June Market Activity Sets the Stage for Strong Summer Sales
According to the June 2020 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), pending sales (homes under contract) increased 61.3 percent compared to June 2019, with single-family homes being the home choice for a majority of buyers. Broker analysts reviewing the report also noted that new listings during June increased 25.8 percent compared to June 2019, which indicates growing consumer confidence for both sellers and buyers leading into the summer Naples real estate market.
We are in the middle of a rising pandemic and the pending sales are pouring into the company. Our July pending sales are UP 57% ( # of transactions ) over last July for the first 23 days of the month!
For the first twenty three days of July 2019, Downing Frye Realty had 138 pending sales. The company currently has 217 pending sales with another week left in the month. Incredible.
We have a number of contributing factors coming into play. People are fleeing the big cities, particularly in the northeast. The pandemic has also caused people to look at low density areas. We also have a lot of east coast Floridians looking at the west coast of Florida. Many people in the country are working remotely and rethinking where they want to live if they continue to work remotely. Regardless of the reason, I am appreciative of how fortunate we are to be in a business that is weathering the pandemic.
The everlasting desirability of the Naples real estate market was undeniable in June, especially in the single-family home market where pending sales increased 83.9 percent to 835 pending sales from 454 pending sales in June 2019. Pending sales of condominiums during June increased 38.7 percent to 634 pending sales from 457 pending sales in June 2019.
Before the pandemic, the number of closed sales of single-family homes and condominiums was about equal each month; but the June Market Report revealed a shift in buyer preference to single family homes compared to June 2019, as closed sales of single-family homes and villas increased 2.9 percent to 498, while closed sales in the condominium market decreased 12.8 percent to 383. This trend could be attributed to buyers wanting a larger home with more space to accommodate working from and sheltering at home.
Inventory decreased 27.6 percent to 4,739 homes in June from 6,547 homes in June 2019. The majority of this depletion was reported in the single-family home market, which decreased 34.5 percent, while the condominium market had a decrease in inventory of 20.3 percent. The report also showed the largest drop in inventory occurred in the $300,000 to $500,000 single family home market, which decreased 47.7 percent in June compared to June 2019.
As a result of heightened buyer demand, the median closed price increased 8.2 percent to $357,000 in June from $330,000 in June 2019. Bill Coffey, Broker Manager of Amerivest Realty Naples, remarked,
“The overall median closed price increased in June because the luxury market is hot this summer, and the level of demand is driving up the prices, particularly in the $1 million and above market.”
The NABOR® June 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:
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CATEGORIES
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May 2019
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May 2020
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CHANGE
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Total closed sales (month/month)
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923 | 881 | -4.6% |
| Total pending sales (homes under contract) (month/month) | 911 | 1,469 | +61.3% |
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Median closed price (month/month)
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$330,000 | $357,000 | +8.2% |
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Total active listings (inventory)
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6,547 | 4,739 | -27.6% |
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Average days on market
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104 | 96 | -7.7% |
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Single-family closed sales (month/month)
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484 | 498 |
-2.9%
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Single-family median closed price (month/month)
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$398,450 | $437,500 | +9.8% |
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Single-family inventory
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3,382 | 2,215 | -34.5% |
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Condominium closed sales (month/month)
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439 | 383 | -12.8% |
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Condominium median closed price (month/month)
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$265,000 | $270,000 | +1.9% |
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Condominium inventory
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3,165 | 2,524 | -20.3% |
Despite a decrease in overall inventory for June, the report showed geographic areas where new listings grew including the Naples Beach area (34102, 34013, 34018), which added 260 new properties to its inventory compared to 159 new property listings added during June 2019. But supply is simply not keeping up with demand as overall inventory for the Naples Beach area decreased 16.1 percent.
If you are looking to buy or sell a home in Naples contact 30+ year veteran Realtor Corey Cabral at (239) 963-6590 or via email through our online contact form.
