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. To subscribe to Robert's Monthly e-Newsletter click this link.

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!

Sept. 20, 2022

Market Watch September 2022

Still on the Road to a Balanced Market

By Robert Nardi

Naples's housing market experts reviewing the July 2022 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), confirm the data reflected normal activity levels akin to pre-pandemic summer months. Historically, closed sales in Naples during the summer months trend at around 800 sales a month. But during the last two years, summer sales were well above 1,000 closed sales a month. This July, overall closed sales decreased 43.4 percent to 662 closed sales from 1,170 closed sales in July 2021. For perspective, in July 2018 and 2019, there were 774 and 829 closed sales, respectively. The current activity is what market experts expected in a post-pandemic summer. It signifies that we are on a path back to a balanced market.

 

Additional indications in the July report supporting this shift are the number of pending sales. Overall pending sales decreased 33.8 percent to 751 pending sales from 1,135 pending sales in July 2021. The tempering of closed and pending sales, which began in June, produces one very welcome result: an increase in inventory. In July, inventory rose 87.6 percent to 2,429 properties from 1,295 properties in July 2021 (there were 5,200 properties in inventory during July 2019). There were 905 price reductions in July compared to 293 in July 2021. But demand is still very high. The median closed price in July increased 16 percent to $545,000 from $469,950 in July 2021; it decreased 9.8 percent from $604,000 in June.

 

The NABOR® July 2022 Market Report compares 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 statistics.

 

What does this all mean?

 

As I stated in previous newsletters, we are on the road to a balanced market. Our inventory is going up, and even though there is demand in the market, prices are minimally coming down. On average, they are coming down 5% where before, listings were selling at asking or above. However, price reduction depends on the location. As they say, it is all about "Location, Location, Location" in real estate. Properties near or on the beach are still in the highest demand. Prices there most likely will not go down, but they will probably go up. I recently put a three-bedroom, two-bath home on the market West of 41, three and a half miles from the beach, and I was able to get it under contract within three days. I had two offers in hand. Usually, my seller would say, "Let's do the highest & best!"  However, this strategy in this market does not work as well as in the "buying frenzy" market. If I say, "Highest & Best" in this market, some buyers will drop out, not go up in price (keep the same offer), or then there would be one that would raise their price but add "extra's in the contract" like furnishings, televisions, etc. Adding items to the contract would never happen at the height of buying because the demand was so great. The bottom line is buyer's urgency to purchase has dissipated. They hope the inventory will continue to grow, giving them more choices. Therefore, the days of 20-30 multiple offers are gone.

 

What's happening with the rental market?

 

It appears that the seasonal rental market demand is slowing, and prices are coming down slightly; therefore, a good sign for people who wish to be here in season and make a "last minute" booking. However, month choices may be limited.  

 

The annual rental market is still moving. However, landlords must be realistic with pricing. Yearly rents have gone up significantly since last year, but some annual rents are higher than they should be. If you have a yearly rental, price it accordingly, and it can rent quickly.  Why keep it on the market for one to two months at a higher price? You would be losing money. Like selling, price it right, and it will sell/rent.

 

If you are considering taking a plunge into the rental market, either putting a property up for rent or renting annually/seasonally, please contact Jessica Martin, my Rental Administrator, at 239-631-9447. She can talk to you about your potential rental property or find an annual/seasonal rental.

 

Where to find us!

 

As a reminder, you can perform your property/rental searches at  www.BuyNaples.net  or find us on Facebook at  www.facebook.com/nardirealty  or on Instagram at  www.instagram.com/nardirealty .

 

 

Fall is coming! Enjoy the change in weather. As the winter months come upon us, please think of us for your buying, selling, and/or rental needs as you make your entry or return to Southwest Florida.

Posted in Market Updates
Aug. 26, 2022

Market Watch August 2022

Price Reductions & More Inventory

By Robert Nardi

Data reflecting the Naples area housing market activity during June showed signs of a return to pre-pandemic summer activity when market conditions were balanced. According to the June 2022 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), pending sales decreased 36.8 percent in June to 794 pending sales from 1,236 pending sales in June 2021. In addition, closed sales fell 38.4 percent in June to 952 closed sales from 1,545 closed in June 2021. On the positive side, an 80.5 percent increase in inventory during June to 2,294 properties from 1,271 properties in June 2021 should spark sales. With 2.2 months of inventory available in June (up from .8 months in December 2021), the journey back to a balanced market is starting to take place. In addition, nearly 50 percent of our inventory this past June had a price reduction. These price reductions should be viewed as new listings because the newly lowered price is now attractive to a larger pool of buyers. Thus, there are more opportunities available for home buyers.

