March 2020 Naples Real Estate Market Report
March 2020 Naples Real Estate March 2020 Market Report
Brought To You By Barry Brown
Broker Associate, Coldwell Banker
I have been writing and publishing the Naples Real Estate Market Report since 2007 and have always had a sense of where the market is going and something positive to say. However, now given the impact of the Corona Virus everything is up in the air and all I can do is report on the results to date and take a look at the factors that will affect the market going forward.
Following is my March 2020 Naples Real Estate March 2020 Market Report with year to date results and questions as to how the Corona Virus will effect the real estate market.
February was positive with sales up and inventory and prices holding steady. However, the impact from the Corona Virus will not be seen until May as most sales take from 30 to 60 days to close once an offer has been accepted. Having said that, we will get some indication when we look at how the list price is reacting.
The number of homes sold in February were up 7.3% or 53 units at 777. As expected this is slightly higher and closely parallels the last twelve months.
The number of homes on the market held their own only decreasing .5% from 5,664 to5,638 units. Again this closely paralleled the prior 12 months before dropping off in October.
Prices also held their own with the median sales price down 1.1% from $353,000 to $349,000. The average sales price decreased more at 7.7% from $705,842 to $651,211. Both are up from the start of the year with median at .3% and the average at 9.4%. Like sales and the number of homes for sale, the median sales price has been trending up and closely follows last year’s trend.
As always, one can get a better sense of the market looking at price trends by housing type or price range However in this case it is where the market was before the outbreak of the virus across the globe.
As you see, both the average and median sales prices by price range and housing type were trending upward.
Like sales, units for sales and the sales price trends both the list price trend and sales to list price ratio were also positive, the list price trending upwards and the sales to list price ratio holding steady in the 96% range.
Without the virus I would have said that the market was in a really good place. However now the question is not “Where is the Naple market heading”, but “How much impact will the Corona Virus have on the market?” There is no question that it will impact sales.
Restaurants have not closed yet but are limiting seating and pushing take out, communities are canceling open house events, renters are canceling, hotels are shutting down and air travel has taken a huge hit. How many people will want to travel this spring and summer to look at a potential vacation or retirement home? This is uncharted water but my best guess is not many, especially given that most buyers are in the age group that is most vulnerable. At the same time mortgage rates are at an all-time low and should stay low given the economic impact of the virus and the need to prop up the economy.
The questions as I see them are:
- How long will the Corona Virus persist and have a major impact on the economy and everyday life?
- Will sellers hold to their prices or take less given they may want to get out from under the monthly costs associated with maintaining their home?
- Will a surplus of inventory with the supply of homes and condos exceeding demand affect prices and if so how much?
- If we see a decrease in prices, will buyers travel to Naples to take advantage of what could be some really great buys?
- How much will low interest rates affect sales?
- Will investors return to the market to take advantage of an excessive inventory and low interest rates?
The answers all revolve around the duration and impact of the virus. The longer it persists the bigger the impact on the real estate market it will have. We will just have to wait and see.
If you are looking to buy or sell you probably are asking what should I do now? My advice at this point is just sit tight and wait for the virus to run its course. You don’t want to be out looking at homes and at the same time you don’t want strangers in yours. If you have one on the market and are not living in it, leave it on. It is not hurting anything. If you are living in it, you might want to consider withdrawing it for the time being.
If my March 2020 Naples Real Estate March 2020 Market Report has been of interest and you like to see my latest updates and analysis, make sure to check www.barry4homes.net as I always post my latest market report mid month.
Take care and be safe,
Barry L. Brown
550 Fifth Avenue South
Naples Florida 34119
P.S. When you are ready to put your home on the market and would like a no obligation Comparative Market Analysis, please let me know. I would love the opportunity to earn your business. If you know of anybody who is looking to buy or sell, please feel free to share my March 2020 Naples Real Estate March 2020 Market Report with them.
This report discusses the overall Naples real estate market and not any specific property. The source of the data is the Sunshine MLS and Naples Board of Realtors. The opinions are those of the author and should not be considered to be a specific recommendation. They along with the data are presented to help you make an informed decision.