Posted on Sunday, December 22, 2013
Surprise! Nope, not in Naples Florida. The way people are talking about it with spec homes and clients looking you would think new construction is becoming all the rage. Don’t get me wrong – these new places are spectacular and frequently fetch higher than average price per square foot numbers, but … are they really selling any faster than the other stuff? Let’s take a look at the newly constructed marketplace in Naples today and find out.
Looking at the Southwest Florida MLS data today there are only 250 single family homes built in 2010 or later. They range in price from $179,900 in Golden Gate to $16,500,000 in Port Royal – quite a price spread. Ok, now let’s look at how many new homes have actually sold in the last year. 296 is the answer. 296 newly constructed homes sold in the last twelve months in all the Naples areas. This gives us an inventory of ten months. Not bad, but not a red hot market either. Actually a little slower than the overall market right now running at seven months or so.
But wait a minute. What about the pricier stuff, say $1,000,000+. Ok for this price point there are only 119 of these homes for sale in the same area as before. How many of these type of homes have sold in the last year? 112 homes. Hmmm, the upper end of the market is even a little slower in fact at twelve months my old real estate instructor Real Estate Bob would say this market is in “equilibrium” – no hotter than the rest of the market – in fact a little slower.
However if you want to build a spec home new construction takes on new meaning. According to my friend Michael Orden who works daily at this the cost of land may force you to go big and go new. Why? Well building or renovation a smaller home on an expensive piece of dirt just does not carry enough margin to make the deal work – so go big. On the same piece of dirt build a bigger place and the numbers start to work – particularly with new construction fetching a nice price per square foot.
Ok one more idea, what about neighborhood by neighborhood. Yep, some neighborhoods are really hot for new construction. Try to find a place in Stonebridge right now where we were successful in helping one of our customers find a place last month. And what about Royal Harbor, Coquina Sands and the Moorings? Yep – all good places to see some real scarcity going on. So … get with a realtor. the good news is there is new construction out there – pricier as it should be – but it is out there.
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Mark and Nan
Coldwell Banker
Mark Goebel, PA and Nan Goebel, PA
REALTOR Coldwell Banker 5th Avenue South
Mobile: 239.595.3921 239.595.3920
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No legal, investment, or tax advice is being given in this Blog. Consult with legal, financial and tax professionals before acting on any real estate transaction. Actual real estate price and sales results are subject to market forces and are not completely predictable. The writings of this Blog are intended for the sole use of our clients.
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Mark Goebel, PA is a REALTOR with Coldwell Banker on 5th avenue in Naples, Florida with 35+ years of visiting and living in Naples. After 25 years at Accenture, Mark retired as a managing director and spends his time helping non profits and building a Naples real estate team with his wife Nan. Talk to Mark and Nan about life in Naples and why they chose this place to live full-time over all others and enjoy Naples real estate.
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Coldwell Banker
Mark Goebel, PA and Nan Goebel, PA
REALTOR Coldwell Banker 5th Avenue South
Mobile: 239.595.3921 239.595.3920
NaplesBestAddresses.com
Facebook: NaplesBestAddresses
Youtube http://www.youtube.com/user/naplesbestaddresses?feature=results_main
