Naples Area Real Estate News & Market Trends
by Robert Nardi

Robert L. Nardi, Broker/Owner of Nardi Realty provides his perspective on the real estate market, trends, and news for Naples, Florida and the surrounding area each month.

You’ll find our blog to be a wealth of information, covering everything from local market statistics and home values to community happenings. That’s because, at Nardi Realty, we care about the community and want to help you find your place in it. Please reach out if you have any questions at all. We’d love to talk with you!

Nov. 15, 2020

Market Watch November 2020

Outstanding Market in September 2020

By Robert Nardi

In 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 vital areas was at a 20-year high compared to activity reported during any other September on record. 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 raised a whopping 83.4 percent to 1,509 pending sales in September 2020 from 823 in September 2019. It is ironic, because generally September is the slowest-selling month.   The number of showings increased 80 percent to 35,465 compared to 18,745 in September 2019. Lastly, closed sales are up 7.5 percent since January compared to the same time frame in 2019.

 

For September, median closed prices increased 18.2 percent to $384,000 from $325,000 in September 2019 can be attributed to the uptick of multiple offer occurrences in September.

 

Inventory continues to decrease rapidly; in September, it fell 32.2 percent to 3,980 properties from 5,873 properties in September 2019. One sector, the Multi-million properties are being purchased briskly with many buyers making an offer sight-unseen. There are currently less than 500 properties on the market for over $2 million. Not surprisingly, closed sales of homes above $2 million have increased by 30.7 percent in the 12-months ending September 2020.   NABOR® sales statistics are presented in chart format ( CLICK HERE ) for those of you who would like to see all the statistics.

 

What are my thoughts?

 

People are flocking from the North to Southwest Florida because their employers are telling them that they will be working remotely indefinitely. Why stay in the snow & cold and pay high taxes when they could come to Florida's tax-friendly state for ideal weather, white sandy beaches, and sunshine? Also, they have a fear of staying inside all the time. With Florida and its warm weather, you can dine outdoors three meals a day, which gives them less fear of being infected by COVID in a closed space.

As far as what they are purchasing, it is single-family homes vs. condominiums. With condominiums, they share common space, elevators, pools, etc. There has been a 19.6 percent increase in homes' closed sales with a minimum of four bedrooms over last year. This indicator shows a definitive shift in buying behavior because of the pandemic. The demand is high for single-family homes with additional space to accommodate a home office and a virtual schoolroom. With their own single-family home, it is their private oasis to work, educate and play!

 

Seasonal Rentals

 

Seasonal rentals are flying off the shelves. We have a waiting list for some of our homes/condominiums with golf memberships and single-family home properties. Many people are requesting rentals with three contiguous months, January through March 2021, which is far different from the past. Most were 1- or 2-month rentals in season and, on occasion seeing a 3-month rental.  Believe it or not, we see even increases in 4-, 5- or 6- month rentals, and even in the past few months, people who are in current rentals here are extending their stay 1-, 2- or 3- months more. 

 

If you still want to get out of the cold, please contact my Rental Operations Manager, Corine Bordges, at 239-206-6457. She has access to our rental inventory availability. If we do not have what you are looking for, we could also have you work with our professional rental agents to find your temporary piece of paradise!

 

If you should have any questions on sales or rentals, please feel free to contact me directly at 239-293-3592 or e-mail me at  Robert@NardiRealty.com  or feel free to perform your searches at  www.BuyNaples.net .

 

Happy Thanksgiving! 

 

 

I wish you a wonderful holiday with your friends and family. Hopefully, I will see you soon in sunny Southwest, Florida.  Stay safe!

Posted in Market Updates
Oct. 13, 2020

Market Watch October 2020

August 2020 was Booming!

