The Naples Real Estate Market Trends And Forecast
As the world grapples with subsequent waves of the coronavirus, its impacts continue to be felt at the fabric-level of both economic and social structures worldwide. Social distancing is the new normal that is largely reshaping both national and local real estate markets today.
This article is designed to help you make the right home investment decision by providing you with a careful analysisof the current Naples housing market trends.
The latest market activities and what they mean
The Naples Area Board of Realtors (NABOR) keeps track of property sales and listings throughout Collier County except for Marco Island. NABOR releases periodic reports that compare Naples property sales based on their type, zip code, and price ranges.
NABOR’s recently released its June market report that showed a 61.3% year-over-year increase in pending sales (properties under contract) with a high buyer’s preference for single-family houses to condominiums.
The report further recorded a 25.8% rise in year-over-year new property listings in June 2020. From a broker analysts’ perspective, this increase shows that consumer confidence is steadily growing for the Naples housing market as we head into summer.
As COVID-19 continues to force people to make life changes, many Americans are now moving to lower density coastal homes. Theunwavering 83.9% increasein single-family homes under contract and the 38.7% rise in pending condominium sales in June alone, indicates strong desirability for the Naples real estate market amidst the pandemic as well as gives signs of bouncing back after three months of little to no market activity.
Even though the Naples property market generally had a 4.6% year-over-year decline in its total closed sales in June, it recorded its third-highest number of monthly showings this year with 36,912 property showings.
The NABOR June market report further revealed a change in buyer preferences based on the 2.9% increase in closed sales for single-family homes compared to the 12.8% closed sales decline in the condominium market. This could mean that most buyers are out looking for bigger spaces that they can work from and live in at the same time.
Inventory was capped at 4,739 properties in June resulting in a 27.6% decrease compared to the 6,547 homes that were available for inventory in June 2019. The condominium market recorded a 20.3% inventory decline compared to the 34.5% decrease in the single-family home market. The report further narrowed down and highlighted that the biggest inventory depletion occurred for single-family homes whose median value ranged between $300,000 and $500,000. This accounts for about 47.7% year-over-year inventory decline for that particular market.
The NABOR June market report further narrows down and give a contrary sales statistics for specific geographical areas. Despite the general drop in inventory through June 2020, areas such as Naples Beach Area(34018, 34013, 34102), increased their year-over-year property inventory by slightly more than 100 new home listings. But given the unbalanced supply and demand curve at the moment, the Naples Beach Area recorded a 16.1% drop for its overall home inventory.
Buyer demand was reported to have heightened through June leading to an 8.2% increase in the year-over-year median closed sale prices, especially for theluxury residential properties. Experts attribute this trend to the recovery of stock markets and generally predict that more of these high-end buyers will be looking to buy properties in Naples through summer.
Current housing situation and forecast for the Naples property market
According to Zillow.com, the average property value in Naples today is $334,871 marking about -0.2% decrease in the year-over-year home value in the region. This drop is estimated to continue falling towards -2.3% mark by the start of next year.
Other important figures for those interested in investment properties include an average list price of $419,000, the sales price of $335,300, and median rent value of about $4000. To help you assess the current Naples mortgage market’s health, Zillow has capped its mortgage delinquency rate at 0.7% and is considerably lower than the 1.1% national mortgage delinquency rate.
Despite the reluctance of many sellers to list their properties, the recent market reports show that this period going into the warmer months is ideal for selling. Factors such as increased pending property sales and high home prices make the Naples property market lucrative for selling.
No matter your needs right now, we are here to help. We will do market comparisons on your behalf and give you favorable and reasonable quotations that will get you started immediately.« « Previous Article|
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