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House Market is Up!
By Robert L. Nardi
REALTORS® kept busy in May as pent-up demand for homebuying resulted in a remarkable spike in buyer interest. As a result, showings in May increased 244 percent compared to showings in April. Impressively, May outpaced showings a year ago, which rose 5.5 percent compared to May 2019. According to the May 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 report found the data reflected the everlasting desirability of the Naples real estate market, even during the COVID-19 outbreak. Despite the restrictions of social distancing, with many REALTORS® conducting virtual open home tours and adopting electronic signings and virtual closings, 599 buyers purchased homes in Naples in May. The Naples real estate market is incredibly resilient. Pending sales in May increased 90 percent compared to pending sales in April.
Buyers have less negotiating power because inventory in the Naples area continues to decline. This shrinking inventory led to modest price increases in the single-family home market during May, which saw a 31.8 percent decrease in inventory and a 3.7 percent increase in median closed prices compared to May 2019. Despite the outlying issues, prices were held stable, with the year-to-date median closed price up a modest 2.3 percent. Overall inventory during May decreased 27.2 percent to 5,116 homes from 7,023 homes in May 2019. However, while there was a 4 percent decrease in new listings of single-family homes in May, there was a 6.5 percent increase in new condominium listings. There currently is a 5.8-month supply of single-family homes in Naples. Buyers do not have as many single-family home choices right now, so they shouldn't hesitate to make an offer if they find a home they love. The NABOR® May 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 who like statistics.
Historically, some sellers in Naples take their homes off the market after season, and May inventory and pending sales activity always reflected this behavior. However, COVID-19 left many sellers uncertain about the real estate market. With the quarantine recommendations in place, fewer sellers listed homes during May. Despite an inventory drop, pent-up demand unleashed a new set of buyers in May, which changed history. Heightened buyer demand is also evident in the number of Days on Market for May 2020, which decreased 15 percent (to 91 days) compared to May 2019, which reported 107 days on the market.
My Thoughts
The statistics mimicked what was happening with Nardi Realty. I had a tremendous number of buyers come out in early May, executing contracts, and closing in June. I sold/closed nine sides in June 2020. It was extremely hectic, but luckily, I had a tremendous amount of support from my firm, and I recommended a Mortgage Broker who worked with three of my buyers, and he was able to get three closings across the finish line. It truly takes a village. One of the homes I sold closed at $662,500. My buyers purchased it just by me, taking additional pictures and video.
I was lucky when they saw it for the first time; they genuinely loved it! Whew!
Sales are starting to slow now. I believe there is a direct correlation with our COVID-19 positive numbers going up in Florida, and most people by now know a friend or family member that have contracted it. Lastly, more people seem to be quarantined for two weeks because they have come in contact with someone who tested positive for COVID-19.
Seasonal Rental Availability
We still have some availability for season. Many new renters are renting from us this upcoming season. I think it is because they have been up North, quarantined, and want somewhere beautiful to vacation. If you wish to rent seasonally or annually, please call Corine Bordges, Operations Rental Manager, at 239-206-6457. We have over 153 seasonal rentals & 120 annual rentals. If we do not have what you are looking for in our inventory, we have rental specialists who could assist you with your search throughout Southwest Florida.
Pictures & Video
If you are searching for properties for sale and which to receive more pictures/videos, please let me know. I would be happy to assist you. Please feel free to call me directly at 239-293-3592 or e-mail me at Robert@NardiRealty.com .
In the meantime, have a healthy, happy, and safe summer!
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