The NABOR® June 2022 Market Report compares single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. In addition, NABOR® sales statistics are presented in chart format ( CLICK HERE ) for those that would like to see all the statistics.

Median closed prices in June increased 31.8 percent to $604,000 from $458,281 in June 2021, but median closed prices for single-family homes decreased 7.7 percent to $750,000 in June from $812,500 in May. Conversely, median closed prices for condominiums in June increased 2.5 percent to $497,000 from $485,000 in May.

What does this all mean?

If you live in Naples all year round, you will notice that restaurants have fewer patrons this summer because fewer people are here. Why? Because with COVID restrictions lifted, there is no immediate need to get down to Florida to live a “normal” life. During the beginning COVID years, even people who owned here stayed throughout the summer. They were hoping that their state would lift the mask mandate, etc. Therefore, fewer people are down here, and thus, there is less demand. Also, for two years, Florida was a preferred vacation area. All states have lifted the mask mandate and opened up. Therefore, tourists are going to other vacation areas within the United States of America and abroad.

International travel has increased, and it appears many are enjoying Europe or domestic travel like Alaska, which seems very popular. On the upswing, international travel is making its way back slowly to Naples.

Add to the mix higher mortgage rates, worries about a possible recession, an ailing stock market, and inflation all contribute to demand tapering off. When demand lessens, inventory increases, and prices decrease. However, the price decreases I am seeing are minimal, not drastic. I still believe that these slightly lower prices will be more attractive to buyers, but we will not have the debacle of the great recession of 2005.

Rentals are still in high demand!

If you are a senior and decided to live in an independent living facility instead of just selling your home outright, it may be a good time to rent it annually. Especially if you have a single-family home with a pool, it is the most sought-after rental that we have in our inventory. Annual rent could be anywhere from $4500 and up, depending on the condition, location and amenities offered. Also, moving your home from your homesteaded domicile to a rental can provide quite a few tax advantages. You may want to discuss it with a real estate attorney or accountant.

What does the future hold?

Our inventory is going up, and I believe we will have a market where supply and demand will be in equilibrium over the next two years. The economy will be more robust, and inflation will taper off, and once inflation is under control, then mortgage interest rates will come down. Therefore, even if you are buying today at a higher mortgage interest rate, you can always refinance in the proceeding years once the interest rates come down.

Lastly, Southwest Florida is still attractive to buyers and always will be. The weather, beaches, low real estate taxes, no state tax, highly rated hospitals, and an overall strong economy. By the way, Collier County has the lowest real estate taxes in Florida. 1.25% plus if you homestead, you get an additional $650 deducted from your tax bill at the end of the year. What’s not to love?

Enjoy the rest of your summer! Before you know it, Fall will be upon us! 

Posted in Market Updates
July 11, 2022

Market Watch July 2022

Highest Number of Listings, May 2022

By Robert Nardi
May had the highest number of new listings in the last three years than any May. Fellow brokers who also analyzed the NABOR® May 2022 Market Report are pleased with this trend as it will lead to more options for summer buyers. New listings during May pushed the inventory of homes for sale up 58.6 percent to 2,046 properties compared to 1,290 properties in May 2021. By the end of May, our inventory in Naples has nearly doubled since the same time a year ago. And if you include the 889 homes that had a price reduction in May in this inventory mix, then we're in good shape for the summer months. Price reductions are like new listings because the home's new price point becomes a unique opportunity for a larger pool of buyers. Brokers like me prefer to compare this year's activity to the activity in 2019, as it was a balanced year with a 7.3-month supply of inventory. A healthy market for us is six to 12 months of inventory.

 

 

There was a 24.5 percent decrease in May to 1,249 closed sales from 1,654 closed sales in May 2021. However, using 2019's balanced market activity as a comparison, closed sales increased 7 percent month/month and 18 percent year to date. Demand remains strong despite having three times fewer inventory options than 2019 levels. Today, we have a 1.9-month supply of inventory.  The median closed price increased 40.3 percent in May to $608,000 from $433,500 in May 2021. Since January, we've seen a 21.9 percent increase in the number of homes sold in the $500,000 to $1 million price category.
  

The NABOR®, May 2022 Market Report, compares single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. For those who enjoy statistics, the NABOR® market report is in a chart format ( CLICK HERE ). 

 

What does this all mean?

 

The red-hot Naples Market from June 2021 through March 2022 is starting to cool. As mentioned, inventory is increasing, and we still have demand, but having multiple Buyers throwing in competing offers is becoming rarer. However, a larger supply is not the only factor. Interest rates are climbing. The stock market is down 35%, and we are experiencing rapid inflation.

