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!

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
Nov. 16, 2021

Market Watch November 2021

September Sales Start to Slow due to Lack of Inventory

By Robert Nardi
Home sales in September would have been more robust if there had been more inventory. Historically, September is the slowest month for home sales in Naples, but the area's reputable natural beauty and home-value potential continue to increase its desirability to home buyers. Closed sales in September decreased 18.9 percent to 914 closed sales from 1,127 closed sales in September 2020 due to low inventory. A decrease of 213 homes sales might seem like home-buying interest is waning but consider the inventory factor. In September 2020, there were 5,287 properties available. While in September 2021, the month ended with just 1,251 properties for sale (a 76.3 percent decrease). Comparing showing activity also sheds light on the situation. There were roughly 23 showings per home during September compared to under seven showings per home in September 2020. More buyers are looking at fewer properties this year. 

 

 

The NABOR® September 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 that like statistics.

 

Since January, there has been a 48 percent increase in closed sales over the same nine months in 2020.  Not surprisingly, the median closed price in September increased 18.9 percent to $455,000 from $382,744 in September 2020. The Market Report showed new listings in September decreased 28.4 percent to 961 from 1,342 new listings in September 2020. However, while new listings of condominiums decreased 2.7 percent during the first nine months of 2021, new listings of single-family homes increased 3.5 percent during 2021! 

 

What does this all mean?

 

As you have seen, there are supply shortages everywhere because of the pandemic, and just like the supply shortages, the number of homes is in short supply. We are short over 5 million units. And as you know, when supply is low, and demand is high, prices increase.

I still receive inquires such as "Is the bottom on home prices going to drop in Southwest Florida?" 

 

I keep repeating to them that this go-around is different from the great recession of 2005. Buyers can afford to purchase either via cash or a mortgage which was different from the 2005 era, where getting a loan or home equity loan was approved by simply stating your income. Then the mortgage broker would perform a desktop appraisal of the property. An approval was immediate. These typically were "no-doc" loans issued at a higher rate costing the consumer much more money upfront and over time.

 

Should I sell my property now?

 

Since it is a Seller's market, it is an excellent opportunity to sell your property now, but if it does sell, where will you go? That is the most critical question to ask.

 

I have customers who have been living in Southwest Florida for many years.  They have decided to "cash out" and return to where they have previously lived. Mostly to be closer to family and friends. However, they are having challenges too. East and West coast housing markets have skyrocketed. So even if they get a high selling price for their property, they are still paying a premium to purchase in those areas. Throughout the United States, there is a housing shortage. Please put a game plan/strategy in place before you put your home up for sale. 

 

An excellent opportunity for seniors!

 

For seniors, this is a super opportunity to capitalize on this Sellers' market. They reached a point where they wished to downsize or move to a senior living or 55+ community. However, after years of living in one property, they need to declutter so their home can command a top selling price. There is nothing worse than walking in a house having tons of "stuff" lying around and having the closets and the garage stuffed to the gild. I first would enlist a friend/friend family member to assist you. If you cannot find anyone to help you, paid professional organizers can assist you with the "decluttering" process. I understand it could be overwhelming, but it has to be done before selling your property. I would start small by tackling drawers and closets and then eventually moving on to the garage ("The Beast"). As you go through items one by one, you would set up four piles. One pile would be for items you wish to discard. The 2nd pile would be for donations. The third pile could be for consignment items, and the fourth pile would be to keep and pack. Lastly, the worst thing you can do is go out and rent off-site storage and move "the stuff" there. It can be costly, and you still have the problem of decluttering one day. You are just prolonging the inevitable. Start to declutter now!

 

If you need assistance procuring a professional organizer or a mover, I can give you several recommendations. Please feel free to call me at 239-293-3592 or email me at  Robert@NardiRealty.com 

 

 

I am wishing you and yours a Happy Thanksgiving!

