The buying frenzy the Naples housing market experienced during the past year has simmered and is being replaced with what brokers say will be our new normal: a low inventory market with fast turnover of quality homes priced right. According to the July 2021 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), inventory decreased 77.2 percent to 1,295 homes in July 2021 compared to 5,672 homes in July 2020, but demand continues to be steady as there were only 30 fewer closed sales and just a 2 percent drop in showings.
Read the rest of the report here in the new flipbook format.
Contact David at David@DavidFlorida.com or 239-285-1086 to find your home in southwest Florida.
Florida’s housing market continued to show momentum in January even with the ongoing pandemic, with more closed sales, rising median prices, more new pending sales and increased pending inventory compared to a year ago, according to Florida REALTORS® latest housing data. Single-family existing home sales rose 18% compared to a year ago.
“2021 began with the same market conditions we saw over the previous months, such as very low mortgage rates, high buyer demand and a lack of inventory,” said 2021 Florida REALTORS® President Cheryl Lambert,. “This shortfall in inventory continues to put pressure on home prices. However, new pending sales increased 16.9% for single-family existing homes last month compared to January 2020, while new pending sales for condo-townhouse units rose 32% year-over-year.”
In January, closed sales of single-family homes statewide totaled 21,587, up 18% year-over-year, while existing condo-townhouse sales totaled 9,608, up 24.6% over January 2020. Closed sales may occur from 30- to 90-plus days after sales contracts are written.
The statewide median sales price for single-family existing homes was $305,000, up 15.1% from the previous year, according to data from Florida REALTORS® Research Department in partnership with local REALTOR® boards/associations. Last month’s statewide median price for condo-townhouse units was $230,000, up 15% over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.
Florida REALTORS® Chief Economist Dr. Brad O’Connor noted that Florida’s housing market kicked off 2021 on a strong note.
“Eighteen percent year-over-year growth in single-family sales and 25% growth in condo and townhouse sales is way, way above our historical average—and we will likely remain well above our historical average for most, if not all, of 2021,” he said. “The primary reason is that mortgage rates will likely remain quite low for the duration of the year. The Federal Reserve has repeatedly signaled it intends to pursue a monetary policy agenda that ensures this will be the case.
“That said, economic forecasters have reached something of a consensus that mortgage rates have finally reached a bottom. Interest rates are, of course, notoriously difficult to forecast, so you never really can be sure exactly where they’ll be 12 months from now—then again, it’s a reason to take notice when everyone’s forecasts actually agree on something. However, there is still some mild disagreement among prominent forecasters in terms of how fast rates will rise from here—although no one is currently predicting rates are going to rise too significantly.”
Taking a look at the supply side of the market, last year’s decline in active listings of existing homes for sale continued into January 2021, according to O’Connor.
He added, “To be clear, I’ve pointed out that year-over-year growth in new listings—at least on a statewide basis—was positive over the second half of 2020. It’s just the pace of sales has been so phrenetic that these new listings have not replaced enough of our inventory to reverse the trend. However, in January 2021, new listings of single-family homes were down over 10% year-over-year in what is normally a strong month for new listings. Likewise, new listings of condos and townhouses were down statewide by almost 7%. We’ll need to keep an eye on new listings for the next few months to see if this is really a downshift or just a one-time decline.”
On the supply side of the market, inventory (active listings) continued to be constrained in January. Single-family existing homes were at a very restricted 1.6-months’ supply while condo-townhouse inventory was at a 3.9-months’ supply.
According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 2.75% in January 2021, significantly lower than the 3.62% averaged during the same month a year earlier.
Source: Florida REALTORS®
Luxury Portfolio International® (LPI), the luxury division of Leading Real Estate Companies of the World®, recently released a study of the world’s most affluent households: “State of Luxury Real Estate.”
The report focuses on consumers in the top 1-5% income bracket across 17 countries and 30 million households. The study was conducted in collaboration with the Affluent Consumer Research Company, finding that of the 30 million-plus households surveyed, more than 15.5 million will be in the market for residential real estate over the next three years. Within that group, 66% (10.3 million consumers) say they’d likely to purchase a property valued at U.S. $1 million or more.
