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!

July 15, 2021

Market Watch July 2021

Home Prices Climb in May 2021

By Robert Nardi
Homes  in the Naples area were being sold at 99.1 percent of the list price in May. A tight inventory and buyer demand continued to push prices upward in May, which resulted in an overall median closed price increase of 29.4 percent to $433,500 from $335,000 in May 2020, according to the May 2021 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). Broker analysts reviewing the report predict continued price increases in 2021 but noted monthly showing and sales activity is beginning to show signs of deceleration from the remarkable market experienced during the first quarter of 2021.   Interestingly, the May Market Report showed the same number of list price increases for the month of May (247) as decreases (247).

Cash sales in May accounted for 58.4 percent of the closed sales transactions. The cash buyers continued to create challenges for competing buyers who required financing. It took an average of 90 days for a home to go from list to contract in May 2020, but in May 2021, the average days on the market was reduced to 43 days, a 52.2 percent decrease. Surprisingly enough, cash sales were not the only contributing factor to the drop in days on the market. Another factor was the 45 percent increase in showings for May (42,380 up from 29,319 in May 2020), which ultimately resulted in a 46.5 percent increase in pending sales for May to 1,710 pending sales from 1,167 pending sales in May 2020.

The May Market Report showed that overall closed sales increased 164.4 percent to 1,618 from 612 in May 2020 (a month when all the world was in COVID-19 lockdown). For perspective, closed sales increased 36 percent in May 2021 compared to May 2019 (a non-pandemic lockdown month). Nevertheless, closed sales activity in May 2021 outperformed any other May in the history of NABOR®’s market statistics reports.

The NABOR® May 2021 Market Report 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 that enjoy looking at all the statistics.

What does this all mean?

All I can say is, "Wow!" May 2021 was a spectacular month for real estate in Southwest Florida! If you purchased a home two years ago here, most likely in this market, it has gone up 30%. Demand continues to be strong; inventory continues to be low, and in economics, with the demand high and supply low, prices have gone up and will continue to go up.   However, my thought is by the end of the year, prices will stabilize, and I believe we will be in a regular housing market here. Will prices go down? I do not think they will. I believe Southwest Florida has always been undervalued since the great recession starting at the end of 2005. Prices have slowly gone up over the years, but the psychological implications of the pandemic and the ability to work from home have accelerated the correction.   How many times have you put off making a move over the years? With the pandemic rearing its ugly head at people, they took on an "It's either now or never" attitude, creating this strong demand. Therefore, as a Buyer or Seller, you should get all your ducks in a row before selling or purchasing.

 

The "do's" of navigating in this current housing market!

 

When searching for a property in Southwest Florida, make sure you have a pre-qualification or pre-approval letter as the Buyer. Cash continues to be king and if so, make sure you have proof of funds. The market right now is so tight that truly every minute counts with submitting an offer.   If you present an out-of-date pre-qualification or pre-approval letter with your offer, it will put you in the back of the "offer" train. Think caboose! Instead, you want to be the engine that pulls the train! Also, I recommend that you shorten the acceptance time that the Seller must respond. Time is of the essence. As a Buyer, you want to put together and present the most attractive offer you can.   I would shorten the inspection period as well. I would also recommend creating an "As Is" contract. You have the right to inspect, but if you find anything wrong with the property, you can cancel the contract and receive your escrow monies back.

  

If you are the Seller, I would require an up-to-date pre-qualification/pre-approval letter or proof of funds letter, or a cash account showing the amount of the offer. An "As Is" contract is also attractive because the Buyer indicates that you would not have to fix anything or provide a credit at closing to fix items. I would also think about shortening the closing period if it works better for you to do so. Lastly, if you as the Seller were in a multiple offer situation, I would always direct your REALTOR® to request "highest & best" generally the next day by noon.

 

Downsizing?

 

If you consider downsizing into a rental apartment or condo, you may want to think about holding on to your currently owned property. Rental income is at an all-time high and there are also some tax advantages of owning a rental property.   Furnished properties make for a great seasonal rental, and if it were unfurnished, it would make for the perfect annual rental.   Please call my Rental Operations Manager, Corine Bordges at 239-206-6457.   She can schedule a “look-see” and give you estimate of the amount of rental income you could receive.

 

Thinking about Selling?

 

If you are thinking about selling your property in Southwest Florida, I would be happy to assist you with a free Comparative Market Analysis (CMA).   Just send an e-mail to Robert@NardiRealty.com .   It will give you an idea of what to expect as a selling price in this escalating market.

 

 

Enjoy the rest of your summer!   Stay safe & cool!

Posted in Market Updates
June 15, 2021

Market Watch June 2021

April 2021 - Increase and Demand for Listings

By Robert Nardi

Buyers eager for more home choices were happy to see an increase in new listings during April. According to the April 2021 Market Report, released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), there were 1,460 new listings added to the pool of homes for sale in Naples during April. 

