Sorry Hurricane Ian: Collier County property values up 20%

Hurricane Ian couldn’t dampen property values in Collier County: They increased 20% since last year.

The just value, or market value, for all property rose to $222.5 billion this year, according to the county’s tax roll July 1. That’s up from $185.3 billion in 2022.

Some of the biggest factors that led to the value increases in 2023 were still high construction costs, increasing land values, tight inventory and an increase in sale prices, according to the Collier County Property Appraiser’s Office.

The tax roll data is submitted to the Florida Department of Revenue and is used by local taxing authorities to set the millage rate for taxes.

Annual property tax notices are mailed by Nov. 1 each year.

The taxable value of property countywide is $138 billion, which is a 13.5% increase from the year before.

New construction countywide is valued at $3.4 billion, which is a 16.3% increase from 2022.

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Worries that Hurricane Ian would dampen values after its Sept. 28 hit that wrought extensive storm surge damage along coastal Collier did not materialize, according to the numbers. The Category 4 storm made landfall in Lee County.

“Common sense would say the market would slow down a bit after the storm, but what happened was investors swooped in to those heavily affected areas and grabbed the damaged houses and (demolished) them, making for a lot of high dollar vacant land sales toward the end of the year,” Jennifer Blaje Plock, director of tax roll compliance and data management for the property appraiser, said in an email.

Lee County property values as of Jan. 1, increased by 6.4% compared to 2022.

Total assessed value of property is $140.3 billion, roughly $8.4 billion more than the 2022 value.

The value of real estate in the heavily damaged coastal areas have fallen dramatically, with total assessed value 40% lower in Fort Myers Beach and nearly 32% lower on Sanibel.

What about in the city of Naples?

Ian had the greatest impact in the city of Naples and coastal subdivisions based on damage reports.

“A lot of taxpayers have sent information in about the structural damage to their property from hurricane Ian, but a significant amount of it was already repaired by our assessment date of January 1 2023,” she said.

In Naples, the market value of property is $55 billion, an increase of 19.4% from the year before of $46.1 billion.

New construction within the city was valued at $488.5 million, according to the data.

In the city of Marco Island, the just value of property is $24.6 billion, a 22% increase from the year before. New construction is valued at $249 million.

In rural Everglades City, the just value of all property is $190 million, a 13% uptick, while new construction came in at $2 million.

“The increase in values is strictly based upon what is happening in the market,” Plock said. “We here at the property appraiser’s office never create any value, we simply reflect back what was taking place in the marketplace.  It is sales in your own neighborhood and market areas that directly impact your property values.”

What does NABOR say about the market?

According to the June report of the Naples Area Board of Realtors, the month of May brought a slight reduction in overall median closed prices along with a dip in new listings.

Home listings and sales in Collier, excluding Marco Island, saw an overall median closed price decrease of 1% to $600,000 compared to $607,500 in May 2022.

There were 1,045 price decreases and a 31% decrease in new listings reported during the month.

“More and more sellers in Naples are starting to adopt a mindset that they need to be open to negotiate on price,” Jillian Young, president of Premiere Plus Realty, said with the NABOR report.

New listings decreased 31% in May to 990, compared to 1,438 new listings in May 2022.

Fewer new listings are putting a strain on overall inventory of homes, which is still recovering from frenzied buying during the pandemic, according to NABOR.

“New home construction is not keeping up with demand this year and a handful of homes on the resale market have lingered for a few months because they are not move-in ready. We’re finding fewer buyers are willing to purchase a fixer upper these days,” Young said.

Plock, with the property appraiser’s office, said market value for residential properties is mostly impacted by construction costs and sales of other residential properties within the immediate area.

“For commercial properties, it could be a combination of the construction costs, sales, and-or potential income (rental market),” she said.

This article originally appeared on Naples Daily News: Collier County, Florida property values increase despite Hurricane Ian