April Report Shows Naples Real Estate Market Held Its Value During Pandemic
Naples, Florida (May 22, 2020) – Coronavirus slowed real estate market activity in April as expected during Florida’s safe-at-home restrictions. According to the April 2020 Market Report released by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), overall closed sales decreased 28.6 percent to 838 closed sales compared to 1,173 closed sales in April 2019. Inventory decreased as well in April by 29.1 percent to 5,394 homes compared to 7,605 homes in April 2019. The April report also confirms home values remain intact.
To encourage a safe path to home ownership, NABOR® implemented three new actions in April to assist members as they conduct business during the COVID-19 pandemic:
- NABOR® lobbied state and local governments to successfully recognize real estate services as an essential service, in accordance with the U.S. Department of Homeland Security;
- NABOR® created a COVID-19 addendum and amendment to sales contracts to protect buyers and sellers;
- NABOR® trained members on new COVID-19 related services including virtual open house tours, COVID-19 stimulus relief package benefits, and new lender requirements.
“Our priority is the safety of Naples residents and our members, as we all continue to practice socially responsible distancing while we conduct business during this health crisis,” said NABOR® President Lauren Melo. “With the assistance of technology, creativity, and cooperation, real estate professionals are successfully completing transactions.”
Median closed prices increased .3 percent in April to $340,000 from $339,000 in April 2019. Although there were slightly fewer price decreases in April than in March, still 1,654 or 31 percent of all listed properties experienced reductions in their offering price during April.
The good news is that – even during a pandemic – Naples home values are being maintained. The report shows April’s overall percent of current list price received increased .5 percent. This figure represents what the buyer paid for their home compared to the seller’s listed sale price. In April, the contract price averaged 95.9 percent of list price. In comparison, during April 2019, the contract price averaged 95.4 percent of list price. This statistic demonstrates that homes in the Naples area did not lose their values during April, the worst month of the pandemic to date.
Like many essential service businesses, REALTORS® in Naples focused on implementing new strategies and modifying their business models during April to comply with self-distancing practices and accommodate for the welfare and safety of their staff, clients and the community.
As people were urged to stay home in April, showings decreased to 9,420 from 22,862 in April 2019 (does not include virtual showings). As a result, pending sales in April decreased 53.6 percent, as was expected.
Given the amount of uncertainty right now, agents are quickly adding our special coronavirus addendum to new and existing contracts to provide some breathing room for delays in this fast-changing environment.
The NABOR® April 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:
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CATEGORIES
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Apr 2019
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Apr 2020
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CHANGE
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Total closed sales (month/month)
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1,173 | 838 | -28.6% |
| Total pending sales (homes under contract) (month/month) | 1,322 | 613 | -53.6% |
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Median closed price (month/month)
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$339,000 | $340,000 | +0.3% |
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Total active listings (inventory)
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7,605 | 5,394 | -29.1% |
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Average days on market
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98 | 87 | -11.2% |
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Single-family closed sales (month/month)
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510 | 409 |
-19.8%
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Single-family median closed price (month/month)
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$464,500 | $429,500 | -7.5% |
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Single-family inventory
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3,850 | 2,639 | -31.5% |
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Condominium closed sales (month/month)
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663 | 429 | -35.3% |
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Condominium median closed price (month/month)
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$272,500 | $270,000 | -0.9% |
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Condominium inventory
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3,755 | 2,755 | -26.6% |
The fact that REALTORS® were able to process over 800 closed sales during a month when most of the world was on lockdown is a testament to our market’s desirability and how real estate professionals are quickly adapting and conducting business in new ways. REALTORS® are helping their customers buy and sell homes through this crisis.”
Not all geographic areas in Collier County reported a decrease in closed sales during April. Single family home sales in East Naples (34114, 34117, 34120, 34137) during April increased 7.2 percent.
Broker analysts reviewing the April Market Report are optimistic that activity in the Naples area real estate market will resume momentum in the coming months (barring a return to April’s restrictions). If you’re a seller who took your home off the market in April because you feared social distancing would prevent a sale, consider relisting your home in May. You could attract an eager buyer. Property values are holding steady with price increases in two price categories reported in April (i.e., the $300,000 and below price category and the $2 million and above price category reported median closed price increases in April). And the overall list to sales price has remained steady at about 95 percent (for April 2019 compared to April 2020).
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.
