Heightened Buyer Demand Influences Naples Real Estate Market
Naples, Fla. (June 19, 2020) – REALTORS® kept busy in May as pent-up demand for home buying resulted in a remarkable spike in buyer interest. As a result, showings in May increased 244 percent compared to showings in April. As remarkable, showings in May outpaced showings a year ago, which increased 5.5 percent compared to May 2019. According to the May 2020 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 found the data reflected the everlasting desirability of the Naples real estate market, even during the COVID-19 outbreak.
“Despite the restrictions of social distancing, with many REALTORS® conducting virtual open home tours and adopting electronic signings and virtual closings, 599 buyers purchased homes in Naples last month. REALTORS® and brokerages adapted to the challenges at hand - and will continue in the future – to ensure the real estate industry is a leading factor in our country’s economic recovery,” remarked NABOR® President Lauren Melo, PA, Licensed Real Estate Broker with Florida’s Realty Specialists.
Prices held stable, in spite of the outlying issues, with the year-to-date median closed price up a modest 2.3 percent.
Overall inventory during May decreased 27.2 percent to 5,116 homes from 7,023 homes in May 2019. However, while there was a 4 percent decrease in new listings of single-family homes in May, there was a 6.5 percent increase in new listings of condominiums.
“We have a 5.8-months’ supply of single-family homes in Naples,” said Bill Coffey, Broker Manager of Amerivest Realty Naples. “Buyers don’t have as many single-family home choices right now so they shouldn’t hesitate to make an offer if they find a home they love.”
The NABOR® May 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:
|
CATEGORIES |
May 2019 |
May 2020 |
CHANGE |
|
Total closed sales (month/month) |
1,188 |
599 |
-49.6% |
|
Total pending sales (homes under contract) (month/month) |
1,218 |
1,167 |
-4.2% |
|
Median closed price (month/month) |
$354,450 |
$333,000 |
-6.1% |
|
Total active listings (inventory) |
7,023 |
5,116 |
-27.2% |
|
Average days on market |
107 |
91 |
-15.0% |
|
Single-family closed sales (month/month) |
595 |
314 |
-47.2% |
|
Single-family median closed price (month/month) |
$410,000 |
$425,000 |
3.7% |
|
Single-family inventory |
3,608 |
2,461 |
-31.8% |
|
Condominium closed sales (month/month) |
593 |
285 |
-51.9% |
|
Condominium median closed price (month/month) |
$270,000 |
$260,000 |
-3.7% |
|
Condominium inventory |
3,415 |
2,655 |
-22.3% |
Historically, some sellers in Naples take their homes off the market after season, and May inventory and pending sales activity always reflected this behavior. However, COVID-19 left many sellers uncertain about the real estate market. With the quarantine recommendations in place, fewer sellers listed homes during May. Despite an inventory drop, pent-up demand unleashed a new set of buyers in May, which changed history. May’s pending sales activity, a measure of signed contracts and not closings, increased 90 percent compared to April 2020, despite tight supply.
Heightened buyer demand is also evident in the number of Days on Market for May as reflected in a decrease of 15 percent to 91 days on market compared to May 2019, which reported 107 days on market.