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.
June Market Activity Sets the Stage for Strong Summer Sales Naples, Fla.
According to the June 2020 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County, pending sales (homes under contract) increased 61.3 percent compared to June 2019, with single-family homes being the home choice for a majority of buyers. Broker analysts reviewing the report also noted that new listings during June increased 25.8 percent compared to June 2019, which indicates growing consumer confidence for both sellers and buyers leading into the summer Naples real estate market.
The everlasting desirability of the Naples real estate market was undeniable in June, especially in the single-family home market where pending sales increased 83.9 percent to 835 pending sales from 454 pending sales in June 2019. Pending sales of condominiums during June increased 38.7 percent to 634 pending sales from 457 pending sales in June 2019.
“The Naples residential market is showing signs of rebounding after a temporary pause in activity caused by the pandemic during the latter part of March, and through April and May,” said a local Broker. “Naples seems to be the beneficiary of a migration of people making life changes and coming to our market. Contributing factors are our low density and coastal properties.”
While closed sales in May were down nearly 50 percent compared to May 2019, closed sales in June decreased only 4.6 percent to 881 closed sales from 923 closed sales in June 2019. However, according to Brenda Fioretti, Managing Broker with Berkshire Hathaway Home Services Florida Realty, “June had the third highest number of showings this year, behind the historically high showing months of January and February. In comparison, there were 36,912 showings in June compared to 42,299 showings in January and 44,137 showings in February.”
Before the pandemic, the number of closed sales of single-family homes and condominiums were about equal each month; but the June Market Report revealed a shift in buyer preference to single family homes compared to June 2019, as closed sales of single-family homes increased 2.9 percent to 498, while closed sales in the condominium market decreased 12.8 percent to 383. This trend could be attributed to buyers wanting a larger home with more space to accommodate working from and sheltering at home.
Inventory decreased 27.6 percent to 4,739 homes in June from 6,547 homes in June 2019. The majority of this depletion was reported in the single-family home market, which decreased 34.5 percent, while the condominium market had a decrease in inventory of 20.3 percent. The report also showed the largest drop in inventory occurred in the $300,000 to $500,000 single family home market, which decreased 47.7 percent in June compared to June 2019.
As a result of heightened buyer demand, the median closed price increased 8.2 percent to $357,000 in June from $330,000 in June 2019. Another local Broker, remarked, “The overall median closed price increased in June because the luxury market is hot this summer, and the level of demand is driving up the prices, particularly in the $1 million and above market.”
These comments were validated by other brokers reviewing the report, who claimed their offices saw multiple offer situations in the luxury market during June. Fioretti added that her agents reported multiple offers in every price point during June.
A local Broker added that closed sales for the year are not yet on track with last year’s activity due to the pandemic, yet he’s optimistic because “as of June, the number of closed sales were only 400 less than last year at this time.” He added, “When the stock market dropped at the beginning of the pandemic, high-end buyers hit pause. But the stock market is strong today and these buyers – who we typically only see during high season – are seeking to buy luxury properties in Naples this summer.”
Despite a decrease in overall inventory for June, the report showed geographic areas where new listings grew including the Naples Beach area (34102, 34013, 34018), which added 260 new properties to its inventory compared to 159 new property listings added during June 2019. But supply is simply not keeping up with demand as overall inventory for the Naples Beach area decreased 16.1 percent.
The market data indicates that now is a good time to sell, as the number of showings and pending sales are increasing, and prices are also rising! If you are looking to buy or sell a home in Naples, I have the ability to provide a virtual or live showing, an accurate market comparison or negotiate a sale. I can ensure your next purchase or sale in the Naples area is a success.
It would be my honor to assist you and your Friends and Family with your real estate needs. Please contact me at David@DavidFlorida.com or 239-285-1086.
Heightened Buyer Demand Influences Naples Real Estate Market
REALTORS® kept busy in May as pent-up demand for homebuying resulted in a remarkable spike in buyer interest. As a result, showings in May increased 244 percent compared to showings in April. As remarkable, showings in May outpaced showings a year ago, which increased 5.5 percent compared to May 2019. According to the May 2020 Market Report released by the Naples Area Board of REALTORS® which tracks home listings and sales within Collier County (excluding Marco Island), broker analysts reviewing the report found the data reflected the everlasting desirability of the Naples real estate market, even during the COVID-19 outbreak.
