Naples Real Estate October 2020 Market Report
Naples Real Estate
October 2020 Market Report
Brought To You By Barry Brown
Broker Associate, Coldwell Banker
The Naples’ real estate market continues the strong performance we have seen all year. Sales are the highest they have been in the last 10 years and prices are down slightly for the month but up nicely for the year. The only problem being a significant shortage of homes on the market. My complete Naples Real Estate October 2020 Market Report is as follows:
While sales were up only one unit in September at 1,130, they are up 8.8% this year vs last and 10.9% when compared to the prior 12 Months. One can only imagine where they would be if the foreign buyers were back in Naples.
As one would expect, the average number of days to sell is also dropping. What makes this impressive is that it is consistent across all price ranges and housing types.
As I stated in the introduction, inventory (the number of homes on the market) continues to be a problem. At the end of September there were only 3,056 units for sale which equated to a mere 3.6 month supply. This is exceedingly tight and is definitely a seller’s market. This should improve some as the number of homes on the market generally increases as we get into season. However a tight inventory is a doubled edged sword as even though it may help a seller get a higher price, many potential buyers will go home if they do not find anything they really like. Remember that Naples is a discretionary market and people do not have to buy.
There is no question that sales prices are trending upward which is especially evident when you look at the median sales price by quarter. Given the steady upward trend I would not be surprised to see prices finally catch up with those that we saw at the top of the bubble in the first quarter of 2006. Even more impressive is the 5.7 billion dollars of real estate that has been sold so far this year.
When we look at prices in September, we see that both the median and average sales price were down with the median down $10,000 or 2.5% at $390,000 and the average down $95,998 or 12.8% from last month’s. This is not a problem as one has to go back to January of 2008 to find a higher median and I would not be concerned with the decreases as September and October are two of our slowest months. Given the tight market and the higher than usual number of showings, I would expect to see both the average and median sales prices increase next month.
The average sales price per square foot increased from $292,61 to $300,97 or 2.9% and is definitely trending upwards. Again I would expect to see this increase as we get into season.
When we take a closer look at prices by price range or prices by housing type we see the same positive trends with the median sales price trending upwards in all categories.
There is no question that buyers are taking advantage of the low interest rates (i.e. 3.0 % for a thirty year fixed) and that they are definitely helping sales. This is obvious when you look at cash sales which have dropped from 67.0% in 2011 to 46.2% today.
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 has also been trending upward and continues to hover just under 97%. Given the above, that we are in a seller’s market, that interest rates are low and that many buyers are looking for a place to escape till the virus runs its course, I expect inventory to remain tight, sales to continue strong and prices to continue trending upward through the end of the year and well into 2021. And that is without foreign buyers who would drive sales and prices even higher.
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 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 enjoyed by Naples Real Estate October 2020 Market Report and found it helpful. Take care, be safe and don’t take any unnecessary risks!
Barry L. Brown
Broker Associate, Coldwell Banker
550 Fifth Avenue South. Naples Florida 34119
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 October 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.