Market Update

 

Market Update-November 2024

 

 

Market Update-October 2024

 

 

Market Update-September 2024

 

 

Market Update-August 2024

 

Market Update-July 2024

 

Market Update-June 2024

 

Market Update-May 2024

 

Market Update-April 2024

 

Market Update-March 2024

 

Market Update-February 2024

 

Market Update-January 2024

 

Market Update-December 2023

 

Market Update-November 2023

 

 

Market Update-October 2023

 

 

Market Update-September 2023

 

 

Market Update-August 2023

 

 

 

 

Market Update-July 2023

 

 

Market Update-June 2023

 

Market Update-May 2023

 

 

Market Update-April 2023

 

 

Market Update-March 2023

 

 

 

Market Update-February 2023

 

 

Market Update-January 2023

 

Market Update-December 2022

 

 

Market Update-November 2022

 

Market Update-October 2022

 

Market Update-September 2022

 

Market Update-August 2022

 

Market Update-July 2022

 

Market Update-June 2022

 

Market Update-May 2022

 

Market Update-April 2022

 

Market Update-March 2022

 

Market Update-February 2022

 

Market Update-January 2022

 

Market Update-December 2021

 

Market Update-November 2021

                                                                                   

Market Update-October 2021

                                                                                                                                                           

DOWNING-FRYE: A ROBUST AUGUST

“Over the last 16 years, our best August for the high end market (above $1 Million) had been 23 pending sales,” said Mike Hughes, Vice President of Downing-Frye Realty, Inc. “This August, we had 50 pending sales above $1 Million – more than double our previous best! We pended 279 transactions in August 2021 for a pending sales volume of $197 million, which is extremely high for this month. Interesting enough was that we had 279 pending sales in August where in July we had 235 pending sales. So with a largely declining inventory in our area, we actually increased our pending sales from the previous month. Through the first eight months of the year, we have 2,861 closed transactional sides – almost what we did in all twelve months of last year. We will hit $2 BILLION in closed sales volume sometime in September. Despite the challenges of the pandemic, our agents continue to produce at a very high level.”

 

NAPLES AREA: BUYERS & SELLERS ADJUST TO A NEW NORMAL

The buying frenzy the Naples housing market experienced during the past year has simmered and is being replaced with what brokers say will be our new normal: a low inventory market with fast turnover of quality homes priced right. The median closed price in July increased 28.8 percent to $469,950 from $365,000 in July 2020. Even though overall pending sales in July dropped 21.5 percent to 1,135 pending sales from 1,446 pending sales in July 2020, and overall closed sales dropped 2.6 percent to 1,142 closed sales from 1,172 closed sales in July 2020, activity in the high-end luxury home market picked up speed during the month as reflected in a 32.6 percent increase in closed sales for homes over $1 million, and a 17.1 percent increase in pending sales for single family homes valued over $1 million in July.

 

MARCO ISLAND AREA: SALES & INVENTORY ARE DOWN

The Marco Island Area Assoc. of Realtors® reported that July 2021 compared to July 2020 showed the following: Total inventory (228 properties) was down by 80.2 percent, closed sales (165 properties) were down by 9.3 percent and pending sales (135 properties) were down by 30.8 percent. The July median sales price was $640,000, which is 43.02 percent higher than July 2020.

 

BONITA / ESTERO: DEMAND IS STEADY

July’s activity showed decreases in inventory while demand was steady. Additionally, homes priced above $2 million were still seeing strong demand. In July 2021, Realtor.com showed 23 million+ property search results page views for the Bonita Springs and Estero combined markets. This number has changed slightly over the last quarter, but overall, interest from the Northeast and Midwest regions of the U.S. still continue to dominate the majority of users looking at Bonita Springs and Estero. In comparing July 2021 with July 2020, new listings (273) were down 19.9 percent, pending sales were even at 303 pending sales, and closed sales (341) were up 17.2 percent. July’s median closed sales price was $421,000, which was 43.4 percent more than July 2020. Also in July there were only 241 active listings, representing .6 months’ supply of inventory. Properties stayed on the market for an average of 22 days. In comparing 2021 year-to-date with 2020 year-to-date, there was no change in the amount of new listings, but pending sales were up 49.1 percent, closed sales were up 62.8 percent and the median closed sales price was up 18.2 percent.

