Naples, FL (March 25, 2022) – More sellers are motivated to enter the market as home values continue to rise as a result of limited inventory and high demand in the Naples area. 

The overall median closed price in February was $550,000, a 37.5% increase over the median closed price in February 2021. The high demand for homes is demonstrated by the number of showings in February, which was 43,032. When divided by the number of homes in inventory during February (1,176), this translates to 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% of list price received was 100.6%, which pleased many sellers.

“Twenty-five percent of the homes that went under contract in February came back onto the market within 20 days on average during February,” said Jeff Jones, Broker at Keller Williams Naples.

To take advantage of this occurrence, Jones suggests buyers use a very important tool in real estate: the back-up offer contract. A back-up offer can be placed on any property when that property is already under contract with another buyer. But in today’s market, there is a higher likelihood that the first offer may not stick so a back-up offer is a smart tool for buyers right now.

Brenda Fioretti, Broker Associate at BHHS, agreed with Jones and added, “Before the pandemic, we had a 3 to 5% back-on-market rate monthly. But things are different today. We are seeing some good success stories when back-up offers are used.”

Fioretti went on to explain that a back-up offer contract – if recommended by a REALTOR® and approved by the seller – may not require a deposit and the buyer can keep searching for a home to purchase until they either become the primary buyer on the first home or cancel the back-up offer. For the seller, back-up offer contracts can provide confidence. In such cases, if a buyer asks to renegotiate, the seller has leverage because they have a back-up offer. Additionally for sellers, back-up contracts allow them to avoid having to re-list the home and start showing it again.

While inventory during February decreased 47.1% to 1,176 homes from 2,224 homes in February 2021, brokers reviewing the report say the real inventory number is actually higher because the report doesn’t capture the number of off-market listings. “Because new listings are a hot commodity these days, they often don’t make it to the MLS until after they are sold. Sales are happening so fast that transactions in the ‘shadow inventory’ (homes that are not yet for sale but will be coming to market in the future) are more common than ever before.” 

The median closed price in February increased 37.5% to $550,000 from $400,000 in February 2021. But according to Dominic Pallini, he believes that prices are beginning to stabilize. “The median closed price only increased .2% from January to February, and the report shows February had more price decreases [276] during the month than price increases [170].” 

Closed sales in February during the years leading up to the pandemic (2017-2019) averaged in the low 600s, but demand for the Naples lifestyle and the amenities living in paradise offer 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. While overall closed sales decreased 39.5% to 804 in February from 1,330 in February 2021, Bill Coffey, Broker Manager of Amerivest Realty Naples, pointed out that the report showed “the only area where we are seeing a decrease in closed sales over the last year is in the $300,000 and below price category.”

Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., pointed out that it’s “slim pickins’” for first-time home buyers as the report showed “there were only 26 single family homes on the market during February that were in the $300,000 and below price category.”

The NABOR® February 2022 Market Report provides 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 for 2022:

There are several other key performance areas within the February report, month/month, that are worthy of mention:

1,261 – The number of new listings added to the existing inventory

69.7% – The percentage increase in median closed price for properties located in 34113

$1,161,203 – The average closed price for single family homes (+5.3%)

5% – The percentage increase in overall closed sales in Central Naples (34104, 34105, 34116)

4 – The number of months in a row that condominiums have sold for over 100% of list price

46% – The percentage decrease in median closed price for single-family homes in the Naples Beach area (34102, 34103, 34108)

 “The process and complexity of real estate has changed,”. Having a REALTOR® on your side is the best way to ensure your interests are met and that you understand what to expect when you buy or sell a home in Naples.”

 View Detailed  Naples Real Statistics Estate for February 2022...