 

All this news is not copasetic for the average Seller, but Buyers are sighing with relief. They still are not in the driving seat, but they are sitting "prettier" than they were just a few months ago. Prices are coming down, but not significantly. Why? Because Naples and the Southwest coastland have been undervalued compared to other coastal cities. The market in the past year has made its correction.
 

Everyone who purchased a home during this time paid cash or financed. In fact, in May, 63.3% of purchases in Naples were cash. Today, financing is not an easy task because the underwriting process is so regulated and rigorous that everyone financing can afford to purchase. It is very different from the "Great Recession" and the housing industry's collapse during that period.

 

What about the Rental market?

 

Seasonal rentals (January, February, and March) in 2022 were booming. Demand was so great that monthly rentals rates increased by at least 20%. In 2023 there is still demand, but not the kind of demand we had earlier this year. Because Florida opened earlier than most states, many people flocked in 2020, 2021, and the beginning of 2022. However, most of the United States is now open and has lifted the mask mandate, so there was no reason for these people to head south. Therefore, the rental market is starting to soften here, and monthly rental rates for seasonal and annual rentals are decreasing by an average of 5%.

 

The cache of the Southwest Florida Market

 

The Southwest Florida market is still very appealing, and people want to live here. In fact, out of the 25 fastest-growing cities in 2022, Florida has 11 cities on the list, and Naples and Fort Myers are two of those cities.

 

Florida has the tenth-best quality of living in the country. Florida's economy is one of the strongest in the nation, with a GDP of over $1.1 trillion. Florida would be the fifteenth wealthiest nation in the world if it were a country. The economy also continues to grow, with over 500,000 jobs added last year. Our beaches, quality of life, and being a tax-friendly state is unmatched.

 

If you need assistance selling, buying, or renting, please contact me at 239-293-3592 or send an e-mail to  Robert@NardiRealty.com . I am here to help!

 

 

Enjoy the rest of your Summer!

Posted in Market Updates
June 14, 2022

Market Watch June 2022

Housing Market is Starting to Balance

By Robert Nardi

During April, the overall inventory in Naples increased 16.5 percent to 1,668 properties from 1,432 properties in April 2021. After reviewing the April 2022 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), the Naples area housing market appears to be making a turn toward a balanced and healthy market. With the swell of new single-family home listings, up 5.7 percent over last year, and with 549 price reductions (33 percent of the inventory), we have 1.5 months of inventory, the highest level since March 2021. However, demand for the Naples lifestyle remains strong. Days on market for April were 16 days, considerably less than the historic 90-day average.

In April, the overall median closed price increased 39.2 percent to $599,000 from $440,000 in April 2021. Median closed prices continue to rise in the single-family home market, up 8.7 percent from March, but median closed prices during April in the condominium market decreased 1.1 percent from March. One "stand-out" observation is that with the increased appreciation over the past year, and the depletion of properties listed at $300,000 or less, there were only 96 properties below this amount in April 2022. Wow!

 

If you want to see the NABOR® April 2022 Market Report in chart form,  CLICK HERE . It compares single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. 

 

What does this all mean?

 

It simply means that the Naples market is starting to correct itself, however, do not count on prices plummeting. We see a lot of price decreases, but that is because these properties were overpriced, to begin with when they hit the market. The current market is dictating the selling price.

 

In 2004 & 2005, mortgage lenders financed Buyers through no-doc loans, which accelerated demand, causing properties to increase in value dramatically. It was relatively easy to get a mortgage by simply stating yearly income, running the Buyers' credit score, and performing a desktop appraisal. However, in today's housing market, Buyers getting a mortgage must go through a tremendous amount of scrutiny when securing a mortgage. Several of my customers have complained about the underwriting process because it feels like an "invasion of privacy." Also, the Naples area is in a bit of a bubble because many people sell their homes for large amounts of monies in coastal regions and then purchase in cash here. In fact, in April 2022, 66.7% of property buyers paid cash. Therefore, people waiting on the sidelines for prices to drop dramatically will be waiting a long time. It will not be a repeat of the "Great Recession" because everyone who is purchasing can afford to buy the property.

 

What should you do in this housing market?

 

If you are a Seller in Southwest Florida, then sell your property. If it is not moving, it is likely priced too high and will need a price deduction. I am not saying a significant reduction, but some reduction. Because the market is correcting, it will take longer to sell your property. Please keep that in mind.

If you are a Buyer in Southwest Florida, keep your eye out for properties entering the Multi-Listing Service (MLS) every day. You can also enlist the help of a REALTOR® to assist you. A REALTOR® can set up automatic searches for properties with the same characteristics or if you are looking in a particular area or development. Once a property comes on the market, you will need to act quickly on it. Make an appointment immediately and if it is something you like, put an offer in with few contingencies.