 

FLORIDA: NEW LISTINGS RISE IN JULY

In July, Florida’s housing market reported higher median prices, more new listings and a rise in all-cash sales compared to a year ago. Closed sales of single-family homes statewide in July totaled 30,740, a slight decrease of 2.1 percent year-over-year, while existing condo-townhouse sales totaled 13,481, up 21.1 percent over July 2020. The statewide median sales price for single-family existing homes in July was $355,000, up 20.3 percent from the previous year. According to Florida Realtors Chief Economist Dr. Brad O’Connor, the data revealed signs that the state’s housing market is heading on a steady path toward normalcy, at least in some respects. On the supply side of the market, inventory (active listings) remained extremely tight in July. Single-family existing homes continued at a very low 1.2-months’ supply while condo-townhouse inventory was at a 1.8-months’ supply.

 

USA: PENDING SALES DOWN SLIGHTLY

Pending home sales dipped modestly in July, noting two consecutive months of declines. Only the West region registered a month-over-month gain in contract activity, while the other three major U.S. regions reported drops. All four regions saw transactions decrease year-over-year. “The market may be starting to cool slightly, but at the moment there is not enough supply to match the demand from would-be buyers,” said Lawrence Yun, NAR’s chief economist. “That said, inventory is slowly increasing and home shoppers should begin to see more options in the coming months.”

 

Market Update-August 2021

DOWNING-FRYE: STRONG SUMMER MARKET CONTINUES

“New listings continue to come in daily, and the demand has stayed strong enough that new listings turn to sales very quickly,” said Mike Hughes, Vice President of Downing-Frye Realty, Inc. “Is an adjustment coming to the market? There is no sign of that yet, but we could be just one crisis away from a slow down, so sellers waiting for the most opportune time are advised not to wait. Our year-to-date closed sales volume is $1,659,833,997, which is a 95 percent increase over this time last year. Our closed transactional sides are 73 percent higher than this time last year, and 16 percent of those sales have been high-end purchases. The high-end market ($1 million+) continues to be hot with no signs of letting down. Buyers working closely with our agents have the distinct advantage of learning about new listings before they’re exposed to the general market, so if you want to have a chance of securing the property of your choice, it’s best to work with a Downing-Frye agent who has up-to-the-minute access to our new offerings. “

NAPLES AREA: BUYING FRENZY DIPS WITH INVENTORY

With less than a one month supply of inventory available, the Naples area housing market experienced a 14.5 percent decrease in overall pending sales in June to 1,256 pending sales from 1,469 pending sales in June 2020. Overall inventory decreased 78.8 percent to 1,271 homes in June from 6,003 homes in June 2020. The tight inventory isn’t squelching demand quite yet. Closed sales in June increased 67.8 percent to 1,505 closed sales from 897 closed sales in June 2020. The median closed price in June increased 30.3 percent to $465,000 from $357,000 in June 2020. However, for the 12-months ending June 2021, the median closed price for condominiums over $2 million actually decreased 9.4 percent. Sales of condominiums during June skyrocketed 98.7 percent to 767 closed sales of condominiums from 386 closed sales of condominiums in June 2020.

MARCO ISLAND AREA: PENDING SALES DOWN

The Marco Island Area Assoc. of Realtors® reported that June 2021 compared to June 2020 showed the following: Total inventory (231 properties) was down by 81.5 percent, closed sales (221 properties) were up by 51.4 percent and pending sales (128 properties) were down by 34 percent. The June median sales price was $600,000, which is 30.01 percent higher than June 2020.

BONITA / ESTERO: PENDING SALES UP

Strong pending sales continued in June 2021 versus June 2020. The largest gain in pending sales was in the luxury home segment for properties priced $2 million and above, which showed an increase of 192.5 percent for the rolling 12-month period. The Bonita Springs and Estero markets also saw closed sales increase by 53.3 percent for single family homes and condominiums combined. Realtor.com reported that Lee County, home to Bonita Springs and Estero, was the #1 viewed county in Florida with over 44 percent of its Florida searches. While demand continues, available inventory is still a challenge for buyers. Comparing June 2021 to June 2020: new listings are down 17.8 percent from 405 new listings to 333, the median closed sales price is up 27.1 percent from $325,000 to $413,000, available inventory is down 81.6 percent from 1,391 listings to 256, and the supply of inventory is down 88.5 percent from 5.2 months availability to only .6 months. In June 2021, the average time a property spent on the market was 25 days.

