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%
Naples, Fla. (January 17, 2020) – According to the 2019 Year End Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), existing home sales through December 2019 are the highest in a decade.Overall closed sales in 2019 increased 5.6 percent to 10,244 closed sales compared to 9,704 closed sales in 2018. In comparison, the only other year that came close to reaching this stellar sales activity was 2015, which had 10,154 closed sales.
Overall pending sales in 2019 also broke a record during the last decade; resulting in 12,604 total pending sales, a 9.4 percent increase over 2018, which reported 11,520 pending sales.
The 2019 Year End Market Report showed closed sales in 2019 increased in all but the $2 million and above price category, which had a 4 percent decrease to 523 closed sales compared to 544 closed sales in 2018. Of those in this price category, 376 were for single-family homes, and according to a Broker. “The MLS further revealed that 14 single-family homes priced above $4 million closed in December 2019 compared to just 7 in 2018.”
Condominium closed sales held steady with a 1.9 percent increase in 2019 to 5,085 compared to 4,990 in 2018, but broker analysts reviewing the year-end report anticipate closed sales of condominiums in January will be much higher, especially since pending sales for condominiums increased 28.8 percent in December.
A breakdown of December’s closed sales by area showed Naples Beach reported the highest increase in closed sales during December with a 59.1 percent increase to 140 closed sales compared to 88 closed sales in December 2018. Closed sales by zip code revealed 34113 and 34108 commanded impressive increases, 62.3 percent and 61.5 percent, respectively, in December 2019 compared to December 2018.
While inventory fell 21 percent in 2019 to 5,401 properties compared to 6,801 properties in 2018, the Collier County market is still commanding a much higher supply than the state’s average levels (as reported by Florida Realtors®). As such, the Market Report showed Collier County enjoyed 6.2 months of supply in the single-family home market during December, while the state reported 3.6 months of supply for the month. Likewise, the report showed 6.4 months of supply in the condominium market for December compared to 5.5 months of supply statewide.
Interestingly, inventory levels dropped in all price categories except in the $2 million and above condominium market, which reported a 16.3 percent increase in inventory during December.
The NABOR® YE 2019 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
|
YE 2018
|
YE 2019
|
CHANGE
|
|
Total closed sales (year/year)
|
9,704 |
10,244 |
+5.6% |
| Total pending sales (homes under contract) (year/year) |
11,520 |
12,604 |
+9.4 |
|
Median closed price (year/year)
|
$338,000 |
$332,514 |
-1.6% |
|
Total active listings (inventory)
|
6,801 |
5,401 |
-20.6% |
|
Average days on market
|
95 |
101 |
+6.3% |
|
Single-family closed sales (year/year)
|
4,714 |
5,159 |
+9.4%
|
|
Single-family median closed price (year/year)
|
$425,000 |
$415,000 |
-2.4% |
|
Single-family inventory
|
3,479 |
2,678 |
-23.0% |
|
Condominium closed sales (year/year)
|
4,990 |
5,085 |
+1.9% |
|
Condominium median closed price (year/year)
|
$265,000 |
$260,000 |
-1.9% |
|
Condominium inventory
|
3,322 |
2,723 |
-18.0% |
Median closed prices in 2019 decreased 1.6 percent to $332,514 from $338,000 in 2018. Only the $2 million and above price category had a significant increase of 6.7 percent during the year. But, on a month to month comparison, median closed prices in December 2019 increased 6.7 percent to $348,000 compared to $326,000 in December 2018. However, the overall average closed price in Collier County during 2019 increased 19.3 percent to $772,380.
Showings remain on the rise as well. There were 10 showings for each listing reported in December 2019 compared to just 7 in December 2018.
| CATEGORIES |
DEC 2018 |
DEC 2019 |
CHANGE |
| Total closed sales (month/month) |
702 |
929 |
+32.3% |
| Total pending sales (homes under contract) (month/month) |
676 |
817 |
+20.9% |
| Median closed price (month/month) |
$326,000 |
$348,000
|
+6.7% |
| Total active listings (inventory) |
6,801 |
5,401 |
-20.6% |
| Average days on market |
94 |
97 |
+3.2% |
| Single-family closed sales (month/month) |
362 |
476 |
-6.3% |
| Single-family median closed price (month/month) |
$395,900 |
$439,000 |
+10.9% |
| Single-family inventory |
3,479 |
2,678 |
-23.0% |
| Condominium closed sales (month/month) |
340 |
454 |
+33.5% |
| Condominium median closed price (month/month) |
$255,000 |
$262,500 |
+2.9% |
| Condominium inventory |
3,322 |
2,723 |
-18% |
Broker analysts agreed that new state actions, led by Governor Ron DeSantis, to address water quality issues during 2019 made a significant impact in local real estate activity during 2019, especially during the summer months.