The NABOR® contract's three major contingencies are financing, inspections, and closing date. My best advice for those who have cash but want to get a mortgage is to select "Cash" on the contract. In essence, you are waiving all financing contingencies; however, you most likely can get approved for a mortgage in 35 or fewer days. Therefore, when selecting a closing date, I would make 40+ days from the effective date (when both parties come to terms and sign).

 

I would tighten the time frame from 15 to 10 days as far as inspections go. In addition, I would seriously consider an "As Is" contract that would allow you to inspect within the designated period. If you find something wrong with the property, you can walk away and receive your escrow monies back. However, if you see something wrong and still want the property, then "As Is" means precisely that. You are saying that you will not request from the Seller any remedial action or a credit at closing to fix those items.

 

Once the inspection period is over, then the only other contingency is the closing date. The NABOR® contract makes the closing date, "Time is of the essence." You must close on the date specified in the contract. According to the agreement, if you refuse or cannot close, the escrow money you put down is forfeited. The Seller is entitled to this money as "damages." You can always ask for a closing extension, but I highly doubt they would extend the closing date because it is a Sellers' market.

 

Need help with any of this? Please feel free to write me at Robert@NardiRealty.com or phone me at 239-293-3592. Enjoy your summer!

Posted in Market Updates
May 9, 2022

Market Watch May 2022

Some Price Reductions but still a Sellers' Market

By Robert Nardi

Demand for the Naples lifestyle remains strong as closed sales in March increased 49.9 percent compared to those reported in February. Although closed sales decreased 36.5 percent to 1,205 in March 2022 from 1,899 in March 2021, the increase from February to March was a welcome result of a steady wave of new listings. According to the March 2022 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), new listings decreased only 4.3 percent to 1,637 new listings from 1,711 new listings in March 2021. If this wave of new listings remains steady during the coming months, it could mean more options for buyers navigating the area’s limited inventory.

 

The March report showed that inventory decreased 23.5 percent to 1,392 properties from 1,819 in March 2021. However, the good news is that March inventory increased 20 percent compared to inventory levels NABOR® reported in February (1,176 homes). In March, more homes for sale meant sellers enjoyed 43,206 showings that ultimately inspired 1,611 pending sales (homes under contract). The median closed price increased in March, up 39.6 percent to $575,000 from $412,000 in March 2021, and 62.7 percent of the month’s closings were cash sales. The NABOR® March 2022 Market Report compares 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 in chart format ( CLICK HERE )

 

The March report showed about a third of the homes for sale (417) decreased in price during the month, a typical scenario where sellers list their property at a high price at the beginning of the winter season. Then as the season ends sometime after Easter, they reduce the listing price with the hope of selling their property before they head back to their primary home. There were 51 percent more price decreases in March than in February, indicating that they were too high for the market.

 

What does this all mean?

Higher mortgage interest rates and the increase in inventory are having a direct effect on slightly lowering prices. Condominiums and single-family homes are coming onto the market more rapidly. The season is over, and properties have been used or rented. Snowbirds and landlords decide to sell to "ride the wave." As of today, there are 1422 properties available in Naples, Florida. Just three months ago, there were only 825 properties available for sale. Inventory has gone up 58%!

The median price jumped nearly 40% from a year ago, reflecting economic theory. When you have lower supply and higher demand, prices go up. Southwest Florida, for years, has been undervalued, and it was time for it "catch up" with other coastal cities.

Naples, FL, is in the news for its ideal weather, beaches, and quality of life. Recently,  Healthgrades recognized Naples Community Hospital Health System as being in the Top 5% of Hospitals in the U.S. for Patient Safety Excellence. Impressive for Collier County, where there are only 370,000 inhabitants in season and 250,000 inhabitants out of season.

Advice

If you are a landlord or a snowbird and wish to sell, I would do it sooner than later. I do not believe that prices will go down significantly, but I think days on the market will be longer. There is always an unknown of other listings coming on the market, either the same model or square footage in your community or area, at a lesser price. Recently, I listed a single-family home, and a similar model came on the market for thousands less. There was no comparison because the newly listed house was barebones, builder-grade, and sat on an inferior lot. Yet, Buyers for my listing were throwing out low ball offers. It was like comparing apples to oranges, not apples to apples. However, Buyers see the prices going down slightly and think now they can get a deal. Prices are only going down because they were priced too high from the start. It is still a Sellers' market and will remain that way for many more months until the market is in equilibrium. 