 

Since January, the Naples area housing market has enjoyed a 14.3 percent increase in new listings compared to new listings during the same time in 2020. Buyer demand in April took another bite on our inventory. April had 2,037 pending sales (homes under contract) and 1,882 closed sales, which resulted in only 1,432 homes remaining for sale by the end of the month. The 8-month supply of homes in April 2020 was reduced to a 1.1-month supply of homes at the end of April 2021 based on the Southwest lifestyle of sun, sand, and weather.

The number of new listings is going up, and they are selling fast because demand is simply outpacing the inventory replenishment. Historically, new construction sales accounted for 25 percent of all home sales in Naples. But raw material shortages are forcing many local builders to press pause on future sales as it is becoming increasingly difficult for them to determine market prices a year from now.

  

The rise in homeowners’ equity during this hot market means everyone who bought a home in the last five or six years is in an excellent position to make a profit if they choose to sell now. However, the rhetorical question they would have to ask themselves is, “If I sold my current property, where would I go?” Since every other property has gone up in price, what could I buy, and will I even be able to find a property with such little inventory?

 

The NABOR® April 2021 Market Reports provide comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and include an overall market summary. In addition, NABOR® sales statistics are presented in chart format ( CLICK HERE ) for those who like statistics. Closed sales in the $1 million and $2 million and above price categories outperformed all other lower-priced home categories tracked by NABOR®. All I can say is, “Wow!”

 

What does this all mean?

 

Demand continues to outpace supply, and as far as economics go, that means that prices will continue to increase. Over the past month, I have seen multiple offers come in on a listing within 30 minutes of it going live in MLS. I have witnessed escalation clauses increase 10-fold (meaning if a buyer makes an offer, then the Buyer is willing to increment his/her bid to surpass any other offers by a certain amount determined by the Buyer). An escalation amendment will only work if the offer is cash. If you had a mortgage contingency with an escalation clause, it would be weighed less of an offer compared to cash. Even if the offer with a Mortgage contingency were $20,000 more than the cash offer, the Seller would still have to worry about the appraisal. In this rapidly escalating market, having a cash offer is having the edge in negotiations. The good news is that even though people are offering cash, they can still pursue a mortgage; however, when it comes down to the closing date, the loan must be in place by that time. If it is not and the Sellers will not give a closing extension, the Buyer may have to forfeit his/her escrow deposit. Select cash and getting a mortgage are becoming more prevalent. Many of the Buyers call their Financial Advisors, and they instruct their clients to pursue a loan instead of paying cash. Residential loan rates are anywhere from 2.75% to 3.75% (factoring in the loan amount, whether the loan is a 15- or 30-year mortgage, the Buyers’ credit scores, etc.)

 

The difference today from when we had the great recession beginning in 2005 is that the underwriters are extremely strict. If someone is pursuing and receives mortgage approval, they can afford to purchase the home. In the great recession, they did “No Doc” loans. The mortgage company would only verbally document, and the lender required no hard copies of necessary financial documentation like W-2’s, 1099’s, checking account statements, etc. Yes, lenders gave loans liberally and freely. No longer is this the case.

 

Are you thinking about selling your home?

 

If you are thinking about putting your current home on the market in Southwest Florida, please feel free to reach out to me via e-mail at  Robert@NardiRealty.com  or by phone, 239-293-3592. There is extraordinarily little inventory, and over the years, I have accumulated many Buyers ready, willing, and able to purchase here. As a result, I might have a Buyer for your property, which could save you thousands of dollars on commissions.

 

Rentals are in demand!

 

Rentals are very much in high demand. If you are thinking about renting your property in Southwest Florida seasonally (January, February, and or March) or annually, please feel free to reach out to me.

If you wish to rent it out seasonally, the property would need to be fully furnished. If it is annually, then it would need to be unfurnished. We could assist you every step of the way of getting it on the market.

 

Looking for either a seasonal or annual rental, please contact my Rental Operations Manager, Corine Borges, at 239-206-6457 or search www.BuyNaples.Net

 

I would like to wish you a safe and joyous summer! 

Posted in Market Updates
May 9, 2021

Market Watch May 2021

March 2021 - Record-Breaking

By Robert Nardi

March 2021 Market Report was record-breaking. This report is released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island).  According to the report, March’s historic activity included 1,851 closed sales, $1,582,474,997 in total sales volume, and 60,147 showing appointments. Therefore, March 2021 is the highest performing month on record over the last 13 years (the period NABOR® has tracked vital metrics reflecting the area’s housing market activity). March was also the first month in several years where there were more reported price increases than decreases. 

