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Naples Holds its own in April 2020
By Robert Nardi
Coronavirus slowed real estate market activity in April as expected during Florida’s safe-at-home restrictions. According to the April 2020 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 decreased 28.6 percent to 838 closed sales compared to 1,173 closed sales in April 2019. Inventory decreased as well in April by 29.1 percent to 5,394 homes compared to 7,605 homes in April 2019. The April report also confirms home values remain intact.
The one bright spot – even during a pandemic – Naples home values are being maintained. The report shows April’s overall percent of current list price received increased .5 percent.” This figure represents what the buyer paid for their home compared to the seller’s listed sale price. In April, the contract price averaged 95.9 percent of list price. In comparison, during April 2019, the contract price averaged 95.4 percent of list price. This statistic demonstrates that homes in the Naples area did not lose their values during April, the worst month of the pandemic to date.
Median closed prices increased .3 percent in April to $340,000 from $339,000 in April 2019. Although there were slightly fewer price decreases in April than in March, still 1,654 or 31 percent of all listed properties experienced reductions in their offering price during April.
As people were urged to stay home in April, showings decreased to 9,420 from 22,862 in April 2019 (does not include virtual showings). As a result, pending sales in April decreased 53.6 percent, as was expected. Surprisingly enough, not all geographic areas in Collier County reported a decrease in closed sales during April. Single family home sales in East Naples (34114, 34117, 34120, 34137) during April increased 7.2 percent. This increase was most likely due to new construction homes closing during April 2020.
The NABOR® April 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 who enjoy charts and statistics.
What does this all mean?
Luckily, even with COVID-19 Buyers are buying and Sellers are selling. We just are being cautious, wearing masks & gloves when showing properties, providing video tours, or facetime. Some of my sales were via virtual tours with people from out of state. They never saw the house in person and bought it via facetime & video. Interestingly enough, prices here have not gone down significantly. It seems most listings are selling at 2-5% below list price or above list price (multiple offers). Of course, on occasion, you get the "low baller," thinking that Sellers are just going to give it away. However, I do not see this happen. Our inventory is tighter, which I believe is causing the prices to remain stable. I had three properties, all in multiple offer situations within the past month.
One property I was representing the Buyer and the other two, I was representing the Sellers. With one of the sales, it sold for $20,000 over list price!
What about the future?
I believe that we will have a very robust selling summer. I am already hearing from people up north that they are coming down to purchase. With there "stay at home orders," they need to make a change. They have had time to think and realize that Southwest Florida is where they would like to live. What makes Florida even more appealing (besides the weather) is that there is no state income tax, low real estate taxes, and to top it all off, historic low-interest rates. Down south is looking "pretty darn good" to people. However, by the middle of September, I expect a slow-down. The presidential election will be right around the corner, and people will just "hunker down." Once the election is over with, real estate sales will start to boom again.
Seasonal Rentals
We are currently booking seasonal rentals. For those who want to get out of the cold and need a change of scenery, Southwest Florida during the winter months is a perfect getaway! Please call Corine Bordges, my Operational Rental Manager at 239-206-6457, with your rental parameters, and she will be able to assist you.
Lastly, do not forget, you can also do your online searches for sales and rentals at www.BuyNaples.net, and of course, I am always here to help.
You can contact me at Robert@NardiRealty.com or by phone at 239-293-3592.
Stay safe, and hopefully, I will be seeing you in Naples, Florida, sooner than later!
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