By Robert Nardi
The Naples housing market experienced a continued surge in activity during July, which resulted in a 57.3 percent increase in pending sales (homes under contract) for the month. Closed sales during July increased 35.4 percent compared to July 2019 – significantly surpassing June's closed sales activity following the lifting of COVID-19 restrictions. However, a decreasing supply of inventory, which broker analysts believe is caused by heightened homebuying interest this summer, makes it challenging to keep up with the strong buyer demand.
There were 15,634 showings during July, less than half the number of showings during June (36,912), yet pending sales increased, which indicates that properties in many cases are purchased sight unseen. July's pending sales spiked to 1,446 pending sales in July 2020 from 919 pending sales in July 2019. The majority of sales that resulted in the 35.4 percent increase in overall closed sales during July occurred in the single-family home market, which saw a 42.8 percent increase in closed sales compared to a 27.3 percent increase reported in the condominium market. Concern over the pandemic has compelled many people to spend most of their time indoors, at home. As a result, buyers are looking for single-family homes that offer more personal space and more space to work from home and home-school children. They want their own backyard, a private pool, and private garages that single-family homes offer. Overall inventory decreased 28.8 percent in July to 4,390 properties from 6,168 properties in July 2019. However, many sellers were not hesitant about entering or staying in the market this summer. A steady rise in consumer confidence resulted in 1,193 new listings added to the overall inventory during July (a 21.7 percent increase compared to July 2019). Of those 1,193 new listings, 572 were single-family homes, and 621 were condominiums. The report showed fewer homes terminated/expired/withdrawn from the MLS in July (599) compared to June (1,677). If you like statistics and wish to see the entire Naples Market Housing report in chart form, please ( CLICK HERE).
What does all of this mean?
For those who are considering selling, now is an excellent time to jump in the market to take advantage of Naples' high demand for properties. Plus, with fewer homes on the market for buyers to purchase, this may be the time for your house to stand out from the crowd with less competition and more eyes on your property. There are several factors in play that are fueling the vigorous summer real estate activity:
- Winter visitors pushed off buying until the summer.
- People's ability to work remotely is convincing them that it's okay to relocate.
- More East Coast residents are migrating to our West Coast.
- Naples continues to be a more affordable alternative to high-tax living in other areas of the country.
- Interest rates are low.
Nardi Realty has seen the same!
We have seen our high-end single-family listings fly off the shelves in the past few months. We had a $4M Stock Development custom home sell in Pine Ridge Estates in June in our office. Then a $3.8M home was recently sold at the end of August in Estuary Grey Oaks. It was a cash deal close in 2.5 weeks. On September 1, 2020, we listed a home in the Vineyards for $1.224M, and it pended for full price within three days. On September 2, 2020, we listed a home in the Moorings for $2.245, and within three days, it had four offers and pended at above list price.
Here's the other side of the coin, our $1.3-1.4M condo listings on the beach have seen a slowing in showings. I believe it is because of sharing common areas, elevators, pool etc. base on the events of COVID-19.
On the bright side, I had a condo listed for two years, and it finally pended! Beautiful condo, West of 41, list price is $414,900. I attribute it selling because of the lower inventory.
For you sellers on the fence on whether to list, it is a great time to list based on the current volume, especially if it is a single-family home.
Rentals for Season
We have seen a surge of rentals for season (January – March). People up North are receiving word from their employers that they will not be physically required to go back to their office until June 2021. Many people are saying to themselves, "Why stay in the cold of the North in the winter, when I can work anywhere and enjoy Florida's warmth."
If you are interested in booking a seasonal rental, please feel free to call Nardi Realty's Rental Operations Manager, Corine Bordges, directly at 239-206-6457. We still have some beautiful properties for rent at all price levels. By the way, if you prefer, you can always search all of our available sales and rentals at www.BuyNaples.net
In the meantime, if you should have any questions regarding Southwest Florida properties, please feel free to call me directly at 239-293-3592 or e-mail at Robert@NardiRealty.com.
Wishing you a fantastic Fall, and hopefully, we will see you in Southwest Florida over the next several months. Please stay healthy & safe!