My best advice is to find a REALTOR® that understands the market and can price your home based on comps, knowledge, and experience. They also have access to licensed handypersons, electricians, plumbers, housekeeping, professional staging companies, real estate attorneys, title companies, etc. Working with a skilled REALTOR® can be invaluable and make the selling process so much easier.

 

Any questions or need assistance, please feel free to contact me at 239-293-3592, send an email to  Robert@NardiRealty.com or search at BuyNaples.Net.

Happy Mother's Day!

Posted in Market Updates
April 10, 2022

Market Watch April 2022

Sellers making the right move!

By Robert Nardi

More sellers are motivated to enter the market as home values continue to rise because of limited inventory and high demand in the Naples area. According to the February 2022 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), the overall median closed price in February was $550,000, a 37.5 percent increase over the median closed price in February 2021. The number of showings demonstrates the high demand for homes in February, 43,032. When divided by the number of homes in inventory during February (1,176), it averages 36 showings per home. For perspective, in 2019, there were 2.9 showings per home. The data also shows that homes sold fast in February, within 23 days on the market, and the percent of list price received was 100.6 percent, which pleased many sellers. While inventory during February decreased 47.1 percent to 1,176 homes from 2,224 homes in February 2021, the actual inventory number is higher because the report does not capture the number of off-market listings.

 

In February, the median closed price increased 37.5 percent to $550,000 from $400,000 in February 2021. It appears that the median closed price is starting to stabilize. It only increased .2 percent from January to February, and the report shows February had more price decreases [276] during the month than price increases [170]. During the years leading up to the pandemic (2017-2019), Closed sales in February averaged in the low 600s. Still, demand for the Naples lifestyle and the amenities have driven buyers to the paradise coast in record numbers in recent years. It is only due to a lack of inventory that home sales in Naples did not fare as well as last February. Overall, closed sales decreased 39.5 percent to 804 in February from 1,330 in February 2021. The only area where we see a decrease in closed sales over the last year is the $300,000 and below range because there were only 26 single-family homes at this price level.

 

The NABOR® February 2022 Market Report compares single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary in chart form ( CLICK HERE ).

 

What does this all mean?

 

It continues to be a Seller’s market. I recently listed a two-bedroom/two-bath condo in North Naples for $249,900. Great location and schools. It was over 1150 sq. ft. of living area. Within a few days, I received over 30 highest and best offers. Yes, 30 offers, you read correctly. With this large number of competing bids, it sold for a much higher price. I worked with my Seller to create a strategy for producing offers, and then when offers were rolling in, I had to categorize each and break down their terms in a language my Seller could understand. In addition, offers have become very complicated with escalation clauses, appraisal waivers, cash vs. a mortgage contingency, etc. Five seemed to contain the best terms and pricing out of the submitted offers. Out of the five, one had the least number of contingencies and the highest price. That offer won the race.

 

My best advice to all Sellers out there is not to do a “For Sale by Owner” unless you are willing to take a lower offer or know the person and want to give them a discount concerning pricing. It is essential not to go alone in this market if you are a Seller and utilize a REALTOR®. Why not maximize one of your greatest assets?

  

Renting after Selling?

 

Sellers need to have a game plan because the property will sell and perhaps sell quickly. Therefore, one option they have after closing is to rent. However, the rental market is like the sales market; very tight and has few choices. Recently, Naples, Florida, was deemed one of the most expensive cities for rentals in the national news. On average, renting a two-bedroom/two-bath condominium annually is $2000 per month.

 

Demand has increased 100-fold regarding seasonal rentals, and therefore, monthly prices have increased anywhere from $1000 to $3000 per month. Other factors that fuel the fire are its distance to the beach or if it resides in a resort community. Nardi Realty has a waiting list of 350 people seeking rentals from January through March of 2023, and willing to pay $4000 per month for a small condo to $42,000 per month for a luxury high-rise on the Gulf of Mexico. Simply mind-blowing!

 
The best advice I can give to Sellers is to do their due diligence and have a moving plan. Don’t leave anything up to fate.

 

Posted in Market Updates
March 13, 2022

Market Watch March 2022

A Great Time to Rent or Sell!

By Robert Nardi

A 34.5 percent increase in new listings sparked 19,277 more showings during January compared to new listings and showings reported in December 2021. While an increase in new listings demonstrates a solid start for the real estate market this year, low inventory continues to harness the market’s potential. As a result of tight inventory, January sales activity could not meet the level of sales activity reported in January 2021. Historically, month-to-month sales activity during season ascends through April. But according to the January 2022 Market Report released by the Naples Area Board of REALTORS® (NABOR®), a 74.9 percent decrease in inventory for January to 1,122 homes from 4,474 homes in January 2021 will not provide the same level of sales transactions that occurred last season.