FLORIDA: HOT MARKET IN JUNE, INVENTORY RISES

Home sales in Florida were still up significantly year-over-year, but the numbers are starting to even out a bit when compared with the pre-pandemic real estate market. Closed sales of single-family homes statewide in June totaled 34,165, up 23.6 percent year-over-year, while existing condo-townhouse sales totaled 16,155, up 79.6 percent. The statewide median sales price for single-family existing homes in June was $351,000, up 24.5 percent from the previous year, and for condo-townhouse units was $256,945, up 22.4 percent. All-cash purchases has been on the rise, according to Dr. Brad O’Connor, Florida Realtors Chief Economist. He said, “This year, higher-end sales have made up a greater share of closings than in previous years, and those types of sales are historically much more likely to be all-cash sales. About 56 percent of single-family sales over a million dollars in June were all cash.”

USA: EXISTING HOMES SALES UP

Existing-home sales rose 1.4 percent on a seasonally adjusted annual rate from May to June, with no region showing a sales decline. The inventory of unsold homes increased 3.3 percent to 1.25 million from May to June – equivalent to 2.6 months of the monthly sales pace. The median existing-home sales price rose at a year-over-year pace of 23.4 percent, the second highest level recorded since January 1999. Homes on the market typically sold in 17 days.

 

Market Update-July 2021

 

Market Update-June 2021

DOWNING-FRYE: LUXURY BUYERS LEAD THE MARKET

“Normally, May is a quieter transition month between the active winter and summer buying seasons,” said Mike Hughes, Vice President of Downing-Frye Realty, Inc. “This was the most active May we’ve seen in over 15 years for the luxury market. We had 344 pending sales in May for over $222 million and 14 percent of those were for properties priced over $1 million. May’s closings were 73 percent stronger than in 2019, our last normal year. By the end of April we had already closed over $1 billion in sales – a milestone we don’t normally see until the last quarter of the year. New listings are coming on the market everyday, and if you’re a serious buyer you should be working with a professional who can help you navigate a market that is like a mind field full of multiple-offer situations. The desire to live here is as strong as ever, and inventory is anticipated to be tight for the next few years. ”

NAPLES AREA: LISTINGS INCREASE IN APRIL

Since January, the Naples area housing market has enjoyed a 14.3 percent increase in new listings compared to new listings during the same time period in 2020. April had 2,037 pending sales and 1,882 closed sales, which resulted in 1,432 homes remaining in inventory by the end of the month. Because of increased demand for the Naples lifestyle, the 8-month supply of homes in April 2020 was reduced to a 1.1-month supply at the end of April 2021. April’s median closed price increased 30.9 percent to $445,000 from $340,000 in April 2020. New construction sales typically account for 25 percent of all Naples home sales, but raw material shortages have forced many local builders to require escalation clauses or press pause on future sales since it is increasingly difficult for them to determine market prices a year from now.

MARCO ISLAND AREA: SALES REMAIN STRONG

The Marco Island Area Assoc. of Realtors® reported that May 2021 compared to May 2020 showed the following: Total inventory (237 properties) was down by 82.3 percent, closed sales (264 properties) were up by 193.3 percent and pending sales (175 properties) were up by 45.8 percent. The May median sales price was $589,000, which is 4.33 percent higher than May 2020.

BONITA / ESTERO: BUYER DEMAND REMAINS HIGH

There was a 132 percent increase in new listings in April 2021 versus April 2020, but buyer demand is so high right now that the increase is struggling to accommodate current demand. Pending sales also saw an increase of 190.9 percent, while closed sales topped out at a 132.3 increase. The days on market in April was just 48 days, a 34.2 percent drop over the same time last year. Realtor.com also reported a 2 percent increase in search result page views in Bonita Springs and Estero, resulting in over 31 million views of the market in April 2021. The current active inventory in April was 309 properties, down 80 percent from the year ago figure.

