August 2020 Naples Real Estate Market Report

August 2020 Naples Real Estate Market Report


August 2020 Naples Real Estate Market Report
Brought To You By Barry Brown
Broker Associate, Coldwell Banker
239-298-0522

July was the best month for sales since 2008.    Both closed sales and prices were up, the only negative is that the number of homes on the market is extremely low.   My complete August 2020 Naples Real Estate Market Report is as follows:

Closed sales in July were up 30.4% over June at 1,157 with July 2020 being the highest single month since I started tracking sales in 2004.  They are down only 111 units or 1.8% from the first of the year which is not bad considering they were down 936 units in April, May and June and that our foreign buyers were forced to stay home due to the pandemic.  As one would expect the average number of days on the market is also well below last year at 178 days and has been lower for the most of 2020.

The number of units sold by price range and housing type are trending upward which again is positive for sellers.

The number of units for sale were down 6.9% from last month at 4,149.  This is only a 3.6 month supply which is as low as it has been since April of 2014 and is definitely a sellers market.  This may seem to be good for sellers but does present problems as for most buyers this is a discretionary purchase and many will not buy if the don’t find something they really like.  Note that communities that are not allowing open houses and/or have restrictive showing regulations may not have the same positive trends.

More good news for sellers is that the average number of days to sell by both price range and housing type are trending down at all price levels and all housing types.

The average sales price was down 13.7% from last month at $633,633 but is up 6.5% from the first of the year.  The median sales which is a better indicator was up 2.4% from last month at $370,000 and is up 6.5 % from the first of the year.  At the same time the average price per square foot was up 23.4% at $287.00 which is a nice gain from a year ago.

Narrowing this down to sales price by price range and housing type starts to give us a better picture with gains outpacing losses by approximately 5 to 3.   Then when we look at prices trends by community and housing type we get an idea of where prices are heading.   However to get an accurate picture of what your home is worth you need to get a Comparative Market Analysis (CMA) from a professional realtor as this analysis does not consider location, view, upgrades, and individual  condo and unit floor where applicable.

August 2020 Naples Real Estate Market Report Sales Price Variance by Price and Housing Type Table

 

 

 

 

 

 

 

There is no question that buyers are taking advantage of the government stimulus program as cash sales have dropped from 47.9% in 2019 to 42.4% in July.  There is no question that the lower rates are definitely helping sales.

The question as always is “Where is the Naples Real Estate Market Heading?”  To answer this we also need to look at the list price and sales to list price ratio trends.   The median list price has been trending upward for the last 10 years and there is no reason for this to change in the short term.   Equally important is that the sales to list price ratio continues to hold steady in the 96% range which is where it has been for the last five years.  Given the above I don’t see any reason for not having a robust fall and strong next season.

If you’re thinking of selling, don’t be concerned about putting your house on the market right now. There is no better time to sell than when demand for it is high and supply is low. It is exactly at this time you will be able to negotiate your best possible deal.   Interest rates are at an all time low and people are looking for a place where they can escape, especially those who have been locked up for the last three months up north with no real end in sight.

If you are looking to buy and are not going to be in Naples, watch the internet and if you see one you really like and  have an agent you trust take a look and give you his or her honest opinion.   If you find one you love, then by all means make an offer.  You can always make it contingent on a personal inspection within a reasonable amount of time.   Prices are as low as they are gong to be and are only going to increase.

I hope you found my August 2020 Naples Real Estate Market Report informative and helpful.  Take care, be safe and don’t take any unnecessary risks!

Barry

Barry L. Brown
Broker Associate, Coldwell Banker
550 Fifth Avenue South
Naples Florida 34119
239-298-0522
www.barry4homes.net
barry4homes@aol.com

 

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 August 2020 Naples Real Estate Market Report with them.   If you want to keep track of the Naples Real Estate Market make sure to visit my web site www.barry4homes.net, I post my latest market report towards the end of every month.

This report discusses the overall Naples real estate market and not any specific property.   It only includes Collier county and excludes manufacture homes.  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.

 

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