“Despite the restrictions of social distancing, with many REALTORS® conducting virtual open home tours and adopting electronic signings and virtual closings, 599 buyers purchased homes in Naples last month. REALTORS® and brokerages adapted to the challenges at hand - and will continue in the future – to ensure the real estate industry is a leading factor in our country’s economic recovery,” remarked the NABOR® President.
“The Naples real estate market is extremely resilient,” said local Broker. REALTORS were able to adapt fast as new buyers started pouring into the market in May. This is apparent because the report shows pending sales in May increased 90 percent compared to pending sales in April.”
Upon reviewing the May Market Report, another local Broker, commented, “Buyers have less negotiating power because inventory in the Naples area continues to decline. This shrinking inventory led to modest price increases in the single-family home market during May, which saw a 31.8 percent decrease in inventory and 3.7 percent increase in median closed prices compared to May 2019.
Prices held stable, in spite of the outlying issues, with the year-to-date median closed price up a modest 2.3 percent. The report showed only 103 price increases during May out of the 5,116 properties in inventory, and there were fewer price reductions in May than reported in April.
Overall inventory during May decreased 27.2 percent to 5,116 homes from 7,023 homes in May 2019. However, while there was a 4 percent decrease in new listings of single-family homes in May, there was a 6.5 percent increase in new listings of condominiums.
We have a 5.8-months’ supply of single-family homes in Naples, Buyers don’t have as many single-family home choices right now so they should not hesitate to make an offer if they find a home they love.
The NABOR® May 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 |
May 2019 |
May 2020 |
CHANGE |
| Total closed sales (month/month) |
1,188 |
599 |
-49.6% |
| Total pending sales (homes under contract) (month/month) |
1,218 |
1,167 |
-4.2% |
| Median closed price (month/month) |
$354,450 |
$333,000 |
-6.1% |
| Total active listings (inventory) |
7,023 |
5,116 |
-27.2% |
| Average days on market |
107 |
91 |
-15.0% |
| Single-family closed sales (month/month) |
595 |
314 |
-47.2% |
| Single-family median closed price (month/month) |
$410,000 |
$425,000 |
+3.7% |
| Single-family inventory |
3,608 |
2,461 |
-31.8% |
| Condominium closed sales (month/month) |
593 |
285 |
-51.9% |
| Condominium median closed price (month/month) |
$270,000 |
$260,000 |
-3.7% |
| Condominium inventory |
3,415 |
2,655 |
-22.3% |
Historically, some sellers in Naples take their homes off the market after season, and May inventory and pending sales activity always reflected this behavior. However, COVID-19 left many sellers uncertain about the real estate market. With the quarantine recommendations in place, fewer sellers listed homes during May. Despite an inventory drop, pent-up demand unleashed a new set of buyers in May, which changed history. May’s pending sales activity, a measure of signed contracts and not closings, increased 90 percent compared to April 2020, despite tight supply.
Heightened buyer demand is also evident in the number of Days on Market for May as reflected in a decrease of 15 percent to 91 days on market compared to May 2019, which reported 107 days on market.
“There was a significant number of high-end pending sales in May,” said a local Broker, who added that the stock market has come back from a low of 18,000 in late March to over 25,000 at the end of May. “The impact of the stock market rebound renewed consumer confidence in May with a certain percentage of wealthy individuals looking to diversify their portfolio and invest in real estate again.”
Another local Broker is optimistic that summer sales will be strong in Naples, but added “even if a second surge of coronavirus cases emerges that force new restrictions, REALTORS® and the public have become very adept at using technology like virtual showings and electronic closings, which can help overcome the challenges that might affect home sales activity in Naples.”
If you are looking to buy or sell a home in Naples, I have the ability to provide a virtual showing, an accurate market comparison or negotiate a sale, especially in the unusual circumstances of this health crisis and its challenges. I can ensure your next purchase or sale in the Naples area is a success. .
Warm Regards,
David
Naples Area Real Estate Activity April 2020 compared with April 2019.
- Overall Inventory down 29%
- Overall Pending Sales down 54%
- Median Closed Price up .3%
- Overall Closed Sales down 29%
- Days on Market down 11%