Buyers could explore an inventory that included 1,272 new listings. Those new listings translated to a 32 percent increase in pending sales to 1,373 pending sales during January compared to 1,038 pending sales reported in December. The overall median closed price increased 39 percent in January to $549,000 from $395,000 in January 2021.

The condominium market continued to report sales at an above list price trend for the second month in a row and a 47.2 percent increase in median closed price in January to $427,000 from $290,132 in January 2021. In addition, the median closed price for single-family homes rose 25.1 percent in January to $675,000 from $539,500 in January 2021.

With less than a one-month supply of homes, closed sales during January could not realize the level of activity it experienced a year ago and decreased 27.9 percent to 818 closed sales from 1,134 closed sales in January 2021. Pending sales which reflect the number of new homes under contract, dropped 37.9 percent to 1,373 from 2,210 in January 2021; but, as mentioned above, pending sales in January increased by 335 contracts (32 percent) compared to pending sales reported in December 2021 (1,038). The NABOR® January 2022 Market Report compares 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), including overall (single-family and condominium) findings for 2022.

New lending rules from Fannie Mae and Freddie Mac go into effect April 1, 2022, and add more requirements from those purchasing a second home or condominium. For more information on these changes, please (CLICK HERE). 

The change, in a nutshell, is that it is going to cost more to procure a loan, and when it comes to investment properties, there is more risk, and they’ll have their specific underwriting process by the lender, therefore, more costly to the mortgagee. So one way around it would be for you to take a home equity loan from your current primary home to purchase your second or investment property.

What does this mean?

Buyer demand is not likely to slow down anytime soon because homes in Naples are still much more affordable than homes in other parts of states with coastal cities like California, New York, New Jersey, and Massachusetts. It continues to be a strong Seller’s market. Therefore, I encourage owners to sell their properties:

1)    that require substantial maintenance to gain the same or more profit from investment dividends,

2)    who would be moving to a retirement or assisted living community,

3)    who are empty nesters who do not require a large single-family home anymore or,

4)    that are second-home owners who would enjoy a profit and purchase a Naples home closer to retirement.

Rentals for next season in demand

It seems everyone wants to live in Southwest Florida in some capacity or another, so much so that Nardi Realty has a large rental department with over 170 seasonal rentals and over 150 annual rentals. This season we saw many short-term rentals expand their stay to three months beginning January 1, 2022.   In years past, we used to see more one or 2-month rentals. The bottom line is that people want to be in Southwest Florida for a longer time. Also, staying here for three months does give the renter the ability to look for property to purchase vs. rent.  We give a first-come, first-serve basis regarding their current rental unit for those who have rented this year. If they pass on it, we place someone else within the property. Demand is so high that we have 250 potential renters on a waiting list! Therefore, we need more rentals to fill this gap. I encourage everyone who has a home or condo not to leave it empty. Our One Source Rental team at Nardi Realty can work with you to make it an annual or seasonal rental. Rental prices are at an all-time high. The upside is that rents received can assist you with paying your taxes, insurance, HOA dues, etc.

Knowledge is power!

Please get in touch with me directly if you wish to find out what your home’s potential list price can be or if you want to explore making your current residence in Southwest Florida a rental by either sending an e-mail to Robert@NardiRealty.com or by calling me at 239-293-3592.

 

I wish you a great spring!

Posted in Market Updates
Feb. 13, 2022

Market Watch February 2022

Low Inventory - High Demand

By Robert Nardi

The Naples Board of REALTORS® released the December and Year-End 2021 Market Reports, which tracks home listings and sales within Collier County (excluding Marco Island). Demand for the Naples lifestyle eclipsed all expectations and helped break several home-sales records in 2021. The year ended with a 25.8 percent increase in overall closed sales and a 20.3 percent increase in median closed price (year over year). However, it appears that the Naples housing market is going through a transformation, and the last 18 months of record sales activity will not be sustainable in 2022 based on available inventory.

 

Sellers of homes located in Naples capitalized on a long wave of pent-up buyer demand in 2021, a year that exceeded many NABOR® records, including over $17 billion in home sales, a 52 percent increase from 2020. The closed sales momentum reached its zenith just as summer arrived but began to dim when inventory could no longer meet the rapid pace of demand during the second half of 2021. As a result, there were 20 percent fewer closed sales (6,109) from July to December than January through June (9,414). According to NABOR®’s Market Reports, 487,677 showings and 15,523 closed sales occurred in 2021. Strong buyer demand devoured the inventory, resulting in a 76.6 percent decrease in the number of homes for sale to a record low of 1,042 properties from 4,462 properties at the end of 2020. Strong buyer demand and a declining inventory influenced the median closed price (year over year) during 2021, which increased 20.3 percent to $445,000 from $370,000 in 2020. Rising home values in Naples inspired many sellers in 2021, as reflected in the 17.4 percent annual increase in average closed prices to $807,695 from $688,091 in 2020

 

In 2021, pending sales listings increased 14.8 percent to 18,664 pending sales from 16,254 pending sales during 2020. However, like closed sales activity, much of the pending sale activity occurred during the first half of the year when inventory was more plentiful. The NABOR® December and Year-End 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 in chart format ( CLICK HERE ).

