The 2021 Naples Housing Market First Semester Review
Real estate markets in Southwest Florida have particularly been strong throughout the year. Home price values continue to escalateas inventories struggle to catch up with demand. It is in favour of sellers, and many are still getting top dollar.
The Naples housing market suffered major setbacks from the pandemic. Still, it was able to quickly bounce back in early summer last year with a continuous increase in demand for housing ever since. Specific market factors such as low mortgage rates and pent-up housing demands fuelledthis year’s real estate transactions.
Another important factor is that more people and businesses are still relocating to South Florida. The Naples real estate market continued to set new records for total home sales in the early quarters this year.According to the Naples Area Board of Realtors (NABOR), pent-up demand, record-low mortgage rates, and the “great south migration” are the main culprits behind the record-breaking transactions.
Key Semesterial Trends in Naples Real Estate
NABOR reports further highlight that inventoriesdropped by 77.2 percent to 1,295 housing unitsat the start of the second semester this year compared to 5,672 homes last year.However, demand stabilized as showings dropped by 2 percent and reduced the yearly closed sales margin by 30.
On the contrary, median closed price values rose by 28.8 percent from $365,000 to $469,950. The median price is the value at which half of the homes sold are above that price, and the other halfare below it.
Pending sales generally dropped by 21.5 percent from 1,446 to 1,135 pending sales, whereas closed sales dipped by 2.6 percent from 1,172 to 1,142 closed sales. High-end luxury segment market transactions picked up speed during this timeand recorded a 32.6 percent spike in closed sales for listings priced at $1 million and above and another 17.1 percent rise in pending sales for single-family units valued beyond $1 million.
Besides the overall assumption that both sellers and buyers are readjusting to a new normal of realistic home pricing, pricing continues to grow traction. While new listings droppedby 10.7 percent to 218, median sales price quickly rose by 10.1percent to $220,000.
The average number of days on the market decreased by 38.4 percent to 133 days, but with only 3.1 months of inventory available, sellers are encouraged to continue selling at favorable prices.
What Others Have To Say
According to Realtor.com, in last semester, the median listing home price in Naples, FL was $514,995, trending up by at least 32 percent year-over-year.The median home sold price was $461,000, meaning that Naples had a sale-to-List Price Ratio of89.52 percent this semester.
Ideally, buyers often prefer a sale to ask price ratio ofalmost 90 percent, while sellers prefer one with at least 100%.
Redfinranks the Naples housing market 44 out of 100, meaning that it is somewhat competitive. Listed homes here often receive multiple offers and sell in about11days on average. The average sale price of a typical home in Naples was $459,900 last month, up 26.4 percent since last year. The average sale price per square foot here is $305.
The Main Takeaways
The Naples housing market offers a great real estate investment opportunity for those interested in Southwest Florida. Its growth is steady, prices are largely moderate, and the property appreciation rate is strong.
This real estate market is particularly hot and has a tremendous amount of pent-up demand for both entry-level and high-end properties. Its decade long annual housing appreciation rate amounts to 79.9 percent,making Naples an ideal place for real estate investment. The market has aboutthreemonths of available inventory and is one of the key drivers for rising home prices.
The Naples housing market is currently a seller’s market, giving sellers a unique chance tomake profits. This review shows that homes are still sellingfast, with sellers clocking in multiple offers close to their list price.
If you want to buy a property in Naples, you should be prepared to move fast. Partner with a local realtor who understands the Naples real estate market well, knows how to navigate a fast-moving market, closely monitorsmarket trends, and can quickly alert you of new listings. An excellent realtor can comfortably nurturegood working relationships with other brokerages entities who may help keep them up to date with listings and should be skilled at negotiatingthe best buying price on your behalf.
Who to Work With
Woodruff Real Estate and Property Management Company is a locally owned realtor firm with extensive experience managing properties in Naples, FL. We continually strive to set higher industry standards, provide you with exceptional real estate investment opportunities, and help you make your investment property in Naples more profitable. Contact us now for a free quote.
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