According to a report, published by the Naples Area Board of Realtors in January, the demand for the Naples Lifestyle “eclipsed all expectations” and contributed to many home-sales records in 2021. The year ended with a 25.8% increase overall in the number of closed sales and over a 20% increase in the median closed sale price, year-over-year, in the Naples market. Here are a few findings worth sharing to help our clients and future Naples Real Estate customers navigate through the upcoming months:
• The decrease in available inventory allows sellers to capitalize on the buyer demand. Overall active listings in Naples, year-over-year in 2021, was down 76.6% from 2020.
• Condo inventory alone in Naples 2020 vs. 2021 was down 84.8%
• The demand will remain strong as buyers from our feeder markets continue to make their way to SW Florida seeking sunshine and attractive tax incentives. The annual migration reports from U-Haul and United Van Lines show Florida as a top destination.
• Buyers have hours, not days, to make decisions as well-priced new listings are getting multiple offers quickly.
• Geographically, closed sales of condos in Ave Maria reported the highest gain in 2021 at 72%
• You cannot count on using the most recent closed sales in any neighborhood to determine value. The buyers determine the value based on what they are willing to pay for a property!
• As interest rates increase, those seeking mortgages might prevent some from affording a mortgage. This could have some effect on the lower priced listings and we could possibly see some downward pressure in some neighborhoods such as Golden Gate City.
• 72% of the closed sales in Naples are currently CASH.
• The “Luxury” market, listings priced over $1 Million [as of this writing] have less than a one-month supply in inventory.
• New construction communities are releasing fewer homes per month as supplies, such as lumber, concrete, windows, etc. are limited as well as a diminished labor force; therefore, we cannot count on the builders to help ease the inventory predicament.
• It is unlikely Naples will increase its Active inventory enough in 2022 to meet the current demand.
• Many sellers would like to take advantage of this market, but unless they are relocating or want to down-size, they prefer to stay in their current home.
• Buyers are shifting their “wants and needs” to be in Naples vs. anywhere else in Florida. They will buy a smaller home or condo to have a Naples address. Priorities change in this kind of a market. Buyers make compromises to call Naples “home.”
There is so much more to report than the contents of the above outline because, as always, each community in Naples has its own personality and data. Remember, we are here to assist you so that you can make an informed decision when considering a Naples Real Estate purchase. Working with a good team, such as Harris | Peppe \ Wells, that understands the complexities of the transaction and has knowledge of today’s market trends, is key to you having a successful and smooth Naples Real Estate experience. Call us today! 1-239-250-4370
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The Naples Real Estate Blogger