Naples Property Preview Blog

 

Feb. 25, 2021

No Home Left Behind: Buyers Descend on Naples Housing Market in January

Explore Kalea Bay in North Naples

Explore Kalea Bay in North Naples

Naples, FL – Buyers fleeing frigid weather descended on Naples in full force during January, which reported a 38.5 percent increase in overall pending sales (homes under contract) to 2,210 pending sales from 1,359 pending sales in January 2020, according to the January 2021 Market Report, released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). Not surprisingly, as a result of impressive activity during the fourth quarter of 2020, overall closed sales in January increased 49.7 percent to 1,109 closed sales from 741 closed sales in January 2020, leaving agents with 2.6 months of inventory at the end of the first month of the new year.

“Buyer demand is remarkably high,” said Molly Lane, Senior Vice President at William Raveis Real Estate. “We are beginning to see some ‘over-asking price’ offers.”

Jeff Jones, Broker at Keller Williams Naples, agreed with Lane and responded that “there were also more price increases in January than decreases. Jones continued, “REALTORS® are trained to counsel sellers on setting realistic home prices; but because inventory is so limited right now, asking prices for many homes in Naples during January were higher than appraised values.”

According to the report, showings in Naples increased 36 percent to 57,468 in January from 42,299 in January 2020. This was the highest number of showings recorded in one month over the past 12 months.

Overall inventory in January fell 59.7 percent to 2,750 homes from 6,828 homes in January 2020. The radical and continuous reduction in inventory is changing the dynamic of the transaction. According to broker analysts, in addition to more multiple offer encounters, their agents are reporting an increase in the use of escalation clauses, which is a clause stating that the buyer will pay a certain amount of money above the highest offer the seller receives, as well as other unique buying tactics such as the buyer writing a personal letter to a seller expressing their deep interest in the home.

“I suspect we may soon see more homes listed with an offer window [a limited amount of time, typically a week, wherein the seller will give all potential buyers a window in which to submit offers prior to a response],” said Budge Huskey, CEO, Premier Sotheby’s International Realty.

The median closed price in January increased 14.7 percent to $395,000 from $344,500 in January 2020. And while this is $10,000 lower than the median closed price reported in December, broker analysts reviewing the January report feel the market’s inability to keep up with demand and the 65.1 percent increase in closed sales for homes above $2 million in January will have a substantial impact on where prices go in the coming months.

The NABOR® January 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: 

 

Spencer Haynes, Vice President of Business Development and Broker with John R. Wood Properties, added that he is seeing an increase in revitalization efforts in older communities throughout Naples. “There is great potential within our more established neighborhoods that have no land for new home builds. Many of these older homes are ideal for a complete remodel or possibly a tear down and spec home.”

Huskey concurred and remarked that we are at a point where “homeowners in these older neighborhoods are starting to feel confident they can increase the value by renovating before they sell or selling to a teardown buyer.”

If you're in the market to buy or sell your home in Southwest Florida, give me a call for assistance. I can do a market comparison and determine a fair and reasonable listing price, both with and without renovations. I can also identify properties best suited for your needs and negotiate a purchase price that fits your budget. Discover more at www.NaplesPropertyPreview.com or call Susan Sanderson at 239-821-2370

 

Posted in Market Report
Feb. 13, 2021

Housing Market Soars in 2020 Despite the Pandemic

Search Isles of Collier Preserve Homes For Sale

“Because of the lockdowns up north, our market experienced a 38 and 54 percent drop in pending sales during March and April [respectively],” reported Mike Hughes, Vice President of Downing-Frye, Realty, Inc., and a panelist at the Naples Area Board of REALTORS®’ 2020 Year-End Market Conference on February 2, 2021. Hughes shared the virtual stage with Budge Huskey, CEO, Premier Sotheby’s International Realty; Adam Ruud, Broker, Domain Realty; and Jeff Jones, Broker at Keller Williams Naples.

“It wasn’t until May that I realized ‘the sky isn’t falling’,” said Hughes. “REALTORS® adapted quickly and became better at marketing using FaceTime, virtual tours and other creative ways to show properties. It paid off because according to the annual report, pending sales in Naples had an incredible run from July to December, with an average of 1,400 pending sales during each of those months.”

Hughes pointed out that there were 7,104 pending sales from January through June, but 9,150 from July through December. “I’ve never seen this type of improved activity in the second half of a year. We were certainly in unchartered waters in 2020.”

Pending sales for 2020 increased 28.8 percent to 16,254 pending sales from 12,623 pending sales in 2019. “These results speak volumes to the resiliency of the industry, to REALTORS® in our area, and to the desirability of our local market,” added Hughes.

Discussing closed sales for 2020, Adam Ruud began his presentation by stating, “Back in March, we faced extreme uncertainty; but REALTORS® thrived in the midst of a goliath-like challenge, and the Naples housing market emerged as the catalyst and backbone of what was an uncertain economy.”