On whether an election year is a good time to buy a home, broker analysts contend that stable pricing, great financing rates, and above state-level months of supply in inventory are three great reasons for Naples real estate agents to be optimistic in 2020. Of course, location shouldn’t be overlooked, as well.
By Meghan Belnap
RISMEDIA, Tuesday, November 05, 2019— If you want to sell your home, you’ve got to make a good first impression. Doing so requires not just a great deal of preparation, but some professional oversight.
Before you decide to list your home on the market, you’ll definitely want to have it checked out by these professionals:
Foundation Expert
One of the surefire ways to scare off a potential buyer is to have foundation issues. Problems with your foundation are neither easy to fix nor cheap, so it’s always a good idea to know if your home has them before you put it on the market. A good foundation expert will let you know exactly what the problem means for your home and what steps you can take to fix it before you show your home to potential buyers.
A Professional Roofer
While a bad roof isn’t necessarily a deal-breaker for some buyers, it’s something that’s going to cost you a lot of money before you close on a home. In fact, you’re almost certainly going to have to repair any roof problems before your buyers can get approved for an FHA loan so you’ll want to check with a roofing contractor long before you sell. A good contractor is going to not only let you know what’s going on with your roof, but let you know your options and the timeline for fixing them.
Plumber
Your home’s plumbing can cause more problems for a potential sale than you might realize. Not only is bad plumbing something that any buyer is going to want to be fixed before they close, but it can scare off skittish buyers who are afraid that the bad pipes are harbingers of worse problems. A good plumber will be able to pinpoint issues with your plumbing, let you know what really needs to be fixed, and help you to figure out a plan to get your plumbing under control before your first showing.
Electrician
You’ll definitely want to consult with an electrician. A few bad lights might not mean much to you now, but they can be signs that major work needs to get done. Electrical work is usually beyond the scope of what most homeowners can do on their own, so getting a professional assessment is a good way to determine exactly what needs to be spent before the home can be sold.
Getting all of these professionals in to look at your home is a good way to ensure that you won’t get any surprises when your potential buyers have their own inspections done. With forewarning, you can defray some of the repair costs and build others into the sales price of the house. Best of all, though, you’ll be able to deal with any major problems at your pace rather than that of your buyers.
This was originally published on RISMedia’s Housecall.
For August 2019, REALTOR.com reported over 9.2 million search result page views in the Bonita Springs and Estero markets, which is a 4 percent month-over-month increase. Continued buyer interest in Bonita Springs and Estero was also supported by the notable 16 percent increase in pending sales for combined single family homes and condominiums. For closed sales, August 2019 saw the strongest sales in the $1 to $2 million price segment for single-family homes. “Buyer interest in the market continues for several reasons,” stated a Broker. “Opportunities for home affordability are greater in Bonita Springs and Estero than some of our surrounding areas, which further encourages year round residents to relocate to the area, as well as new businesses.” “Additionally, the upcoming October 15th policy change regarding FHA loan approval of condominium units will also generate additional buyer interest in the condo market.”
While pending and closed sales see continued activity, buyers looking in Bonita Springs and Estero are also facing low inventory numbers, a trend that has been ongoing for several months in 2019. For single family homes and condominiums, each market segment showed more than a 24 percent decrease in inventory for August 2019 compared to this time last year. “Bonita Springs and Estero continues to be the ‘sweet spot’ between Naples and Ft. Myers,” stated a Broker.“These markets are being searched online daily and inventory levels continue to decrease as we move in the autumn buying season
For buyers looking to purchase a new construction home, there are still many choices available, but it’s critical to bring a REALTOR® on a home search in new construction communities. “When buying new construction, many buyers believe it’s a good idea to not have a REALTOR® and to use the builder representative. The thought process is that it can save them money, which is unfortunately false,” stated a Broker. “Most builders will advertise base prices and have a list of additional prices for upgrades and changes to their floor plans. A REALTOR® who has experience with new construction can help the buyer negotiate the prices of these upgrades and changes. He added, “the bottom line is that representation for the buyer in a new construction home transaction is just as important as in a resale home transaction.”
Low inventory numbers also present an opportunity for homeowners who want to sell now. “Sales and buyer interest in the Bonita Springs and Estero markets continue to be active year round as sales grow, especially in the $500K to $1 million price segments, “stated a Broker. “Homeowners who wish to sell have an opportunity to list and sell now. There is no reason to wait until January, as buyers have been looking all summer and are here now”.
Additionally, in the Bonita Springs and Estero markets, the median sales price increased 9.7 percent for single family homes, but decreased 7.5 percent for condominiums. The days on market increased 39.2 percent for single family homes and 22.7 percent for condominiums. In August 2019, there were 124 price repositions for single family homes and 91 price repositions for condominiums in Bonita Springs and Estero. The Bonita Springs-Estero REALTORS® August 2019 Report shows these overall findings for both single family and condominiums combined.
For more information and to arrange a visit to any of these luxury homes, call David at 239-285-1086 or email david@davidflorida.com.
