Blog – The Wakelin Team

The Naples Area Board Of Realtors October 2021 Market Report

Tight Inventory and High Demand Continues

Naples, FL (November 23, 2021) – Home sales were bridled by low inventory during October, but new listings are on the rise according to the October 2021 Market Report released by the Naples Area Board of REALTORS^® (NABOR^®), which tracks home listings and sales within Collier County (excluding Marco Island). Overall closed sales for October decreased 32.1 percent to 858 closed sales from 1,263 closed sales in October 2020. But irrespective of the home buying frenzy that took place during the second half of 2020 (including October 2020), closed sales in October were historically higher than average for a typical October in Naples, even with the lowest inventory level on record by NABOR®.

Broker analysts who reviewed the October Market Report anticipate more sellers will enter the market over the next few months as the lure of paradise is already beckoning seasonal and foreign visitors back to our shores now that many international travel restrictions have been lifted and the threat of COVID-19 has been reduced. The report shows pre-season interest already in play as October’s pending sales (1,186 pending sales) and showings (33,578) were above summer month levels.

The overall median closed price in October increased 16.9 percent to $450,000 from $385,000 in October 2020. The COVID-19 pandemic affected buying behaviors and sales of single-family homes outpaced condominiums as people sought more open space in 2020; but those buying behaviors have now shifted. While overall inventory decreased 76.1 percent in October to 1,240 properties from 5,181 properties in October 2020, condominium inventory decreased 84.4 percent in October. As such, there were nearly half as many condominiums (435) available compared to single-family homes (805) at the end of October. Not surprising, the median closed price for condominiums increased 31 percent to $370,000 from $282,500 in October 2020, while the median closed prices for single-family homes increased 18.8 percent to $615,000 from $517,750 in October 2020.

“Closed sales are down for one reason: we just don’t have the inventory,” said Molly Lane, Senior Vice President at William Raveis Real Estate. “But that doesn’t necessarily mean prices will keep rising at the rate we saw this past year. With inflation surging, now is the time to sell your home in Naples because interest rates will eventually rise so the number of potential buyers will thin, and this will likely also level out list prices.”

Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., commented, “In the past, if you couldn’t find a home to buy, you’d just rent for a while until something came along. But there are few rentals today and this is exacerbating the low inventory issue because sellers can’t just pick up and move when their home sells. A REALTOR® can help them develop a plan that includes finding a place to live once their home sells.”

Hughes also pointed out that these kind of “hot markets” don’t last forever. “It’s impossible to predict the future but we know from history that things happen—like pandemics, inflation, or hurricanes—that have impacted the housing market in Naples.”

The NABOR^® October 2021 Market Report 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:

“It’s impossible for a home buyer or seller to keep their pulse on the market without a REALTOR®,” said Adam Vellano, a Naples Sales Manager at Compass Florida. “For sellers, a REALTOR® can often negotiate a higher closed price than what they could have received on their own because a REALTOR® can interpret the MLS, evaluate purchase offers, and take steps to maximize their return. For buyers, a REALTOR® can help them find the right home, carefully craft an offer, and quickly maneuver through negotiations, escalation clauses, and closings.”

If you are looking to buy or sell a home in Naples, contact The Wakelin Team who has the ability to provide a virtual showing, an accurate market comparison or negotiate a sale. We can ensure your next purchase or sale in the Naples area is a success.

The Naples Area Board of Realtors September Market Report:

September Market Report: New Listings Absorbed by Buyer Demand

Naples, FL (October 22, 2021) – Home sales in September would have been stronger if there was more inventory, say broker analysts reviewing the September 2021 Market Report released by the Naples Area Board of REALTORS^® (NABOR^®), which tracks home listings and sales within Collier County (excluding Marco Island). 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, a result of 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. Basically, more buyers are looking at fewer properties this year.

“Unfortunately, the numbers can’t tell us the full story,” remarked Adam Vellano, a Naples Sales Manager at Compass Florida. “We know demand is strong, but at the current inventory level, it’s hard to sustain the level of sales we have done in previous years.”

But Budge Huskey, CEO, Premier Sotheby’s International Realty, says there are signs to be optimistic. “I’m seeing more and more development companies from around the country putting their money on Naples. They know Naples still represents a great value compared to other desirable locations around the country and investing at today’s prices shows they think Naples will only become even more desirable in the future. They are confident the level of demand and overall values have room to run.”

The NABOR^® September 2021 Market Report 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:

Since January, there has been a 48 percent increase in closed sales over the same nine months in 2020. Inventory of homes is suffering from the same supply chain issues as other commodities made in America, all due to the pandemic. But opportunities to invest in Naples real estate are still out there. According to Dominic Pallini, Broker at Vanderbilt Realty, “Developers are selling lots again. But most newly constructed homes don’t get added to the MLS until they sell so we don’t see them reflected in the report’s inventory numbers.”

Not surprisingly, the median closed price in September increased 18.9 percent to $455,000 from $382,744 in September 2020. “About 23 percent of the homes for sale had price decreases,” said Jeff Jones, Broker at Keller Williams Naples. “But only 12 percent reported price increases. As competition for inventory gets even more fierce and days on market continue to drop, we’ll likely see an increase in the number of homes that don’t even appear on the MLS until they are sold.”

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 the first nine months of 2021!