Closed sales for 2020 increased 19.4 percent to 12,300 closed sales from 10,302 closed sales in 2019. “Closed volume for the year was also remarkable,” added Ruud, “There was a 41 percent increase in closed volume year over year, which equated to a remarkable increase from $12.9 billion in 2019 to $18.2 billion in 2020.”

Looking at a quarterly analysis of closed sales during 2020, the annual report showed that the first quarter had an increase of 21.1 percent in closed sales, while quarter two had a decrease of 29.4 percent. Ruud pointed out that “as Mike Hughes mentioned, the housing market rallied during the third and fourth quarters, and we had increases in closed sales of 40.6 percent and 55.5 percent [respectively].”

“Even facing many unknown challenges during the second quarter, we saw incredible efforts to close transactions despite many lockdown obstacles and economic uncertainty, which further proved to me the amazing resiliency and desirability of our area’s housing market,” said Ruud, who went on to add, “No one expected us to surge past 2019 sales levels in the third and fourth quarter like we did. It’s been nothing short of remarkable. In fact, October was the top month for closed sales in 2020, with a 65 percent increase in closed sales compared to October 2019.”

Closed sales of homes priced $2 million and above outperformed all other price points tracked by NABOR® in 2020. With a notable 62.4 percent increase over 2019, Ruud said, “the luxury housing market in Naples proved to be an investment of choice in 2020.”

Looking at closed sales historically, Ruud pointed out that the desire to experience the coastal lifestyle has been growing in demand for many years as our data shows only 3,973 closed sales in 2007 compared to a whopping 12,300 closed sales in 2020.

Discussing home prices in Naples, Budge Huskey said, “while median prices in our area increased significantly [11.4 percent overall], this wasn’t out of line with what was witnessed on a national basis because NAR [National Association of Realtors®] reported that median closed prices in America went up 12 percent during 2020.”

“We have been beneficiaries of a tragic event that just accelerated real estate across the board in Florida,” he added. For perspective, Huskey added, “Average sales prices in the area rose 16.1 percent. I think all would agree that an increase of roughly $100,000 in one year in average sales price in any market is extraordinary.”

Median closed prices for single-family homes in the Naples Beach area saw the greatest leap in 2020 with an increase of 27.1 percent. “This was due to unprecedented demand in high-end real estate. These are the people who are affluent, can move quickly, had the capital, and they took advantage of it in 2020,” added Huskey.

Affirming what other presenters had already said, Huskey agreed that the second half of the year performed much better, which, according to Florida Realtor® data, resulted in a 142 percent increase in closed sales of homes over $1 million in Southwest Florida. “With active listings expected to decrease in 2021, there isn’t a reason to suggest we won’t continue to see upward pressure on prices. The good news is that we will continue to be the beneficiaries of high demand this year, with also expected higher average sales prices.”

“If there’s one thing that is kind of a harbinger of possible issues in the future, it’s inventory,” said Jeff Jones. “A year ago we had 7.2 months of supply, and at the end of 2020 we are at 3.1 months of supply. We’ve gone from a balanced market to clearly a sellers market in one year.”

Because of the popularity of single-family homes, that sector of inventory decreased 58 percent in 2020, while the condominium inventory decreased 41 percent. “The patterns of consumption are showing us that people are migrating to single family homes,” added Jones. “However, as we moved on toward the end of the year and it became very difficult to find single-family home options, people continued to want to be here so we saw condominium sales exceed single-family home sales during the fourth quarter.”

Looking at inventory over the last 10 years, Jones pointed out that despite a 57 percent decrease in inventory levels compared to 2019, there were 15,604 new listings added in 2020. “This was the third highest increase in the last 10 years. In fact, the highest number of new listings have occurred in the past three years,” noted Jones. “This tells us that we don’t have a low supply issue necessarily; what we’re facing is definitely a high demand issue.”

The NABOR® YE 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 findings:

The broker panelists agreed that the Naples area housing market soared in 2020 despite the pandemic due to the appeal of the Naples area climate and lifestyle, and record low mortgage rates.

Q: How did COVID affect the 2020 market?

Adam Ruud: “A lot of things have emerged because of COVID, including how we use our homes and where we live. I think it’s enhanced the importance of homeownership.”

Jeff Jones: “Because of COVID, we have found that we can work from anywhere. This has driven a great migration to our area.”

Mike Hughes: “At the start of 2020, we had no idea that this virus was going to impact our market. Within two and half months, the market turned on a dime. On the positive side, we saw how well our industry adapted. Every year has challenges, but what really defines us is how you handle those challenges. I think the membership did a great job adapting in 2020.”

Budge Huskey: “The psychological and behavioral impact the virus had on people was significant. Faced with possible loss of loved ones and money tied up in things they couldn’t enjoy and didn’t truly impact their lives caused many people to ask, ‘What am I doing?’ It was the people who said, ‘one day, I’ll do this’, that reacted to the virus most, and it compelled those people to finally take action in 2020. The virus has people rethinking the priorities in their lives, and many felt ‘being with my family in a beautiful place rather than making more money’ was what really mattered.”

