OUT because he is very busy finding things about brand-new construction that is just done incorrectly or flawed due to substandard materials.

Let's talk about Naples's new construction inventory by location!

Port Royal New Construction- The most luxurious of all locations in Naples! There are 11 new homes to choose from, and there are seriously some jaw-dropping options. There are also 0 pending and only three sold during the past year. If you're not having fun in Port Royal this year, there's a real problem. Last year everybody hit at the end of the season. Your best deal might be jumping the gate now!
Aqualane Shores New Construction- If you're into boating and luxury lifestyle but don't want the Port Royal price, check it. Five are on the market right now, and only three have sold during the past year. Zero properties are a pending contract which is excellent news for you today but expect it to pick up in January. This is a great place to buy now!
Old Naples- 17 closed during the past year! 5 pending now, and 45 are for sale. The market is already moving here, unlike Port Royal and Aqualane Shores. This market is already rolling. Be diligent, and don't be surprised if you're faced with a mixed bag of accommodation this year. What's your goal? Don't forget, now get out there and win one for your team!
Pine Ridge- 7 0n the market, 0 pending, 3 sold last year. People forget about Pine Ridge as an option. If you like huge lot sizes and shady streets, it's a location to consider. Your accommodation should also be better here than some of your other options!
Coquina Sands New Construction- 9 on the market, 0 pending, two sold during the past year. Yes, you should be having some fun in here too!
Grey Oaks- 2 on the market, one pending, and 9 closed during the past year. Oye! I'd do it now if you want new construction in Grey Oaks. If you don't feel like you're being accommodated or you are open to other options, you might check out Mediterra, Quail West, or Talis Park.
Mediterra- 10 on the market, seven pending. This one might be tough too. Check out Talis Park and Quail West as options!
Moorings- 17 Active, one pending 19 sold during the past year. You should do fairly well in here this year but watch inventories. Early purchasing will result in price increases!
Park Shore- 14 on the market, one pending, and only five sold this past year. You may have more fun here than they are in Moorings!
Pelican Bay- 5 on the market, two pending, and one sold during the past year. There hasn't been this much new construction, especially in the single-family home market since the neighborhood started. It will be very curious to see how the new product is received this year.
Quail West- 16 Active, one pending, and 18 sold during the past year. There will certainly be more accommodation here than at Grey Oaks for sure.
Royal Harbor- 3 Active, three sold. This is a stable market. You might step up to Aqualane Shores if you don't feel accommodated here.
Talis Park- 16 on the market, 3 pending contracts, and 7 sold during the past year. There should be some serious accommodation here!
Treviso Bay- 7 Active only 1 pending, zero sold during the past year. Hmm. Looks like a great place to catch a deal!