Best Time & Place to Invest in Naples, FL Real Estate
There are a lot of factors that go into purchasing a successful investment property. However, two of the biggest decisions you’ll need to make to ensure a responsible investment are when and where. When it comes to choosing and properly timing your investment property purchase, no two states, cities, or even neighborhoods are the same. If you’re looking to invest in Naples, FL real estate, it’s crucial to understand the local real estate market and its cycle. And who better to ask than a local expert?
We are Naples Relocation Experts, born-and-raised Neopolitans with years of knowledge on buying, selling, and living in Naples. We are owners, neighbors, and investors that are committed to seeing our community grow and thrive. We understand that knowing your market can make or break an investment. That’s why we utilize both our professional and personal experience to help clients find the best opportunity for their unique investment strategy.
Keep reading to learn more about the best time and place to invest in Naples, FL real estate.
Best Time to Buy a Naples Investment Property
The Naples real estate market generally follows the same seasonal cycle each year, and it’s heavily influenced by the influx of “snowbirds” (seasonal residents). Collier County predicts that the countywide population grows by 20% in peak season. Due to the large population boom, peak season for the local real estate market is January through April. After April, the market tends to decline and then ramp back up again at the start of the new year.
Buying a house during peak season can be beneficial as sellers are more likely to list their homes during this time, giving you a larger inventory to choose from. However, demand is also higher, so you’ll face more competition and likely higher sale prices.
Here are some other factors to consider when determining the best time to buy:
Higher Demand in Luxury Markets
The shift in the market cycle is especially prominent for the more luxury markets in Naples. Beachfront properties and tourist-heavy areas of Naples experience even higher demand in peak season because there are more seasonal buyers and visitors in those areas. If you’re interested in investing in luxury markets, there can be benefits to buying in the off-season because demand is lower (meaning lower listing prices).
Availability of Family Homes in Summer
Regardless of peak season, there are plenty of properties available in summer if you’re interested in buying a family home. Sellers with children will often wait to list their properties until the end of the school year to avoid uprooting their family in the middle of it. Studies have shown that June, July, and August are peak home sales season nationwide due to the school year and weather.
Value Over Everything
In the end, the secret of the “best time to buy” is that there isn’t one. It doesn’t matter what month of the year it is – it’s all about whenever you can find the best value. Discovering the “gems” of Naples, FL real estate is more opportunity-based than seasonal. The best advice is to start looking now and, when you come across a good deal, jump on it.
“The value is what’s important. If you buy something under value and you don’t like it in a year, you can always sell it and make some money,” advised Drew Josephson, real estate agent and founder of Naples Relocation Experts. “Our number one job as real estate agents is to help our clients buy something under value and make sure the client is protected.”
Best Time to Sell a Naples Investment Property
As mentioned above, the local real estate market’s peak season is January through April. Most sellers will often wait to list until this time, significantly increasing inventory. Selling during peak season is beneficial because of the greater seasonal population (more potential buyers), which leads to greater demand and higher listing prices. However, it also means you’ll be competing with a larger amount of comparable listings. You’ll need to do your due diligence to ensure your property is priced competitively and stands out.
Consider the following when determining the best time to sell:
More Family Homebuyers in Spring/Summer
The spring/summer is a great time to list a house for all of the same reasons mentioned above for buyers. Families are often looking to buy in the summertime. They don’t want to move their children between school districts in the middle of a school year, and they want enough time to get settled before school restarts. If you’re selling a family home, April is a great time to list as it gives you plenty of time to find the right buyer, negotiate, and close before fall.
Potential Losses of Waiting to List
If you’re considering waiting to list your house until peak season, it’s important to consider how much money you might lose during the waiting period. Are you currently using or renting the house, or is it sitting vacant? Is it paid off, or are you still making payments on it? Do a thorough evaluation of how much money you’ll lose while waiting to list, and decide if it’s worth a potentially higher sale price.
Increased Housing Prices Due to Housing Shortage
Due to the national housing shortage keeping home prices high, right now is a great time to sell. The housing shortage has been good for real estate investors because, as long as there’s scarcity, housing prices aren’t going to go down. Due to the general high demand of living in Florida (and even more so in Southwest Florida), the effects of the shortage have been magnified here in Naples. Pre-COVID in February 2020, the Naples Area Board of Realtors (NABOR) reported an overall housing inventory of 5,825 units. Their most recent May 2023 report listed an inventory of 2,749 units (52.8% decrease).
Best Naples Neighborhoods to Invest In
Any good realtor will tell you that finding the right property is all about location, location, location. Our experts consider the following neighborhoods as the best Naples has to offer for real estate investors:
- Naples Park
Median Listing Price: $1.3 million
Suburban and affordable with single-family homes. - Pelican Bay
Median Listing Price: $1.5 million
Trendy and high-end with high rises and views of the Gulf. - Park Shore
Median Listing Price: $2.5 million
Exclusive and luxurious with high-rise apartments, stately mansions, and waterfront properties. - The Moorings
Median Listing Price: $2.5 million
Quiet and picturesque with single-family homes and condominiums. - Coquina Sands
Median Listing Price: $4.5 million
Tree-lined winding streets with single-family homes and condominiums. - Aqualane Shores
Median Listing Price: $16 million
Private waterfront community with amazing views and some of the most sought-after properties.
(Median listing prices are according to current data from Realtor.com.)
Up-and-Coming Places to Invest in Naples, FL
If you’re looking to get in on the ground floor to invest in and grow the Naples area, we recommend one of the following up-and-coming neighborhoods:
- Sun Terrace
Median Listing Price: $799,000
Quiet, family-oriented community with single-family homes, apartments, condos, and a trailer park. - Lake Park
Median Listing Price: $1.4 million
Quiet streets and mature landscaping with single-family homes. - Monterey
Median Listing Price: $1.7 million
Gated community along a sparkling lake with large single family homes and condos.
(Median listing prices are according to current data from Realtor.com.)
The Importance of Using a Real Estate Agent to Buy
With an experienced and well-connected real estate agent, there doesn’t have to be a “best” or “right” time to buy an investment property. At any time of year, you can partner with an agent, determine your budget and must-haves, and let the agent get to work for you. They’ll set up a search for you and keep an eye on both on- and off-market properties that meet your criteria.
“The second we’re alerted of a property, I’m calling my client saying, ‘I’m on my way to go see it,” said Drew.
At Naples Relocation Experts, our team believes in finding the right deal rather than focusing on an elusive right time. When our clients partner with us, they’ll have someone looking out for their best interests year-round.
“Trying to time the real estate market is no different than trying to time the stock market. You’ve got to know what you want and what makes sense for you,” added Drew. “And you need a professional real estate agent to help you understand your options and negotiate the best price.”
Ready to invest in Naples, FL real estate?
Contact Naples Relocation Experts today, and we’ll help you determine the best time and place for you to invest in Naples, FL real estate.
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