Naples, Florida. (June 19, 2020) – REALTORS® kept busy in May as pent-up demand for home buying resulted in a remarkable spike in buyer interest. As a result, showings in May increased 244 percent compared to showings in April.

As remarkable, showings in May outpaced showings a year ago, which increased 5.5 percent compared to May 2019. According to the May 2020 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), broker analysts reviewing the report found the data reflected the everlasting desirability of the Naples real estate market, even during the COVID-19 outbreak.

The Naples real estate market is extremely resilient as the report shows pending sales in May increased 90 percent compared to pending sales in April.

Buyers have seen inventory in the Naples area continues to decline. This shrinking inventory led to modest price increases in the single-family home market during May, which saw a 31.8 percent decrease in inventory and 3.7 percent increase in median closed prices compared to May 2019.

We have a 5.8-months’ supply of single-family homes in Naples. If a Buyer sees a home that works for them they should not hesitate to buy it.

The NABOR® May 2020 Market Reports provide comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. NABOR® sales statistics are presented in chart format, including these overall (single-family and condominium) findings:

 

CATEGORIES
May 2019
May 2020
CHANGE
Total closed sales (month/month)
 1,188 599 -49.6%
Total pending sales (homes under contract) (month/month) 1,218 1,167 -4.2%
Median closed price (month/month)
 $354,450 $333,000 -6.1%
Total active listings (inventory)
 7,023 5,116 -27.2%
Average days on market
 107 91 -15%
Single-family closed sales (month/month)
 595 314
-47.2%
Single-family median closed price (month/month)
 $410,000 $425,000 +3.7%
Single-family inventory
 3,608 2,461 -31.8%
Condominium closed sales (month/month)
 593 285 -51.9%
Condominium median closed price (month/month)
 $270,000 $260,000 -3.7%
Condominium inventory
 3,415 2,655 -22.3%

 

Historically, some sellers in Naples take their homes off the market after season, and May inventory and pending sales activity always reflected this behavior. However, COVID-19 left many sellers uncertain about the real estate market. With the quarantine recommendations in place, fewer sellers listed homes during May. Despite an inventory drop, pent-up demand unleashed a new set of buyers in May, which changed history. May’s pending sales activity, a measure of signed contracts and not closings, increased 90 percent compared to April 2020, despite tight supply.

Heightened buyer demand is also evident in the number of Days on Market for May as reflected in a decrease of 15 percent to 91 days on market compared to May 2019, which reported 107 days on market.

There was a significant number of high-end pending sales in May. The stock market has come back from a low of 18,000 in late March to over 25,000 at the end of May. The impact of the stock market rebound renewed consumer confidence in May with a certain percentage of wealthy individuals looking to diversify their portfolio and invest in real estate again.

If you are looking to buy or sell a home in Naples contact 30+ year veteran Realtor Corey Cabral at (239) 963-6590 or via email through our online contact form.