February Naples Market Report
February Naples Market Report
According to the February Naples Market Report, real estate activity continues to set all time records. As buyers escape the cold weather in northern states, they are snatching up inventory. In fact, overall inventory levels dropped a staggering 69 percent compared to February of last year. Unlike last month, there was a shift from buying single family homes to condos which increased 75.7 percent.
Although interest rates are low, many buyers are purchasing homes with cash, especially when there are multiple offers on a home. As a result, it is not a surprise that 57.9 percent of all home purchases were cash transactions.
February 2021 versus February 2020 Highlights
- Closed sales increased 62 percent compared to January of the previous year.
- Overall pending sales increased 51 percent versus the same time last year.
- Inventory fell 69 percent down from 7,127 homes to 2,224 homes for sale.
- Average days on market fell 24 percent down to 72 days.
Condos let the way with a 76 percent increase in closed sales. Single family home sales also showed a significant increase, up 47 percent compared to the same time last year. The significant increase in both closed sales and pending sales continues to contribute to the shortage of inventory. In a balanced market, there is usually a 6 to 7 month’s supply of homes for sale. Although new homes are coming to the market, it is still not enough to keep up with buyer demand. As a result, Naples inventory levels have dropped down to a 2 month’s supply of properties available on the market. With such low inventory it is a seller’s market.
So, due to the high level of buyer demand and a limited supply of inventory, if you are considering a home purchase in Naples, be prepared to move quickly with an offer if you find a property you are interested in purchasing.
Also, the percent of list price for closed sales is approaching 97 percent. It is not uncommon for a property to be sold at or above list price. An experienced agent will provide you with information about similar properties which have sold in the area and help you determine the offer price for your desired home. Most importantly, they will be able to help negotiate on your behalf. If you are considering a home purchase, let us be your guide.
New home builders are also recording record sales. Before you go it along on a new construction property, remember the contractor’s real estate agent represents the builder’s best interest, not yours. There is no cost to you to have an agent represent you. In fact, I may be able to help you save money and negotiate for extras which the builder may not let you know about.
For those of you considering selling, now is an excellent time to list your home for sale. The shift to condo sales during February was partially due to single family homeowners downsizing to smaller condominiums. If you’re ready to take advantage of today’s seller’s market, let’s connect to discuss your homes value.
Naples Luxury Real Estate Market
For the second month in a row, the Naples Luxury real estate market saw the strongest activity in closed sales. Homes priced between $1 million and $2 million saw a 43.5 percent increase up from 39.6 percent during the previous month. Additionally, homes priced above $2 million saw an even larger increase in closed sales with a 69.5 percent increase year over year.
According to Knight Frank’s annual Wealth Report, the number of ultra-high-net-worth individuals (UHNWIs), those with $30M or more, around the world is predicted to grow by 27% in the next 5 years to 2025 taking the population to 663,483.
The annual report, which was recently released by Douglas Elliman and Knight Frank in March, shows how luxury residential markets worldwide have performed and why. Ultimately, prime residential prices performed better than expected in 2020. In North America, the top real estate markets were suburban areas such as The Hamptons, coastal retreats such as Miami Florida and mountain towns such as Aspen.
Ultra Luxury home sales in various Naples Golf Communities continue to set records as well this year. Toping the list:
- $18,500,00 – 7613 Bay Colony Drive in Pelican Bay with 12,505 square feet
- $11,100,000 – 1264 Osprey Trail in The Estuary at Grey Oaks with 9,230 square feet
- $8,000,000 – 6955 Verde Way in Pelican Bay with 8,142 square feet
- $7,300,000 – 9766 Bentgrass Bend in Estates at Bay Colony Golf Club with 13,891 square feet
- 7,255,000 – 1275 Osprey Trail in The Estuary at Grey Oaks with 8,259 square feet
February Naples Market Report
Begin Your Own Search for a Naples Vacation Home or Second Home:
So, if you’re ready to begin your search for your dream home or condominium in Southwest Florida, we encourage you to explore our website to find information about communities in the area. If golf is your game, we specialize in golf community real estate.
There are more than 150 different golf communities in our area and most of them have a private golf course within the community. It can be challenging to navigate the plethora of communities, membership options, golf course design, amenities and more. We will help provide you with a list of the top private golf communities which match your lifestyle.
Also, if you are considering new construction, remember the contractor’s real estate agent represents the builder’s best interest, not yours. There is no cost for you to have an agent represent you. In fact, we may be able to help you save money and negotiate for extras which the builder may not let you know about.
Lastly, we will handle all contract negotiations via paperless transactions for your property from offer to close!
If you want to build wealth through a real estate investment in Naples, Bonita Springs, Estero or Fort Myers, and you want a realtor who will help you achieve your Real Estate needs, please reach out to us directly. Additionally, if you are looking for a golf community expert or you are considering buying or selling a home, a luxury home, vacation home, second home, golf home or dream home, call or text 239-370-0892 or email Matt@NaplesGolfGuy.com
Contact Matt: Matt@NaplesGolfGuy.com
March 27th, 2021 Posted by NaplesGolfGuy