Having a REALTOR® during today’s low inventory environment is an essential partnership for buyers because REALTORS® are poised to hear about a home before it goes up for sale, they know exactly when new homes hit the MLS in real time, and they can share this valuable information to home buyers. Further, REALTORS® work closely with many other agents, have alerts set up when new homes are listed, and know how to maneuver the process so a buyer can act fast when a new listing meets a client’s purchasing criteria.

If you are considering selling your home, look to The Wakelin Team who has the ability to provide an accurate market comparison, give you expert advice on how to capitalize on today’s market conditions, and sell your home quickly.

The Naples Area Board of Realtors August 2021 Market Report:

August Real Estate Market Report: Low Inventory, Strong Demand

Naples, FL (September 24, 2021) – Demand for homes in Collier County kept REALTORS® busy in August, even as inventory dropped 77.3 percent to 1,249 homes from 5,503 homes in August 2020. According to the August 2021 Market Report released by the Naples Area Board of REALTORS^® (NABOR^®), which tracks home listings and sales within Collier County (excluding Marco Island), REALTORS® escorted buyers on over 30,000 home showings in August! The month’s strong showing activity—coupled with a 76.8 percent decrease in days on market to 22 days—means most homes were listed, shown, and sold in less than 30 days

“Pent up buyer demand that began last summer has stretched inventory thin,” said Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., who added that “this could lead to upward pressure on pricing.”

Historically, median closed prices of homes sold during summer months tend to be lower than median closed prices of homes sold during high-season months (January through April), but that trend did not occur this year. According to the report, the median closed price reported in August was $75,000 higher than the median closed price reported in January 2021. The median closed price of homes sold increased 11.7 percent in August to $441,300 from $395,000 in August 2020 (median price is the price at which 50 percent of the homes sold were above that price, and 50 percent were below).

Molly Lane, Senior Vice President at William Raveis Real Estate, said, “With the help of a REALTOR®, homeowners who sold a home in August most likely enjoyed a nice profit. That’s because local REALTORS® understand the market and can help price a home correctly, screen out unqualified buyers, assist in negotiating repairs and contingent offers, evaluate the offers presented and negotiate the best possible terms for the homeowner.”

According to Adam Vellano, a Naples Sales Manager at Compass Florida, “Our area consistently enjoys about 1,000 new listings every month. But demand is simply outpacing supply today. The 992 new listings added during August will most likely be sold in less than a month.”

Vellano’s comment was confirmed by the August Market Report as days on market in August decreased 76.8 percent to 22 days from 95 days in August 2020. As such, many of the 1,101 pending sales reported in August were also included in the report’s 1,033 closed sales figure.

Pending and closed sales, incidentally, decreased by 25.6 and 7.9 percent in August, respectively. Broker analysts predict pending and closed sales will continue to decrease in comparison to past years because of limited inventory. Added Hughes, “It’s unlikely we’ll see a huge incline in inventory anytime soon.” He also noted that “historically, our area’s inventory increases during October and November in anticipation of seasonal residents during the winter, but demand is so strong now that we could absorb those homes if they were listed today.”

The NABOR® August 2021 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:

Brenda Fioretti, Broker Associate at Berkshire Hathaway HomeServices Florida Realty, pointed out that the report showed “24 percent of pending sales during August went back on the market during the month.”

Lane added insight by stating, “Because of limited options, REALTORS® are recommending sellers accept back-up contracts. This way, if the buyer with the first contract backs out, the buyer with the back-up contract moves into the first spot. But, when a buyer backs out and there are no other back-up contracts, those homes are removed from pending status and put back into active inventory.”

The August report showed less than a 30-day supply of inventory. Broker analysts agree: Working with a REALTOR® who has their eye on the MLS daily and knows how to navigate this lightning-fast market is an asset for buyers and sellers.

Lane remarked that “some homeowners tell us that when they decide to sell, they will simply sell their home to a neighbor. But I am quick to tell them that a REALTOR® can typically get them a higher price because REALTORS® place all new listings on the MLS so they are marketed to a wider audience.”

If you are looking to buy a home in Naples, be prepared to move fast. Partner with a Naples The Wakelin Team who can help you manage contract negotiations in our fast-moving market. If you are considering selling your home, look to The Wakelin Team who has the ability to provide an accurate market comparison, give you expert advice on how to capitalize on today’s market conditions, and sell your home quickly.

The Naples Area Board of Realtors June 2021 Market Report

Frenzy Fades to a Simmer as Inventory Dips Going into Summer

Naples, FL (July 23, 2021) – With less than a one month supply of inventory available, the Naples area housing market experienced a 14.5 percent decrease in overall pending sales in June to 1,256 pending sales from 1,469 pending sales in June 2020. Low inventory levels in June also contributed to a 7 percent decrease in showings for the month. This simmering of activity has broker analysts who reviewed the June 2021 Market Report released by the Naples Area Board of REALTORS^® (NABOR^®), which tracks home listings and sales within Collier County (excluding Marco Island), certain that the wild housing market frenzy that began about a year ago – peaking in March – is now decelerating and being replaced with a new level of activity that reflects improved market equity for sellers and sustained buyer interest from people seeking permanent residency.

