Naples Area Market Report

Friday, March 27, 2020   /   by Naples Ultimate Selling Team

Naples Area Market Report

February Housing Activity Reflects Naples Enduring Desirability

Naples, Fla. (March 27, 2020) - Despite state recommendations to practice self distancing, the housing market in the Naples area continues to breathe with life. The February 2020 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), showed overall closed sales increased 29 percent to 789 closed sales in February 2020 compared to 610 closed sales in February 2019. Admittedly, this report reflects comparable activity in February 2020 - which preceded self-distancing recommendations due to COVID-19 - but it is a glimpse at our market's significant and enduring desirability.

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"We have a resilient real estate market that was proven during the last recession," said Dominic Pallini, Broker at Vanderbilt Realty, who was the President of NABOR® during Hurricane Irma in 2017. "This interruption should end in a few months; not seven to ten years."
 
Like many professionals, REALTORS® in Naples are working remotely or from home and using creative solutions to stay connected to their buyers and sellers. Brenda Fioretti, Managing Broker at Berkshire Hathaway HomeServices Florida Realty, remarked that "some offices are closed, but we are all still in business!" 
 
In an industry that is already technology-focused and adept, NABOR® and its members are continuing efforts to help foster the sale of homes, all while following the Centers for Disease Control guidelines. NABOR® is also providing new digital resources during the coronavirus outbreak to help keep the public and real estate professionals connected and safe.
 
Overall pending sales in February increased 43 percent to 1,526 pending sales compared to 1,068 pending sales in February 2019! There were also 32,712 showings by agents in Collier Collier during February, which is roughly 11,000 more showings than reported in February 2019.
 
Wes Kunkle, President and Managing Broker at Kunkle International Realty, keeps an eye on market activity daily by analyzing activity in the Southwest Florida MLS and said on March 25, 2020, that "the MLS data is showing an average of 25 new pending sales every day."
 
Fioretti said her firm is "currently focusing our efforts on closing pending transactions because February's pending sales were so strong and many buyers and sellers are eager to successfully close on their properties." 
 
Fioretti added that "there are many important tasks that must be completed in order to have a successful closing, such as inspections, appraisals, final walk through, meeting lender requirements, Homeowner Association applications and approval and more." She predicts that March closings should be strong as a result of strong February pending sales, and the vigorous efforts of REALTORS®, lenders, and closing agents.
 
February's Market Report also shows a renewed and growing interest in condominium sales, which saw pending sales increase 45 percent to 802 pending sales in February 2020 compared to 552 in February 2019.
 
Budge Huskey, President, Premier Sotheby's International Realty, agreed with Fioretti that March's closed sales will be strong as "most everywhere there is respect for the need to foster closings of pending sales."
 
Properties priced between $1 million and $2 million reported the highest increase in closed sales (21 percent) for the 12-months ending February 2020 than any other price category. Single-family home sales in the $1 million to $2 million price category had the highest increase among all properties reported with a 27 percent increase (12-months ending February 2020)! However, condominiums priced above $2 million had the highest increase in closed sales for its property type, reporting a 20 percent increase (in the 12-months ending February 2020). These increases are in line with what broker analysts predicted in January that many buyers are rebalancing their portfolios and pulling money out of the stock market to buy homes.
 
Overall median closed prices increased 3 percent in February to $345,000 compared to $335,000 in February 2019. Broken down by property type, median sales prices rose 5 percent for single family homes and nearly 7 percent for condominiums in February 2020 compared to February 2019. Fioretti added that "price increases in February were expected due to the low inventory we are still experiencing." 
 
Because the federal government enacted stricter standards for financing following the recession in 2008, "most buyers in the last ten years have purchased homes using cash or conventional financing with significant down payments," said Adam Vellano, West Coast Sales Manager, BEX Realty - Florida. "This has created larger amounts of equity in the market and, with our current balanced inventory, we can absorb a short disruption."  

Vellano added that we are not facing a housing crisis like what we experienced in 2008 because we don't have a lot of highly leveraged owners with second mortgages that will be forced into foreclosure.
 
The NABOR® February 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, including these overall (single-family and condominium) findings:

CATEGORIES
Feb 2019 Feb 2020 CHANGE
Total closed sales (year/year) 610 789 +29.3%
Total pending sales (homes under contract) (year/year) 1,068 1,526 +42.9%
Median closed price (year/year) $335,000 $345,000 +3.0%
Total active listings (inventory) 8,160 5,825 -28.6%
Average days on market  101 95 -5.9%
Single-family closed sales (year/year) 300 376 +25.3%
Single-family median closed price (year/year) $403,750 $425,500 +5.4%
Single-family inventory 4,134 2,868 -30.6%
Condominium closed sales (year/year) 310 413 +33.2%
Condominium median closed price (year/year) $265,000 $283,250 +6.9%
Condominium inventory 4,026 2,957 -26.6%
 
The February 2020 Market Report also showed a 6-month supply of inventory for properties under $500,000, while properties priced above $500,000 are at an 8-month supply. Interestingly, there is currently a 14-month supply of inventory for properties priced above $2 million.
 
"The February report is a continuation of the incredible pace of the market we saw in January, with impressive results across all categories and price ranges," said Huskey. "These figures reflect the market in advance of the coronavirus impact, which will no doubt be evident in March. The reality is business is continuing, albeit at a far slower pace as the REALTOR® community and the public enact the recommended precautionary steps to ensure the situation is short-lived. But, the first two months of the year confirmed that Naples is more desirable than ever, an attraction which will be sustained long after concerns of the virus have passed."  
 
If you are looking to buy or sell a home in Naples, contact a Naples REALTOR® who has the experience and knowledge to provide an accurate market comparison or negotiate a sale. A REALTOR® can ensure your next purchase or sale in the Naples area is a success. Search for your dream home and find a Naples REALTOR® on Naplesarea.com.

The Naples Area Board of REALTORS® (NABOR®) is an established organization (Chartered in 1949) whose members have a positive and progressive impact on the Naples Community. NABOR® is a local board of REALTORS® and real estate professionals with a legacy of nearly 60 years serving 6,000 plus members. NABOR® is a member of the Florida Realtors and the National Association of REALTORS®, which is the largest association in the United States with more than 1.3 million members and over 1,400 local board of REALTORS® nationwide. NABOR® is structured to provide programs and services to its membership through various committees and the NABOR® Board of Directors, all of whose members are non-paid volunteers.
  
The term REALTOR® is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribe to its strict Code of Ethics.
The source of this real property information is the copyrighted and proprietary database compilation of the Southwest Florida MLS organizations Copyright 2020. Southwest Florida MLS organizations. All rights reserved. The accuracy of this information is not warranted or guaranteed. This information should be independently verified if any person intends to engage in a transaction in reliance upon it. The property information herein is derived from various sources that may include, but not be limited to, county records and the Multiple Listing Service and it may include approximations. Although the information is believed to be accurate, it is not warranted and you should not rely upon it without personal verification.
2020 Royal Palm Coast REALTORĀ® Association. All rights reserved. Information has not been verified, is not guaranteed, and is subject to change. The data relating to real estate for sale on this web site comes in part from the Internet Data Exchange (IDX) of the Florida Gulf Coast Multiple Listing Service, Inc. Real estate listings held by brokerage firms other than IDX logo and detailed information about them includes the name of the listing brokers. The information being provided is for consumers personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Last Updated: 8/14/2020 3:36 AM CST
The data relating to real estate for sale on this limited electronic display comes in part from the Southwest Florida Multiple Listing Services. Properties listed with brokerage firms other than are marked with the BR Program Icon or the BR House Icon and detailed information about them includes the name of the Listing Brokers. The properties displayed may not be all the properties available through the BR Program. The source of this real property information is the copyrighted and proprietary database compilation of the participating Southwest Florida MLS organizations and is Copyright 2017 Southwest Florida MLS organizations. All rights reserved. The accuracy of this information is not warranted or guaranteed. This information should be independently verified if any person intends to engage in a transaction in reliance upon it. Some properties that appear for sale on this limited electronic display may no longer be available. For the most current information, contact Data last updated 8/14/2020 3:36 AM CST.
Ā© 2020 My Florida Regional MLS DBA Stellar MLS, Inc.. All rights reserved. The data relating to real estate displayed on this website comes in part from the Internet Data Exchange (IDX) Program of My Florida Regional MLS DBA Stellar MLS, Inc. All listing information is deemed reliable but not guaranteed and should be independently verified through personal inspection by appropriate professionals. Listings displayed on this website may be subject to prior sale or removal from sale; availability of any listing should always be independently verified. Listing information is provided for consumers' personal, non-commercial use, solely to identify potential properties for potential purchase; all other use is strictly prohibited and may violate relevant federal and state law.8/14/2020 3:36 AM CST
The source of this real property information is the copyrighted and proprietary database compilation of the Southwest Florida MLS organizations Copyright 2020. Southwest Florida MLS organizations. All rights reserved. The accuracy of this information is not warranted or guaranteed. This information should be independently verified if any person intends to engage in a transaction in reliance upon it. The property information herein is derived from various sources that may include, but not be limited to, county records and the Multiple Listing Service and it may include approximations. Although the information is believed to be accurate, it is not warranted and you should not rely upon it without personal verification.
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