By Robert Nardi
The buying frenzy the Naples housing market experienced during the past year has simmered. But now, it is being replaced with what brokers say will be our new normal: a low inventory market with a fast turnover of quality homes priced right. According to the July 2021 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), inventory decreased 77.2 percent (1,295 homes) in July 2021 compared to 5,672 homes in July 2020. Still, demand remains steady as there were only 30 fewer closed sales and just a 2 percent drop in showings. The median closed price in July increased 28.8 percent to $469,950 from $365,000 in July 2020. The median price is when 50 percent of the homes sold were above that price, and 50 percent were below.
Interestingly enough, the percent of list price received has been over 99 percent for the last three months. However, overall pending sales in July dropped 21.5 percent to 1,135 pending sales from 1,446 pending sales in July 2020 and altogether closed sales fell 2.6 percent to 1,142 closed sales from 1,172 closed sales in July 2020. Activity in the high-end luxury home market picked up speed during the month, as reflected in a 32.6 percent increase in closed sales for homes over $1 million and a 17.1 percent increase in pending sales for single-family homes valued over $1 million in July.
The NABOR® July 2021 Market Report compares 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 stats.
The July Market Report shows days on market decreased 69.6 percent to 28 days from 92 days in July 2020. For single-family homes, days on market dropped to 25 days in July. Homes are available, but they are just not staying on the market long, especially quality homes priced right.
What does this all mean?
It means we are still in a Sellers' market in Naples. Home demand has outpaced our capacity, which is why we see a significant rise in home values during the summer. a For those who wish to sell have several options.
You can sell your current home and move within Naples. You'll get a premium for your home, but you would have to buy at a premium. I know there are concerns about prices falling, but Naples has always been a luxury market, and I believe it has been undervalued all these years and is just playing "catch-up." Prices are not going to go down drastically because Buyers can afford to purchase.
They are either paying cash or applying for a mortgage. Regarding a Buyer's mortgage, there are stringent rules regarding loaning money. If a mortgage is approved, those Buyers can afford to buy. I know some of you may have fears of the "Great Recession" and the melt-down of housing values.
Back in 2005, anyone seeking a loan that was breathing could get a loan based on a "No doc" loan. They would state their income and run a credit score. Lenders were more than happy to loan money on such a minor criterion. However, that is no longer the case.
As far as the Buying side, Buyers must prepare themselves. They need to have updated proof of funds or a pre-approval/pre-qualification letter. With such a hot market, everything from the contract signing to negotiations has to happen quickly and succinctly. You have to beat out your competition. Buyers need to be accessible, either via their smartphone or computer, to sign sales documents rapidly.
I highly recommend working with a REALTOR®. A licensed real estate agent can be beneficial because they could notify you as soon as a property comes on the market. If you are out of state, they could immediately make an appointment, take more videos or face time with customers. Time is of the essence.
As for those Sellers out there, they need a real estate professional when it comes down to pricing a home (it could even change day by day), advertising, negotiating, and guiding you through the sales process from start to finish to achieve a successful closing.
Seasonal & Annual Rentals
We have had a few cancellations with seasonal rentals, so if you are interested in renting in Southwest Florida during January, February & March of 2022, we may be able to accommodate you. Please feel free to call my Operations Manager, Corine Bordges, at 239-206-6457. She can let you know what our current availability is. We also have annual rentals, but as fast as they come on the market, they are quickly "snatched up." Regarding annual rentals, there is such a high demand based on Sellers selling and still wanting to remain in Naples, people working from home seeking a warm refuge, and Sellers displacing their annual tenants to sell the property in an escalating market.
As always, if you are interested in performing your searches for properties for sale or rent, please feel free to access our website, BuyNaples.Net, or feel free to contact me directly at 239-293-3592 or e-mail me at Robert@NardiRealty.com. I would be happy to assist you.
I wish you and yours a remarkable Fall!