Naples Area – Real Estate Market Report – April 2020

Naples, Fl – May 22nd 2020 – Coronavirus slowed real estate market activity in April as expected during Florida’s safe-at-home restrictions. According to the April 2020 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island).
The good news is that – even during a pandemic – Naples home values are being maintained.  The report shows April’s overall percentage of current list price received increased .5%.  This figure represents what the buyer paid for their home compared to the seller’s listed sale price. In April, the contract price averaged 95.9% of list price. In comparison, during April 2019, the contract price averaged 95.4% of list price. This statistic demonstrates that homes in the Naples area did not lose their values during April, the worst month of the pandemic to date.  

 




 

 

 

 

 

Here are the main statistics of the report for April 2020 (compared to April 2019):

  • Overall closed sales decreased 28.6% to 838 closed sales compared to 1,173 closed sales in April 2019.

  • Inventory decreased as well in April by 29.1% to 5,394 homes compared to 7,605 homes in April 2019. The April report also confirms home values remain intact.

  • Median closed prices increased .3% in April to $340,000 from $339,000 in April 2019. Although there were slightly fewer price decreases in April than in March, still 1,654 or 31% of all listed properties experienced reductions in their offering price during April.

  • As people were urged to stay home in April, showings decreased to 9,420 from 22,862 in April 2019 (does not include virtual showings). As a result, pending sales in April decreased 53.6%, as was expected.

  • The desire for virtual home showings has risen rapidly. During video tours, agents become the eyes of the buyer. They’re talking more than they would on a traditional tour, pointing out things that would be obvious in person but aren’t as clear through a camera lens like the quality of workmanship on any repairs or whether a bedroom will fit a king-size bed. Virtual home tours are becoming the new first step in home buying.

 

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Apr 2019

Apr 2020

CHANGE

Total closed sales (month/month)

1,173

838

-28.6%

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

1,322

613

-53.6%

Median closed price (month/month)

$339,000

$340,000

+0.3%

Total active listings (inventory)

7,605

5,394

-29.1%

Average days on market 

98

87

-11.2%

Single-family closed sales (month/month)

510

409

-19.8%

Single-family median closed price (month/month)

$464,500

$429,500

-7.5%

Single-family inventory

3,850

2,639

-31.5%

Condominium closed sales (month/month)

663

429

-35.3%

Condominium median closed price (month/month)

$272,500

$270,000

-0.9%

Condominium inventory

3,755

2,755

-26.6%

Not all geographic areas in Collier County reported a decrease in closed sales during April. Single family home sales in East Naples (34114, 34117, 34120, 34137) during April increased 7.2%.

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Populous Cities Losing Appeal During COVID-19 Shutdown

 Nearly 1 in 3 Americans might move to less densely populated areas due to the pandemic, according to a Harris Poll – a possible big change for the real estate market.

NEW YORK – Ben Greenzweig is itching to move his wife and three kids South, a plan that may get accelerated due to the coronavirus pandemic.

The CEO and co-founder of conference company Momentum Event Group, says he’s looking to move to either North Carolina or South Carolina from the New York City suburbs in Westchester County, for cheaper costs and bigger living space amid fears that a deep and prolonged economic slump in the state could eventually force residents to pay higher taxes.

“It would be an unbelievable escape,” Greenzweig, 42, says. He typically works from home which gives him flexibility.

“Our children’s involvement in school is the single largest tether keeping us here. If there’s a hint that school won’t resume in the fall for my kids, then the biggest reasons for us staying here, which are friendships and school activities, evaporates.”

Nearly a third of Americans are considering moving to less densely populated areas in the wake of the pandemic, according to new data from Harris Poll. That may foreshadow a shift that would have a major impact on residential real estate sales and home prices.

Urbanites (43%) were twice as likely than suburban (26%) and rural (21%) dwellers to have recently browsed a real estate website for homes and apartments to rent or buy, the survey showed, which was conducted among 2,050 U.S adults from April 25-27.

“People will be much more cautious about living in high-density areas with so many people nearby,” predicts Lawrence Yun, chief economist at the National Association of Realtors.

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After weeks of business decline during pandemic, SW Florida Real Estate starts to see improvements in activity

The local real estate market has certainly taken a hit thanks to the pandemic, with many buyers and sellers staying isolated amid the outbreak. 
Despite the slowing of the market, however, Southwest Florida real estate representatives are starting to see signs that activity is on the upswing.

