Naples Area – Real Estate Market Report – March 2020

Naples, Fl – April 23rd 2020 – Like all industries impacted by the COVID-19 pandemic, the Naples area housing market was not immune to its effect in March. While home sales dropped, home prices remained steady, and in some cases, increased.
Because the stay-at-home order went into effect mid-month, real estate activity during the first two weeks of March was strong, while activity during the second half of March tempered remarkably well. Brokers analyzing the March 2020 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), agree that the report showed one indisputable truth: The need for housing in the Naples area – whether it be a rental, new home construction, or homes in the resale market – is essential and still in demand.




 

 

 

 

 

Here are the main statistics of the report for March 2020:

  • Overall closed sales in March increased 15.8% to 1,148 closed sales compared to 991 closed sales in March 2019.
    This was an increase of 359 closed sales over February (789 closed sales) and 426 more closed sales than January (722 closed sales)!

    The report also showed a 22.5% increase in closed sales for the first quarter of 2020 (2,689 total closed sales) compared to the first quarter of 2019 (2,195 total closed sales).

  • Pending sales took a hit during the second half of March, down 38.1% for the month to 977 pending sales compared to 1,578 pending sales in March 2019.

    But “pending sales increased 5.3% during the first quarter of 2020 compared to the first quarter of 2019. The Naples area housing market was on solid footing before the coronavirus pandemic flared up.”

  • There were still over 19,000  scheduled showings in March.
    Serious buyers are not being discouraged by the stay-at-home order. Because real estate is considered essential, buyers can tour homes as long as they abide by the social-distancing order – or they can tour homes virtually with their REALTOR on site hosting their virtual tour.”
  • Overall inventory remained strong with 5,772 available properties. This was a 27.5% decrease in inventory compared to March 2019, which had 7,965 properties available.
  • Overall median closed price  increased 10% to $372,750 compared to $339,000 in March 2019. 
  • Median closed prices for the single-family home market increased 16%  to $470,000 compared to $405,500 in March 2019.
  • Median closed price for the condominium market decreased 1.3% to $276,500 compared to $280,000 in March 2019.

  • New Construction: Many builders in the area are offering big incentives in order to move their new home inventory. It’s good to work with a REALTOR® who understands the local market well and can negotiate the best price, whether it’s a home for sale by a builder or an independent seller of an existing home.

CATEGORIES

Mar 2019

Mar 2020

CHANGE

Total closed sales (month/month)

991

1,148

+15.8%

Total pending sales (homes under contract) (month/month)

1,568

977

-38.1%

Median closed price (month/month)

$339,000

$372,750

+10.0%

Total active listings (inventory)

7,965

5,772

-27.5%

Average days on market 

106

98

-7.5%

Single-family closed sales (month/month)

485

563

+16.1%

Single-family median closed price (month/month)

$405,500

$470,000

+15.9%

Single-family inventory

4,055

2,862

-29.4%

Condominium closed sales (month/month)

506

585

+15.6%

Condominium median closed price (month/month)

$280,000

$276,500

-1.3%

Condominium inventory

3,910

2,910

-25.6%

The March 2020 Market Report also shows a solid inventory.
Current low interest rates and a strong stock market are favorable reasons why people buy second homes. Low fuel prices will also inspire people to travel more by air and car to Southwest Florida once the -stay-at-home order is lifted. It may take a few months to get back to normal, but  the housing market in Naples will recover fast because people love the beach and we have 24 miles of it to explore. Plus, after being locked at home for months, people are going to want to live in a community that doesn’t have high-density issues.

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Author: Dominick Tascher Group - Blog

Naples to Estero Real Estate Blog by Dominick Tascher Group at MVP Realty brings to the public the latest information about real estate news and trends, market reports, new communities and also topics related to living in the paradise of SW Florida; Naples, Bonita Springs, Estero and South Fort Myers.