By Robert Nardi, Broker/Owner
Home sales in September would have been more robust if there had been more inventory. Historically, September is the slowest month for home sales in Naples, but the area’s reputable natural beauty and home-value potential continue to increase its desirability to home buyers. Closed sales in September decreased 18.9 percent to 914 closed sales from 1,127 closed sales in September 2020 due to low inventory. A decrease of 213 homes sales might seem like home-buying interest is waning but consider the inventory factor. In September 2020, there were 5,287 properties available. While in September 2021, the month ended with just 1,251 properties for sale (a 76.3 percent decrease). Comparing showing activity also sheds light on the situation. There were roughly 23 showings per home during September compared to under seven showings per home in September 2020. More buyers are looking at fewer properties this year.
The NABOR® September 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. NABOR® sales statistics are presented in chart form and can be obtained by sending an e-mail to Robert@NardiRealty.com.
Since January, there has been a 48 percent increase in closed sales over the same nine months in 2020. Not surprisingly, the median closed price in September increased 18.9 percent to $455,000 from $382,744 in September 2020. The Market Report showed new listings in September decreased 28.4 percent to 961 from 1,342 new listings in September 2020. However, while new listings of condominiums decreased 2.7 percent during the first nine months of 2021, new listings of single-family homes increased 3.5 percent during 2021!
What does this all mean?
As you have seen, there are supply shortages everywhere because of the pandemic, and just like the supply shortages, the number of homes is in short supply. We are short over 5 million units. And as you know, when supply is low, and demand is high, prices increase. I still receive inquires such as “Is the bottom on home prices going to drop in Southwest Florida?”
I keep repeating to them that this go-around is different from the great recession of 2005. Buyers can afford to purchase either via cash or a mortgage which was different from the 2005 era, where getting a loan or home equity loan was approved by simply stating your income. Then the mortgage broker would perform a desktop appraisal of the property. An approval was immediate. These typically were “no-doc” loans issued at a higher rate costing the consumer much more money upfront and over time.
Should I sell my property now?
Since it is a Seller’s market, it is an excellent opportunity to sell your property now, but if it does sell, where will you go? That is the most critical question to ask.
I have customers who have been living in Southwest Florida for many years. They have decided to “cash out” and return to where they have previously lived. Mostly to be closer to family and friends. However, they are having challenges too.
East and West coast housing markets have skyrocketed. So even if they get a high selling price for their property, they are still paying a premium to purchase in those areas. Throughout the United States, there is a housing shortage. Please put a game plan/strategy in place before you put your home up for sale.
An excellent opportunity for seniors!
For seniors, this is a super opportunity to capitalize on this Sellers’ market. They reached a point where they wished to downsize or move to a senior living or 55+ community. However, after years of living in one property, they need to declutter so their home can command a top selling price. There is nothing worse than walking in a house having tons of “stuff” lying around and having the closets and the garage stuffed to the gild. I first would enlist a friend/friend family member to assist you. If you cannot find anyone to help you, paid professional organizers can assist you with the “decluttering” process. I understand it could be overwhelming, but it must be done before selling your property. I would start small by tackling drawers and closets and then eventually moving on to the garage (“The Beast”). As you go through items one by one, you would set up four piles. One pile would be for items you wish to discard. The 2nd pile would be for donations. The third pile could be for consignment items, and the fourth pile would be to keep and pack. Lastly, the worst thing you can do is go out and rent off-site storage and move “the stuff” there. It can be costly, and you still have the problem of decluttering one day. You are just prolonging the inevitable. Start to declutter now!
If you need assistance procuring a professional organizer or a mover, I can give you several recommendations. Please feel free to call me at 239-293-3592 or email me at Robert@NardiRealty.com.
I am wishing you and yours a Happy Thanksgiving!
3400 TAMIAMI TRAIL N. STE 103, NAPLES, FL 34103
239-293-3592 | www.BuyNaples.net