A chill in the air. An ongoing pandemic and an upcoming national election that will likely prove to be its own showstopper still cannot put a damper on the Naples property market.
Buyer demand for single family homes continues in Naples at breakneck speeds as supply drops to single digits in many well-known neighborhoods. The real story is about the amount of new inventory that may or may not arrive to the market over the next three months. The bulk of real estate transactions typically take place between January to April due to the seasonal influx of visitors and prospective buyers. This year, many potential sellers are uncertain about their future needs and are in a “wait and see” mode to determine if they will part with their Naples real estate altogether. In some cases, these second homes are providing solace for extended family members who may never go back home. Other potential sellers feel they may not be able to “trade up” and move into something that affords them the same standards and amenities. The Naples real estate market has increased exponentially over the past few years and “trading down” for sellers in Naples is not common, as a result an entire price category may be underrepresented this year.
Condominium sales we predicted in previous commentary would be slim as compared to single family sales given that distance from other humans now carries its own premium. We found that condominiums with water views that form part of larger communities with outdoor amenities performed extremely well through the summer months. Bidding wars are becoming common place in the under $ 300,000 category, and well-priced homes in every price category are selling literally overnight.
Typically, we would turn to new build homes to relieve the pressure of low inventory levels. The pandemic has caused home builders to scramble to procure material, particularly lumber where pricing continues to change daily. Shortages as a result of the devastating wildfires in California, hurricanes and the 20% tariffs on Canadian lumber has thrown the industry into a tailspin. Additionally, skilled labor through all facets of home build projects were scaled back for months which aggravated the delivery of new homes for buyers. New construction homes on average are now estimated to take 12 months to build, a 3 month increase from pre-pandemic times.
October is noted as being a typically quiet time of the year in Naples as single digit sales make up the bulk of activity. Buyers in the last two weeks have agreed to purchase 66 single family homes within some of the most well know areas.
Properties under contract from October 6, 2020 an October 20,2020
|Number of sales||Neighborhood||Sales Prices|
|09||Berkshire Lakes||$350,000 – $649,000|
|11||Lely Resort ~ Private Club, Golf and Tennis||$450,000 – $1.200,000|
|12||Naples Park ~ North Naples and close to Vanderbilt Beach||$550,000 – $895,000|
|10||The Conners ~Homes on canals near Vanderbilt Beach||$1.095,000 – $4.095,000|
|10||Moorings and Parkshore ~ Central Naples||$1.100,000 – $3.450,000|
|06||Downtown Olde Naples||$2.200,000 – $5.700,000|
|08||Grey Oaks ~ Private Club, Golf and Tennis||$1.3,00,000 – $6.800,000|
Ultra low inventory levels for new homes and resale properties coupled with pent up demand for buyers seeking to flee confined spaces and historically low interest rates, create an ideal scenario in Naples where price increases are inevitable. How far will prices rise during the peak of the buying season in Naples? Will there be a grand influx of properties to hit the market that will coincide with the results of the election? Will condominiums in prime downtown locations and along the beach continue to draw in buyers regardless of the price? The cliff hanger in this novel will be unraveled at the first signs of spring in 2021!