                                                                                                     FLORIDA: GAINS REFLECT COVID IMPACT

Closed sales of single-family homes statewide in April totaled 33,264, up 55.4 percent year-over-year, while existing condo-townhouse sales totaled 17,330, up 130.9 percent over April 2020. The statewide median sales price for single-family existing homes was $336,525, up 22.4 percent from the previous year, and for condo-townhouse units was $250,000, up 19.6 percent over the year-ago figure. For a couple of months, year-over-year figures for closed sales and a few other market metrics that were adversely impacted by the onset of the COVID-19 pandemic a year ago will show those effects in a very high, positive percentage change, according to Florida Realtors Chief Economist Dr. Brad O’Connor. However, he explained that the abnormally high year-over-year growth figures should shrink significantly in June, because June of last year was the beginning of the recovery in sales.

USA: HOME SALES WANE IN APRIL

Total existing-home sales slipped 2.7 percent from March, but were up 33.9 percent from a year ago. The median existing-home price for all housing types in April was $341,600, up 19.1 percent from April 2020 ($286,800), as every region recorded price increases. This is a record high and marks 110 straight months of year-over-year gains. Total housing inventory at the end of April amounted to 1.16 million units, up 10.5 percent from March’s inventory and down 20.5 percent from one year ago (1.46 million). Properties typically remained on the market for 17 days in April, down from 18 days in March and from 27 days in April 2020. Eighty-eight percent of the homes sold in April 2021 were on the market for less than a month.

 

Market Update-May 2021

 

DOWNING-FRYE: BUYING ACTIVITY UNABATED

“I’ve never seen a market like this one,” said Mike Hughes, Vice President of Downing-Frye Realty, Inc. “In the first four months of 2021, we had 600 more closings than the first four months of last year. What makes the current real estate activity different than what we experienced during the bubble years of 2004-05 is that this market is healthier. More buyers are end-users rather than investors, and lenders have strickter guildelines in place. In April 2021 we had 442 pending sales with 16 percent above $1 million. That’s about 25 percent above the “norm”. (Last April we had 151 pendings sales, and in April 2019 we had 353.) Many winter visitors have gone back home while buying activity continues to swirl. Heightened buyer activity is the new norm as we head into the summer season.”

 

NAPLES AREA: MARCH RECORD SALES VOLUME

March’s historic activity included 1,851 closed sales, $1,582,474,997 in total sales volume, and 60,147 showing appointments. This makes March 2021 the highest performing month on record over the last 13 years of tracking. It was also the first month in several years where there were more reported price increases than decreases. Median closed prices increased 12.2 percent to $415,000 (highest on record since 2008) from $370,000 in March 2020. In March 2021, there were just 1,819 homes in inventory (lowest since 2014), which was a 73.2 percent decrease from 6,795 homes in inventory in March 2020. This level of demand is expected to continue for a few months longer.

 

MARCO ISLAND AREA: SALES REMAIN STRONG

The Marco Island Area Assoc. of Realtors® reported that April 2021 compared to April 2020 showed the following: Total inventory (327 properties) was down by 77.35 percent and closed sales (374 properties) were up by 157.93 percent with a dollar volume ($288,879,391) that was 227.37 percent higher. The April median sales price was $561,250, which is 18.16 percent higher than April 2020.

 

BONITA / ESTERO: CLOSINGS ARE UP

March 2021 saw a 21.7 percent increase in new listings, but not enough to satisfy current demand, as there was a 61.6 percent increase in closed sales and a 145.8 percent increase in pending sales. March’s supply of inventory continued to shrink with an 86.7 percent decrease versus the previous month, resulting in just .8 months’ supply of inventory – a very low number not seen in several years, perhaps a decade. In comparing March 2021 with March 2020, the median closed sales price was up 12.1 percent to $360,000. March’s active listings stood at 329 available properties.

 

FLORIDA: PRICES UP, INVENTORY TIGHT

Condos/Townhomes lead the Spring sales surge with some of the highest numbers for closed sales in years. The statewide median sales price for single-family existing homes was $327,000 up 18.9 percent from the previous year, and for condo-townhouse units was $242,000, up 15.2 percent. In looking at March’s eye-popping positive numbers for new pending sales – up 48.2 percent for single-family homes and 126.4 percent for condos and townhouses – Florida Realtors Chief Economist Dr. Brad O’Connor noted that new pending sales...were considerably down last March. “That’s the reason these year-over-year numbers are so huge,” he said. “It might be more useful, then, to compare this March’s new pending sales to those from two years ago, in March 2019. And when we do that, we find that new pending sales were up by a very satisfying 14 percent for single-family homes and 47 percent for condo-townhouse properties.”