Jeff Jones: “Efforts from Florida Realtors® to get us named as an essential service at the onset of the pandemic so we could operate freely, with caution, in the market helped us tremendously in 2020. Many REALTORS® in other states did not have this opportunity.”

Q: Where did the bulk of real estate activity take place in 2020?

Budge Huskey: “This was a broad brush as every sector benefited. The higher the price, the higher the increase in sales year over year. Yet while the base of the market was strong, the high end was exceptional. We also saw an uptick in buyers from more western states like Texas, Arizona, and even Alaska last year, which is a big change from our traditional Midwest buyers.”

Jeff Jones: “New construction saved us from complete inventory meltdown in 2020. In our rural estates area, we continue to see a lot of new homes being built.”

Adam Ruud: “We only see a fraction of data from new construction, but it’s a very powerful part of our market.”

Mike Hughes: “I was surprised to see more East Coast Floridian buyers in the Ave Maria area who wanted to avoid density. But unlike other buyers, they didn’t end up working remotely, they just became commuters.”

Q: What do you think stood out in the housing market in 2020?

Budge Huskey: “What stood out for me was the first quarter. Ultimately, we are trying to figure out what ‘normal’ should be. If we look at the increase in sales in the first quarter [21 percent] that was a level of activity that was not witnessed in most other markets of the state, or for that matter, in our country. So we were off to the races before COVID hit. I feel more bullish that once we are over this – as we were witnessing a level of desirability and demand that was not necessarily artificial or accelerated – this momentum will continue.”

Mike Hughes: “It’s interesting to see how the local real estate market intertwines with the local economy. Recent headlines said furniture stores are struggling to keep up with demand. That’s just one industry. When real estate drives the economy in an area, it has a positive ripple effect. We really saw this in 2020.”

Q: What advice can you give to homebuyers and sellers in this market?

Mike Hughes: “With a tight inventory, if you’re a homebuyer you have to be prepared to move quickly. Multiple offers are happening and are not rare so going in with a lowball offer is not a good strategy. You must present a realistic offer. If you’re a cash buyer, this helps your offer and gives you a competitive advantage. For sellers, with our tight inventory, if you haven’t listed, your timing is wonderful. We’re trying to find you. Right now the stock market is at an all time high, but if this changes, real estate will always be a great investment.”

Jeff Jones: If there was ever a better time to have a relationship with a REALTOR® to help you manage your expectations in this market, now is the time. We have issues with appraisals, issues with prices on the rise, and issues with demand making inventory go down. A REALTOR® can help you understand the market we are in, help you with your needs and wants, and help you manage your expectations on how to make an offer and proceed through a contract.”

If you're in the market to buy or sell your home in Southwest Florida, give me a call for assistance. I can do a market comparison and determine a fair and reasonable listing price, both with and without renovations. I can also identify properties best suited for your needs and negotiate a purchase price that fits your budget. Discover more at www.NaplesPropertyPreview.com or call Susan Sanderson at 239-821-2370

Posted in Market Report
Jan. 25, 2021

Housing Market Demand Continues ?to Outpace Inventory in December

Search Homes For Sale in the Isles of Collier Preserve

Naples, FL (January 22, 2021) – Eager homebuyers did not waste any time in December as shown by pending sales for homes in the Naples area which leaped 88.6 percent to 1,535 pending sales (homes under contract) from 814 pending sales in December 2019. This spike in buyer interest was also reflected in the 65 percent increase in showings during December, which amounted to an average of 10 showings per listing. According to the December 2020 Market Report, released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), inventory continued to struggle to keep up with growing buyer demand. The number of available homes for sale in December 2020 decreased 49.1 percent to 3,140 homes from 6,163 homes in December 2019.

 

Overall sales in December increased 45.4 percent to 1,396 closed sales from 960 closed sales in December 2019. “As a direct result of the effects of the pandemic, 2020 was one of the first years in history where we saw more buying activity in the second half of the year than during the first half of the year,” said Mike Hughes, Vice President of Downing-Frye, Realty, Inc.

Budge Huskey, CEO, Premier Sotheby’s International Realty, added, “Historic election-year hesitancy regarding changes in administrations has not been reflected by top business leaders or the equity markets, and certainly didn’t dissuade home buying decisions in Naples during December. In fact, in the high-end market, closed sales for homes priced over $2 million increased an astounding 62.4 percent year over year.”

As months of inventory tightened in December to a very low 3.1 months of inventory, broker analysts said they are not concerned that the Naples market resembles the housing market of 2004/2005, when the market boomed, stumbled and fell. There are no signs of a decline in our market.

“The difference is that today’s home sales are not coming from investors. In today’s market, end users are purchasing homes,” said Adam Vellano, West Coast Sales Manager, BEX Realty - Florida. “Not only is the demand real, but we don’t have predatory lenders to worry about. While we expect to see home prices continue to rise, compared to other hot spots in the country, homes in Naples continue to be a great value!”

“Inventory will govern our potential moving forward,” remarked Huskey. “Based on the fundamental strength of our market, I would have thought more foreigners with second homes in the area would be selling this year since travel restrictions prohibit them from entering America, but that hasn’t happened yet.”