“Inventory is turning over daily,” said Brenda Fioretti, Broker Associate at John R. Wood Properties. “That’s an important point for buyers to understand because many people think the inventory number we report is all that is available for the month. But that’s not true. Multiple home buying opportunities are a daily occurrence with new listings coming on the market continually. So buyers shouldn’t give up hope when inventory is low because their dream home might become available tomorrow. Though they need to be prepared to move quickly before the home sells.”

According to the report, overall inventory decreased 78.8 percent to 1,271 homes in June from 6,003 homes in June 2020. As expected going into summer, new listings decreased 12 percent in June to 1,147 new listings from 1,303 new listings in June 2020. However, in the first six months of 2021, new listings have increased 9.9 percent to 8,744 new listings compared to 7,957 new listings reported during the first six months of 2020. In fact, the number of new listings during the first six months of 2021 was actually higher than the number of new listings reported in the first six months of any year in the last five years.

“Last year, the second half of the year was better than the first,” said Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., who added, “but I think we will probably see the opposite this year.”

Hughes prediction might be accurate because according to the SWFL MLS data, it is unlikely we will be able to match the sales activity witnessed over the last year anytime soon. For example, closed sales in Naples increased 85.1 percent in the first half of 2021 to 9,414 closed sales from 5,086 closed sales in the first half of 2020 (during the height of COVID-19). For added perspective, in the first half of 2018 and 2019, there were about 5,400 total closed sales reported, respectively. Also, the year-end report for 2020 showed 15,582 total closed sales for the year, which means over 10,500 closed sales took place during the second half of 2020. When the buying frenzy began a year ago in June, Naples had a 7.3 month supply of homes. As a result of the impressive year-long sales activity, our area now has a .9 month (less than 30 days) supply of homes.

But the tight inventory isn’t squelching demand quite yet. Closed sales in June increased 67.8 percent to 1,505 closed sales from 897 closed sales in June 2020.

“Sellers are capitalizing on the current market,” added Hughes, “but buyer demand has simply stripped our inventory. Since April, we’ve seen a 55 percent drop in inventory.” Hughes pointed out that the June report showed Naples had four times the inventory but only 200 more sales last June than what was reported during June of 2021.

According to Adam Vellano, a Naples Sales Manager at Compass Florida, “Due to the current inventory shortage, the overall percentage of current list price received was 99.4 percent in June. Buyers are willing to overpay, but not grossly overpay. So our advice to sellers is that ‘if your home doesn’t sell in the first couple of weeks, then it’s either overpriced or needs work to become more desirable.’”

“The positive news is that report also showed an extremely high percentage of cash transactions [58.3 percent],” said Vellano, who added, “which indicates that buyers are confident our market has value and equity.”

The NABOR^® June 2021 Market Report 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:

The veteran Naples brokers who review the market report each month also said buyer demographics have changed in the last year. Dominic Pallini, Broker at Vanderbilt Realty, summed up their thoughts by remarking, “More people are coming here to live full time and they are willing to pay the price for a home in paradise.”

The median closed price in June increased 30.3 percent to $465,000 from $357,000 in June 2020. However, for the 12-months ending June 2021, the median closed price for condominiums over $2 million actually decreased 9.4 percent. Sales of condominiums during June skyrocketed 98.7 percent to 767 closed sales of condominiums from 386 closed sales of condominiums in June 2020.

Geographically, the Ave Maria/Immokalee area reported the highest increase in new single-family home listings for June with a 52.4 percent increase, followed by the Central Naples area (34104, 34105, 34116), which reported a 37.5 percent increase in new single-family home listings for the month.

If you are looking to buy or sell a home in Naples, contact The Wakelin Team as we have the ability to provide an accurate market comparison or negotiate a sale. We can ensure your next purchase or sale in the Naples area is a success.

The Naples Area Board of Realtors May 2021 Market Report: Home Prices Climb in May

Naples, FL (June 25, 2021) – Homes in the Naples area were being sold at 99.1 percent of the list price in May. A tight inventory and buyer demand continued to push prices upward in May, which resulted in an overall median closed price increase of 29.4 percent to $433,500 from $335,000 in May 2020, according to the May 2021 Market Report released by the Naples Area Board of REALTORS^® (NABOR^®), which tracks home listings and sales within Collier County (excluding Marco Island). Broker analysts reviewing the report predict continued price increases in 2021, but noted monthly showing and sales activity is beginning to show signs of deceleration from the remarkable market experienced during the first quarter of 2021.

Interestingly, the May Market Report showed the same number of list price increases for the month of May (247) as decreases (247), which, according to Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., is a reflection of behaviors from two types of sellers: “the ones who, despite comparable pricing recommendations from a REALTOR^®, seem to pick a high listing price and eventually have to decrease the home’s price to attract buyers; and those who listen to a REALTOR^® and price the home right, but because of rising prices due to strong buyer demand in our market right now, end up selling the home at a higher price.”

“Some sellers have been asking about price wars,” said Molly Lane, Senior Vice President at William Raveis Real Estate. “This may not always be the best strategy as some buyers are weary of losing out and the seller may not get the desired result. It’s always best to consult with a REALTOR^® as to the best strategy when pricing a home.”

Spencer Haynes, Vice President of Business Development and Broker with John R. Wood Properties, agreed with Lane and added, “A REALTOR^® will help a seller price a home dead on the money or just a little below market to drive in offers. Buyers are getting keen on the tactic by some sellers to price way above value, and those sellers may not get the action they expect.”

