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!

Feb. 15, 2021

Market Watch February 2021

Naples Housing Market - On Fire!

By Robert Nardi

Like many industries, the Naples area real estate market was tested in 2020 when the COVID-19 pandemic hit and shuttered businesses in every community. Fortunately, real estate professionals obtained essential-service designation from the state. The pandemic's effects negatively impacted the housing market during March and April, two months that historically have been the best months for home sales during the year. As lockdown restrictions began to loosen, pent up demand for homes in Naples resulted in more homes sales during the second half of the year than during the first six months.

 

REALTORS® adapted quickly and became better at marketing using FaceTime, virtual tours, and other creative ways to show properties. According to the annual report, it worked well because pending sales in Naples had an incredible run from July to December, averaging 1,400 pending sales during each of those months.

 

Pending sales for 2020 increased 28.8 percent to 16,254 pending sales from 12,623 pending sales in 2019. Closed sales for 2020 increased 19.4 percent to 12,300 closed sales from 10,302 closed sales in 2019. There was a 41 percent increase in closed volume year over year, which equated to a remarkable rise from $12.9 billion in 2019 to $18.2 billion in 2020.

 

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, 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.

 

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.

 

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 most significant leap in 2020 with an increase of 27.1 percent. 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.

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 a sellers' market in one year.

Because of the popularity of single-family homes, that inventory sector decreased 58 percent in 2020, while the condominium inventory decreased 41 percent.

 

The NABOR® YE 2020 Market Reports compare 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 that like statistics.

 

What does this all mean?

  It means the Southwest Florida housing market is on fire! Many of the factors contributing to this are:

  1. More workers are working remotely because of COVID. They can pick & choose where they wish to live.
  2. Florida is a tax-friendly state. No state taxes. Also, Naples (Collier County) has the lowest real estate taxes in the entire state (1.25%).  
  3. Very inexpensive to borrow money. Some 30-year conventional loans can be as low as 2.675%.
  4. In the back of some people's minds, they intended to move to Southwest Florida one day. However, with COVID rearing its ugly head, it's the general feeling, "It's either now or never!"

Our Rentals

Both long- & short-term rentals are on fire as well. It seems like everyone wants to spend the winter down here this year. Why not? Beautiful weather, white sandy beaches, and you can eat breakfast, lunch, and dinner out if you choose. If you wish to come down still, there are more openings in April than there is in March. You can search our rentals at  BuyNaples.Net, or if you need assistance, please feel free to call my Rental Operations Manager, Corine Bordges, at 239-206-6457.  

 

I hope all is well with you and yours and above all, stay safe!

Posted in Market Updates
Jan. 11, 2021

Market Watch January 2021

November 2020 Sellers Market

By Robert Nardi

 

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 places 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.

 

The NABOR® November 2020 Market Reports compare 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.

 

What does this all mean?

 

We are getting many East coasters flocking to Southwest Florida because they are dealing with high taxes in their home state, are locked down by COVID, and are working remotely permanently. They are seeking asylum in here with our lower taxes and our beautiful subtropical weather. With this influx of people, demand is much higher, and our supply is low. When this happens, prices go up, and therefore, it becomes a sellers’ market. However, sellers must realize that their homes need to appraise for a mortgage contingency to be approved. Since mortgage rates are at an all-time low, many cash buyers have decided to take advantage of the historic low-interest rates. Unfortunately, if it does not appraise, most people would move-on because they will not overpay. I scratch my head in disbelief when I see sellers raise their prices. With the internet and all the technology out there, we could certainly see this price increase. When negotiating, most buyers would start at the original price to strategize an offer, not the new “higher price” listing. Because of this tight market, sellers are only willing to come down 1-3% from their asking price. This market is a bit tough on buyers because the inventory is low and the “good ones” are under contract in a day. My best advice to buyers is to work closely with a REALTOR® and let him/her know what you are looking for and act on it quickly, or else it will be gone. My best advice to sellers is to price his/her home to sell based on sold comps in his/her neighborhood; not active, not pending, but sold properties.   If sellers price their home too high, even in this market, it will not sell.

 

The Seasonal Rental Market

 

The seasonal rental market in Southwest Florida is booming. 75% of our seasonal rentals arrived on January 2021 and are staying until March 31, 2021. Having this large volume of 3-month rentals is unprecedented. In past years, some would rent for 1, 2, or 3 months. Why three months? People are currently working remotely and are now informed by their employer not to expect to be back in the office until June 2021. Southwest Florida has a tremendous number of amenities, the ability to dine outside practically every meal of the day, and of course, are incredible sunny and warm subtropical weather. Why stay in the cold, locked down, and nowhere to go?

 

Please keep my Firm in mind if you are either looking to Buy, Sell or Rent. We are a full service residential real estate firm. We do it all!

 

 

I wish you a healthy, happy & prosperous New Year from my family to yours!

Posted in Market Updates
Dec. 13, 2020

Market Watch December 2020

Uptick in Sales In October

By Robert Nardi

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.

During the period of January through October 2020, there were 9,785 closed sales in Naples, which represents a 13.8 percent increase over the same period in 2019. With more active buyers on the market, housing prices are seeing moderate but sustainable growth.

The October Market Report showed that single-family homes saw an increase in the median closed sales price of 12.1 percent to $458,000 during January to October 2020, up from $408,500 during the same period in 2019. Condominium median closed sales prices also saw an uptick of 5.8 percent to $275,000 during January to October 2020, over $260,000 during the same period in 2019.

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 (CLICK HEREfor those of you that like statistics.

What does this all mean?

It appears that the Southwest Florida properties are greatly in demand.   Many consumers are being instructed by their current employers that they will be working remotely indefinitely.   So why stay up North in the cold and snow, when they can work in a warm sunny tax-friendly state like Florida?    In addition, many potential buyers are seeking Southwest Florida, especially in Naples, because Naples has the lowest real estate tax base in all of Florida.  

Single-family homes continue to fly off the shelves.   If priced well, they fly off the shelves in a matter of 10-14 days.   In addition, if they are least a 3 bedroom & den home with a pool, it could be even faster.   People are working from home and want a den for a separate workspace.  

Condominiums have increased in sales too, but not as rapidly as single-family homes.   Recently, I had “low-ball” offers on two beach condos that I currently have listed.   I believe buyers know that condominiums are selling slower, so these potential buyers are testing the waters and see if they could get a lower price.   However, the comps and demand currently do not justify these lower prices.   So right now, it is a bit of a disconnect and of course, a disappointment for the sellers.

My rental department is even seeing an uptick in 3-month rentals starting in January and ending in March of 2021.   For years, people were coming down and rent 1 or 2 months and only in some cases 3 months.   Now the demand for 3-month rentals is high and even higher for 3-month single-family homes.   In fact, our luxury rentals are flying off the shelves for season.

We still do have seasonal rentals available, so if you are interested, please contact my Rental Operations Manager, Corine Bordges at 239-206-6457.   She has all of our up-to-date availability and property inventory.

Please feel free to call me at 239-293-3592 or send me an e-mail at Robert@NardiRealty.com if you have any questions or would like to find out what the value of your home is in today’s market.  

 

Happy Holidays to you!   Wishing you and yours a very Happy & Healthy New Year.   2021 cannot come soon enough!   Stay safe! Cheers!!!

Posted in Market Updates
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