An Inside Look At The Current Naples Housing Market

Residential housing markets throughout South Florida are still experiencing steep property price increments. No wonder Naples reportedly reached a record-breaking $52 million property-sale record recently.

With several luxury property sales goings for top dollar throughout Southwest Florida, real estate specialists now caution that this might not be a one-off trend moving forward.

According to the latest Florida-based Economic and Demographic Research report, the 1.38% population increase prediction set the Sunshine state for nearly 831 newcomers per day in 2020.

Despite the 241,000 influx average reported by the Pew Charitable Trust for the last decade, seeing slow-down remains unlikely for the better part of 2021.

Besides the diverse effects of the pandemic, no one expected that this market would become this sizzling. With home buyers flocking in from every corner, the Naples housing market will remain to be a seller’s market at least until when new constructions will balance off the current demand.

Even though this housing market still has numerous buying opportunities for almost every price range, home prospects are encouraged to act fast whenever they spot a good deal.

Latest housing market trends in the region

According to the Florida Realtors, February housing report, residential real estate markets throughout the Sunshine state show hopeful signs due to the increasing rate in COVID-19 vaccine uptake.

Marked trends in the February market included a general rise in closed sales, median property prices, new pending sales, and pending listings. Home sales for single-family properties within Florida increased by a yearly turnover of 15.7% in February.

Given the current momentum, realtors now caution that higher mortgage rates might be the only main factor that could slow it down within the year. A slight increase in mortgage interest rates typically reduces the home selling pace. Combined with reduced inventories, this often results in red-hot home prices, creating a challenge for home buyers.

Month-to-month new pending sales comparisons between the first two months indicate a rise of about 10.9% in the single-home market. The annual turnover for both condos and townhouses increased by 35.4%.

Closed sales and median sales prices

With about 23,947 total number of closed sales, Florida generally had a 15.7% year-over-year increase in the single-family property segment in February. Considering that closed sales usually happen between 1 and 3 months after home sale contracts are signed, the yearly turnover for both attached dwellings averaged at 28.7%.

The median home prices for the two property types interestingly increased by a 16.6% margin. That for single-family homes averaged at $314,900 while condos and townhouses jointly settled at$233,240.

Besides Naples recording a similar year-to-year home value change of 9.3% with the whole state, the median property value by the end of February 2021 was $359,765. The Zillow home value index for homes in Florida at this time was $273,094.

Highlight of the supply side

Like many local Florida-based housing markets, Naples residential market is undoubtedly a strong seller’s market. On the listings front, these markets commonly have fewer supplies for new listings and tight inventories, especially for single-family properties.

According to the February report by Florida Realtors, active listings for single-family homes dropped by 56.3% relative to February 2020. A large chunk of this drop attributes to the wanton increase in home sales experienced within the year.

Despite recording a month-to-month increase over January, new listings in February dropped by 4.9% compared to a year ago. This trend means that despite the efforts to boost new stock supplies, new listings for single-family properties weren’t capable of matching the pace set 12 months ago.

Residential condos and townhouses are seemingly receiving greater attention due to a more reserved high inventory. Due to competition increase, red-hot home prices, and the general lack of enough single-family properties, frustrated buyers are now shifting preferences to this kind of property.

Besides the 28.7% up in closed sales, the inventory for this property market segment is reportedly down by 34.4% relative to a year ago.

Home supplies in this region remain constrained, as realtors estimate about 1.3 months of active listings for the single-family properties. Both condos and townhouses are currently having an estimated 3.4 months inventory.

Bottom line

Despite the pandemic’s effects, Naples is still one of the best places that you can secure your dream home. Given the numerous factors that are currently at play, navigating the ever-changing residential market might be confusing. Call us at (720) 724-9794 or emailinfo@woodruffpropertymgmt.com today to get customized assistance in seizing the currently available opportunities in this property market.