The sustained market demand is placing pressure on real estate pricing, with notable increases in median and average closed prices of homes when comparing month over month statistics. At $669,409, the year-to-date average closed sales price in November 2020 reflects a more accurate and modest growth with a 12.7 percent increase over November 2019 year-to-date average closed sales price of $594,065.
It is important to understand the difference between the “average” price of a home and the “median” price of a home. The “average” price is calculated by adding all the closed prices for homes sold in a specific area within a specified time frame and dividing that total by the number of properties sold. The “median” price is the price in the middle of a data set where exactly half the houses are priced for less and half are priced for more. Note: the average price may be skewed due to outliers in the data (if a property sold for a price far higher or lower than typical).
Broker analysts agree there are multiple driving forces influencing buyers. In addition to buyers coming from out of state, local homeowners are taking advantage of low interest rates and upgrading to more spacious homes and condominiums within their existing communities. Homes priced over $2,000,000 saw the strongest increase in sales, with a 51.6 percent increase in November 2020 over the same time period in 2019.
“Mortgage rates have once again dropped to a record low, with a fixed-rate average of 2.67 percent. Even though housing prices are going up and buyers are upgrading to more expensive homes, mortgage payments are going down,” said Jeff Jones, Broker at Keller Williams Realty.
Collier County continues to be among the most desirable locations in the state. “Regardless of the availability of the COVID-19 vaccine, employees are being encouraged to work remotely. This allows them to upgrade their quality of life and they are clearly choosing to live, work and play in Naples,” said Molly Lane, Senior Vice President at William Raveis Real Estate.
Mike Hughes, Vice President of Downing-Frye, Realty, Inc agreed. “Although the area’s traditional seasonal patterns have been disrupted, winter residents are continuing to arrive in the Naples area market. This is a strong indication of consumer confidence in Southwest Florida.”
“With the many uncertainties in the market, the Naples Area Board of Realtors remains a steady resource for our REALTORS®, providing access to the latest market data, industry education, legal forms, and professional guidelines,” said Corey McCloskey, VP of Operations at John R. Wood Properties, and the 2021 NABOR® President and Media Relations Committee Chair.
The NABOR® November 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: