Naples Market Report | October 2020
Naples Real Estate Market Sees Another Record Month in Closings
Naples, Fla. – According to the October 2020 Market Report, released by the Naples Area Board of REALTORS® (NABOR®), 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 percent to 1,249 closed sales in October 2020 from 756 closed sales in October 2019.
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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 percent to 3,543 from 5,351 in October 2019, overall pending sales for the same time period increased 73.0 percent 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 percent 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. “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 percent 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. “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 percent 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 percent to $275,000 during January to October 2020, over $260,000 during the same period in 2019.
Brenda Fioretti notes that 30.6 percent 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.”
|CATEGORIES||Oct 2019||Oct 2020||CHANGE|
|Total closed sales (month/month)||756||1,249||+65.2%|
|Total pending sales (homes under contract) (month/month)||987||1,708||+73.0%|
|Median closed price (month/month)||$329,950||$385,000||+16.7%|
|Total active listings (inventory)||5,351||3,543||-33.8%|
|Average days on market||104||92||-11.5%|
|Single-family closed sales (month/month)||389||580||+49.1%|
|Single-family median closed price (month/month)||$395,000||$523,000||+32.4%|
|Condominium closed sales (month/month)||367||624||+70.0%|
|Condominium median closed price (month/month)||$255,000||$284,500||+11.6%|
“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. “With buyers becoming less seasonal, the market has remained stable.”
Check out the Naples Market Report for September 2020 HERE.
If you are looking to buy or sell a home in Naples, contact Taber Tagliasacchi at Calusa Bay Properties. As REALTORS® we have the ability to provide a virtual showing, an accurate market comparison or negotiate a sale. A REALTOR® can ensure your next purchase or sale in the Naples area is a success. Search for your dream home HERE.
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