By Robert Nardi
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 than 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. A combined 3,133 closed sales reported during June, July, and August compared to a collective 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, more new listings were 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 reduced 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 rose 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 an “in the middle,” as half of the homes listed above this price and exactly half are below this price. Broker analysts reviewing the report were quick to point out that sales of several high-worth properties (e.g., $2 million+) during a given month can significantly influence this figure. It doesn’t mean all home prices increased. As such, when evaluating pricing trends, brokers prefer to use the 12-month ending median closed price statistics. For the 12-months ending August 2020, the median closed price increased 5.4 percent. 

If you like to see all of the Naples Area Market statistics for August 2020, please click (HERE).

What does this mean?

It indeed is becoming a Seller’s market. Sellers are either getting full price or 1-3% their asking price. Generally, in an even market, Sellers would accept 5% below or less as an asking price demanding how motivated they are to sell. Besides, new construction is starting to pick-up. After the “Lockdown,” they started offering incentives, and it appears that it worked. Some of my resales are losing out to the new builders.

All this demand can be directly correlated to employers telling employees that they are no longer needed in the office and will continue to work remotely. 

Hence, they could work anywhere. Why not pick tax-friendly, warm, and sunny Florida?  

Our Rental Department is Booming!

Three months ago, we were down 21% in seasonal rental bookings year to date, and then suddenly, Nardi Realty had a surge in bookings in the past two months! Many individuals have booked a rental period for three months, January 2021 - March 2021. These three-month bookings are on the rise, because once again, employers are telling employees that they will not be needed back into the office until June 2021. Why not get out of the cold and stay somewhere warm?  

We still have some great seasonal rentals available. Do you play golf, tennis, pickleball, etc.? We have seasonal rentals that fit every budget and lifestyle. Please feel free to call Jessica Martin, Rental Supervisor, at 239-631-9447 for all availability.

 

Please stay healthy & safe! Hopefully, you are enjoying some beautiful fall weather, and looking forward to see in you in sunny and warm Southwest Florida soon!

Posted in Market Updates
Sept. 13, 2020

Market Watch September 2020

Naples' Single-Family Sales Surging

By Robert Nardi
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 – significantly 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, makes it challenging to keep up with the strong buyer demand.

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 in many cases are purchased 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 most 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, a 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 showed fewer homes terminated/expired/withdrawn from the MLS in July (599) compared to June (1,677). If you like statistics and wish to see the entire Naples Market Housing report in chart form, please ( CLICK HERE).

What does all of this mean?

For those who are considering selling, now is an excellent time to jump in the market to take advantage of Naples' high demand for properties. 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. There are several factors in play that are fueling the vigorous 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.
  5. Interest rates are low.

Nardi Realty has seen the same!

We have seen our high-end single-family listings fly off the shelves in the past few months. We had a $4M Stock Development custom home sell in Pine Ridge Estates in June in our office. Then a $3.8M home was recently sold at the end of August in Estuary Grey Oaks.  
 It was a cash deal close in 2.5 weeks. On September 1, 2020, we listed a home in the Vineyards for $1.224M, and it pended for full price within three days. On September 2, 2020, we listed a home in the Moorings for $2.245, and within three days, it had four offers and pended at above list price.

Here's the other side of the coin, our $1.3-1.4M condo listings on the beach have seen a slowing in showings. I believe it is because of sharing common areas, elevators, pool etc. base on the events of COVID-19.

On the bright side, I had a condo listed for two years, and it finally pended! Beautiful condo, West of 41, list price is $414,900. I attribute it selling because of the lower inventory. 

For you sellers on the fence on whether to list, it is a great time to list based on the current volume, especially if it is a single-family home. 

Rentals for Season

We have seen a surge of rentals for season (January – March). People up North are receiving word from their employers that they will not be physically required to go back to their office until June 2021. Many people are saying to themselves, "Why stay in the cold of the North in the winter, when I can work anywhere and enjoy Florida's warmth."

