Market conditions were brisk for single family homes west of Route 41 in 2015. The supply was short and the demand was strong, so, of course, prices trended upwards but buyers were happy to pay what was necessary to get in the game.
The neighborhoods that are the focus of this blog article are Seagate, Park Shore, Moorings and Coquina Sands – the area between Route 41 (Tamiami Trail) and the Gulf of Mexico, south of Pelican Bay and just north of Olde Naples. This has always been and will always be a desirable area given the location close to the water, close to Olde Naples (Fifth Avenue South, The Pier and Third Street South) and away from the heavy traffic on Route 41.
Resales did well, new homes built for speculation had a good year and the “tear downs” absolutely skyrocketed. Without any vacant lots available, there was tremendous pressure on the older homes as “tear downs” to build new custom homes for clients as well as builder spec homes.
No sooner than we set a new record high sale for a “tear down” with one of our listings (741 Coral Drive sold at $1,325,000 with multiple offers) destined to be demolished to make way for new construction, we listed a property in Coquina Sands with a house built in 1958 that also attracted multiple offers and closed at full asking price of $1,590,000 (647 Murex Drive). That house filled a dumpster in the blink of an eye to provide a blank slate for a new custom design. Some people are staggering around at the jaw dropping prices for dirt while others realize that they had better jump in immediately before they are paying even more.
If you are considering the sale or the purchase of a single family home in the neighborhoods west of Route 41, then call us now – this is our stomping grounds and our track record is the best representing both sellers and buyers.
Here are some highlights for 2015 in Seagate, Park Shore, Moorings and Coquina Sands:
- Record high sale for a “tear down” infill property at 647 Murex Drive closed at $1,590,000. This was our listing and we attracted multiple offers through aggressive marketing.
- 29 new homes sold ranging from $2,225,000 to $6,000,000
- 122 of resales sold (including “tear downs”).
- The Seagate community attracted some attention as people recognized value here. This neighborhood is tucked away from normal traffic patterns and is finally getting its due. Although the water is shallow and limiting, the location is quiet and, after all, it is on water. In one instance, a buyer paid over $1.1M for a “tear down.” Several builders sold “spec” homes.
- 9 vacant lots sold from $695,000 to $3M west of Route 41.
- Homes on the bay water ranged from $2.5M to $6M
Here are some predictions for 2016 in the same neighborhoods for single family homes:
- We estimate that 35 of the new “spec” homes currently under construction will sell in 2016. Some are better than others. Some are unique designs and some others are duplicates of previously built homes.
- There will be a niche for homes that are worthy of renovation. Not every older home needs to be torn down – some can be brought back to life with a well thought design and renovated without breaking the piggy bank. Homes with some high ceilings will get a premium. Contact us about which houses have that potential.
- Prices will continue to trend up for “tear downs.” Demolishing an older home is the only solution to finding a building site for new construction.
- Spec homes with the best locations and the best floor plans will sell but you will see some properties continue to linger on the market. The ones that don’t sell are not a reflection of the market as a whole – they are properties with mistakes such as a bad location, greedy asking prices and floor plan errors such as the master bedroom on the second floor or an underwhelming kitchen layout. Consult us in advance regarding what constitutes a “mistake”….
- Supply and Demand – Historically, real estate works in cycles with ups and downs over the course of time. The so-called “bubble” years of 2004 and 2005 were exactly that – a “bubble” fueled by loose lending practices allowing anyone to finance if they had a pulse. Today’s rising Naples real estate market is a natural result of simple Supply and Demand. There is no “bubble” that is going to burst – you will see prices continue to trend upwards as the demand only increases and the supply is short. The time is now to take action.
Click on the links below for properties currently for sale west of Route 41:
As full time real estate professionals, we represent both buyers and sellers in Naples. If you are a seller, we market your home to local, national and international buyers for the best results. If you are a buyer, we listen well and will find your own “Piece of Paradise” at the best negotiated price and terms.
Tim Cranch at 239-272-4848 Ellie Penaranda at 239-776-5077