“It is clear that affluent residential real estate buyers see opportunities within their respective markets,” said Mickey Alam Khan, president of Luxury Portfolio International®. “We are noting a surge in buyers throughout many markets worldwide, where it continues to be a seller’s market in the luxury space vis-à-vis the previous year. We expect that trend to continue through 2021—as well as the next couple of years—as buyers rush into the market. The ultra-luxury buyer perspective is that the current climate is getting stronger. In many markets, we see home values going up, and there is more interest in prime property.”
Trends among these soon-to-be buyers: One-quarter mentioned they have an investment or rental property in mind for their next purchase. The No. 1 global preference, however, is new construction in a newly developed neighborhood as it commands the highest price among the luxury buyer segment, according to the report.
“Investment sentiment toward real estate is positive and outstrips other forms of financial investment,” added Alam Khan. This bodes well for developers and resellers, along with sister industries, such as home design, art and furniture.”
The pandemic has greatly shifted luxury home trends. According to the report, quarantining highlighted an increased need for self-reliance amenities at home, and many respondents say that COVID influenced their motivation for wanting to live abroad, specifically in Mexico, India, China and post-Brexit United Kingdom.
The report highlighted the following four leading trends:
– The home must meet more needs, having solutions for working, learning and diversion at home.
– Luxury buyers are looking to expand their borders, seeking out homes in another country.
– Affluent buyers are interested in homes with a lot of space outside their main living quarters, such as properties with a guest house or separate adjoined residence.
– Luxury buyers want to work with a reputable brokerage that offers basic, quality offerings with a focus on customer service, while offering new technology.
From a confidence standpoint, LPI found that luxury buyers are bullish on the residential real estate market, with 45% believing it is getting stronger, compared to 31% who said it is getting softer. The majority (52%) perceive their current home value to have risen more than 10%, and 50% of luxury buyers state they believe now is a good time to purchase real estate, beating out other investments such as stocks, private equity and gold, among others.
“Real estate is an increasingly sensible investment at a time when financial and alternative investments appear potentially disconnected from traditional success indicators, like revenue and profit,” said Chandler Mount, CEO of Affluent Consumer Research Co., the study’s author, and research partner for Luxury Portfolio International®. “Many luxury buyers all over the world share this sentiment, and the implication is a lot of money flowing into real estate in the coming year.”
Liz Dominguez is RISMedia’s senior online editor.
In the market for a luxurious property in southwest Florida? contact David at David@DavidFlorida.com or 239-285-1086.
January 2021 compared with January 2020 (percent reporting using rounded figures)
Naples Real Estate Market Sees Another Record Month in Closings
Naples, Fla. (November 20, 2020) – According to the October 2020 Market Report, released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), the Naples real estate market continues to see strong demand in both the single family and condominium markets. Buyers are getting a jump on the winter seasonal market as shown by the reduced inventory, increase in multiple bids and the jump in closed sales. Closed sales activity for the overall market increased 65.2 percent to 1,249 closed sales in October 2020 from 756 closed sales in October 2019.
Inventory continues to be a challenge for buyers seeking to purchase a home in Naples. While the overall market inventory in October 2020 decreased 33.8 percent to 3,543 from 5,351 in October 2019, overall pending sales for the same time period increased 73.0 percent to 1,708 from 987 in October 2019. With strong demand, sellers are receiving multiple competitive offers on their listings during what is a traditionally slower time of year. Offers are coming in more quickly as well, with homes sold during October 2020 staying on the market 11.5 percent fewer days than October 2019. The average number of days on the market until sale was 92 in October 2020 compared to 104 days in October 2020.
“In a typical year, October would be a time when inventory numbers rise as sellers prepare for increased demand during season,” said a Broker. “However, the pandemic disrupted traditional seasonal patterns. Buyers are motivated to seek larger, more comfortable homes that accommodate their work-from-home lifestyles.”
In a recent interview in Inc. magazine, Bill Gates acknowledged the nationwide, post-pandemic migration of families to bigger houses in smaller communities with less traffic. Annual market statistics support that trend is happening locally. During the period of January through October 2020, there were 9,785 closed sales in Naples, which represents a 13.8 percent increase over the same period in 2019. With more active buyers on the market, housing prices are seeing moderate but sustainable growth.
The October Market Report showed that single-family homes saw an increase in the median closed sales price of 12.1 percent to $458,000 during January to October 2020, up from $408,500 during the same period in 2019. Condominium median closed sales prices also saw an uptick of 5.8 percent to $275,000 during January to October 2020, over $260,000 during the same period in 2019.