If you are interested in booking a seasonal rental, please feel free to call Nardi Realty's Rental Operations Manager, Corine Bordges, directly at 239-206-6457. We still have some beautiful properties for rent at all price levels. By the way, if you prefer, you can always search all of our available sales and rentals at  www.BuyNaples.net

 

In the meantime, if you should have any questions regarding Southwest Florida properties, please feel free to call me directly at 239-293-3592 or e-mail at  Robert@NardiRealty.com.

Wishing you a fantastic Fall, and hopefully, we will see you in Southwest Florida over the next several months. Please stay healthy & safe!

Posted in Market Updates
Aug. 10, 2020

Market Watch August 2020

June 2020 Market Strong

By Robert Nardi

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 reviewed the report and noted that new listings during June increased 25.8 percent compared to June 2019, which indicates growing consumer confidence for 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 rose 38.7 percent to 634 pending sales from 457 pending sales in June 2019.

 

Closed sales in May were down nearly 50 percent compared to May 2019, closed sales in June decreased by only 4.6 percent to 881 closed sales from 923 closed sales in June 2019. 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. Still, the June Market Report revealed a shift in buyer preference to single-family homes compared to June 2019. 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. A possible reason is that buyers want 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. Most of this depletion was reported in the single-family home market, which fell 34.5 percent, while the condominium market had a decrease in inventory of 20.3 percent. The report also showed the most significant 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. The overall median closed price increased in June because the luxury market is hot this summer. The level of demand is driving up the prices, particularly in the $1 million and above market.

 

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 ( CLICK HERE )  for those who like looking at statistics.

 

What does this mean?

 

It means that the Naples' housing market has been resilient even through this pandemic. All the statistics above coincided with what I saw in June 2020. I believe with COVID-19 rearing its ugly head; buyers decided it is either now or never.

 

Even with my sales, single-family homes were popular. Some of it was a larger space to work at home, but some people most likely did not want to share an elevator, lobby, common areas, etc. As far as what I have seen in July 2020, it looks like the $1M plus listings are trending. I share a $4.2M with one of my associates. We had quite a few showings and an offer. Unfortunately, we could not come to terms, but it seems this price point segment is on-fire. Even our luxury seasonal rentals that go for $18,000 - $20,000 a month are booking quickly for 2021.  

 

What does the future hold ?

 

I think there will be a housing market lull between mid-September to mid-November. However, once the Presidential election is over, I believe there will be a buying/selling frenzy, and if COVID-19 nos. are looking good, the Southwest Florida housing market will be on fire.

 

Please feel free to jump on  www.BuyNaples.Net  for all of your real estate needs. The search engine on the website is updated every 15 minutes, and we are one of few search engines that show you annual costs i.e., condominium and homeowner maintenance fees. Also, we have a widget located on the right upper side of the home page, asking, "How much is your home worth?" If you enter your address, it will give you a Comparative Market Analysis (CMA) to see your home's worth. This covers the entire United States, specifically if you have a property up North that you are thinking about putting on the market.

 

 

Enjoy the rest of your summer. Stay healthy & stay safe!

Posted in Market Updates
July 12, 2020

Market Watch July 2020

Robert's Realty News July 2020
 
 
(239) 293-3592 Robert@NardiRealty.com www.NardiRealty.com
House Market is Up!
By Robert L. Nardi
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. Impressively, May outpaced showings a year ago, which rose 5.5 percent compared to May 2019. According to the May 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 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 in May. The Naples real estate market is incredibly resilient. Pending sales in May increased 90 percent compared to pending sales in April.

 

 

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 a 3.7 percent increase in median closed prices compared to May 2019. Despite the outlying issues, prices were held stable, with the year-to-date median closed price up a modest 2.3 percent. 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 condominium listings. There currently is a 5.8-month supply of single-family homes in Naples. Buyers do not have as many single-family home choices right now, so they shouldn't 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 ( CLICK HERE ), for those of you who like statistics.

 

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. Heightened buyer demand is also evident in the number of Days on Market for May 2020, which decreased 15 percent (to 91 days) compared to May 2019, which reported 107 days on the market.

