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!