Corey Cabral, Downing Frye Realty Inc.
Compiled from the Naples Area Board of Realtors Market Statistics Reports.
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Low Inventory & High Demand Continues to Push Home Prices Up in January
Naples, Fla. (February 25, 2022) – A 34.5 percent increase in new listings sparked 19,277 more showings during January compared to new listings and showings reported in December 2021. While an increase in new listings demonstrates a solid start for the real estate market this year, low inventory continues to harness the market’s potential. As a result of tight inventory, January sales activity could not meet the level of sales activity reported in January 2021.
Historically, month to month sales activity during season ascends through April. But according to broker analysts reviewing the January 2022 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), a 74.9 percent decrease in inventory for January to 1,122 homes from 4,474 homes in January 2021 will not provide the same level of sales transactions that occurred last season.
New listings translated to a 32 percent increase in pending sales to 1,373 pending sales during January compared to 1,038 pending sales reported in December.
Cash sales exceeded 63 percent in January which is a good sign and proof that there is plenty of equity in the Market. Buyer demand has not slowed down
and we’re seeing a rise in multiple offer situations as well as homes selling for above list price.
The overall median closed price increased 39 percent in January to $549,000 from $395,000 in January 2021.
The condominium market continued to report sales at an above list price trend for the second month in a row, and a 47.2 percent increase in median closed price in January to $427,000 from $290,132 in January 2021. The median closed price for single-family homes rose 25.1 percent in January to $675,000 from $539,500 in January 2021.
With less than a one-month supply of homes, closed sales during January could not realize the level of activity it experienced a year ago and decreased 27.9 percent to 818 closed sales from 1,134 closed sales in January 2021.
Pending sales – which reflect the number of new homes under contract – decreased 37.9 percent to 1,373 from 2,210 in January 2021; but, as mentioned above, pending sales in January increased by 335 contracts (32 percent) compared to pending sales reported in December 2021 (1,038). Homes are being sold at full price or above list price and often without contingencies.
New lending rules from Fannie Mae and Freddie Mac go into effect April 1st and add more requirements from those purchasing a second home or condominium. Some condominium associations are changing their bylaws to prohibit renting within the first year of ownership, which discourages investors.
Regardless of when the current seller’s market ends, Collier is running out of land to develop and Buyers demand is not likely to slow down anytime soon because homes in Naples are still much more affordable than homes in other parts of the country like California, New York and Chicago and the national migration to Florida continues with the affluent concentrating on Naples.