“Once more people get the COVID-19 vaccine, I believe we’ll begin to see sellers who were on the fence during the pandemic loosen up and begin to list their homes,” added Hughes. “But this might not be until the second half of the year.”

“Inherent in all the demand in inventory is an increase in price,” said Molly Lane, Senior Vice President William Raveis Real Estate. “Prices today are being driven by a lack of inventory.”

During December, the median closed price increased 18.2 percent to $405,000 from $342,500 in December 2019. An uptick in closed sales of high-end properties during December also drove the average closed price up 43.5 percent to $846,725 from $589,958 in December 2019. But keep in mind that even though median closed prices are rising, list price data extracted from the MLS showed only 506 properties reported a price increase compared to 321 that reported a price decrease during the month.

“People are looking for the type of resort-style living Naples can deliver,” said Spencer Haynes, Director of Business Development and Broker with John R. Wood Properties. “As such, condominium sales increased almost 50 percent during December. Inventory is more plentiful in the condominium market today, especially in the lower price ranges.”

The NABOR® December 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: 

“Inventory is a major concern for new home builders too,” Vellano pointed out. “Many planned developments typically take two to three years to be sold out. Sales are outpacing how fast they can build homes causing some developers to hold back on releasing additional homesites. At this point most, if not all, of their spec homes have been sold too.”

In periods of rapid sales and escalating prices, as is currently happening, appraisals often come in low because they are based on sales that may have occurred six months earlier, which may lower the amount of financing that can be obtained. Jeff Jones, Broker at Keller Williams Naples explained, “For instance, suppose there is a sale at $500,000 with the buyer planning to finance 80 percent of the purchase price so that they have a $400,000 mortgage. If the appraisal comes in at $480,000, then the buyer can only obtain a loan for $384,000 [80 percent of $480,000]. In this case, the buyer will need to cover the additional $16,000 in cash in order to complete the transaction. With inventory in high demand, many buyers are finding ways to cover the additional debt because the current low financing rates keep monthly payments down.”

The allure and reputation of the Naples lifestyle is driving affluent buyers to our market. The overall volume of home sales in the high-end market in Naples is higher than most other areas in Florida. As such, broker analysts predict continued heightened buyer interest and heightened buyer demand, especially in the high-end market, through the first quarter of 2021.

If you're in the market to buy or sell your home in Southwest Florida, give me a call for assistance. I can do a market comparison and determine a fair and reasonable listing price, both with and without renovations. I can also identify properties best suited for your needs and negotiate a purchase price that fits your budget. Discover more at www.NaplesPropertyPreview.com or call Susan Sanderson at 239-821-2370

Posted in Market Report
Dec. 18, 2020

Upward Trend in Naples Real Estate Market Continues

Explore Pelican Bay Properties For Sale

Naples, FL (December 18, 2020) – According to the November 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 an upward trend in both showings and closed sales. In November 2020, there were 36,508 showings, which represents a 43 percent increase over the same period in 2019. Closed sales for the overall market increased 58.8 percent to 1,126 closed sales in November 2020, up from 709 closed sales in November 2019.

 

The sustained market demand is placing pressure on real estate pricing, with notable increases in median and average closed prices of homes when comparing month over month statistics. At $669,409, the year-to-date average closed sales price in November 2020 reflects a more accurate and modest growth with a 12.7 percent increase over November 2019 year-to-date average closed sales price of $594,065.

It is important to understand the difference between the “average” price of a home and the “median” price of a home. The “average” price is calculated by adding all the closed prices for homes sold in a specific area within a specified time frame and dividing that total by the number of properties sold. The “median” price is the price in the middle of a data set where exactly half the houses are priced for less and half are priced for more. Note: the average price may be skewed due to outliers in the data (if a property sold for a price far higher or lower than typical).

Broker analysts agree there are multiple driving forces influencing buyers. In addition to buyers coming from out of state, local homeowners are taking advantage of low interest rates and upgrading to more spacious homes and condominiums within their existing communities. Homes priced over $2,000,000 saw the strongest increase in sales, with a 51.6 percent increase in November 2020 over the same time period in 2019.

“Mortgage rates have once again dropped to a record low, with a fixed-rate average of 2.67 percent. Even though housing prices are going up and buyers are upgrading to more expensive homes, mortgage payments are going down,” said Jeff Jones, Broker at Keller Williams Realty.

Collier County continues to be among the most desirable locations in the state. “Regardless of the availability of the COVID-19 vaccine, employees are being encouraged to work remotely. This allows them to upgrade their quality of life and they are clearly choosing to live, work and play in Naples,” said Molly Lane, Senior Vice President at William Raveis Real Estate.

Mike Hughes, Vice President of Downing-Frye, Realty, Inc agreed. “Although the area’s traditional seasonal patterns have been disrupted, winter residents are continuing to arrive in the Naples area market. This is a strong indication of consumer confidence in Southwest Florida.”

