By Robert Nardi, Broker/Owner
Home sales were not as robust due to low inventory during October. Still, new listings are rising according to the October 2021 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). Overall closed sales for October decreased 32.1 percent to 858 closed sales from 1,263 closed sales in October 2020. But irrespective of the home-buying frenzy that took place during the second half of 2020 (including October 2020) closed sales in October were historically higher than average for a typical October in Naples, even with the lowest inventory level on record by NABOR®.
The report shows pre-season interest already in play as October’s pending sales (1,186 pending sales) and showings (33,578) were above summer month levels. In October, the overall median closed price increased 16.9 percent to $450,000 from $385,000 in October 2020. The COVID-19 pandemic affected buying behaviors, and sales of single-family homes outpaced condominiums as people sought more open space in 2020, but those buying behaviors have now shifted. While overall inventory decreased 76.1 percent in October to 1,240 properties from 5,181 properties in October 2020, condominium inventory fell 84.4 percent in October. As such, there were nearly half as many condominiums (435) available compared to single-family homes (805) at the end of October. Not surprisingly, the median closed price for condominiums increased 31 percent to $370,000 from $282,500 in October 2020, while the median closed prices for single-family homes increased 18.8 percent to $615,000 from $517,750 in October 2020.
The NABOR® October 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. The NABOR® sales statistics are in chart format and can be sent to you via e-mail. Please send an e-mail request to Robert@NardiRealty.com
What does this mean?
It means that it is still a Sellers’ market and prices have risen significantly in one year. The Naples Daily News on December 2nd, 2021 reported that Naples, Florida ranks 1st for home sales per capita in the nation. Naples-Marco Island tops the website’s list at Porch.com for the most home sales per 10,000 residents this year. Demand will continue to remain high in 2022, however, I believe more properties will be coming on the market in late January 2022. The reason is that owners will come down for the season, January through March 2022, and feel they “missed the boat.” Because of this thought process, I believe they will be putting their properties on the market to “cash in.” I recently had a listing appointment with a couple in their late 60’s, and they indicated that they wanted to sell. I asked, “Where are you going?” They responded, “We don’t know. We will figure it out when the home goes under contract.” All I can say is, “Wow!” If seniors are willing to sell in this market without any plans as to where to go, others are thinking the same!
Buyer Fatigue
Are the prices leveling off? I believe that they are, but there are Buyers out there suffering from “Buyers Fatigue.” I recently put up a home for sale, and within three days, I received four offers, and out of those offers, there was a significantly higher one. The REALTOR® who submitted the bid informed me that his Buyer has put in multiple offers over several months and lost every time. He wants to win this time! And guess what? His bid was accepted as highest and best by the Seller.
What about sales prices?
Prices will continue to rise but at a much slower pace, and I do not believe that we will have a crash as we did in the “Great Recession.” Southwest Florida, a coastal area, has been underpriced for years, and the prices have adjusted accordingly.
My best advice is to work with a REALTOR® who understands the “ins and outs” of this current housing market. Having an experienced agent who can assist could be invaluable and put some extra dollars in your pocket.
If you have any questions or wish to find out what your home could be worth, please feel free to call me directly at 239-293-3592 or e-mail at Robert@NardiRealty.com.
I wish you and yours a safe, happy, and healthy holiday season and New Year!