By Robert Nardi, Broker/Owner
More sellers are motivated to enter the market as home values continue to rise because of limited inventory and high demand in the Naples area. According to the February 2022 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), the overall median closed price in February was $550,000, a 37.5 percent increase over the median closed price in February 2021. The number of showings demonstrates the high demand for homes in February, 43,032. When divided by the number of homes in inventory during February (1,176), it averages 36 showings per home. For perspective, in 2019, there were 2.9 showings per home. The data also shows that homes sold fast in February, within 23 days on the market, and the percent of list price received was 100.6 percent, which pleased many sellers. While inventory during February decreased 47.1 percent to 1,176 homes from 2,224 homes in February 2021, the actual inventory number is higher because the report does not capture the number of off-market listings.
In February, the median closed price increased 37.5 percent to $550,000 from $400,000 in February 2021. It appears that the median closed price is starting to stabilize. It only increased .2 percent from January to February, and the report shows February had more price decreases [276] during the month than price increases [170]. During the years leading up to the pandemic (2017-2019), Closed sales in February averaged in the low 600s. Still, demand for the Naples lifestyle and the amenities have driven buyers to the paradise coast in record numbers in recent years. It is only due to a lack of inventory that home sales in Naples did not fare as well as last February. Overall, closed sales decreased 39.5 percent to 804 in February from 1,330 in February 2021. The only area where we see a decrease in closed sales over the last year is the $300,000 and below range because there were only 26 single-family homes at this price level.
The NABOR® February 2022 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 in chart form. Please send an e-mail to Robert@NardiRealty.com to receive your copy.
What does this all mean?
It continues to be a Seller’s market. I recently listed a two-bedroom/two-bath condo in North Naples for $249,900. Great location and schools. It was over 1150 sq. ft. of living area. Within a few days, I received over 30 highest and best offers. Yes, 30 offers, you read correctly. With this large number of competing bids, it sold for a much higher price. I worked with my Seller to create a strategy for producing offers, and then when offers were rolling in, I had to categorize each and break down their terms in a language my Seller could understand. In addition, offers have become very complicated with escalation clauses, appraisal waivers, cash vs. a mortgage contingency, etc. Five seemed to contain the best terms and pricing out of the submitted offers. Out of the five, one had the least number of contingencies and the highest price. That offer won the race.
My best advice to all Sellers out there is not to do a “For Sale by Owner” unless you are willing to take a lower offer or know the person and want to give them a discount concerning pricing. It is essential not to go alone in this market if you are a Seller and utilize a REALTOR®. Why not maximize one of your greatest assets?
Renting after Selling?
Sellers need to have a game plan because the property will sell and perhaps sell quickly. Therefore, one option they have after closing is to rent. However, the rental market is like the sales market; very tight and has few choices. Recently, Naples, Florida, was deemed one of the most expensive cities for rentals in the national news. On average, renting a two-bedroom/two-bath condominium is $2000.
Demand has increased 100-fold regarding seasonal rentals as well, and therefore, monthly prices have increased anywhere from $1000 to $3000 per month. Other factors that fuel the fire are its distance to the beach or if it resides in a resort community. Nardi Realty has a waiting list of 350 people seeking rentals from January through March of 2023, paying anywhere from $4000 to $42,000 per month for a luxury high-rise on the Gulf of Mexico. Simply mind-blowing!
The best advice I can give to Sellers is to do their due diligence and have a moving plan. Don’t leave anything up to fate.
Please feel free to reach out to me at 239-293-3592 or send an e-mail to Robert@NardiRealty.com with any questions.
Knowledge is power!
Please get in touch with me directly if you wish to find out what your home’s potential list price can be or if you want to explore making your current residence in Southwest Florida a rental by either sending an e-mail to Robert@NardiRealty.com or by calling me at 239-293-3592.
I wish you a great spring!