 

USA: PENDING SALES UP 1.9 PERCENT

Pending home sales increased in March, snapping two consecutive months of declines. Year-over-year, contract signings jumped 23.3 percent, with the difference due in large part to the pandemic-induced lockdown in March 2020. NAR’s chief economist Lawrence Yun said, “With mortgage rates still very close to record lows and a solid job recovery underway, demand will likely remain high.” Existing-home sales are projected to rise by 10 percent in 2021 to reach 6.2 million in 2021, while the median home price is anticipated to increase by 9 percent in 2021 to $323,900. Housing starts are forecasted to reach 1.6 million in 2021 and 1.7 million in 2022. Mortgage rates are expected to modestly climb higher over the next two years, to 3.2 percent in 2021 and 3.5 percent in 2022, as inflation rises due to a stronger economy and higher fiscal spending. The economy is anticipated to expand 4.5 percent in 2021.

 

Market Update-April 2021

DOWNING-FRYE: ONE OF OUR BEST QUARTERS EVER

“This year is off to a great start,” said Mike Hughes, Vice President of Downing-Frye Realty, Inc. “We’ve had over 1,400 pending sales during the first quarter with our best ever performance in the luxury market. During March alone we had 553 pending sales with 17 percent of them over $1 million. A lack of inventory continues to feed a sense of urgency. Buyers who view properties are moving quickly, hoping to avoid multiple-offer situations. Fortunately, we train our agents to have the skillset to confidently make sure their customers’ contracts are presented in the most attractive way. We anticipate the summer season being busier than normal as sellers continue to take advantage of a market that swings in their favor.”

NAPLES AREA: BUYERS SEE VALUE

Overall closed sales of existing homes in Naples for February increased 62 percent to 1,307 closed sales from 807 closed sales in February 2020. Buyers are scooping up the available inventory of homes in all geographic locations within Naples almost as fast as they come onto the market. Inventory fell 68.8 percent in February to 2,224 homes from 7,127 homes in February 2020. There were more pending sales (2,299) at the end of February than inventory (2,224), resulting in a drastic drop to only a 2-months supply of homes available to buyers. The demand in Naples is so high that its convincing many homeowners to downsize and take advantage of the market’s demand and enjoy a nice profit.

MARCO ISLAND AREA: SALES REMAIN STRONG

The Marco Island Area Assoc. of Realtors® reported that March 2021 compared to March 2020 showed the following: Total inventory (375 properties) was down by 75.36 percent and closed sales (382 properties) were up by 61.18 percent with a dollar volume ($285,568,568) that was 74.16 percent higher. The March median sales price was $515,000, which is 5.34 percent higher than March 2020.

BONITA / ESTERO: HIGH BUYER DEMAND

Comparing February 2021 with February 2020: Buyer interest was robust, leading to multiple offer situations. Sales in the $2 million+ price segment had the strongest increase of 122.2 percent. Sales of single-family homes with 4 or more bedrooms increased by 38.9 percent. Inventory shortages continued with a 76.7 percent drop in available properties. In February there were only 200 properties on the market representing one month’s supply. New listings were down by more than 30 percent. The median closed sales price was $519,000, 14 percent more than a year ago.

FLORIDA: STRONG SELLER’S MARKET

Florida’s housing market in February reported more closed sales, higher median prices, more new pending sales and increased pending inventory in February 2021 compared to a year ago. Closed sales of single-family homes statewide in February totaled 23,947, up 15.7 percent year-over-year, while existing condo-townhouse sales totaled 11,379, up 28.7 percent. The statewide median sales price for single-family existing homes was $314,900, and for condo-townhouse units was $233,240, with both median prices up 16.6 percent over the year-ago figure. Inventory remained constrained in February. Single-family existing homes were at a very restricted 1.3-months’ supply while condo-townhouse inventory was at a 3.4-months’ supply. The rate for a 30-year fixed-rate mortgage averaged 2.81 percent in February 2021, significantly lower than the 3.47 percent averaged last February.

