Naples Real Estate Prices and Trends October 2022
Changes in luxury homebuyers' preferences and dwelling requirements during the past year and a half have influenced the Naples' premium real estate market. While activity has returned to a more typical level in recent months, prices continue to rise, owing to low inventories. The most recent hurricane (Ian) has not helped either. In highly competitive luxury real estate areas such as Naples, where there is little to no inventory, making compromise may be the only alternative available. Even though the vast majority of people looking to purchase luxury real estate would like a contemporary home that is already furnished and decorated, these kinds of properties are quite rare. However, despite the fact that this may not be your top priority, investing in a luxury home or one that needs some work can turn out to be the most profitable choice for you in the long run.
Affluent purchasers have the ability to keep up with price increase by investing in home upgrades and purchasing property in a desirable area. Then, if the market stabilizes and the perfect high-end home comes along, the current homeowners may cash in on their equity to upgrade. The previous year, bigger homes were preferred over smaller ones. No matter how much it cost, prospective buyers were searching for additional living space, privacy, and safety. The flexibility to work from home or anywhere else was one of the primary drivers behind the purchase of a second, third, or vacation house for a lot of people. People are always looking for homes that have a home office since working from home has become the new standard. Other luxury features that are in great demand include a fitness center, a home theatre, and the ultimate outdoor sanctuary, which includes a huge lanai, outdoor kitchen, swimming pool, spa, and don't forget the beautiful view.
A major trend in the previous six months has been a shift toward mid-sized houses, which are beginning to represent the sweet spot for luxury buyers. There is still a sufficient amount of room, but it is not sufficient enough for them to feel overwhelmed. Last but not least, luxury buyers have shown an interest in geographical variety by purchasing second homes in both tourist hotspots like Naples and more secluded mountain communities like Aspen and Steamboat. Overall, there was a 96.3 percent rise in the number of residences sold for more than $2 million over the most recent twelve months, which ended in September. The value of single-family detached homes in this price range increased by 102.1 percent, while the value of condominiums rose by 82.9 percent. The overall rise in the number of closed transactions for luxury residences with prices ranging between one million and two million dollars was 95 percent.
Contributed by Naples Agent - Downing Frye Realty, Inc.