Cash sales in May accounted for 58.4 percent of the closed sales transactions. The cash buyers continued to create challenges for competing buyers who required financing. It took an average of 90 days for a home to go from list to contract in May 2020, but in May 2021, the average days on the market was reduced to 43 days, a 52.2 percent decrease.

But the trend of paying cash for a home does not preclude those buyers who want to finance from purchasing a home. Buyers who are prequalified for a mortgage often fare well during negotiations and enjoy a faster closing process than those who are not prequalified. Also, as pointed out by Phil Wood, President & CEO of John R. Wood Properties, “Many capable cash buyers are leaving their money in the stock market because they can achieve a higher return there as compared to the low mortgage rates, of approximately 3.2%.”

The May Market Report showed overall closed sales increased 164.4 percent to 1,618 from 612 in May 2020 (a month when all the world was in COVID-19 lockdown). For perspective, closed sales increased 36 percent in May 2021 compared to May 2019 (a non-pandemic lockdown month). Nevertheless, closed sales activity in May 2021 outperformed any other May in the history of NABOR^®’s market statistics reports.

The NABOR^® May 2021 Market Report 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:

Overall inventory fell 79.1 percent in May to 1,290 homes from 6,177 homes in May 2020, but monthly new listings activity continues. May welcomed 1,274 new listings, a 7.6 percent increase from 1,184 in May 2020. New listings that come on the market each month help to temper the drop in overall inventory and provide more opportunities to eager buyers.

“We’re in for a period of low sustained inventory,” said Budge Huskey, CEO, Premier Sotheby’s International Realty. “But even when demand begins to level off – perhaps in the second half of the year as is historically the case – our area will not see any real decline in prices because new fundamental values for our market are being set today and they are not likely to trend down again.”

Cash sales were not the only contributing factor to the drop in days on the market. Another factor was the 45 percent increase in showings for May (42,380 up from 29,319 in May 2020), which ultimately resulted in a 46.5 percent increase in pending sales for May to 1,710 pending sales from 1,167 pending sales in May 2020.

Historically, the Naples housing market’s activity in the first half of the year is not sustained during the second half of the year. However, since tourism to Florida is expected to increase this summer and buyers from foreign countries may also begin to arrive in the coming months, a return to more normalized buying behavior in the second half of the year was discussed although remains uncertain.

If you are looking to sell a home in Naples, contact The Wakelin Team as we have the ability to provide you with an accurate market comparison in this fast moving market, manage your showings to the right audience, evaluate the use of contingencies, and help you negotiate your home sale during a multiple offer process. We can ensure your next purchase or sale in the Naples area is a success

The Naples Area Board of Realtors April 2021 Market Report

Sellers Step Up in Attempt to Meet Buyer Demand in April

Naples, FL (May 21, 2021) – Buyers eager for more home choices were treated to an increase in new listings during April. According to the April 2021 Market Report, released by the Naples Area Board of REALTORS^® (NABOR^®), which tracks home listings and sales within Collier County (excluding Marco Island), there were 1,460 new listings added to the pool of homes for sale in Naples during April. This was a 106.2 percent increase in new listings compared to new listings added during April 2020. However, and as broker analysts reviewing the report were quick to point out, evaluating market conditions using month-over-month market data will not produce equitable comparisons for the next few months because the real estate industry, like virtually all businesses, experienced reduced productivity levels as a result of mandatory COVID-19 restrictions.

Since January, the Naples area housing market has enjoyed a 14.3 percent increase in new listings compared to new listings during the same time period in 2020. “Some buyers who haven’t found their ideal home yet might think, ‘There’s nothing left to see,’” said Brenda Fioretti, Broker Associate at John R. Wood Properties, “but new listings are hitting the market everyday so they shouldn’t give up searching for a home.”

Fioretti, along with several brokers who review NABOR^®’s monthly Market Report, say buyers are best served in today’s low inventory market environment when they work closely with a REALTOR^®. These professionals are trained to help buyers navigate the Naples area housing market using real-time technology that alerts them immediately when new homes that meet their clients’ needs become available.

Buyer demand in April took another bite on our inventory. April had 2,037 pending sales (homes under contract) and 1,882 closed sales, which resulted in 1,432 homes remaining in inventory by the end of the month. Not surprising, and because of increased demand for the Naples lifestyle, the 8-month supply of homes in April 2020 was reduced to a 1.1-month supply of homes at the end of April 2021. This substantial loss of inventory is attributed to post-pandemic relocation buying behaviors, a new reality in many Florida communities.

The median closed price in April increased 30.9 percent to $445,000 from $340,000 in April 2020. But according to Spencer Haynes, Vice President of Business Development and Broker with John R. Wood Properties, “Pricing is not an issue with most buyers. What we are dealing with today is a market of real end-users, not investors or ‘speculative flippers’ like what we saw in 2005/2006. People are not willing to buy anything just to get into a home right now. They have cash and are willing to wait until the right home becomes available.”

“The market is responding exactly as it should,” said Adam Vellano, a Naples Sales Manager at Compass Florida. “The number of new listings is going up and they are selling fast because demand is simply outpacing the inventory replenishment. The rise in homeowners’ equity during this hot market means everyone who bought a home in the last five or six years is in a good position to make a profit if they choose to sell now.”