 

My Thoughts

 

The statistics mimicked what was happening with Nardi Realty. I had a tremendous number of buyers come out in early May, executing contracts, and closing in June. I sold/closed nine sides in June 2020. It was extremely hectic, but luckily, I had a tremendous amount of support from my firm, and I recommended a Mortgage Broker who worked with three of my buyers, and he was able to get three closings across the finish line. It truly takes a village. One of the homes I sold closed at $662,500. My buyers purchased it just by me, taking additional pictures and video. 

I was lucky when they saw it for the first time; they genuinely loved it! Whew!  

 

Sales are starting to slow now. I believe there is a direct correlation with our COVID-19 positive numbers going up in Florida, and most people by now know a friend or family member that have contracted it. Lastly, more people seem to be quarantined for two weeks because they have come in contact with someone who tested positive for COVID-19.

 

Seasonal Rental Availability

 

We still have some availability for season. Many new renters are renting from us this upcoming season. I think it is because they have been up North, quarantined, and want somewhere beautiful to vacation. If you wish to rent seasonally or annually, please call Corine Bordges, Operations Rental Manager, at 239-206-6457. We have over 153 seasonal rentals & 120 annual rentals. If we do not have what you are looking for in our inventory, we have rental specialists who could assist you with your search throughout Southwest Florida.

 

Pictures & Video

 

If you are searching for properties for sale and which to receive more pictures/videos, please let me know. I would be happy to assist you. Please feel free to call me directly at 239-293-3592 or e-mail me at  Robert@NardiRealty.com .

 

In the meantime, have a healthy, happy, and safe summer!

Posted in Market Updates
June 14, 2020

Market Watch June 2020

Robert's Realty News June 2020
 
 
Naples Holds its own in April 2020
By Robert Nardi

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.

The one bright spot – 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.

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.   Surprisingly enough, 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.   This increase was most likely due to new construction homes closing during April 2020.

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 ( CLICK HERE ) for those who enjoy charts and statistics.  

What does this all mean?

Luckily, even with COVID-19 Buyers are buying and Sellers are selling.   We just are being cautious, wearing masks & gloves when showing properties,   providing video tours, or facetime.   Some of my sales were via virtual tours with people from out of state.   They never saw the house in person and bought it via facetime & video.    Interestingly enough, prices here have not gone down significantly.   It seems most listings are selling at 2-5% below list price or above list price (multiple offers).   Of course, on occasion, you get the "low baller," thinking that Sellers are just going to give it away.   However, I do not see this happen.   Our inventory is tighter, which I believe is causing the prices to remain stable.   I had three properties, all in multiple offer situations within the past month.

One property I was representing the Buyer and the other two, I was representing the Sellers.   With one of the sales, it sold for $20,000 over list price!

What about the future?  

I believe that we will have a very robust selling summer. I am already hearing from people up north that they are coming down to purchase.  With there "stay at home orders," they need to make a change.   They have had time to think and realize that Southwest Florida is where they would like to live.   What makes Florida even more appealing (besides the weather) is that there is no state income tax, low real estate taxes, and to top it all off, historic low-interest rates.   Down south is looking "pretty darn good" to people.   However, by the middle of September, I expect a slow-down.   The presidential election will be right around the corner, and people will just "hunker down." Once the election is over with, real estate sales will start to boom again.  

Seasonal Rentals

We are currently booking seasonal rentals.   For those who want to get out of the cold and need a change of scenery, Southwest Florida during the winter months is a perfect getaway!   Please call Corine Bordges, my Operational Rental Manager at 239-206-6457, with your rental parameters, and she will be able to assist you.

Lastly, do not forget, you can also do your online searches for sales and rentals at www.BuyNaples.net, and of course, I am always here to help.

You can contact me at Robert@NardiRealty.com or by phone at 239-293-3592.

Stay safe, and hopefully, I will be seeing you in Naples, Florida, sooner than later!