“With the many uncertainties in the market, the Naples Area Board of Realtors remains a steady resource for our REALTORS®, providing access to the latest market data, industry education, legal forms, and professional guidelines,” said Corey McCloskey, VP of Operations at John R. Wood Properties, and the 2021 NABOR® President and Media Relations Committee Chair.

“Naples’ high quality of life, favorable business policies, and strong local government have always been appealing to home buyers. But we are in unprecedented times with housing demand outpacing supply,” said Dominic Pallini, Broker at Vanderbilt Realty of Naples. “First time home buyers should evaluate their options as the market grows.”

If you're in the market to buy or sell your home in Southwest Florida, give me a call for assistance. I can do a market comparison and determine a fair and reasonable listing price, both with and without renovations. I can also identify properties best suited for your needs and negotiate a purchase price that fits your budget. Discover more at www.NaplesPropertyPreview.com or call Susan Sanderson at 239-821-2370

Posted in Market Report
Nov. 22, 2020

Naples Real Estate Market Sees Another Record Month in Closings

Homes For Sale in the Isles of Collier Preserve

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 Mike Hughes, Vice President of Downing-Frye, Realty, Inc. "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.

"Home pricing will likely continue to rise", said Dominic Pallini, Broker at Vanderbilt Realty of Naples. "Today's buyer is willing to pay more for the comfort and quality of life that Naples offers. "Additionally, we are seeing new construction come online in the local market, which is supporting the increased demand."

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%

"Despite the uncertainty that the coronavirus pandemic has brought to the country, there are many positive trends such as low-interest rates that have continued to support the Naples real estate market and the overall economy," said Bill Coffey, Broker with Amerivest Realty. "With buyers becoming less seasonal, the market has remained stable."

If you're in the market to buy or sell your home in Southwest Florida, give me a call for assistance. I can do a market comparison and determine a fair and reasonable listing price, both with and without renovations. I can also identify properties best suited for your needs and negotiate a purchase price that fits your budget. Discover more at www.NaplesPropertyPreview.com or call Susan Sanderson at 239-821-2370.

Posted in Market Report
Oct. 26, 2020

Best September on Record for Naples Housing Market

Homes for Sale in the Isles of Collier Preserve

Naples, Fla. (October 23, 2020) - According to the September 2020 Market Report, released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), performance in several key areas was at a 20-year high compared to activity reported during any other September on record. As such, closed sales increased 52.9 percent to 1,096 closed sales in September 2020 from 717 closed sales in September 2019. Pending sales activity also increased a whopping 83.4 percent to 1,509 pending sales in September 2020 from 823 in September 2019.

"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."

Confirming the activity, Budge Huskey, CEO, Premier Sotheby's International Realty, also remarked, "beyond pent-up demand from COVID-19, there is a clear change in buying behavior as a result of the pandemic resulting in a departure from normal seasonality. It's unclear whether this unprecedented pace of sales is sustainable, as some of these buyers were held over from last winter season while others appear to be buying early in advance of the upcoming season."   

Huskey added, "the National Association of REALTORS® forecasted sales in 2020 would increase by only 1 percent; yet there are currently hot markets around the country benefiting from the environment reporting 3 and 4 percent increases to date for the year. In comparison, the incredible allure of the Naples market is reflected in closed sales up 7.5 percent since January compared to the same time frame in 2019."

"I believe that the pandemic pushed some people to make buying decisions a few years early," said Adam Vellano, West Coast Sales Manager, BEX Realty - Florida, who added that "many buyers from northern states have said they are concerned that proposed tax increases could make long-term retirement difficult for them. Instead, they are opting to move to Florida before their home states get aggressive with tax adjustments."

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. Spencer Haynes, Director of Business Development and Broker with John R. Wood Properties 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 Coco Amar, VP, Strategic Growth, South Florida, William Raveis Real Estate. "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 2019.

Upon reviewing the report, Jeff Jones, Broker at Keller Williams Naples, remarked "30 percent of the inventory available in September has been on the market for over 150 days. In many cases, the properties that have been on the market for a long time will require considerable repairs or renovations, which is why they have not sold. Some may not be priced correctly. Working with a REALTOR® can help you negotiate an offer that takes into account the property's condition." 

If you're in the market to buy or sell your home in Southwest Florida, give me a call for assistance. I can do a market comparison and determine a fair and reasonable listing price, both with and without renovations. I can also identify properties best suited for your needs and negotiate a purchase price that fits your budget. Discover more at www.NaplesPropertyPreview.com or call Susan Sanderson at 239-821-2370.

Posted in Market Report
Sept. 19, 2020

Summer Housing Market Momentum Expected to Continue into Fall

Downtown Naples Square Condo For Sale

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 Adam Vellano, West Coast Sales Manager, BEX Realty - Florida. 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.

Vellano remarked that "incentives offered by new home builders after the lockdown restrictions were lifted are starting to go away and these new home prices are also increasing."