Posted in Market Updates
Oct. 11, 2021

Market Watch October 2021

August 2021 - Low Inventory

By Robert Nardi

Demand for homes in Collier County kept REALTORS® busy in August, even as inventory  dropped 77.3 percent to 1,249 homes from 5,503 homes in August 2020. According to the August 2021 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), REALTORS® escorted buyers on over 30,000 home showings in August! The month’s vigorous showing activity—coupled with a 76.8 percent decrease in days on market to 22 days—means most homes were listed, shown, and sold in less than 30 days. 

 

 

Historically, median closed prices of homes sold during summer months tend to be lower than median closed prices during high-season months (January through April), but that trend did not occur this year. According to the report, the median closed price reported in August was $75,000 higher than that reported in January 2021. The median closed price of homes sold increased 11.7 percent in August to $441,300 from $395,000 in August 2020 (median price is the price at which 50 percent of the homes sold were above that price, and 50 percent were below). 

 

 

The NABOR® August 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 presented in chart format ( CLICK HERE )

 

 

What does this all mean?

 

 

It is still a Seller’s market, and when a listing hits the Multiple Listing Service (MLS), it is usually sold within a few days. Some Sellers are taking on the “For Sale by Owner” (FSBO); however, I caution them. 

 

 

First, they do not know if the potential buyer is qualified to purchase. Plus, they are opening their home to strangers that call them from a sign or advertisement. Lastly, they do not know all the “ins and outs” of the sales process. I let the Seller (FSBO) know these drawbacks, and then they say, “Well, I just let all my neighbors know.” However, once again, Sellers are shortchanging themselves. They may think their home is worth “X” amount of dollars and settle for that price. Why should they compromise? If they hire a REALTOR®, they will add the listing to MLS, and generally, there would be numerous showings right away resulting in multiple offers, driving up the sales price. REALTORS® also add value because they possess a wealth of information regarding title companies, real estate attorneys, inspectors, electricians, plumbers, carpenters, licensed handypersons, etc. Many REALTORS® can also assist with staging or have a professional stager to help with your property so that you can get the maximum selling price!  On the other side of the sale, Buyers should develop a relationship with a REALTOR® in this scorching Southwest Florida housing market. They have tools that can let the Buyers know when a property hits the market. 

 

 

They could immediately book an appointment to do a video tour of the property, write up a contract if it suits the buyer, and present the offer. It has to happen quickly, or else a Buyer could lose out. Speaking of losing out…

 

 

Buyer Fatigue

 

 

This summer was a tough summer on Buyers. Many of them put 3-5 offers on properties and would lose out every time. So, they became weary, and many of them have decided to drop out of the market until early next year. It is understandable, and there was nothing anyone could do to ease their angst.

 

 

My Thoughts?

 

 

Demand is outpacing supply; however, I believe that owners will be coming back this season and putting their properties up for sale because they feel they may have missed out on an opportunity. Therefore, supply will increase, giving Buyers more choices.

 

 

Will there be a significant price drop in residential properties? I do not believe so because Southwest Florida been undervalued for years compared to other coastal areas. The market is simply playing “catch-up.” 

 

 

Are you thinking about selling, buying, or renting? Just access  www.BuyNaples.Net . Numerous tools on our website can provide information like “What is my home worth?” to in-depth searching capabilities for residential sales and rentals. 

 

 

Do you need “one on one” assistance? If so, please feel free to reach out to me at either 239-293-3592 or  Robert@NardiRealty.com. Happy Fall!

Posted in Market Updates
Sept. 13, 2021

Market Watch September 2021

The Housing Market Simmers!

By Robert Nardi
The  buying frenzy the Naples housing market experienced during the past year has simmered.   But now, it is being replaced with what brokers say will be our new normal: a low inventory market with a fast turnover of quality homes priced right. According to the July 2021 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), inventory decreased 77.2 percent (1,295 homes) in July 2021 compared to 5,672 homes in July 2020. Still, demand remains steady as there were only 30 fewer closed sales and just a 2 percent drop in showings. The median closed price in July increased 28.8 percent to $469,950 from $365,000 in July 2020. The median price is when 50 percent of the homes sold were above that price, and 50 percent were below.

Interestingly enough, the percent of list price received has been over 99 percent for the last three months.  However, overall pending sales in July dropped 21.5 percent to 1,135 pending sales from 1,446 pending sales in July 2020 and altogether closed sales fell 2.6 percent to 1,142 closed sales from 1,172 closed sales in July 2020.  Activity in the high-end luxury home market picked up speed during the month, as reflected in a 32.6 percent increase in closed sales for homes over $1 million and a 17.1 percent increase in pending sales for single-family homes valued over $1 million in July.

The NABOR® July 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 HEREfor those who like to see the stats.

The July Market Report shows days on market decreased 69.6 percent to 28 days from 92 days in July 2020. For single-family homes, days on market dropped to 25 days in July. Homes are available, but they are just not staying on the market long, especially quality homes priced right.

What does this all mean?

It means we are still in a Sellers' market in Naples.  Home demand has outpaced our capacity, which is why we see a significant rise in home values during the summer. a For those who wish to sell have several options.

You can sell your current home and move within Naples. You'll get a premium for your home, but you would have to buy at a premium. I know there are concerns about prices falling, but Naples has always been a luxury market, and I believe it has been undervalued all these years and is just playing "catch-up." Prices are not going to go down drastically because Buyers can afford to purchase.

They are either paying cash or applying for a mortgage.  Regarding a Buyer's mortgage, there are stringent rules regarding loaning money.  If a mortgage is approved, those Buyers can afford to buy.  I know some of you may have fears of the "Great Recession" and the melt-down of housing values.

Back in 2005, anyone seeking a loan that was breathing could get a loan based on a "No doc" loan.  They would state their income and run a credit score.  Lenders were more than happy to loan money on such a minor criterion.  However, that is no longer the case.

As far as the Buying side, Buyers must prepare themselves.  They need to have updated proof of funds or a pre-approval/pre-qualification letter.  With such a hot market, everything from the contract signing to negotiations has to happen quickly and succinctly.  You have to beat out your competition.  Buyers need to be accessible, either via their smartphone or computer, to sign sales documents rapidly.

I highly recommend working with a REALTOR®.  A licensed real estate agent can be beneficial because they could notify you as soon as a property comes on the market.  If you are out of state, they could immediately make an appointment, take more videos or face time with customers.  Time is of the essence.

As for those Sellers out there, they need a real estate professional when it comes down to pricing a home (it could even change day by day), advertising, negotiating, and guiding you through the sales process from start to finish to achieve a successful closing.

Seasonal & Annual Rentals

We have had a few cancellations with seasonal rentals, so if you are interested in renting in Southwest Florida during January, February & March of 2022, we may be able to accommodate you.  Please feel free to call my Operations Manager, Corine Bordges, at 239-206-6457.  She can let you know what our current availability is.  We also have annual rentals, but as fast as they come on the market, they are quickly "snatched up." Regarding annual rentals, there is such a high demand based on Sellers selling and still wanting to remain in Naples, people working from home seeking a warm refuge, and Sellers displacing their annual tenants to sell the property in an escalating market.

As always, if you are interested in performing your searches for properties for sale or rent, please feel free to access our website, BuyNaples.Net, or feel free to contact me directly at 239-293-3592 or e-mail me at Robert@NardiRealty.com.  I would be happy to assist you.

 

I wish you and yours a remarkable Fall!

Posted in Market Updates
Aug. 10, 2021

Market Watch August 2021

Decrease in Sales based on Inventory Availability

By Robert L. Nardi
With less than one month of inventory available, the Naples area housing market experienced a 14.5 percent decrease in overall pending sales in June to 1,256 pending sales from 1,469 pending sales in June 2020. Low inventory levels in June also contributed to a 7 percent decrease in showings for the month. It appears that the wild housing market frenzy that began about a year ago – peaking in March – is now decelerating. A new level of activity reflects improved market equity for sellers and sustained buyer interest from people seeking permanent residency. 