Brenda Fioretti, Managing Broker at Berkshire Hathaway HomeServices Florida Realty, notes that 30.6 percent of homes on the market experienced a price increase during October. “Sellers are receiving multiple, competitive bids on their listings. So, it is important for buyers to make a serious offer when they find the right home.”
The NABOR® October 2020 Market Reports provide comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. NABOR® sales statistics are presented in chart format, including these overall (single-family and condominium) findings:
| CATEGORIES |
Oct 2019 |
Oct 2020 |
CHANGE |
| Total closed sales (month/month) |
756 |
1,249 |
+65.2% |
| Total pending sales (homes under contract) (month/month) |
987 |
1,708 |
+73.0% |
| Median closed price (month/month) |
$329,950 |
$385,000 |
+16.7% |
| Total active listings (inventory) |
5,351 |
3,543 |
-33.8% |
| Average days on market |
104 |
92 |
-11.5% |
| Single-family closed sales (month/month) |
389 |
580 |
+49.1% |
| Single-family median closed price (month/month) |
$395,000 |
$523,000 |
+32.4% |
| Single-family inventory |
2,675 |
1,501 |
-43.9% |
| Condominium closed sales (month/month) |
367 |
624 |
+70.0% |
| Condominium median closed price (month/month) |
$255,000 |
$284,500 |
+11.6% |
| Condominium inventory |
2,676 |
2,042 |
-23.7% |
If you are looking to buy or sell a home in Naples, contact a Naples REALTOR® who has the ability to provide a virtual showing, an accurate market comparison or negotiate a sale. A REALTOR® can ensure your next purchase or sale in the Naples area is a success. Search for your dream home and find a Naples REALTOR® on Naplesarea.com.
“September is typically the slowest month for REALTORS® in Naples,” said Brenda Fioretti, Managing Broker at Berkshire Hathaway HomeServices Florida Realty, who added, “but agents were very busy this September as the number of showings increased 80 percent to 35,465 appointments compared to 18,745 appointments in September 2019.”
Median closed prices for September increased 18.2 percent to $384,000 from $325,000 in September 2019. Broker analysts reviewing the market data also said they saw an uptick in multiple offer occurrences in September and advise buyers facing this situation not to delay with an offer if they like a property.
Inventory continues to be a challenge for buyers in Naples. In September, inventory decreased 32.2 percent to 3,980 properties from 5,873 properties in September 2019. A Broker said, “Multi-million properties are being grabbed up with many buyers making an offer sight-unseen. There are currently less than 500 properties on the market over $2 million.” Not surprisingly, closed sales of homes above $2 million have increased 30.7 percent in the 12-months ending September 2020.
According to the September Market Report, 9.9 percent of the sales reported in September were from new construction sources. But broker analysts say this number does not adequately reflect actual sales activity for the new construction market as sources indicate that builders are just too busy to input every sale in the MLS.
The NABOR® September 2020 Market Reports provide comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. NABOR® sales statistics are presented in chart format, including these overall (single-family and condominium) findings:
| CATEGORIES |
Sept 2019 |
Sept 2020 |
CHANGE |
| Total closed sales (month/month) |
717 |
1,096 |
+52.9% |
| Total pending sales (homes under contract) (month/month) |
823 |
1,509 |
+83.4% |
| Median closed price (month/month) |
$325,000 |
$384,000 |
+18.2% |
| Total active listings (inventory) |
5,873 |
3,980 |
-32.2% |
| Average days on market |
102 |
90 |
-11.8% |
| Single-family closed sales (month/month) |
367 |
577 |
+57.2% |
| Single-family median closed price (month/month) |
$402,000 |
$474,000 |
+17.9% |
| Single-family inventory |
3,057 |
1,710 |
-44.1% |
| Condominium closed sales (month/month) |
350 |
519 |
+48.3% |
| Condominium median closed price (month/month) |
$246,195 |
$290,000 |
+17.8% |
| Condominium inventory |
2,816 |
2,270 |
-19.4% |
“There has been a 19.6 percent increase in closed sales of homes with a minimum of four bedrooms over the last year,” said a Broker. “This data reflects another shift in buying behavior as a result of the pandemic. The demand for single family homes with additional space to accommodate a home office and a virtual schoolroom is increasing.” The September Report showed a decrease of 37.9 percent to 779 properties on the market with four or more bedrooms compared to 1,255 in September.
