Naples, Fla. (November 20, 2020) - Naples Real Estate Market Sees Another Record Month in Closings
According to the October 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 Naples real estate market continues to see strong demand in both the single family and condominium markets. Buyers are getting a jump on the winter seasonal market as shown by the reduced inventory, increase in multiple bids and the jump in closed sales.
Closed sales activity for the overall market increased 65.2% to 1,249 closed sales in October 2020 from 756 closed sales in October 2019.
Inventory continues to be a challenge for buyers seeking to purchase a home in Naples. While the overall market inventory in October 2020 decreased 33.8% to 3,543 from 5,351 in October 2019, overall pending sales for the same time period increased 73.0% to 1,708 from 987 in October 2019.
With strong demand, sellers are receiving multiple competitive offers on their listings during what is a traditionally slower time of year. Offers are coming in more quickly as well, with homes sold during October 2020 staying on the market 11.5% fewer days than October 2019. The average number of days on the market until sale was 92 in October 2020 compared to 104 days in October 2020.
"In a typical year, October would be a time when inventory numbers rise as sellers prepare for increased demand during season," said Mike Hughes, Vice President of Downing-Frye, Realty, Inc. "However, the pandemic disrupted traditional seasonal patterns. Buyers are motivated to seek larger, more comfortable homes that accommodate their work-from-home lifestyles."
In a recent interview in Inc. magazine, Bill Gates acknowledged the nationwide, post-pandemic migration of families to bigger houses in smaller communities with less traffic. Annual market statistics support that trend is happening locally. During the period of January through October 2020, there were 9,785 closed sales in Naples, which represents a 13.8% increase over the same period in 2019. With more active buyers on the market, housing prices are seeing moderate but sustainable growth.
"Home pricing will likely continue to rise", said Dominic Pallini, Broker at Vanderbilt Realty of Naples. "Today's buyer is willing to pay more for the comfort and quality of life that Naples offers. "Additionally, we are seeing new construction come online in the local market, which is supporting the increased demand."
The October Market Report showed that single-family homes saw an increase in the median closed sales price of 12.1% to $458,000 during January to October 2020, up from $408,500 during the same period in 2019. Condominium median closed sales prices also saw an uptick of 5.8% to $275,000 during January to October 2020, over $260,000 during the same period in 2019.
Brenda Fioretti, Managing Broker at Berkshire Hathaway HomeServices Florida Realty, notes that 30.6% of homes on the market experienced a price increase during October. "Sellers are receiving multiple, competitive bids on their listings. So, it is important for buyers to make a serious offer when they find the right home."
The NABOR® October 2020 Market Reports provide comparisons of 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 format, including these overall (single-family and condominium) findings:
"Despite the uncertainty that the coronavirus pandemic has brought to the country, there are many positive trends such as low-interest rates that have continued to support the Naples real estate market and the overall economy," said Bill Coffey, Broker with Amerivest Realty. "With buyers becoming less seasonal, the market has remained stable."