Phil Wood, President & CEO of John R. Wood Properties, added that "Eighty-one percent [793] of the total price changes reported in August [970] were decreases in price. But, there were fewer price decreases in August than in June or July. These price decreases indicate that some homeowners might have overpriced their homes when they initially listed them and the adjustments in August now reflect more competitive prices. That's not to say that these homeowners won't see prices increase again as agents report many multiple offer situations occurring across all price categories."

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.

"I think we've turned a corner and can safely say that we are now in a seller's market," said Bill Coffey, Broker Manager of Amerivest Realty Naples. "We have 4.8 months of inventory and median closed prices are on the rise." Florida Realtors® considers the benchmark for a balanced market (favoring neither buyer nor seller) is 5.5 months of inventory.

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%

According to Vellano, "buyers seeking single-family homes were on the rise this summer because of changing lifestyle preferences caused by the pandemic. Plus, those who now work from home or have children that attend school from their homes want more space. Once we have a better understanding of how to medically treat people with coronavirus and have a vaccine for it, I think people will begin to explore condominium living again."

The August report confirms Vellano's statement, as sales of properties priced above $2 million increased the most (18 percent) compared to other price categories tracked in August.

"This is a great time for high-end buyers to invest in real estate," said Wood. "Because interest rates are low, a 50 percent deposit on a $2 million home means loan payments could be as low as $4,200 a month!"

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're in the market to buy or sell your home in Southwest Florida, give me a call for assistance. I can do a market comparison and determine a fair and reasonable listing price, both with and without renovations. I can also identify properties best suited for your needs and negotiate a purchase price that fits your budget. Discover more at www.NaplesPropertyPreview.com or call Susan Sanderson at 239-821-2370.

Posted in Market Report
Aug. 25, 2020

Naples Housing Market Sees Summer Sales Surge

Isles of Collier Preserve Homes For Sale

The Naples housing market experienced a continued surge in activity during July, which resulted in a 57.3 percent increase in pending sales (homes under contract) for the month. Closed sales during July increased 35.4 percent compared to July 2019 - greatly surpassing June's closed sales activity following the lifting of COVID-19 restrictions. However, a decreasing supply of inventory, which broker analysts believe is caused by heightened homebuying interest this summer, is making it difficult to keep up with the strong buyer demand.

"Compared to markets on the east coast of Florida and in big cities like Chicago and New York, the Naples real estate market is quite affordable," said Spencer Haynes, Director of Business Development and Broker with John R. Wood Properties. "People aren't just looking for homes in low density areas in Florida, they want to live in a town that fits their lifestyle. And Naples provides a much better lifestyle for the money."

The tapestry of out-of-state license plates on local roads may be an unfamiliar summer sight to local residents, but according to broker analysts reviewing the July 2020 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), these visitors are here to do more than just golf and visit the beach this summer.

"A considerable number of buyers already looked at homes during season [January and February], prior to COVID-19 restrictions," said NABOR® President Lauren Melo, PA, Licensed Real Estate Broker with Florida's Realty Specialists. "They watched and waited during those months of restrictions and are now back to buy a home this summer."

There were 15,634 showings during July, less than half the number of showings during June (36,912), yet pending sales increased which indicates that properties were purchased virtually, sight unseen. July's pending sales spiked to 1,446 pending sales in July 2020 from 919 pending sales in July 2019.

The majority of sales that resulted in the 35.4 percent increase in overall closed sales during July occurred in the single-family home market, which saw a 42.8 percent increase in closed sales compared to a 27.3 percent increase reported in the condominium market. Concern over the pandemic has compelled many people to spend the majority of their time indoors, at home. As a result, buyers are looking for single-family homes that offer more personal space, and more space to work from home and home-school children. They want their own backyard, their own private pool, and private garages that single-family homes offer.

Overall inventory decreased 28.8 percent in July to 4,390 properties from 6,168 properties in July 2019. However, many sellers were not hesitant about entering or staying in the market this summer. A steady rise in consumer confidence resulted in 1,193 new listings added to the overall inventory during July (a 21.7 percent increase compared to July 2019). Of those 1,193 new listings, 572 were single-family homes and 621 were condominiums. The report also showed fewer homes were terminated/expired/withdrawn from the MLS in July (599) compared to June (1,677).

For those who are considering selling, now is a good time to jump in the market to take advantage of the high demand for Naples property, according to broker analysts. Plus, with fewer homes on the market for buyers to purchase, this may be the time for your house to stand out from the crowd with less competition and more eyes on your property.

"This is a summer of surprises. New listings surged, closed sales surged, pending sales surged, median closed priced increased and days on the market dropped," said Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., who added, "There are several factors in play that are fueling the strong summer real estate activity: 1) winter visitors pushed off buying until the summer; 2) people's ability to work remotely is convincing them that it's okay to relocate; 3) more East Coast residents are migrating to our West Coast; 4) Naples continues to be a more affordable alternative to high-tax living in other areas of the country; and 5) interest rates are low."

While the overall median closed price for July increased 13.5 percent to $368,750 from $325,000 in July 2019, the report also showed there were 829 properties that reduced their list prices during July. It appears sellers recalibrated their pricing and/or were striking new deals.

