February 2020 Naples Real Estate Market Report
February 2020 Naples Real Estate Market Report
Brought To You By Barry Brown
Broker Associate, Coldwell Banker
January results are in and the Naples market is off to a good start. Prices, Sales and Inventory are all trending as expected. To learn more my February 2020 Naples Real Estate Market Report
Inventory, the number of homes on the market, increased by 9.4% from 5,176 to 5,664. This is of some concern as I expect it to drop into the low 4,000 range by late summer which should result in the number of months of supply dropping into the high four to low five month range which present problems for both buyers and sellers. Low inventory generally means higher prices, but Naples is a discretionary market, which means that buyers will go home without purchasing if they don’t find something they like.
On a more positive note, sales in January were down 24.7% from 924 to 718 from last month. This is not a concern as sales have been down for an average of 17.1% for the last five years and are currently trending upward as expected. At the same time the average days to sell increased from 99 days last December to 107 in January. This will bear watching as they usually decreased in January. There is good or bad news depending on the value of your home as the number of days to sell is trending downward for those priced under $1,000,000 while increasing for those priced above.
Both the average and median sales price increased in January which was to be expected as the average has increased every year for the last five years with the median having increased four out of the last five years. The average price increased by 17.1% or $596,166 to $698,198 while the median increase by 1.0% or $348,000 to $351,500. As expected, the average price sold per square foot followed the same trend showing 13.5% gain from $251 to $285.
When we look at price trends by price range we see basically the same trend. However when we look at prices by housing type we see a downward trend in homes priced over one million and an upward one on those priced under one million. This is basically what we would expect as prices by price range and housing type generally show an upward trend this time of year. Zeroing in by community and housing type starts to give us a better idea as Naples is very community driven and not so much “location , location” with the exception of Olde Naples and west of 41. But even this does not consider condition, upgrades, view, complex, etc. To get an accurate picture of what your home is worth you need a CMA from a professional realtor. Even then its real value is determined by what a buyer is willing to pay.
Remember, Naples is a very cyclical market and whether an upward or downward trend is good or bad dependents on the time of year.
The three main factors influencing the Naples market are inventory, seller expectations and what a buyer is willing to pay. From an inventory standpoint, it looks like we are going to be facing a very tight market and most likely will see the number of months of inventory decrease into the 4/5 month range. When looking at sellers we see that they have been holding steady in terms of price and how much they are willing to negotiate. Buyers on the other hand present a dilemma as a tight inventory makes it more difficult to find a unit they love and then decide not to buy.
The wildcard in forecasting 2020 is that it is an election year. Generally a presidential election has very little effect on the real estate market. However given the extreme animosity between both sides and the fact that we don’t know whether the choice will be between a conservative and a moderate democrat or a socialist, it difficult to forecast twhether the election will have any effect on prices. That being said, I am forecasting appreciation in the 3% range although this could change as we go through the year. I hope my February 2020 Naples Real Estate Market Report has been helpful and informative. If I can be of any assistance, please let me know.
Barry L. Brown
550 Fifth Avenue South
Naples Florida 34119
P.S. If you are thinking of putting your home on the market and would like a no obligation Comparative Market Analysis, please let me know. If you know of anybody who is looking to buy or sell, please feel free to share my February 2020 Naples Real Estate Market Report with them.
You can view the current market report every month on my web site, www.barry4homes.net. If there is a community that you are interested in and it has not been included, just let me know and I will add it.
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