Naples Real Estate December 2020 Market Report

Naples Real Estate December 2020 Market Report


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

 

There is no question that we are closing in on another banner year as 2020 draws to an end.  Both sales and prices are up significantly for the year.  The only drawback, as it has been for months, is a severe shortage of homes for sale.  My Complete Naples Real Estate December 2020 Market Report is as follows:

Closed Sales are up 17.7% for the year at 1,157 units although they were down 9.2% in November.  This is remarkable given that they were down 887 units or 38% at the height of the Virus in April and May.

 Both the average and median number of days that it takes to sell a home continue to trend downward and are closing in on all time lows with the average dropping from 93 to 79 days and the median dropping from 50 to 34 days.   I attribute this to two factors aside from the fact that Naples is a great place to be.   This first being record low mortgage rates and that buyers want to take advantage of them before they go away.  The second is that people are looking for a place to escape.  Even with a vaccine it is going to be well into next year before the virus abates.

The number of units for sale continues to drop with only 3,315 homes on the market at the end of November.   This is 5.5% lower than last month, 36.0% lower than the first of the year and 37.5% lower than the same month last year.  This equates to 2.9 month supply which is definitely a seller’s market.  As I have said many times that although this good for sellers in the short term, it is not in the long term.  Buyers go home discouraged that they could not find a home they loved in Naples, or worse yet, buy somewhere else in Florida.

Like sales, prices continue to trend upward even though last month was down slightly.  The average sales price for the month of November was $708,857 which was down 3.5% from last month although it was up 19.2% since the first of the year and 32.6% from the same month last year.  The same holds true for the median sales price which was down 2.0% from last month but up 12.2% since the first of the year and 17.3% from November of last year.  As one would expect the average sold price per square foot follows the same trend with it being down 3.7% from last month but up 14.3% from the first of the year and 18.6% from last November.

One can get a better idea by looking at price trends by price range and housing type.  With the exception of the very high end, $2,000,000 and over and mid rise condos (4 to 7 floors), all are all trending upward.  I attribute the high end to the fact that buyers in this category are not driving up prices because of low mortgage rates, i.e. 80.5% are paying cash versus 43.5% for sales below $2,000,000.  The price drop in mid rise condos is due to mix, i.e. more low end condos being sold, i.e. 40% are under $300,000, again relating to mortgage rates.  As always drilling down to community and housing type provides and even  better idea although even this does not consider location, view, upgrades, furnishings, etc.

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 trend upward with November coming in at 97%.   Given all of the above and the fact that we are experiencing historically low interest rates, I don’t see any reason that these trends will not continue well into 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 is high and supply is low. It is exactly at this time you will be able to negotiate the best possible deal.  If you are looking to buy, now is a great time.  Naples is a great place to escape the Virus and prices and mortgage rates are only going to increase.

I hope that you found my Naples Real Estate December 2020 Market Report  interesting and helpful.

Happy Holidays!

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 Naples Real Estate December 2020 Market Report with them.

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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