The report showed closed sales of properties priced above $500,000 increased over 50 percent in July, with the $500,000 to $1 million price category reporting the highest increase (99.1 percent) to 223 closed sales in July 2020 from 112 closed sales in July 2019.

The NABOR® July 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
July 2019 July 2020 CHANGE
Total closed sales (month/month) 852 1,154 +35.4%
Total pending sales (homes under contract) (month/month) 919 1,446 +57.3%
Median closed price (month/month) $325,000 $368,750 +13.5%
Total active listings (inventory) 6,168 4,390 -28.8%
Average days on market  104 92 -11.5%
Single-family closed sales (month/month) 446 637 +42.8%
Single-family median closed price (month/month) $405,000 $462,000 +14.1%
Single-family inventory 3,203 1,957 -38.9%
Condominium closed sales (month/month) 406 517 +27.3%
Condominium median closed price (month/month) $240,000 $272,500 +13.5%
Condominium inventory 2,965 2,433 -17.9%

"Single-family home inventory dropped 38.7 percent in July to 1,957 homes," remarked Melo. "This is the lowest it's been since October 2015. But even at this level, Naples has 4.5 months of supply in the single-family home sector."

In comparison, Naples had 5.2 months of supply in the single-family homes sector in June, which was much higher than Florida Realtors® statewide reported June single-family home figure - 2.8 months of supply.

According to Florida Realtors®, "The benchmark for a balanced market (favoring neither buyer nor seller) is 5.5 months of inventory." The July 2020 Market Report released by the Naples Area Board of REALTORS® (NABOR®) showed 5.2 months of inventory (single-family homes and condominiums).

Even though interest rates on mortgages remain low, 43 percent of July's closed sales were cash sales.

"The coronavirus pandemic slowed the housing market in March and April with its lockdowns and restrictions," said Hughes, who was referring to a comparative look at closed sales year-to-date. The July report showed 6,226 closed sales between January 2020 and July 2020 compared to 6,332 closed sales between January 2019 and July 2019. "I believe that, by the end of August, our market will be on track to outperform 2019 year-to-date sales."

If you're in the market to buy or sell your home in Southwest Florida, give me a call for assistance. I can do a market comparison and determine a fair and reasonable listing price, both with and without renovations. I can also identify properties best suited for your needs and negotiate a purchase price that fits your budget. Discover more at www.NaplesPropertyPreview.com or call Susan Sanderson at 239-821-2370.

Posted in Market Report
July 24, 2020

June Market Activity Sets the Stage for Strong Summer Sales

Search Property For Sale in Sunny Naples FL

Naples, Fla. (July 24, 2020) - 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 (excluding Marco Island), 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 Budge Huskey, CEO, Premier Sotheby's International Realty. "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 was 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. Bill Coffey, Broker Manager of Amerivest Realty Naples, 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."

Coffey's comment was validated by other brokers reviewing the report including Huskey and Phil Wood, President & CEO of John R. Wood Properties, who both 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.

Wood 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."

The NABOR® June 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
June 2019 June 2020 CHANGE
Total closed sales (month/month) 923 881 -4.6%
Total pending sales (homes under contract) (month/month) 911 1,469 +61.3%
Median closed price (month/month) $330,000 $357,000 +8.2%
Total active listings (inventory) 6,547 4,739 -27.6%
Average days on market  104 96 -7.7%
Single-family closed sales (month/month) 484 498 +2.9%
Single-family median closed price (month/month) $398,450 $437,500 +9.8%
Single-family inventory 3,382 2,215 -34.5%
Condominium closed sales (month/month) 439 383 -12.8%
Condominium median closed price (month/month) $265,000 $270,000 +1.9%
Condominium inventory 3,165 2,524 -20.3%

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.

If you're in the market to buy or sell your home in Southwest Florida, give me a call for assistance. I can do a market comparison and determine a fair and reasonable listing price, both with and without renovations. I can also identify properties best suited for your needs and negotiate a purchase price that fits your budget. Discover more at www.NaplesPropertyPreview.com or call Susan Sanderson at 239-821-2370.

Posted in Market Report
May 24, 2020

April Report Shows Naples Real Estate Market Held Its Value During Pandemic

Naples, Fla. (May 22, 2020) - Coronavirus slowed real estate market activity in April as expected during Florida's safe-at-home restrictions. According to the April 2020 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), overall closed sales decreased 28.6 percent to 838 closed sales compared to 1,173 closed sales in April 2019. Inventory decreased as well in April by 29.1 percent to 5,394 homes compared to 7,605 homes in April 2019. The April report also confirms home values remain intact. 

"Our priority is the safety of Naples residents and our members, as we all continue to practice socially responsible distancing while we conduct business during this health crisis," said NABOR® President Lauren Melo, PA, Licensed Real Estate Broker with Florida's Realty Specialists. "With the assistance of technology, creativity, and cooperation, real estate professionals are successfully completing transactions."