The NABOR^® April 2021 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:

Jeff Jones, Broker at Keller Williams Naples, added, “If a buyer is interested in a home that already has an accepted offer, that doesn’t mean it has sold. With such tight inventory, buyers are submitting offers on multiple homes so it’s a great practice to submit a backup offer if a buyer is really interested in the home. In all cases, there can be only one buyer per home so when this happens the buyer’s back-up offer could become the winning offer.”

While overall closed sales continued to climb across all neighborhoods in Naples during April, according to Phil Wood, President & CEO of John R. Wood Properties, closed sales in the $1 million and $2 million and above price categories outperformed all other lower priced home categories tracked by NABOR^®. “Traditionally, our seven-figure sales begin to level off after Easter. But today they remain strong. Whether it’s a single-family home over $1 million or a condominium over $2 million, the luxury market is still very much on fire.”

If you are looking to sell a home in Naples, contact The Wakelin Team as we have the ability to provide an accurate market comparison, manage showings to the right audience, evaluate the use of contingencies, and help you negotiate during a multiple offer process. We can ensure your next purchase or sale in the Naples area is a success.

The Naples Area Board Of Realtors March 2021 Market Report: March Home Sales Volume for Naples Hits Record High

Naples, FL (April 23, 2021) – Records were broken in March, but “don’t call Guinness just yet!” say broker analysts reviewing the March 2021 Market Report, released by the Naples Area Board of REALTORS^® (NABOR^®), which tracks home listings and sales within Collier County (excluding Marco Island). The analysts are a small contingency of leaders who represent the area’s top real estate brokerage firms and meet monthly at NABOR® to interpret area housing market statistics. The group’s analysis of activity last month confirmed that March broke records; but celebrations to commemorate the month’s record high statistics should be postponed because these broker analysts also agree that our market is probably not done breaking records for the year.

According to the report, March’s historic activity included 1,851 closed sales, $1,582,474,997 in total sales volume, and 60,147 showing appointments. This makes March 2021 the highest performing month on record over the last 13 years (the span of time NABOR® has tracked key metrics reflecting the area’s housing market activity).

March was also the first month in several years where there were more reported price increases than decreases. Median closed prices in March increased 12.2 percent to $415,000 (the highest median price increase month/month on record since 2008) from $370,000 in March 2020. In March 2021, there were just 1,819 homes in inventory (the lowest it has been since 2014), which was a 73.2 percent decrease from 6,795 homes in inventory in March 2020.

“Appreciation values have not increased dramatically in all price ranges,” said Molly Lane, Senior Vice President at William Raveis Real Estate. “Most of the high appreciation that’s driving median and average closed prices up in recent months is in the $2 million and over market.”

Pending sales (homes under contract) activity in March also broke records, as seen in the 152.7 percent spike to 2,469 pending listings from 977 pending listings in March 2020. However, broker analysts were quick to remind each other that a high number of sales during the second half of the month last year were lost as we were in a pandemic lockdown. Despite last March’s COVID-19-related market anomaly, this March’s pending sales still eclipsed pending sales activity reported in any March over the last eight years.

“This is a challenging time for buyers in Naples,” said Brenda Fioretti, Broker Associate at John R. Wood Properties, “and why it’s extremely important they work with a local REALTOR® whose experience and expertise can guide them through the process.”

Fioretti is confident buyers can improve their chances of purchasing the property they want by being well-prepared as they enter this competitive market. She and several broker analysts advise buyers take the following steps prior to making an offer:

Get a mortgage pre-approval
Be ready to make a competitive offer
Be available to view a home at the seller’s convenience
Confirm that your agent has activated your profile in the Southwest Florida MLS, and make sure the information is accurate so you can be matched with new listings as soon as they become available
Stay connected and respond quickly to your agent’s requests
Be ready to make up the difference between the appraised value and the sale price if financing your home
Don’t fall in love with just one house: Have a second and third choice in mind in case you miss out on your first choice
If your favorite home choice goes pending with another buyer, make a back up offer anyway! Often, the first buyer backs out and you become the primary. You can continue shopping for a home and terminate the back-up contract at any time before you become the primary
Rely on your REALTOR® for advice concerning escalation clauses and contingency matters
Pay with cash to be most competitive, if possible, and avoid the mortgage underwriting process

The NABOR^®March 2021 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:

Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., pointed out that closed sales in March left buyers in April with a 1.6 month supply of homes. For perspective, the National Association of REALTORS® considers a six-month supply of housing a balanced market. However, Hughes was quick to also remark that “depletion of inventory is not due to a lack of sellers, as new listings have been steady over the past several years.” According to the report, new listings have been hovering around 1,500 a month for the last decade. In March, new listings even increased 32.5 percent to 1,670 new listings from 1,260 new listings in March 2020. “With limited new construction options, buyers are stripping our resale inventory,” said Hughes, “especially in the high-end market.”

The March Market Report showed remarkable closed sales performance in the condominium market during March too, which had a 71.6 percent increase in sales to 1,021 closed sales from 595 closed sales in March 2020. Closed sales of single-family homes over $2 million also increased 68.4 percent in March. Geographically, closed sales of condominiums in Central Naples rose 118.3 percent in March, while the average sale price for single family homes in Central Naples increased 38.4 percent to $901,807 from $651,370 in March 2020.

“Sellers are raising prices and multiple offers are still coming in,” said Budge Huskey, CEO, Premier Sotheby’s International Realty. “This is because inventory is limited, and more sellers are realizing now is a good time to place their home on the market and get top value in the current market conditions!”

