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