Home Prices Climb in May
Click Here for MAY 2021 DETAILED MARKET REPORT STATISTICS
Homes in the Naples area were being sold at 99.1 percent of the list price in May. A tight inventory and buyer demand continued to push prices upward in May, which resulted in an overall median closed price increase of 29.4 percent to $433,500 from $335,000 in May 2020, according to the May 2021 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island). Broker analysts reviewing the report predict continued price increases in 2021 but noted monthly showing and sales activity is beginning to show signs of deceleration from the remarkable market experienced during the first quarter of 2021.
It is agreed by most professionals that a REALTOR® will be your best resource to effectively assist a seller with pricing their home to sell at the highest amount in the least amount of time, and possibly just ever so slightly UNDER market to allow for immediate offers at or above list price. Pricing too high may negatively impact the seller's expectations of receiving competitive offers.
Cash sales in May accounted for 58.4 percent of the closed sales transactions. The cash buyers continued to create challenges for competing buyers who required financing. It took an average of 90 days for a home to go from list to contract in May 2020, but in May 2021, the average days on the market was reduced to 43 days, a 52.2 percent decrease.
But the trend of paying cash for a home does not preclude those buyers who want to finance from purchasing a home. Buyers who are prequalified for a mortgage often fare well during negotiations and enjoy a faster closing process than those who are not prequalified. Kelly Rebimbus, VP of Mortgage Lending Team Lead at Guaranteed Rate Affinity is available to chat with you at your convenience to quickly get a trusted Pre-Approval, and/or discuss additional mortgage products she offers that may be a perfect fit for you! You can enjoy award-winning technology and a fully streamlined mortgage experience. Just click here: Kelly Rebimbus, VP of Mortgage Lending
The May Market Report showed that overall closed sales increased 164.4 percent to 1,618 from 612 in May 2020 (a month when all the world was in COVID-19 lockdown). For perspective, closed sales increased 36 percent in May 2021 compared to May 2019 (a non-pandemic lockdown month). Nevertheless, closed sales activity in May 2021 outperformed any other May in the history of NABOR®’s market statistics reports.
Overall inventory fell 79.1 percent in May to 1,290 homes from 6,177 homes in May 2020, but monthly new listings activity continues. May welcomed 1,274 new listings, a 7.6 percent increase from 1,184 in May 2020. New listings that come on the market each month help to temper the drop in overall inventory and provide more opportunities to eager buyers, which typically tapers off in the 3rd and 4th quarters. The inventory in the Naples area expected to remain low for the foreseeable future but the trend with market values are expected to hold.
Cash sales were not the only contributing factor to the drop in days on the market. Another factor was the 45 percent increase in showings for May (42,380 up from 29,319 in May 2020), which ultimately resulted in a 46.5 percent increase in pending sales for May to 1,710 pending sales from 1,167 pending sales in May 2020.
Historically, the Naples housing market’s activity in the first half of the year is not sustained during the second half of the year. However, since tourism to Florida is expected to increase this summer and buyers from foreign countries may also begin to arrive in the coming months, a return to more normalized buying behavior in the second half of the year was discussed although remains uncertain.
Please contact me at 239.821.8847 if you are considering selling or buying real estate in Southwest Florida. You can receive a full market analysis that will include a neighborhood-specific comparison to the activity in others in Collier (& Lee) County. I also am happy to include you on my monthly concierge alert that is customized for you to keep you informed on real estate activity in your neighborhood/development.
Home Prices Climb in May Notice: Attempts to compare the performance of the Naples area housing market using month-over-month statistics is not recommended at this time. Mandatory COVID-19 restrictions during the Spring of 2020 disrupted the market resulting in inequitable statistical comparisons. Naples, Fla. (June 25, 2021)