The Naples Housing Market Trend Analysis and Effects on Home buyers and Investors
The Naples housing market has proven to be exceptionally resilient to the effects of the pandemic. Characterized by low buying negotiation power, shrinking inventories is still one of its marked traits.
Home buying increased in July 2020 and resulted in an over 57% spike in pending home sales for that month. According to the Naples Board of Realtors (NABOR), the total closed home sales in July rose by a year-over-year rate of 35.4%.
This rate marked a 42% increase compared to the overall closed sales experienced in June.
At the start of the year, the limited supply of new listings still made it hard for the Naples housing market to keep up with the robust pent up demands. These recurring trends result in a seller’s market even as this housing market continues to have more home buyers and fewer active properties for sale.
According to data from the Realtor website, Naples real estate still favors sellers more than buyers. House market analysis indicates that sellers in this city continued to have strong price negotiation powers at the start of February this year.
On average, the Naples housing market has been selling homes for more than 96% of their listing price since mid-last year. That’s nearly 4% below the asking price. The current median list price for homes in Naples is $410,000, and the median sales price is $405,000.
More about Naples, Florida
Naples measures slightly more than 16 square miles and is one of the most luxurious beach town located in Southwest Florida. Ranked as the 17th best place to retire in Florida and 1st best place to live in Collier County, Naples holds an undisputed track record of offering the best long-term home investments throughout America.
With a population of 21,812 people, the Naples housing market also encompassed the Marco island metro area.Naples is an urban city, and its real estate is 78% owner-occupied and 22% rent-occupied.
Property crime is slightly lower than the national average, and its property tax rate is $5.50 for a home value of $1,000. Naples’ most common housing types include large apartment buildings and high-rise complexes, which form close to 59% of its 19,996 housing units.
With a median age of 37, the average property appreciation rate in Naples is 5.5%. Zillow forecasts suggest that home prices in Naples will rise by 6.7% in the next 12 months.
The cost of living index in Naples is 111.9, and job markets in Naples are expected to grow by 39.3% in the next ten years. Naples has no individual tax rate, and its median personal income is $50,548.
Renters make up to 10% of the population, and only 2.3% of the housing units are available to rent this month.
Naples housing market activities, trends, and prices
As one of the hottest housing markets in America, the annual home appreciation rate for properties across Naples in the past ten years was 6.45%. According to a report by neighborhoodscout.com, this yearly pace ranked Naples among the top 10%nationally for property appreciation.
The Coronavirus pandemic mainly affected the supply of new homes in Naples. This impact resulted in consequent repercussions such as the dramatic increase in home prices and lower inventories.
According to NABOR reports for the year 2020, the Naples housing market started strong and later took a turn for the worst around mid-March. The stay-at-home orders throughout the nation drastically reduced housing market activities.
Buyer’s interest increased in May as showings suddenly rose by 244% over the past month. Due to low inventories throughout the city, toughened overall bidding wars, and houses started flying off the shelves at increased prices by the end of July.
In December, a typical listing recorded an average of 10 showings. This increase means that buyer’s interest increased throughout December, as showings went up by 65% that month.
According to the latest NABOR report, the Naples housing market recorded a rise of 88.6% in pending home sales. This record trickles down to about 1,535 homes under contract relative to the 814 pending home sales record in December 2019.
The report further highlights that Naples only had 3,140 homes available for sale in December, accounting for approximately 49.1% decline in the number of homes available for sale. There were 6,163 residential dwellings available for sale in December 2019.
With only 5,161 active listings this month, Naples’ appealing lifestyle is expected to drive more high-end buyers to its housing market this year. The volume of 66.7% increase in sales of homes valued beyond $2 million at the start of January is higher than other metro areas in Florida. As a result, it’s safe to predict that the Naples housing market will continue to experience increased demands and increased buyer interest in its luxury home market through this first quarter.
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