USA: EXISTING HOME SALES DECREASE

Although existing-home sales fell 6.6 percent in February, sales are still 9.1 percent higher than last year. The median existing-home sales price rose to $313,000, 15.8 percent higher from one year ago. Total housing inventory at the end of February amounted to 1.03 million units, equal to January’s inventory and down 29.5 percent from one year ago. Properties typically remained on the market for 20 days in February. Also in February: First-time buyers were responsible for 31 percent of the sales; individual investors or second-home buyers, who account for many cash sales, were responsible for 17 percent of the sales; and foreclosures and short sales represented less than 1 percent of the sales. NAR’s chief economist, Lawrence Yun said, “Home affordability is weakening. Various stimulus packages are expected and they will indeed help, but an increase in inventory is the best way to address surging home costs.”

 

Market Update-March 2021

DOWNING-FRYE: PERFECT STORM FOR SELLERS

“We’re in remarkable times,” said Mike Hughes, Vice President of Downing-Frye Realty, Inc. “Factors are coming together that make it very advantageous for sellers. More and more people are leaving the Northeast and moving to Florida, knowing that working remotely gives them the opportunity to live anywhere they desire – and they desire Southwest Florida. At the same time, Floridians on the east coast are migrating to the west coast to get away from high density living. Add to that mix the Governor’s message of Florida staying open for business, and you have a situation where Sellers are receiving multiple offers. It’s not quite a bidding war, but time is not on your side if you’re a Buyer. Cash offers abound and demand is high. Our year-to-date closings are up 60 percent over last year, and pending sales are up 39 percent. Although our inventory at the end of February was down by 24 percent, we’re still outperforming most of the market."

NAPLES AREA: BUYERS DESCEND ON NAPLES

Buyers fleeing frigid weather descended on Naples in full force during January, which reported a 38.5 percent increase in overall pending sales to 2,210 pending sales from 1,359 pending sales in January 2020. Also in comparing January 2021 to January 2020: overall inventory fell 59.7 percent to 2,750 homes from 6,828 homes in January 2020; the median closed price increased 14.7 percent to $395,000 from $344,500 in January 2020; and the total closed sales were up 49.7 percent, while the total number of active listings fell by 59.7 percent with only 2,750 properties on the market. Showings increased 36 percent to 57,468, the highest monthly number in the past 12 months.

MARCO ISLAND AREA: SALES REMAIN STRONG

The Marco Island Area Assoc. of Realtors® reported that February 2021 compared to February 2020 showed the following: Total inventory (459 properties) was down by 69.62 percent and closed sales (212 properties) were up by 35.9 percent with a dollar volume ($159,415,266) that was 63.61 percent higher. The February median sales price was $413,500, which is 29.83 percent higher than February 2020.

BONITA / ESTERO: MEDIAN PRICE RISES

Over the last 12 months, the median home price has increased incrementally by about 1 percent each month. The median sales price in January was $354,000. There was also a notable increase in activity for properties priced at $2 million and above. In January 2021, the luxury market experienced an 87 percent increase in closed sales. While pending and closed sales are both up by 68+ percent, the supply of inventory is at just 2 months’ supply with 23.4 percent less listings coming on the market in January 2021 compared to January 2020. Current listings stand at 516 properties.

FLORIDA: STRONG HOUSING MARKET IN JANUARY

Florida’s housing market continued to show momentum in January even with the ongoing pandemic, with more closed sales, rising median prices, more new pending sales and increased pending inventory compared to a year ago. Single-family existing home sales rose 18 percent compared to a year ago, while existing condo-townhouse sales were up 24.6 percent. The statewide median sales price for single-family existing homes was $305,000, up 15.1 percent from the previous year, and for condo-townhouse units was $230,000, up 15 percent.

January’s inventory (active listings) continued to be constrained. New listings of condos and townhouses were down statewide by almost 7 percent. Single-family existing homes were at a very restricted 1.6-months’ supply while condo-townhouse inventory was at a 3.9-months’ supply.

USA: INVENTORY DOWN 25 PERCENT IN LAST YEAR

“Home sales continued to ascend in the first month of the year, as buyers quickly snatched up virtually every new listing coming on the market,” said Lawrence Yun, NAR’s chief economist. “Sales easily could have been even 20 percent higher if there had been more inven­tory and more choices.”

