The 2020 Naples Housing Market Review and 2021 Prediction
The 2020 Naples real estate market has defied many odds. Many expected a total collapse at the start of the pandemic, but this hasn’t been the case. It would be logical if the market suffered a historic inventory shortage or even a total shutdown.
However, apart from market slowdowns, the housing market is surprisingly robust and thriving. Something we are all hoping to last into the coming year. Real estate experts now predict that the current inventory shortages will continue to fuel a rise in home prices going into the New Year.
The current record low-interest rates and fewer available listings are expected to last for a while, meaning that home sales are likely to continue inching up into 2021. Despite the uncertainties encountered in 2020, the Federal Reserve’s low-interest rates continue to play a huge role in sustaining the Naples housing market, making it ripe for home investors.
A look at the 2020 housing market trends in Naples
According to a report by neighborhood.com, Naples’ 6.45% annual housing appreciation rate makes it one of the top 10% hottest residential markets in the nation for the past decade. High-rise apartments dominate the local market by 58%, while the remaining dwelling units are mainly one, two, or no bedroom houses.
According to reports from the Naples Area Board of REALTORS (NABOR), here’s how COVID-19 impacted the Naples housing market:
The report shows that this local market recorded a 15.8% year-over-year increase in closed sales with 1,148 home sales. On month-to-month comparison, this marked an increase of 359 and 426 closed sales in February and January, respectively, a definite pattern for a thriving market.
The Naples real estate is reported to have had an over 22% rise in closed sales during the first quarter earlier this year, meaning that the market recorded a total closed sale of about 2,689 compared to 2,195 total closed sales last year.
Despite recording a more than 27% year-over-year dip in inventory, it remained strong throughout March, with only 5,772 available units going at an overall median closed price of $372,750. This trend marked a 10% year-over-year rise in median closed price compared to $339,000 in March last year.
Taking center-stage at this time was the single-family house unit that closed at $470,000, recording a 16% increase in its year-over-year median closed price.
Overall closed sales took a dip in April by more than 28% year-over-year mark with only 838 closed sales. The year-over-year inventory rate also plunged by slightly more than 29%. Even though home price value remained intact at this time, there was an overall 3% year-over-year increase in median closed price value, which now ranged at around $340,000.
Total inventory continued to deteriorate throughout May by about 27% as buyer’s interest spiked, leading to a slight increase in month-over-month home sales. New listings for the single-family houses decreased by 4% in May, adding to the 38% dip in its inventory, which led to a 3.7% rise in its median closed price.
The overall pending sales increased in June by about 63% year-over-year margin, with most buyers going for single-family properties. This new preference led to a general 83.9% year-over-year rise in pending sales for this home type. There were about 835 pending sales for the single-family homes throughout the month.
July generally marked a more than 57% rise in pending sales and a 50% increase in home sales for properties valued at $500,000 and above. As more people continued to move here from the colder and heavily populated cities, there was an overall 13.5% surge in the total median closed price with a preference for single-family homes.
August primarily saw a more significant increase in buyers’ demand leading to a slight increase of more than 35% in overall closed sales that nearly tripled in September on a year-over-year basis.
Both October and November market trends suggestthat the Naples housing market has stabilized. There are no further drastic changes except for the 3% month-over-month decrease in home resale inventory.
The current median list price for a property in Naples is about $475,000, which translates to about $245 per square foot.
According to Zillow’s Buyer-Seller Index (BSI), current market metrics are hoped to continue favoring a buyers’ market going into 2021. This data predicts an overall 2.3% decrease in house prices for the next twelve months. You can then expect home price value in Naplesto range around $327,000 in March next year.
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