Broker analysts predict the level of demand experienced in March is sustainable and should be expected to continue for the next few months, or longer. “Season was disrupted this year because many people elected to hold off relocating until they were fully vaccinated,” added Huskey. “Agents also report that many seasonal visitors are staying longer than in previous years, possibly because they can afford to wait in anticipation of more homes becoming available in the luxury market. I believe we’ll continue to see more newcomers from northern states looking for homes in the high end in the coming months. Beyond that, and as we enter the summer season, we might begin to see a second wave of international buyers entering our market as travel restrictions begin to relax.”

If you are looking to buy or sell a home in Naples, contact The Wakelin Team as we have the ability to provide a virtual showing, an accurate market comparison or negotiate a sale. We can ensure your next purchase or sale in the Naples area is a success.

The Naples Area Board of Realtors February 2021 Market Report

Increased Demand in February Shows

Homebuyers Recognize a Great Value

Naples, FL (March 24, 2021) – The February 2021 Market Report, released by the Naples Area Board of REALTORS^® (NABOR^®), which tracks home listings and sales within Collier County (excluding Marco Island), marks the last month of comparative activity before the pandemic shuttered the global economy in March 2020. That said, overall closed sales of existing homes in Naples for February increased 62 percent to 1,307 closed sales from 807 closed sales in February 2020.

Broker analysts reviewing the February 2021 Market Report were not surprised at the increased momentum as many report buyers are scooping up the available inventory of homes in all geographic locations within Naples almost as fast as they come onto the market. Inventory fell 68.8 percent in February to 2,224 homes from 7,127 homes in February 2020.

Single-family homes continue to be in high demand so, according to the report, many buyers pivoted to condominiums in February. As a result, the condominium market experienced a 75.7 percent increase in closed sales and a 66.6 percent decrease in inventory. In fact, condominium sales in February 2021 eclipsed its comparable sales in any month over the past 15 years.

“This is not a housing boom as many people suggest,” said Spencer Haynes, Vice President of Business Development and Broker with John R. Wood Properties. “I consider it a ‘market correction,’ as our area has simply been undervalued until now and it is finally experiencing its due appreciation.”

Haynes added that “in many desirable locations like California and Atlanta, high buyer demand, low inventory, and rising prices have been a reality for years. And unlike 2005/2006, activity is not a result of ‘manufactured wealth’. Sales today are done with real money, which is why home values in our area are finally increasing. Besides, we have what everyone is looking for as it’s now possible to work from anywhere in the world so why not live and work in paradise.”

In addition to the struggle to find existing properties for sale in all price categories, buyers are also finding new home purchasing options are diminishing.

“Builders are reporting a big shortage in materials for new home construction,” said Jeff Jones, Broker at Keller Williams Naples. “For example, orders for new windows are out 14 months because there’s not enough glass for production. And there’s also a shortage of resin for pipe production and lumber has been scarce too.”

Corey McCloskey, NABOR® President and VP of Operations at John R. Wood Properties concurred, commenting that she’s heard from REALTORS® in South Carolina and Arizona that hundreds of new homes in their towns are sitting finished without windows.

Another result of high buyer demand in Naples: “New home communities are nearly sold out so were seeing many put their last lots up for bid,” said Dominic Pallini, Broker at Vanderbilt Realty.

It’s not surprising then that February saw pending sales of existing homes in Naples skyrocket 50.7 percent to 2,299 pending sales from 1,526 pending sales in February 2020. In comparison, there were more pending sales (2,299) at the end of February than inventory (2,224). This resulted in a drastic drop in supply as the February report revealed our area now has only a 2-months supply of homes available to buyers.

The NABOR^® February 2021 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:

In February, the median closed price increased 17.4 percent to $405,000 from $345,000 in February 2020. As such, the average closed price also increased in February by 25.7 percent to $796,936 from $633,898 in February 2020. The luxury single-family home market continues to drive sales in Naples as reflected in the average closed price for single-family homes in the Naples Beach area, which increased 35.4 percent to $3,270,814 from $2,414,826 in February 2020.

According to Wes Kunkle, President and Managing Broker at Kunkle International Realty, even though interest rates are low, “many buyers are purchasing homes with cash as it provides leverage during the sale.” This occurrence often happens in multiple offer situations because financing can often weaken an offer. So buyers use cash to make the purchase with the intent of refinancing to enjoy the low interest rates once the sale is complete. Not surprising, cash sales accounted for 57.9 percent of all closed sales during February.

Whether new listings – which fell 8.6 percent in February to 1,435 new listings from 1,570 new listings in February 2021 – can meet the demand in the coming months will depend on seller motivation. In a tight inventory climate, brokers said it’s not uncommon for REALTORS® to approach a homeowner in a desirable community and ask: “I know your home is not for sale but how much do you want to sell it because I have a buyer?”

Jones added that it’s important the public understand “our market today is based on equity – not speculative lending like we saw in 2005 leading up to the housing market bubble.”

The demand for single-family homes in Naples is so high right now that its convincing many homeowners to downsize in order to take advantage of the market’s demand and enjoy a nice profit. That’s one reason condominium sales increased in February and why properties in 55 and older communities also saw increased activity.

