Increased Demand in February Shows Homebuyers Recognize a Great Value
Naples, FL (March 24, 2021) – The February 2021 Market Report, released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), marks the last month of comparative activity before the pandemic shuttered the global economy in March 2020. That said, overall closed sales of existing homes in Naples for February increased 62 percent to 1,307 closed sales from 807 closed sales in February 2020.
Broker analysts reviewing the February 2021 Market Report were not surprised at the increased momentum as many report buyers are scooping up the available inventory of homes in all geographic locations within Naples almost as fast as they come onto the market. Inventory fell 68.8 percent in February to 2,224 homes from 7,127 homes in February 2020.
Single-family homes continue to be in high demand so, according to the report, many buyers pivoted to condominiums in February. As a result, the condominium market experienced a 75.7 percent increase in closed sales and a 66.6 percent decrease in inventory. In fact, condominium sales in February 2021 eclipsed its comparable sales in any month over the past 15 years.
In addition to the struggle to find existing properties for sale in all price categories, buyers are also finding new home purchasing options are diminishing.
It’s not surprising then that February saw pending sales of existing homes in Naples skyrocket 50.7 percent to 2,299 pending sales from 1,526 pending sales in February 2020. In comparison, there were more pending sales (2,299) at the end of February than inventory (2,224). This resulted in a drastic drop in supply as the February report revealed our area now has only a 2-months supply of homes available to buyers.
The NABOR® February 2021 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:
In February, the median closed price increased 17.4 percent to $405,000 from $345,000 in February 2020. As such, the average closed price also increased in February by 25.7 percent to $796,936 from $633,898 in February 2020. The luxury single-family home market continues to drive sales in Naples as reflected in the average closed price for single-family homes in the Naples Beach area, which increased 35.4 percent to $3,270,814 from $2,414,826 in February 2020.
Whether new listings – which fell 8.6 percent in February to 1,435 new listings from 1,570 new listings in February 2021 – can meet the demand in the coming months will depend on seller motivation. In a tight inventory climate, brokers said it’s not uncommon for REALTORS® to approach a homeowner in a desirable community and ask: “I know your home is not for sale but how much do you want to sell it because I have a buyer?”
The demand for single-family homes in Naples is so high right now that its convincing many homeowners to downsize in order to take advantage of the market’s demand and enjoy a nice profit. That’s one reason condominium sales increased in February and why properties in 55 and older communities also saw increased activity.
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®
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.
Naples, Fla. (September 18, 2020) – Closed sales activity in the Naples area housing market maintained steady momentum through August with a 35.2 percent increase in overall closed sales to 1,098 closed sales from 812 in August 2019. According to the August 2020 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), homebuying activity in Naples during the last three months exceeded activity reported in the first three months of 2020, more typically known as our peak resident season. Broker analysts reviewing the report predict this momentum, driven from more closed sales, more new pending sales, and more new listings compared to a year ago, will set the Naples area housing market up for continued positive performance into the fall months.
The market report showed August had the highest month-over-month increase in pending sales compared to any other month reported in 2020, with a 70.4 percent increase to 1,479 pending sales from 868 pending sales in August 2019. Not surprising, homebuyers seeking single-family homes continued to tilt the scales in August as the report showed a 76.4 percent increase for this home category, while pending sales of condominiums increased 63.9 percent.
In comparison, this summer’s closed sales have eclipsed our peak season’s closed sales as there were a combined 3,133 closed sales reported during June, July and August compared to a combined 2,659 closed sales reported in January, February and March.
August’s inventory decreased 29.1 percent to 4,174 properties from 5,887 properties in August 2019. However, despite the month-over-month drop in inventory during August, there were more new listings added over the summer months than new listings added during the peak season months. Broker analysts were quick to point out that some of the new listings added during the summer were likely listings that had been pulled off the market during the Great Lockdown, which occurred in April and May.
“Increased buyer demand is helping to move some of our old inventory,” said a Broker.This increased buyer demand is illustrated by the number of days on the market in August, which decreased 5.9 percent to 96 days compared to 102 days in August 2019. The report also showed the Naples area has only 184 single-family homes under $300,000 available to buyers. And inventory for single-family homes between $300,000 and $500,000 decreased 54.9 percent in August to 446 single-family homes from 990 single-family homes in August 2019.
Overall median closed prices in August increased 26.7 percent to $399,000 from $315,000 in August 2019. Single-family home median prices increased 15.7 percent to $457,000 from $395,000 in August 2019, and condominium median closed prices increased 18.4 percent in August to $290,000 from $245,000 in August 2019.
However, keep in mind that the median closed price is a figure that is “in the middle,” as half of homes listed are above this price and exactly half are below this price. Broker analysts reviewing the report were quick to point out that one sale of a high-worth property (e.g., $2 million+) during a given month can greatly influence this figure, and that it doesn’t mean all home prices increased. As such, when evaluating pricing trends, brokers prefer to use the 12-months ending median closed price statistics. For the 12-months ending August 2020, the median closed price increased 5.4 percent. Interestingly, using this metric, the August report showed median closed prices for homes between $300,000 and $2 million have actually decreased.
The NABOR® August 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 |
Aug 2019 |
Aug 2020 |
CHANGE |
| Total closed sales (month/month) |
812 |
1,098 |
+35.2% |
| Total pending sales (homes under contract) (month/month) |
868 |
1,479 |
+70.4% |
| Median closed price (month/month) |
$315,000 |
$399,000 |
+26.7% |
| Total active listings (inventory) |
5,887 |
4,174 |
-29.1% |
| Average days on market |
102 |
96 |
-5.9% |
| Single-family closed sales (month/month) |
421 |
583 |
+38.5% |
| Single-family median closed price (month/month) |
$395,000 |
$457,000 |
+15.7% |
| Single-family inventory |
3,041 |
1,784 |
-41.3% |
| Condominium closed sales (month/month) |
391 |
515 |
+31.7% |
| Condominium median closed price (month/month) |
$245,000 |
$290,000 |
+18.4% |
| Condominium inventory |
2,846 |
2,390 |
-16.0% |
Geographically, closed sales of properties in the Naples Beach area (34102, 34103, 34108) during August increased 84.4 percent and saw an 82 percent increase in median closed price; the South Naples area (34112, 34113) reported the most new listings in August, with a 32.7 percent increase; and the East Naples area (34114, 34117, 34120, 34137) reported the biggest drop in months of inventory to 2.9 months of inventory in August from 6.4 months of inventory in August 2019.
The August report shows sellers are at an advantage with decreasing inventory and rising prices. 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.