However, showings saw a week-over-week increase of 51% in the week ending April 19 with 4,079 showings. That’s up from 2,705 a week earlier.
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Florida Real Estate Market Keeps Moving – Just a Bit Slower

In recessions, pandemics and booms, the real estate market adjusts, and since a home is often an emotional purchase, some think stay-at-home rules will only boost demand.

MIAMI – Jonathan Tripp sat outside of a title agency in his truck as he gave his signed documents to masked and gloved agents. He rolled his window back up before they went into the office and returned with his copy of the paperwork.

And with that, his two-bedroom, two-bathroom home in Fort Lauderdale was sold for $290,000, a process Tripp says was done about 80% electronically in the midst of the coronavirus pandemic. He and his fiancé are now under contract to buy a three-bed, two-bath house in Coconut Creek for $340,000.

While much of the world is on hold due to the stay-at-home orders and quarantine recommendations that accompany the COVID-19 outbreak, the real estate market in South Florida keeps moving. It’s just moving slower.

Carl Marzola, president of Atlantic Properties International, last week showed an $850,000 four-bedroom colonial home in Fort Lauderdale’s Poinsettia Heights to a large family and had a client accept an offer on a three-bedroom corner unit in a building on the ocean. Wesley Ulloa, broker owner of LUXE Properties, lists a $560,000 condo in Coral Gables and a $300,000 townhouse in Miami Lakes among her recent closings. Saddy Abaunza, vice president of Sotheby’s International Realty, has had wealthy clients rent local luxury homes to spend their time for the duration of the pandemic.
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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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Naples Area – Real Estate Market Report – February 2020

NABOR (Naples Associations Board or Realtors) has just released its latest real estate market report for February 2020, compared to 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.




 

 

 

 

 

Here are the main statistics of the report:

  • Overall pending sales in February increased 43% to 1,526 pending sales compared to 1,068 pending sales in February 2019!  
  • Condominium  pending sales increase 45% to 802 pending sales in February 2020 compared to 552 in February 2019.
  • Overall median closed prices increased 3% in February to $345,000 compared to $335,000 in February 2019. 
  • Total active listings (inventory) decreased 28.6% to 5,825 compared to 8,160 in February 2019.
  • Average days on market decreased 5.9% to 95 compared to 101 in February 2019.
  • Properties priced between $1M and $2M reported the highest increase in closed sales (21%) for the 12-months ending February 2020 than any other price category. 
  • Single-family home sales in the $1M to $2M price category had the highest increase among all properties reported with a 27% increase (12-months ending February 2020)! 

  • Condominiums priced above $2M had the highest increase in closed sales for its property type, reporting a 20% increase (in the 12-months ending February 2020). 

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.

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Study: It’s 16% Cheaper to Buy Now than Late 2018

Home prices are going up; mortgage rates are going down. A study by Black Knight found that the buyer savings from mortgage rate drops more than offsets the rise in home prices by about 16% (about $48,000) in just over a year’s time.

JACKSONVILLE, Fla. – Jacksonville-based Black Knight Inc. examined home price growth and affordability in the context of today’s lower-interest-rate environment in its latest monthly report. It found that the negative impact of rising home prices has been more than offset by mortgage interest rate declines.

“Even with home price growth accelerating, today’s low-interest-rate environment has made home affordability the best it’s been since early 2018,” says Black Knight Data & Analytics President Ben Graboske. “At that time, the housing market was red-hot with national home price growth at 6.6% and climbing – before rising rates and tightening affordability triggered a pullback in growth rates.”

Even though average home prices have increased by almost $13,000 a little over a year ago, “the monthly mortgage payment required to buy that same home has actually dropped by 10% over that same span due to falling interest rates,” Graboske says.