 

According to the report, overall inventory decreased 78.8 percent to 1,271 homes in June from 6,003 homes in June 2020. As expected, going into summer, new listings fell 12 percent in June to 1,147 new listings from 1,303 new listings in June 2020. However, in the first six months of 2021, new listings have increased 9.9 percent to 8,744 new listings compared to 7,957 new listings reported during the same period in 2020. The number of new listings during the first six months of 2021 was higher than the number of new listings reported in the first six months of any year in the last five years. Closed sales in Naples increased 85.1 percent in the first half of 2021 to 9,414 closed sales from 5,086 closed sales in the first half of 2020 (during the height of COVID-19). 

 

When the buying frenzy began a year ago in June, Naples had a 7.3-month supply of homes. As a result of the impressive year-long sales activity, our area now has a .9-month (less than 30 days) supply of homes. But the tight inventory isn't squelching demand quite yet. Closed sales in June increased 67.8 percent to 1,505 closed sales from 897 closed sales in June 2020. Due to the current inventory shortage, the overall percentage of the current list price received was 99.4 percent in June. 

 

The NABOR® June 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 who would like to see all of the statistics. 

 

What does this all mean?

In June, the inventory was so low that sales lessened, but demand was still there. If you are a Seller and have a newer pool home with at least three bedrooms, this is like having a "Golden Ticket." I put a single-family pool home up for sale recently (it was over 2000 sq. ft and had three bedrooms & a den with a list price of $549,900), and I had over 40 showings in a 10-hour period, which garnered 22 offers.  I meticulously cataloged each offer, read the purchase terms, and then informed my Sellers accordingly. My Sellers directed me to ask for the highest & best by 6:00 pm on the 2nd day. By 6:30 pm, they chose an offer that fit with their move-out plans. It was a cash offer, closing in 3 weeks with a sales price of $608,000 (that was over $58,100 over the listing price!) It was pretty astounding. My Sellers chose the cash offer over two financing offers that were even higher because they took a job in Nebraska and had to leave town within two weeks. They could not risk the financing offers to fall through since they were already purchasing another home.

 

My best advice for any Buyers out there in this market is to limit the number of contingencies you have when making an offer. The fewer contingencies you have with a sales contract, the more likely the Sellers will accept it.

 

Cash vs. Financing

When presenting an offer, the best offer would be a cash offer. If there is a financing contingency, there are many factors that could affect the outcome of the loan. First, in an accelerating market is the appraisal. Based on the current market, appraisals are not keeping up pace with the purchase price. For example, a home's sales price could be at $450,000; however, the appraisal comes in at $425,000. Even though it is lower, other homes that could substantiate a $450,000 may not have closed yet. An appraiser generally looks at all closed sales of like properties within the past four months within a 2–3-mile radius of the purchased property.  The loan will be denied if the property does not appraise. The only way it would not is if the Seller would lower the price to $425,000 (but that will never happen in an accelerating market) or the Buyer would have to add $25,000 more to their down payment to fill in the gap of the appraisal price to come up to the purchase price. Some Buyers would not have this amount of money, and therefore would be denied the loan. The other factors could be the Buyer's debt to income ratio, employment, savings, etc. 

 

Those who have cash but would prefer to finance the property have an option when presenting an offer to select "Cash or Financing." However, since "Cash" is selected, it means there is no financing contingency. If the Buyers were not approved for their mortgage on closing day, they would have to pay cash. Hopefully, they would have the money on hand to pay for the purchase, but if they did not, they most likely would have to forfeit their escrow deposits to the Seller, which would be a loss of thousands of dollars.

 

Annual rental market on fire!
 

Many Sellers are "cashing in" and then renting due to this accelerating market. However, the annual rental market here in Southwest Florida is very tight. Why? Not only is there a demand from Sellers in Southwest Florida that wish to rent, but many people living outside of Florida want to sell their homes and move south. Lastly, many Tenants who are currently renting are requested to vacate after their lease is up because the Landlord wishes to sell the property. If you think about renting, please call my Rental Operations Manager, Corine Bordges, at 239-206-6457. She can provide you with our latest availability.

 

 

Please enjoy the rest of your summer! It sure has gone by fast!  

Posted in Market Updates