 

During July and August, when families with children tend to relocate, close sales of single-family homes outpace condominiums during the year. The data indicate that home-type preferences shifted in 2021 to condominiums, as shown by an increase in closed sales of 37.2 percent to 8,206 condominiums from 5,979 condominiums in 2020. Condominiums in the $500,000 to $1 million price range reported the highest increase (97.8 percent) in closed sales compared to all other home types and price ranges tracked by NABOR®. Furthermore, the final sales price over the list price rose to 98.6 percent in 2021. During November and December, this figure was reported to be over 100 percent in the condominium market

 

What does this all mean…

 

It means that the Naples housing market was on fire in 2021 and now cooling down only because of our depleted inventory. There is still strong demand but very little inventory. For example, on February 10th, 2022, there were only 885 units available for sale in Collier County, based on our MLS data. This lower number of units is genuinely unbelievable because, in years past, we usually had anywhere from 5000 to 6000 units available with less demand. So, prices went up only marginally.

The shift of people desiring single-family homes vs. condominiums occurred because when COVID broke out, no one wanted to share common elements. For example, pools, elevators, etc., so at that time, single-family homes were desirable. However, as time has gone on, the shift to condominiums was natural because of price points and accessibility. As you can see from the report, home prices increased 17.4% for single-family homes, which pushed people out of that segment.

 

Demand is not going to curb at all in 2022. Why? Employers are now telling employees that they are no longer needed in the office and will work remotely indefinitely. Hence, Southwest Florida becomes incredibly attractive to these remote workers because of its weather, beaches, lifestyle, and tax structure. There is no state tax and city tax (unless you live in the City of Naples). Our sales tax is 6% with an added 1% surtax (7% in total). In addition, in Collier County, real estate taxes are the lowest in Florida, only 1.25%. In many states, the tax structure is much higher.

 

Time to sell…

 

If you are thinking of selling, this is the time to strike. You will most likely garner an excellent price based on the low supply and high demand. It would be in your best interest to hire a REALTOR© to navigate this market so they could help you get top dollar. Please feel free to reach out to me at 239-293-3592 or send an e-mail to  Robert@NardiRealty.com  with any questions.

If you would like to perform property searches, please feel free to click on 
 BuyNaples.net .

 

 

Please stay warm and healthy this winter. Just think Spring is around the corner!

Posted in Market Updates
Jan. 10, 2022

Market Watch January 2022

Sellers' Market Still!

By Robert Nardi
In November, pre-season buyers descended on the Naples real estate market, pushing the area's overall inventory down 76.1 percent to 1,198 homes from 5,006 in November 2020. During November, demand for the Naples lifestyle also influenced the median closed price, which increased 31.3 percent to $499,000 from $380,000 in November 2020. The November 2021 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), shows demand has not weened. Brokers predict buyer demand to continue as homeowners in Northern states seek lifestyles with fewer COVID-19 restrictions and international buyers seek investments in the U.S. real estate market. 

 

REALTORS® across the Naples area are working harder than ever to find homes for clients. There were 31,291 showings in November and a 70 percent decrease in days on the market. It went from 80 days to 24 days until pending. Although the overall median closed price continued to rise due to a tight inventory in November, please note that in the last 12-months ending November 2021 – 57 percent of closed sales in Naples were for homes priced below $500,000. New listings in November fell 22.9 percent to 958 homes from 1,242 in November 2020. In addition, the median closed price for condominiums in November was $375,000 compared to $622,000 for single-family homes. Condominium inventory decreased 85 percent during November compared to a 65 percent decrease in single-family home inventory. 

 

The NABOR® November 2021 Market Report compares 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?

 

Our inventory continues to decline, and demand continues to be high. Therefore, it will continue to be a Sellers' market in 2022. Even with today's prices, we are undervalued compared to other coastal areas. If you look at prices on the west coast in California or Boston on the east coast, their prices are far higher than ours. In addition, Naples, Florida continues to be attractive to many northerners, foreign investors, and even fellow Floridians from the east coast. The east coast exploded in the past few years. The number of high rises, noise levels, and traffic over there is driving east coasters to our "Paradise Coast." 

