By Robert L.Nardi
Despite a tug on inventory that resulted in a 26 percent decrease to 5,761 properties in January 2020 compared to 7,773 properties in January 2019, overall closed sales in Collier County rallied in January, especially in the luxury market. A 22 percent increase in January’s overall closed sales has many broker analysts optimistic that continued strong sales activity can be expected through the first quarter.
Aside from the 26 percent decrease in January’s month-end inventory compared to January 2019, we gained 360 more listings in January than what was available to buyers in December. Collier County has a 6.6-month supply of homes, which is much higher than many other hot markets in Florida. A recent Realtor.com analysis showed that other areas in Florida also experienced double-digit decreases in active listings for January including Tampa/St. Pete (20.2 percent decrease), Orlando (15.8 percent decrease), and Miami/Ft. Lauderdale/West Palm Beach (11.2 percent decrease).
A big winner for showings of single-family homes in the $1 million to $2 million price category increased 109 percent in January 2020 compared to January 2019.
The NABOR® January 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 like to see the statistics firsthand.
The report showed 1,885 price decreases in January, which is believed to be mostly old inventory that is finally coming to the buyer as a result of appealing price reductions. January’s price reductions represented 33 percent of active listings in January [5,761 properties], which is much higher than the 25 to 28 percent shown in the Market Reports over the last few months.
What does this all mean?
It means that people who were doing well with their investment portfolio decided to take out monies to purchase properties in the $1-2M category. Yet, I have seen the opposite. I have a condominium listed at $1.675M which someone was interested in and they decided to leave their money in the market based on their Financial Advisor’s recommendation. My thought is that there are some Financial Advisors that believe the market will change for the worse, so it is best to take out monies now vs. keeping it in (we recently saw this large dip in the market and now it has rebounded) and invest in real estate. I did have a recent listing for $1.31M that sold at the end of February. It was cash and closed in 3 weeks! Therefore, we are seeing two different strategies.
Seasonal Rentals
We are winding down on our seasonal rentals. Easter falls in the middle of April so many seasonal rentals will be ending on March 31st, 2020 as visitors head back to home to celebrate the holiday with their family and friends. For those of you who wish to remain, we have quite a few prime choices for April rentals at some significant price reductions (out of season pricing). If you are interested, please contact Corine Bordges, Rental Operations Manager at 239-206-6457. She has a record of all our available rental inventory and pricing. If you would like to search on your own for sales & rentals, please feel free to go to BuyNaples.Net. We are one of the few firms that show yearly fees. Many of the other real estate websites do not. Lastly, I would be happy to assist you. Please feel free to call me at 239-293-3592 or send me an e-mail at Robert@NardiRealty.com.
Coronavirus
Luckily, the Coronavirus has not made its way down to Southwestern Florida yet. Also, the world news of it has not really affected the Southwest Florida housing market. We have had a great buying and selling season so far and it continues to be robust. Just remember to watch your hands frequently, use hand sanitizer, use disinfectant wipes to wipe down surfaces when traveling and don't touch your face, nose, etc. Hopefully, everyone will stay healthy and happy following these practices.
Wishing you and yours, safe travels as you venture back home.