 

Median closed prices in March increased 12.2 percent to $415,000 (the highest median price increase month/month on record since 2008) from $370,000 in March 2020. In March 2021, there were just 1,819 homes in inventory (the lowest it has been since 2014), which was a 73.2 percent decrease from 6,795 homes in inventory in March 2020.

 

Pending sales (homes under contract) activity in March also broke records, as seen in the 152.7 percent spike to 2,469 pending listings from 977 pending listings in March 2020. However, broker analysts were quick to remind each other that a high number of sales during the second half of the month last year were lost as we were in a pandemic lockdown. Despite last March’s COVID-19-related market anomaly, this March’s pending sales still eclipsed pending sales activity reported in March over the previous eight years.

 

The NABOR® March 2021 Market Reports compare single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and include an overall market summary. NABOR® sales statistics are presented in chart format ( CLICK HERE ) for those who enjoy a more in-depth analysis.

 

What does this all mean?

 

It means that the housing supply is low and demand is very high, which erodes our inventory.  Also, because of shortages, new construction is slowing down. Builders cannot meet the current demand, so many of them stopped selling until they are confident of the availability of products and delivery times. Hence, the reason the re-sale market is huge now.

 

It truly is like going into battle when you are representing a Buyer in this current market. 

Buyers have to have their arsenal of weapons like:

 

•          a solid pre-approval letter or proof of funds,

•          make a competitive offer or in some cases, just a flat out full-price offer,

•          shorten inspection and mortgage contingencies,

•          be willing to make up the difference between appraised value and selling price if getting a mortgage and

•          be prepared to put down a larger amount of money in escrow.  

 

I have seen it all this year, including multiple offers within two hours of the listing going live in MLS, Sellers being in the driver seat, and demanding all contingencies be waived (which I frown upon). Still, if the Buyer wants the house, the Sellers’ demands need to be met. If they are not, the Seller moves on to the next Buyer who is willing to succumb to their demands.

 

I recently had remote Buyers and found a small condo off of Park Shore Dr., West of 41. 

He and his wife flew in to see it and realized that it would not accommodate their family of five. It was an “AS IS” contract, and so they terminated the contract. As soon as they released it, the listing REALTOR ®  was thrilled because she put it on the market for $25,000 more. And you know what, she may get it!

 

Rentals 

 

For 2022, rentals are going like hotcakes, and most people are signing up for three months, January through the end of March. I highly advise if you are thinking about renting next year during the season, you should try to book as soon as possible. You can go to  www.BuyNaples.net  to view our rentals and other rentals online, or you can call my Rental Operations Manager, Corine Bordges, at 239-206-6457. She would have the most up-to-date inventory and availability.

 

By the way, if you own a furnished property in Naples, you might consider renting it for the season or even out of season. It appears that the demand for rentals has significantly gone up along with its pricing.

 

I wish you all the best!   Please stay happy & healthy, and hopefully, we will see you soon!

Posted in Market Updates
April 12, 2021

Market Watch April 2021

SW Florida Real Estate Boom

By Robert Nardi

 

Overall closed sales of existing homes in Naples for February increased 62 percent to 1,307 closed sales from 807 closed sales in February 2020. Broker analysts reviewing the February 2021 Market Report were not surprised at the increased momentum. Many report buyers are scooping up the available inventory of homes in all geographic locations within Naples almost as fast as they come onto the market. Inventory fell 68.8 percent in February to 2,224 homes from 7,127 homes in February 2020. According to the report, single-family homes continue to be in high demand, so many buyers pivoted to condominiums in February. As a result, the condominium market experienced a 75.7 percent increase in closed sales and a 66.6 percent decrease in inventory. And unlike 2005/2006, activity is not a result of ‘manufactured wealth’. Sales today are done with real money, which is why home values in our area are finally increasing. 

 

It has been a challenge for buyers to find existing properties for sale in all price categories and finding new home purchasing options is diminishing. Builders report a significant shortage in materials for new home construction, i.e., windows, lumber, piping, etc. New home communities are near completion, so we see many put their last lots up for bid.

It is not surprising that February saw pending sales of existing homes in Naples skyrocket 50.7 percent to 2,299 pending sales from 1,526 pending sales in February 2020. In comparison, there were more pending sales (2,299) at the end of February than inventory (2,224), resulting in a drastic drop in supply as the February report revealed our area now has only a 2-month supply of homes available to buyers. The NABOR® February 2021 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 that like statistics.

 

As of late, it has been so competitive that many buyers are purchasing homes with cash as it provides leverage during the sale. This occurrence often happens in multiple offer situations because financing can often weaken an offer. Therefore, buyers use cash to purchase and later refinance to enjoy the low-interest rates once the sale is complete. Not surprisingly, cash sales accounted for 57.9 percent of all closed sales during February. 