 

If you are a Seller, especially a condominium owner, it is a great time to sell. Sales of condominiums continue to ascend because of price points vs. higher-priced single-family homes. Price point and affordability are bolstering the condominium market.

 

If you are 55 plus in age and are thinking of moving into independent living or an assisted living facility, it is a great time to sell too! Sales prices are up, and most senior facilities are for "rent" or "own." The rental facilities seem to be competitive, and you might be able to negotiate a better rental price for yourself. As far as owning, these facilities tend to be a better value based on sales price, because of the number of fees you pay to be in such a facility. By selling in this higher market, it will give you an opportunity to put a few more dollars in your pocket which will assist with your move and other expenses along the way.

 

When buying, you should enlist the help of a REALTOR® to maneuver all the ins and outs of the current housing market in Southwest Florida. As a Buyer, you cannot go it alone anymore if you want to find and purchase a property. You need someone on your side who has a expert knowledge of the buyer process, our sales contract and who has good negotiation skills to “win” against the competition.

 

Feel free to surf for properties at  www.BuyNaples.net  or if you wish for some personalized assistance, please send an e-mail to  Robert@NardiRealty.com .

 

 

I am wishing everyone a very Happy & Healthy New Year!

Posted in Market Updates
Dec. 15, 2021

Market Watch December 2021

Increase in Inventory - High Demand!

By Robert Nardi
Home sales were not as robust due to low inventory during October. Still, new listings are rising according to the October 2021 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 for October decreased 32.1 percent to 858 closed sales from 1,263 closed sales in October 2020. But irrespective of the home-buying frenzy that took place during the second half of 2020 (including October 2020) closed sales in October were historically higher than average for a typical October in Naples, even with the lowest inventory level on record by NABOR®.

The report shows pre-season interest already in play as October’s pending sales (1,186 pending sales) and showings (33,578) were above summer month levels. In October, the overall median closed price increased 16.9 percent to $450,000 from $385,000 in October 2020. The COVID-19 pandemic affected buying behaviors, and sales of single-family homes outpaced condominiums as people sought more open space in 2020, but those buying behaviors have now shifted. While overall inventory decreased 76.1 percent in October to 1,240 properties from 5,181 properties in October 2020, condominium inventory fell 84.4 percent in October. As such, there were nearly half as many condominiums (435) available compared to single-family homes (805) at the end of October. Not surprisingly, the median closed price for condominiums increased 31 percent to $370,000 from $282,500 in October 2020, while the median closed prices for single-family homes increased 18.8 percent to $615,000 from $517,750 in October 2020.
 

The NABOR® October 2021 Market Report compares single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® sales statistics are in chart format ( CLICK HERE ).

What does this mean?

It means that it is still a Sellers’ market and prices have risen significantly in one year. The Naples Daily News on December 2nd, 2021 reported that Naples, Florida ranks 1st for home sales per capita in the nation. Naples-Marco Island tops the website’s list ( Porch.com) for the most home sales per 10,000 residents this year. Demand will continue to remain high in 2022, however, I believe more properties will be coming on the market in late January 2022. The reason is that owners will come down for the season, January through March 2022, and feel they “missed the boat.” Because of this thought process, I believe they will be putting their properties on the market to “cash in.” I recently had a listing appointment with a couple in their late 60’s, and they indicated that they wanted to sell. I asked, “Where are you going?” They responded, “We don’t know. We will figure it out when the home goes under contract.” All I can say is, “Wow!” If seniors are willing to sell in this market without any plans as to where to go, others are thinking the same!

 

Buyer Fatigue

Are the prices leveling off? I believe that they are, but there are Buyers out there suffering from “Buyers Fatigue.” I recently put up a home for sale, and within three days, I received four offers, and out of those offers, there was a significantly higher one. The REALTOR® who submitted the bid informed me that his Buyer has put in multiple offers over several months and lost every time. He wants to win this time! And guess what? His bid was accepted as highest and best by the Seller.

 

What about sales prices?

Prices will continue to rise but at a much slower pace, and I do not believe that we will have a crash as we did in the “Great Recession.” Southwest Florida, a coastal area, has been underpriced for years, and the prices have adjusted accordingly.

 

My best advice is to work with a REALTOR® who understands the “ins and outs” of this current housing market. Having an experienced agent who can assist could be invaluable and put some extra dollars in your pocket.

If you have any questions or wish to find out what your home could be worth, please feel free to call me directly at 239-293-3592 or e-mail at Robert@NardiRealty.com.

 

I wish you and yours a safe, happy, and healthy holiday season and New Year!

Posted in Market Updates