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…
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.
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.