Posted in Market Updates
May 15, 2020

Market Watch May 2020

Relatively Stable Market

By Robert Nardi

Like all industries impacted by the COVID-19 pandemic, the Naples area housing market was not immune to its effect in March. While home sales dropped, home prices remained steady, and in some cases, increased. Because the stay-at-home order went into effect mid-month, real estate activity during the first two weeks of March was strong, while activity during the second half of March tempered remarkably well.

Overall closed sales in March increased 15.8 percent to 1,148 closed sales compared to 991 closed sales in March 2019. This was an increase of 359 closed sales over February (789 closed sales) and 426 more closed sales than January (722 closed sales)! The report also showed a 22.5 percent increase in closed sales for the first quarter of 2020 (2,689 total closed sales) compared to the first quarter of 2019 (2,195 total closed sales).   Pending sales were down 38.1 percent for the month to 977 pending sales, compared to 1,578 pending sales in March 2019. However, pending sales increased 5.3 percent during the first quarter of 2020 compared to the first quarter of 2019.   

Showings in March decreased 41 percent compared to showings in February, and there were still over 19,000 appointments scheduled to show homes in March. Serious buyers are not being discouraged by the stay-at-home order.  

The March report showed overall inventory remained strong through March, with 5,772 available properties. This was a 27.5 percent decrease in inventory compared to March 2019, which had 7,965 properties available. Interestingly, while March had only 53 fewer homes on the market than what was available in February, the month of March had 11 more homes available in inventory than reported in January! Plus, Collier County holds steady with 6.4 months of supply compared to other highly desirable counties in Florida like Orlando, which reported 2.3 months of supply in March.  

 

There were fewer price reductions during March compared to previous months in the quarter. The overall median closed price in March increased 10 percent to $372,750 compared to $339,000 in March 2019. The month of March also reported the highest median closed price compared to the other months in the first quarter. However, while median closed prices for the single-family home market increased 16 percent in March to $470,000 compared to $405,500 in March 2019, the median closed price for the condominium market decreased 1.3 percent in March to $276,500 compared to $280,000 in March 2019.   

Geographically, the Naples Beach area (34102, 34103, 34108) had the most inventory in the Naples area available in March, with 8.6 months of supply. New listings were highest in East Naples (34114, 34117, 34120, 34137), which had an increase in March of 9.2 percent. 

The NABOR® March 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 found in a chart format ( CLICK HERE for those who enjoy number crunching.

What does this all mean? 

At least for my Firm and me, we have not had that much of a slow-down. Some seasonal renters left early, and many landlords were accommodating. On the other side of the coin, many seasonal renters extended their stay. Because of Collier County’s (which includes Naples, Ave Maria, Immokalee & Marco Island) smaller population, there appears to be far less positive COVID-19 patients recorded than in other major U.S. cities. To date, there are 712 positive COVID-19 patients and 27 deaths. 

Real Estate was deemed “essential” by our Florida Governor, and I can see why. People must live somewhere, and people before this outbreak had contracts on their home, and they, in turn, put a contract on another home. With all the unemployment currently, are we also going to deny people housing too? It did not make sense to increase the fires that are already burning. 

Since the COVID-19 outbreak, luckily, we have had many sales and listings. We are selling homes either by bringing our customers physically to the property (wearing masks, having disinfected wipes, hand sanitizer, and social distancing) or remotely by using virtual tours, facetime, new video, and pictures. We can even hold Open Houses virtually. 

As far as sales go, home pricing has not seen a shift down. Most of the sales have been in the customary 5% or below list price. Naples is a unique market since it is a vacation destination, and our weather is truly picture-perfect this season. Homes here are still in demand for the 2nd home buyer, and with the population growing, we are attracting a new set of buyers who will be living here full-time based on their occupations. 

Southwest Florida withstood three hurricanes since 2004.   We were resilient through those natural disasters, and we are still resilient today! Each day we have hope for a better tomorrow.

“Happy Mother’s Day” to all you wonderful Mothers out there! Enjoy your special day! 