The Naples Area Board of Realtors 2020 Market Report: Housing Market Soars in 2020 Despite the Pandemic

Naples, FL (February 10, 2021) – Like many industries, the Naples area real estate market was tested in 2020 when the COVID-19 pandemic hit and shuttered businesses in every community. Fortunately, real estate professionals obtained essential-service designation from the state. The effects of the pandemic negatively impacted the housing market during March and April, two months that historically have been the best months for home sales during the year. As lockdown restrictions began to loosen, pent up demand for homes in Naples resulted in more homes sales during the second half of the year than during the first six months, a phenomenon broker analysts admit has never occurred in the history of Naples real estate.

“Because of the lockdowns up north, our market experienced a 38 and 54 percent drop in pending sales during March and April [respectively],” reported Mike Hughes, Vice President of Downing-Frye, Realty, Inc., and a panelist at the Naples Area Board of REALTORS®’ 2020 Year-End Market Conference on February 2, 2021. Hughes shared the virtual stage with Budge Huskey, CEO, Premier Sotheby’s International Realty; Adam Ruud, Broker, Domain Realty; and Jeff Jones, Broker at Keller Williams Naples.

“It wasn’t until May that I realized ‘the sky isn’t falling’,” said Hughes. “REALTORS® adapted quickly and became better at marketing using FaceTime, virtual tours and other creative ways to show properties. It paid off because according to the annual report, pending sales in Naples had an incredible run from July to December, with an average of 1,400 pending sales during each of those months.”

Hughes pointed out that there were 7,104 pending sales from January through June, but 9,150 from July through December. “I’ve never seen this type of improved activity in the second half of a year. We were certainly in unchartered waters in 2020.”

Pending sales for 2020 increased 28.8 percent to 16,254 pending sales from 12,623 pending sales in 2019. “These results speak volumes to the resiliency of the industry, to REALTORS® in our area, and to the desirability of our local market,” added Hughes.

Discussing closed sales for 2020, Adam Ruud began his presentation by stating, “Back in March, we faced extreme uncertainty; but REALTORS® thrived in the midst of a goliath-like challenge, and the Naples housing market emerged as the catalyst and backbone of what was an uncertain economy.”

Closed sales for 2020 increased 19.4 percent to 12,300 closed sales from 10,302 closed sales in 2019. “Closed volume for the year was also remarkable,” added Ruud, “There was a 41 percent increase in closed volume year over year, which equated to a remarkable increase from $12.9 billion in 2019 to $18.2 billion in 2020.”

Looking at a quarterly analysis of closed sales during 2020, the annual report showed that the first quarter had an increase of 21.1 percent in closed sales, while quarter two had a decrease of 29.4 percent. Ruud pointed out that “as Mike Hughes mentioned, the housing market rallied during the third and fourth quarters, and we had increases in closed sales of 40.6 percent and 55.5 percent [respectively].”

“Even facing many unknown challenges during the second quarter, we saw incredible efforts to close transactions despite many lockdown obstacles and economic uncertainty, which further proved to me the amazing resiliency and desirability of our area’s housing market,” said Ruud, who went on to add, “No one expected us to surge past 2019 sales levels in the third and fourth quarter like we did. It’s been nothing short of remarkable. In fact, October was the top month for closed sales in 2020, with a 65 percent increase in closed sales compared to October 2019.”

Closed sales of homes priced $2 million and above outperformed all other price points tracked by NABOR® in 2020. With a notable 62.4 percent increase over 2019, Ruud said, “the luxury housing market in Naples proved to be an investment of choice in 2020.”

Looking at closed sales historically, Ruud pointed out that the desire to experience the coastal lifestyle has been growing in demand for many years as our data shows only 3,973 closed sales in 2007 compared to a whopping 12,300 closed sales in 2020.

iscussing home prices in Naples, Budge Huskey said, “while median prices in our area increased significantly [11.4 percent overall], this wasn’t out of line with what was witnessed on a national basis because NAR [National Association of Realtors®] reported that median closed prices in America went up 12 percent during 2020.”

“We have been beneficiaries of a tragic event that just accelerated real estate across the board in Florida,” he added. For perspective, Huskey added, “Average sales prices in the area rose 16.1 percent. I think all would agree that an increase of roughly $100,000 in one year in average sales price in any market is extraordinary.”

Median closed prices for single-family homes in the Naples Beach area saw the greatest leap in 2020 with an increase of 27.1 percent. “This was due to unprecedented demand in high-end real estate. These are the people who are affluent, can move quickly, had the capital, and they took advantage of it in 2020,” added Huskey.

Affirming what other presenters had already said, Huskey agreed that the second half of the year performed much better, which, according to Florida Realtor® data, resulted in a 142 percent increase in closed sales of homes over $1 million in Southwest Florida. “With active listings expected to decrease in 2021, there isn’t a reason to suggest we won’t continue to see upward pressure on prices. The good news is that we will continue to be the beneficiaries of high demand this year, with also expected higher average sales prices.”

“If there’s one thing that is kind of a harbinger of possible issues in the future, it’s inventory,” said Jeff Jones. “A year ago we had 7.2 months of supply, and at the end of 2020 we are at 3.1 months of supply. We’ve gone from a balanced market to clearly a sellers market in one year.”

