By Robert Nardi
Closed sales activity in the Naples area housing market maintained steady momentum through August with a 35.2 percent increase in overall closed sales to 1,098 closed sales from 812 in August 2019. According to the August 2020 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), homebuying activity in Naples during the last three months exceeded activity reported in the first three months of 2020, more typically known as our peak resident season. Broker analysts reviewing the report predict this momentum, driven from more closed sales, more new pending sales, and more new listings than a year ago, will set the Naples area housing market up for continued positive performance into the fall months.
The market report showed August had the highest month-over-month increase in pending sales compared to any other month reported in 2020, with a 70.4 percent increase to 1,479 pending sales from 868 pending sales in August 2019. Not surprising, homebuyers seeking single-family homes continued to tilt the scales in August as the report showed a 76.4 percent increase for this home category, while pending sales of condominiums increased 63.9 percent. In comparison, this summer’s closed sales have eclipsed our peak season’s closed sales. A combined 3,133 closed sales reported during June, July, and August compared to a collective 2,659 closed sales reported in January, February, and March.
August’s inventory decreased 29.1 percent to 4,174 properties from 5,887 properties in August 2019. However, despite the month-over-month drop in inventory during August, more new listings were added over the summer months than new listings added during the peak season months. Broker analysts were quick to point out that some of the new listings added during the summer were likely listings that had been pulled off the market during the “Great Lockdown,” which occurred in April and May. Increased buyer demand reduced the number of days on the market in August, which decreased 5.9 percent to 96 days compared to 102 days in August 2019. The report also showed the Naples area has only 184 single-family homes under $300,000 available to buyers. And inventory for single-family homes between $300,000 and $500,000 decreased 54.9 percent in August to 446 single-family homes from 990 single-family homes in August 2019.
Overall median closed prices in August increased 26.7 percent to $399,000 from $315,000 in August 2019. Single-family home median prices rose 15.7 percent to $457,000 from $395,000 in August 2019, and condominium median closed prices increased 18.4 percent in August to $290,000 from $245,000 in August 2019. However, keep in mind that the median closed price is an “in the middle,” as half of the homes listed above this price and exactly half are below this price. Broker analysts reviewing the report were quick to point out that sales of several high-worth properties (e.g., $2 million+) during a given month can significantly influence this figure. It doesn’t mean all home prices increased. As such, when evaluating pricing trends, brokers prefer to use the 12-month ending median closed price statistics. For the 12-months ending August 2020, the median closed price increased 5.4 percent.
If you like to see all of the Naples Area Market statistics for August 2020, please click (HERE).
What does this mean?
It indeed is becoming a Seller’s market. Sellers are either getting full price or 1-3% their asking price. Generally, in an even market, Sellers would accept 5% below or less as an asking price demanding how motivated they are to sell. Besides, new construction is starting to pick-up. After the “Lockdown,” they started offering incentives, and it appears that it worked. Some of my resales are losing out to the new builders.
All this demand can be directly correlated to employers telling employees that they are no longer needed in the office and will continue to work remotely.
Hence, they could work anywhere. Why not pick tax-friendly, warm, and sunny Florida?
Our Rental Department is Booming!
Three months ago, we were down 21% in seasonal rental bookings year to date, and then suddenly, Nardi Realty had a surge in bookings in the past two months! Many individuals have booked a rental period for three months, January 2021 - March 2021. These three-month bookings are on the rise, because once again, employers are telling employees that they will not be needed back into the office until June 2021. Why not get out of the cold and stay somewhere warm?
We still have some great seasonal rentals available. Do you play golf, tennis, pickleball, etc.? We have seasonal rentals that fit every budget and lifestyle. Please feel free to call Jessica Martin, Rental Supervisor, at 239-631-9447 for all availability.
Please stay healthy & safe! Hopefully, you are enjoying some beautiful fall weather, and looking forward to see in you in sunny and warm Southwest Florida soon!