To encourage a safe path to homeownership, NABOR® implemented three new actions in April to assist members as they conduct business during the COVID-19 pandemic:

NABOR® lobbied state and local governments to successfully recognize real estate services as an essential service, in accordance with the U.S. Department of Homeland Security;

NABOR® created a COVID-19 addendum and amendment to sales contracts to protect buyers and sellers;

NABOR® trained members on new COVID-19 related services including virtual open house tours, COVID-19 stimulus relief package benefits, and new lender requirements. 

According to Brenda Fioretti, Managing Broker at Berkshire Hathaway HomeServices Florida Realty, "The good news is that - even during a pandemic - Naples home values are being maintained. The report shows April's overall percent of current list price received increased .5 percent." This figure represents what the buyer paid for their home compared to the seller's listed sale price. In April, the contract price averaged 95.9 percent of list price. In comparison, during April 2019, the contract price averaged 95.4 percent of list price. This statistic demonstrates that homes in the Naples area did not lose their values during April, the worst month of the pandemic to date.  

Median closed prices increased .3 percent in April to $340,000 from $339,000 in April 2019. "Although there were slightly fewer price decreases in April than in March, still 1,654 or 31 percent of all listed properties experienced reductions in their offering price during April," said Jeff Jones, Broker at Keller Williams Naples.

Like many essential service businesses, REALTORS® in Naples focused on implementing new strategies and modifying their business models during April to comply with self-distancing practices and accommodate for the welfare and safety of their staff, clients and the community.

"We saw a surge in virtual showings during April," said Budge Huskey, CEO, Premier Sotheby's International Realty. "What happened was a buyer would participate in several virtual showings, typically while their REALTOR® did the walkthrough onsite. Then, once the buyer eliminated the options down to one or two homes, they would do a physical walkthrough."

As people were urged to stay home in April, showings decreased to 9,420 from 22,862 in April 2019 (does not include virtual showings). As a result, pending sales in April decreased 53.6 percent, as was expected.

"The desire for virtual home showings has risen rapidly," remarked Fioretti. "During video tours, agents become the eyes of the buyer. They're talking more than they would on a traditional tour, pointing out things that would be obvious in person but aren't as clear through a camera lens like the quality of workmanship on any repairs or whether a bedroom will fit a king-size bed. Virtual home tours are becoming the new first step in homebuying," added Fioretti.

Another asset that REALTORS® added to their toolbox in April was NABOR®'s COVID-19 contract addendum (or amendment for active contracts). The revised contract extends a closing date for an agreed amount of time if the lender is unable to approve the loan due to temporary obstacles caused by the pandemic including employee furloughs, and delayed appraisals, inspections, or government filing services.

"Given the amount of uncertainty right now, agents are quickly adding our special coronavirus addendum to new and existing contracts to provide some breathing room for delays in this fast-changing environment. These new documents are keeping deals together," said Jones. "It's providing much peace-of-mind for both buyers and sellers."

The NABOR® April 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
Apr 2019 Apr 2020 CHANGE
Total closed sales (month/month) 1,173 838 -28.6%
Total pending sales (homes under contract) (month/month) 1,322 613 -53.6%
Median closed price (month/month) $339,000 $340,000 +0.3%
Total active listings (inventory) 7,605 5,394 -29.1%
Average days on market  98 87 -11.2%
Single-family closed sales (month/month) 510 409 -19.8%
Single-family median closed price (month/month) $464,500 $429,500 -7.5%
Single-family inventory 3,850 2,639 -31.5%
Condominium closed sales (month/month) 663 429 -35.3%
Condominium median closed price (month/month) $272,500 $270,000 -0.9%
Condominium inventory 3,755 2,755 -26.6%

Adam Vellano, West Coast Sales Manager, BEX Realty - Florida, said the April report "shows real estate is essential. The fact that REALTORS® were able to process over 800 closed sales during a month when most of the world was on lockdown is a testament to our market's desirability and how real estate professionals are quickly adapting and conducting business in new ways. REALTORS® are helping their customers buy and sell homes through this crisis."

Not all geographic areas in Collier County reported a decrease in closed sales during April. Single family home sales in East Naples (34114, 34117, 34120, 34137) during April increased 7.2 percent.

Broker analysts reviewing the April Market Report are optimistic that activity in the Naples area real estate market will resume momentum in the coming months (barring a return to April's restrictions). If you're a seller who took your home off the market in April because you feared social distancing would prevent a sale, consider relisting your home in May. You could attract an eager buyer. Property values are holding steady with price increases in two price categories reported in April (i.e., the $300,000 and below price category and the $2 million and above price category reported median closed price increases in April). And the overall list to sales price has remained steady at about 95 percent (for April 2019 compared to April 2020).

If you're in the market to buy or sell your home in Southwest Florida, give me a call for assistance. I can do a market comparison and determine a fair and reasonable listing price, both with and without renovations. I can also identify properties best suited for your needs and negotiate a purchase price that fits your budget. Discover more at www.NaplesPropertyPreview.com or call Susan Sanderson at 239-821-2370.

Posted in Market Report