 

In the meantime, stay safe, wear your masks, wash your hands, and social distance for now.

Posted in Market Updates
April 15, 2020

Market Watch April 2020

COVID-19 & SWFL Real Estate

By Robert Nardi

I usually start with all the statistics for the month, but because of the state we are in, I thought I would begin with my thoughts concerning COVID-19 and real estate in Southwest Florida.   My office is physically closed, but we are all working remotely.   I wrote to my sales associates letting them know that Southwest Florida is strong and resilient!  We wrestled through three hurricanes since 2004 and of course Irma in 2017 was a doozy and we still came back undefeated and better than ever.   Even with COVID-19 I feel we will be in the same position.   Is real estate slower right now?   Of course it is, some of my listings went in to “withdrawal” because they didn’t want any further showings.  After all,  the sellers were 75 years old and older.   I absolutely understand.   Is the Firm still busy?   Yes, I am happy to report we are.   We were having an amazing year in 2020 until this “hiccup” came about.   We continue to work on closings and instead of people flying in to look for property, my Firm and I are doing previews, providing Facetime, additional video and pictures.   One of my associates recently sold a condominium for full price via Facetime.   Last week, I had three closings, I put an offer in on an attached villa and I will be putting an offer in on a single-family home in Imperial Golf Estates later this week.   I will be also listing a property in Hunters Ridge sometime next week.   In the past two weeks, I even had two showings on a $1.675M listing.   Is it the same?   Not really.   I miss the one to one in-person interaction.   One of my taglines is “We treat every customer like our only customer” and guess what, we started with that philosophy and we continue with the same philosophy regardless if they are in-person or remotely.

I am happy to report that the Firm’s large rental department rose to the occasion and worked very diligently with seasonal tenants and landlords to “soften the blow.”   Some of the tenants decided to even extend their stay.   Why not?   In Collier County (Naples), we currently have under 300 known COVID-19 cases.   We are hoping that it plateaus soon, and all move on with our lives.

For those of you who want to know the state of Southwest Florida’s real estate market for February 2020, please CLICK HERE for the most current report.   The market performed very well.   Sales were up 29%!

The good news is that I am in an industry that is already technology-focused and adept, The Naples Area Board of REALTORS® and its fellow members are supporting each other in to help foster the sale of homes, all while following the Centers for Disease Control guidelines. NABOR® is also providing new digital resources during the coronavirus outbreak to help public and real estate professionals stay connected and safe.

Speaking of safe, wash your hands for 20 seconds, don’t touch your face, and wipe off surfaces with disinfecting wipes and of course, 6 feet of distancing to another person.

 

We’ll all get through this. Let’s all stay healthy.   Love the people you love and let them know it!

Posted in Market Updates
March 8, 2020

Market Watch March 2020

January 2020 Surges

By Robert L.Nardi

Despite a tug on inventory that resulted in a 26 percent decrease to 5,761 properties in January 2020 compared to 7,773 properties in January 2019, overall closed sales in Collier County rallied in January, especially in the luxury market. A 22 percent increase in January’s overall closed sales has many broker analysts optimistic that continued strong sales activity can be expected through the first quarter.  

Aside from the 26 percent decrease in January’s month-end inventory compared to January 2019, we gained 360 more listings in January than what was available to buyers in December. Collier County has a 6.6-month supply of homes, which is much higher than many other hot markets in Florida. A recent Realtor.com analysis showed that other areas in Florida also experienced double-digit decreases in active listings for January including Tampa/St. Pete (20.2 percent decrease), Orlando (15.8 percent decrease), and Miami/Ft. Lauderdale/West Palm Beach (11.2 percent decrease).

A big winner for showings of single-family homes in the $1 million to $2 million price category increased 109 percent in January 2020 compared to January 2019.

The NABOR® January 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 (CLICK HERE) for those who like to see the statistics firsthand.