 

My thoughts...

 

All I can say is, “Wow!”   This season has been on fire. I think what added fuel to the fire was COVID restrictions up North/East coast, winter weather, and the realization that Northern/East coast states real estate and state taxes significantly increased.

Ironically, the news reported that tourism was down 18% in Southwest Florida; however, they counted hotel occupancy. They were not looking at rentals. The beginning of 2021 saw the Nardi Realty rental department boom, with almost 75% of our rentals being from the beginning of January through the end of March. Usually, it would be one- or two-month rentals. If you were down here during season, there certainly was not any less traffic. In fact, to me, it felt even more congested. And even the restaurants were packed, and it was a challenge to make a reservation. 

Property values have increased based on supply and demand. Some “pennywise” people have noticed this increase in value and have decided to “cash in” by selling their property. They plan to rent for a couple of years and then get back into the market. However, Southwest Florida property seemed undervalued for many years, and our prices have finally caught up to what they should be today. Plus, you have the added perk of fantastic weather, the ability to eat most of your meals outside, and work remotely. I guess that is why many call the Southwest Coast of Florida the “Paradise Coast.”

   

Rentals

 

Surprisingly, this year, quite a few renters who stayed through the end of March decided to extend through April and even May. Why go home? 

 

If you are interested in our availability or would like to book a rental, please access  www.BuyNaples.net  or you can call Corine Bordges, my Rental Operations Manager, directly at 239-206-6457. We always give first preference to those booked with us this year; however, some have decided not to renew. Corine would have the most current availability. 

 

 

Spring has finally sprung! Please stay healthy and safe. Hopefully, we will be able to see you soon!

Posted in Market Updates
March 29, 2021

Market Watch March 2021

A Sellers Market...

By Robert Nardi

Buyers fleeing frigid weather descended on Naples in full force during January, which reported a 38.5 percent increase in overall pending sales (homes under contract) to 2,210 pending sales from 1,359 pending sales in January 2020, according to the January 2021 Market Report, released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island).

Not surprisingly, as a result of impressive activity during the fourth quarter of 2020, overall closed sales in January increased 49.7 percent to 1,109 closed sales from 741 closed sales in January 2020, leaving agents with 2.6 months of inventory at the end of the first month of the new year.

 

According to the report, Naples's showings increased 36 percent to 57,468 in January from 42,299 in January 2020. This was the highest number of showings recorded in one month over the past 12 months. Overall inventory in January fell 59.7 percent to 2,750 homes from 6,828 homes in January 2020. The radical and continuous reduction in inventory is changing the dynamic of the transaction.

The median closed price in January increased 14.7 percent to $395,000 from $344,500 in January 2020. And while this is $10,000 lower than the median closed price reported in December, with the shortage of inventory, and the fact that sales for $2 million properties increased over 65% from last year, prices will continue to go in an upward trend.

The NABOR® January 2021 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 who like to crunch numbers.

 

What does this all mean?

 

It clearly means we are in a Sellers' market. When demand increases and supply decreases, prices go up. Over the past several months, if a single-family pool home goes on the market between $350,000 - $550,000, it usually has multiple offers on it within hours and is sold in a day. Condos are certainly selling too, but not at the same ferociousness of a single-family pool home. With COVID continuing to loom, people are still leery with sharing coming elements, i.e., elevators, pools, lobbies, etc. Based on this Sellers' market, I have received offers with an escalating clause, simply stating the current Buyer will increase their offer over the other competing Buyer's offer by $1000. However, when considering an offer, it is just not based on price. You look at other factors like cash or mortgage, closing date, and other terms and conditions. These escalating clauses do not always work, and I think they give false hope to the Buyers.   Also, I am seeing a lot of personal letters being written by the Buyers to the Sellers.  These are written to make an emotional impact on the Sellers and sway them to pick the Buyers' offer. I do see that these letters do make an impact if the offers are similar in nature. 

 

Seasonal Rentals


Our seasonal rentals are up from last year. This year 75% of our seasonal rentals were for three months. Once again, COVID and people giving the ability to work remotely have made this impact. Why stay in the snow and cold when you can come to sunny and warm Southwest Florida and work? We are currently taking reservations for the 2022 season, and we still have some great rentals available in April. To see our current inventory, you can go to  www.BuyNaples.net  and click on the Menu bar on the very top right and then select Rentals.  You can search rentals there or if you scroll down, you can see all of our rentals.  Also, you can call Corine Bordges, our Rental Operations Manager, at 239-206-6457 for availability. In some cases, we may have to put you on a waitlist because we generally allow the current tenants to renew for next year.

Stay safe, and of course, if I could help you in any way, please feel free to contact me directly at 239-293-3592.

 

 

 

Wishing you a healthy and happy spring!  

Posted in Market Updates
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