Black Knight analysis

  • Home prices continue to react to falling interest rates. December marked four consecutive months of acceleration in the annual rate of growth and had the largest single-month acceleration in more than 6.5 years
  • After falling from nearly 7% in early 2018 to 3.8% in August 2019, the national home price growth rate gained nearly a full percentage point increase over the last four months of 2019, climbing to 4.7% to close out the year
  • Still, 30-year interest rates fell to 3.6% in late January 2020 and made housing the most affordable it’s been since early 2018
  • Despite the average home price increasing by nearly $13,000 from just over a year ago, the monthly mortgage payment required to buy that same home has dropped by 10% over that same span due to falling interest rates
  • It now requires 20.6% of median monthly income to purchase the same home as it did just over a year ago – the smallest such payment-to-income ratio in two years Put another way, buying power for those shopping for the average-priced home has increased by 16% (approximately $48,000) in just over a year’s time

© 2020 Florida Realtors®

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October – Naples Market Report – Buyers are Back: Homes Under Contract Soar 24%

Naples, Fl. (November 22, 2019) – As predicted by a group of Naples real estate brokers, buyer activity began to rise in October with a remarkable 23.7% increase in overall pending sales (homes under contract) to 987 pending sales during October 2019 compared to 798 pending sales in October 2018. Sellers also felt a surge in showings (up 40% compared to October 2018), and the number of price reductions slowed to just 15% of the properties available in October’s overall inventory compared to September,
which saw 26% of its inventory’s prices reduced. Price reduction activity is an important behavior for buyers to watch as it is an indication of how eager sellers are to sell.
Closed sales during October increased 9.7% to 758 closed sales compared to 689 closed sales in October 2018, according to the October 2019 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island).

Florida Housing Market Shows Positive Trends in September

September statewide single-family home sales rose 11.5% year-to-year, and the median price rose 5.3% to $256K. Condo sales rose 6.1%; median price up 5.8% to $193K.

ORLANDO, Fla. – During September, Florida’s housing market reported more closed sales, higher median prices and increased pending inventory compared to a year ago, according to the latest housing data released by Florida Realtors®. Sales of single-family homes statewide totaled 23,510 last month, up 11.5% from September 2018.

“Mortgage rates that remain historically low and strong economic trends continue to help fuel Florida’s housing market,” says 2019 Florida Realtors President Eric Sain, a Realtor and district sales manager with Illustrated Properties in Palm Beach. “In another positive sign, pending inventory for existing single-family homes was up 1.7% year-over-year, while pending inventory for existing condo-townhouse properties was up 0.9%.

“Staying on top of trends in local housing markets can be challenging for buyers and sellers – turning to a local Realtor for expert guidance can ease stress and help with peace of mind.”

Pending inventory is the number of listed properties under contract at the end of the month or data collection period.

Statewide median sales prices for both single-family homes and condo-townhouse properties have risen year-over-year for 93 consecutive months.

The statewide median sales price for single-family existing homes was $265,000, up 5.3% from the previous year, according to data from Florida Realtors Research Department in partnership with local Realtor boards/associations. Last month’s statewide median price for condo-townhouse units was $193,000, up 5.8% over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.

According to the National Association of Realtors® (NAR), the national median sales price for existing single-family homes in August 2019 was $280,700, up 4.7% from the previous year; the national median existing condo price was $257,600. In California, the statewide median sales price for single-family existing homes in August was $617,410; in Massachusetts, it was $430,000; in Maryland, it was $310,000; and in New York, it was $296,900.

Looking at Florida’s condo-townhouse market in September, statewide closed sales totaled 9,007, up 6.1% compared to a year ago. Closed sales may occur from 30- to 90-plus days after sales contracts are written.

“With inventory levels continuing to dwindle, low mortgage interest rates remain the major reason we are continuing to see strong sales and price growth throughout much of the state,” says Florida Realtors Chief Economist Dr. Brad O’Connor. “And with both sales and prices continuing to rise, it should come as no surprise that the dollar volume of sales throughout the state also increased significantly this September compared to September of last year. Statewide, closed sales of single-family homes totaled about $8 billion, a year-over-year increase of 17%. Dollar volume for sales of townhouses and condos, meanwhile, rose by 7.5% to about $2.4 billion.”

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 3.61% in September 2019, a significant drop from the 4.63% averaged during the same month a year earlier.
© 2019 Florida Realtors®

 

Market Report – August Home Sales Strong as Prices Hold Steady

Naples, Fla. (September 20, 2019) – Closed sales of homes in Collier County increased 7.4% in August, but overall inventory fell 17.8% to 4,917 properties compared to 5,980 in August 2018, according to the August 2019 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). This reduction in inventory – which included 616 homes that were either terminated, expired or withdrawn from the Southwest Florida MLS in August – resulted in a six-month supply of inventory for Collier County at the end of August…
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