The report showed 1,885 price decreases in January, which is believed to be mostly old inventory that is finally coming to the buyer as a result of appealing price reductions.   January’s price reductions represented 33 percent of active listings in January [5,761 properties], which is much higher than the 25 to 28 percent shown in the Market Reports over the last few months.  

What does this all mean?

It means that people who were doing well with their investment portfolio decided to take out monies to purchase properties in the $1-2M category.   Yet, I have seen the opposite.   I have a condominium listed at $1.675M which someone was interested in and they decided to leave their money in the market based on their Financial Advisor’s recommendation.   My thought is that there are some Financial Advisors that believe the market will change for the worse, so it is best to take out monies now vs. keeping it in (we recently saw this large dip in the market and now it has rebounded) and invest in real estate.  I did have a recent listing for $1.31M that sold at the end of February.   It was cash and closed in 3 weeks!  Therefore, we are seeing two different strategies.  

Seasonal Rentals

We are winding down on our seasonal rentals.   Easter falls in the middle of April so many seasonal rentals will be ending on March 31st, 2020 as visitors head back to home to celebrate the holiday with their family and friends.   For those of you who wish to remain, we have quite a few prime choices for April rentals at some significant price reductions (out of season pricing). If you are interested, please contact Corine Bordges, Rental Operations Manager at 239-206-6457.   She has a record of all our available rental inventory and pricing.   If you would like to search on your own for sales & rentals, please feel free to go to BuyNaples.Net. We are one of the few firms that show yearly fees.   Many of the other real estate websites do not.   Lastly, I would be happy to assist you.   Please feel free to call me at 239-293-3592 or send me an e-mail at Robert@NardiRealty.com.

Coronavirus

Luckily, the Coronavirus has not made its way down to Southwestern Florida yet.  Also, the world news of it has not really affected the Southwest Florida housing market.   We have had a great buying and selling season so far and it continues to be robust.  Just remember to watch your hands frequently, use hand sanitizer, use disinfectant wipes to wipe down surfaces when traveling and don't touch your face, nose, etc. Hopefully, everyone will stay healthy and happy following these practices.

 

Wishing you and yours, safe travels as you venture back home.

Posted in Market Updates
Feb. 9, 2020

Market Watch February 2020

Strongest Year in Home Sales!

By Robert Nardi
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.   The MLS 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 (Southeast Naples where new construction is booming) and 34108 (North Naples area) 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.

For those of you who like statistics, CLICK HERE for the December 2019 chart and you can CLICK HERE for the Annual Report on the Naples Market for 2019.

What does this all mean?

It basically means that pricing is a key factor in moving property.   There were 1,550 price reductions in December. That is 26 percent of the available inventory. This has been a trend for the past few months.  And yet, if you do 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. What’s remarkable is that the overall average closed price in Collier County during 2019 increased 19.3 percent to $772,380.   Even with all these price reductions, the average closed price in Collier County still increased.   In a nutshell, the market is priced higher, when the listing price is lowered to a fair market price, it will still sell at a higher price than it did a year ago.   As a seller, it is not such a bad position to be in.

We are clearly in a very stable market seeing year to year increases.   There are more flexible financing terms available.   Many of my customers can pay cash, but their financial advisors are telling them to seek a mortgage because of the very low interest rates right now or they are urging them to seek out a loan against their investment portfolio.   Even with a jumbo loan, the rates offered are very low.   Naples, Florida is in a very sweet spot now.

Looking for a March rental?

We still have some great rentals available for March.   Therefore, if you are looking to get away, there is no better place to go than Southwest, Florida with its beautiful sub-tropical weather and landscape.   Generally, it doesn’t go below 70 degrees as a daytime temperature.   We have amazing beaches, restaurants, shopping, amenities and culture!   Please feel free to look for our rentals listings at BuyNaples.Net or please feel free to call my Rental Operations Manager, Corine Bordges at 239-206-6457.

 

Happy Valentine’s Day and before you know it, Spring will be right around the corner!

Posted in Market Updates