Because of the popularity of single-family homes, that sector of inventory decreased 58 percent in 2020, while the condominium inventory decreased 41 percent. “The patterns of consumption are showing us that people are migrating to single family homes,” added Jones. “However, as we moved on toward the end of the year and it became very difficult to find single-family home options, people continued to want to be here so we saw condominium sales exceed single-family home sales during the fourth quarter.”

Looking at inventory over the last 10 years, Jones pointed out that despite a 57 percent decrease in inventory levels compared to 2019, there were 15,604 new listings added in 2020. “This was the third highest increase in the last 10 years. In fact, the highest number of new listings have occurred in the past three years,” noted Jones. “This tells us that we don’t have a low supply issue necessarily; what we’re facing is definitely a high demand issue.”

The broker panelists agreed that the Naples area housing market soared in 2020 despite the pandemic due to the appeal of the Naples area climate and lifestyle, and record low mortgage rates.

If you are looking to buy or sell a home in Naples, contact The Wakelin Team as we have the ability to provide a virtual showing, an accurate market comparison, or negotiate a sale. We can ensure your next purchase or sale in the Naples area is a success.

The Naples Area Board of Realtors December 2020 Market Report…Housing Market Demand Continues to Outpace Inventory in December

Naples, FL (January 22, 2021) – Eager homebuyers did not waste any time in December as shown by pending sales for homes in the Naples area which leaped 88.6 percent to 1,535 pending sales (homes under contract) from 814 pending sales in December 2019. This spike in buyer interest was also reflected in the 65 percent increase in showings during December, which amounted to an average of 10 showings per listing. According to the December 2020 Market Report, released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), inventory continued to struggle to keep up with growing buyer demand. The number of available homes for sale in December 2020 decreased 49.1 percent to 3,140 homes from 6,163 homes in December 2019.

Overall sales in December increased 45.4 percent to 1,396 closed sales from 960 closed sales in December 2019. “As a direct result of the effects of the pandemic, 2020 was one of the first years in history where we saw more buying activity in the second half of the year than during the first half of the year,” said Mike Hughes, Vice President of Downing-Frye, Realty, Inc.

Budge Huskey, CEO, Premier Sotheby’s International Realty, added, “Historic election-year hesitancy regarding changes in administrations has not been reflected by top business leaders or the equity markets, and certainly didn’t dissuade home buying decisions in Naples during December. In fact, in the high-end market, closed sales for homes priced over $2 million increased an astounding 62.4 percent year over year.”

As months of inventory tightened in December to a very low 3.1 months of inventory, broker analysts said they are not concerned that the Naples market resembles the housing market of 2004/2005, when the market boomed, stumbled and fell. There are no signs of a decline in our market.

“The difference is that today’s home sales are not coming from investors. In today’s market, end users are purchasing homes,” said Adam Vellano, West Coast Sales Manager, BEX Realty – Florida. “Not only is the demand real, but we don’t have predatory lenders to worry about. While we expect to see home prices continue to rise, compared to other hot spots in the country, homes in Naples continue to be a great value!”

“Inventory will govern our potential moving forward,” remarked Huskey. “Based on the fundamental strength of our market, I would have thought more foreigners with second homes in the area would be selling this year since travel restrictions prohibit them from entering America, but that hasn’t happened yet.”

“Once more people get the COVID-19 vaccine, I believe we’ll begin to see sellers who were on the fence during the pandemic loosen up and begin to list their homes,” added Hughes. “But this might not be until the second half of the year.”

“Inherent in all the demand in inventory is an increase in price,” said Molly Lane, Senior Vice President William Raveis Real Estate. “Prices today are being driven by a lack of inventory.”

During December, the median closed price increased 18.2 percent to $405,000 from $342,500 in December 2019. An uptick in closed sales of high-end properties during December also drove the average closed price up 43.5 percent to $846,725 from $589,958 in December 2019. But keep in mind that even though median closed prices are rising, list price data extracted from the MLS showed only 506 properties reported a price increase compared to 321 that reported a price decrease during the month.

“People are looking for the type of resort-style living Naples can deliver,” said Spencer Haynes, Director of Business Development and Broker with John R. Wood Properties. “As such, condominium sales increased almost 50 percent during December. Inventory is more plentiful in the condominium market today, especially in the lower price ranges.”

“Inventory is a major concern for new home builders too,” Vellano pointed out. “Many planned developments typically take two to three years to be sold out. Sales are outpacing how fast they can build homes causing some developers to hold back on releasing additional homesites. At this point most, if not all, of their spec homes have been sold too.”

In periods of rapid sales and escalating prices, as is currently happening, appraisals often come in low because they are based on sales that may have occurred six months earlier, which may lower the amount of financing that can be obtained. Jeff Jones, Broker at Keller Williams Naples explained, “For instance, suppose there is a sale at $500,000 with the buyer planning to finance 80 percent of the purchase price so that they have a $400,000 mortgage. If the appraisal comes in at $480,000, then the buyer can only obtain a loan for $384,000 [80 percent of $480,000]. In this case, the buyer will need to cover the additional $16,000 in cash in order to complete the transaction. With inventory in high demand, many buyers are finding ways to cover the additional debt because the current low financing rates keep monthly payments down.”

The allure and reputation of the Naples lifestyle is driving affluent buyers to our market. The overall volume of home sales in the high-end market in Naples is higher than most other areas in Florida. As such, broker analysts predict continued heightened buyer interest and heightened buyer demand, especially in the high-end market, through the first quarter of 2021.