By Robert Nardi
According to the October 2020 Market Report, released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), the Naples real estate market continues to see strong demand in both the single-family and condominium markets. Buyers are getting a jump on the winter seasonal market as shown by the reduced inventory, increase in multiple bids and the jump in closed sales. Closed sales activity for the overall market increased 65.2 percent to 1,249 closed sales in October 2020 from 756 closed sales in October 2019.
Inventory continues to be a challenge for buyers seeking to purchase a home in Naples. While the overall market inventory in October 2020 decreased 33.8 percent to 3,543 from 5,351 in October 2019, overall pending sales for the same time period increased 73.0 percent to 1,708 from 987 in October 2019. With strong demand, sellers are receiving multiple competitive offers on their listings during what is a traditionally slower time of year. Offers are coming in more quickly as well, with homes sold during October 2020 staying on the market 11.5 percent fewer days than October 2019. The average number of days on the market until sale was 92 in October 2020 compared to 104 days in October 2020.
During the period of January through October 2020, there were 9,785 closed sales in Naples, which represents a 13.8 percent increase over the same period in 2019. With more active buyers on the market, housing prices are seeing moderate but sustainable growth.
The October Market Report showed that single-family homes saw an increase in the median closed sales price of 12.1 percent to $458,000 during January to October 2020, up from $408,500 during the same period in 2019. Condominium median closed sales prices also saw an uptick of 5.8 percent to $275,000 during January to October 2020, over $260,000 during the same period in 2019.
The NABOR® October 2020 Market Reports provide comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. NABOR® sales statistics are presented in chart format (CLICK HERE) for those of you that like statistics.
What does this all mean?
It appears that the Southwest Florida properties are greatly in demand. Many consumers are being instructed by their current employers that they will be working remotely indefinitely. So why stay up North in the cold and snow, when they can work in a warm sunny tax-friendly state like Florida? In addition, many potential buyers are seeking Southwest Florida, especially in Naples, because Naples has the lowest real estate tax base in all of Florida.
Single-family homes continue to fly off the shelves. If priced well, they fly off the shelves in a matter of 10-14 days. In addition, if they are least a 3 bedroom & den home with a pool, it could be even faster. People are working from home and want a den for a separate workspace.
Condominiums have increased in sales too, but not as rapidly as single-family homes. Recently, I had “low-ball” offers on two beach condos that I currently have listed. I believe buyers know that condominiums are selling slower, so these potential buyers are testing the waters and see if they could get a lower price. However, the comps and demand currently do not justify these lower prices. So right now, it is a bit of a disconnect and of course, a disappointment for the sellers.
My rental department is even seeing an uptick in 3-month rentals starting in January and ending in March of 2021. For years, people were coming down and rent 1 or 2 months and only in some cases 3 months. Now the demand for 3-month rentals is high and even higher for 3-month single-family homes. In fact, our luxury rentals are flying off the shelves for season.
We still do have seasonal rentals available, so if you are interested, please contact my Rental Operations Manager, Corine Bordges at 239-206-6457. She has all of our up-to-date availability and property inventory.
Please feel free to call me at 239-293-3592 or send me an e-mail at Robert@NardiRealty.com if you have any questions or would like to find out what the value of your home is in today’s market.
Happy Holidays to you! Wishing you and yours a very Happy & Healthy New Year. 2021 cannot come soon enough! Stay safe! Cheers!!!