The median existing-home price for all housing types in January was $303,900, up 14.1 percent from Janu­ary 2020 ($266,300), as prices increased in every re­gion. January’s national price jump marks 107 straight months of year-over-year gains. Whereas much of the economy has suffered due to COVID-19, the housing sector has been one of the few bright spots. In NAR’s latest quarterly report, released last week, home prices in every tracked U.S. metro area increased during the fourth quarter of 2020. Seventy-one percent of the homes sold in January 2021 were on the market for less than a month.

 

Market Update- February 2021

DOWNING-FRYE: MOST ACTIVE JANUARY IN 13 YEARS

“Many listings are going under contract almost as quickly as they come on the market, and many get multiple offers,” said Mike Hughes, Vice President of Downing-Frye Realty, Inc. “We started 2021 with momentum carried through from last year. Out-of-state buyers came early last year, which could have been a result of Florida’s open-state Covid policy. In general, buyers have moved up their purchasing plans, which has contributed to this tight market. Our real estate activity this January was significantly higher than last January, with a 43 percent increase in pending sales volume and 54 percent more closings. There was a 53 percent increase in closed sales volume. Buying activity continues to be strong. Our agents are bringing in as many listings as we’re selling. Our company inventory hovers around 860 listings, which is a sizable number of buying opportunities.”

NAPLES AREA: DEMAND OUTPACES INVENTORY

Pending sales leapt 88.6 percent higher in December 2020 than in December 2019 (1,535 vs. 814) while available homes for sale decreased by 49.1 percent to 3,140 homes from 6,163 homes in December 2019. Overall sales in December increased 45.4 percent to 1,396 closed sales from 960 closed sales in December 2019, while the median closed sales price increased 18.2 percent to $405,000 from $342,500 in December 2019. An uptick in closed sales of high-end properties during December also drove the average closed price up 43.5 percent to $846,725 from $589,958 in December 2019. The average days to sell a property in December was 77 compared to 97 days in December 2019.

MARCO ISLAND AREA: SALES REMAIN STRONG

The Marco Island Area Assoc. of Realtors® reported that January 2021 compared to January 2020 showed the following: Total inventory (593 properties) was down by 60.81 percent and closed sales (210 properties) were up by 61.54 percent with a dollar volume ($148,506,227) that was 101.73 percent higher. The January median sales price was $506,950, which is 30.83 percent higher than January 2020.

BONITA / ESTERO: DEMAND NOT SEEN IN YEARS

Buyer activity was the highlight of 2020 with mortgage interest rates setting record lows multiple times throughout the year. Comparing all of 2020 with 2019: new listings (4,789) were up slightly, pending sales were up 23.7 percent, closed sales were up 16.1 percent, and the median closed sales price in 2020 was $324,000, 8.7 percent higher than in 2019. The current inventory at the end of 2020 was 1,551 properties, 43.6 percent lower than at the end of 2019. The average time to sell a property in 2020 was 80 days, a decrease of more than 15 percent compared to 2019.

FLORIDA: DEC 2020 SURPASSES DEC 2019

In December, closed sales of single-family homes statewide totaled 30,478, up 21 percent year-over-year, while existing condo-townhouse sales totaled 12,752, up 27.7 percent.. Also, the statewide median sales price for single-family existing homes was $309,000, up 14.4 percent from the previous year, and for condo-townhouse units was $230,000, up 13.7 percent. Florida Realtors Chief Economist Dr. Brad O’Connor said, “New pending sales of single-family homes were up 30.7 percent year-over-year in December, while new pending condo and townhouse sales were up 42.6 percent, which strongly signals that we’re going to see this surge in closed sales continue into at least the first couple of months of this year.” The state’s luxury market led the way throughout the second half of 2020, and with the overall increase in home value appreciation, has resulted in a higher dollar volume than in 2019.

USA: DECEMBER HAD RECORD PENDING SALES

“Pending home sales contracts have dipped during re­cent months, but I would attribute that to having too few homes for sale,” said Lawrence Yun, NAR’s chief economist. “There is a high demand for housing and a great number of would-be buyers, and therefore sales should rise with more new listings. This elevated de­mand without a significant boost in supply has caused home prices to increase and we can expect further up­ward pressure on prices for the foreseeable future.”

Yun continues to project that 2021 will bring about strong economic growth, supported by low mortgage rates and fiscal stimulus, which in turn will bolster existing-home sales. Yun added that, with rates to remain low, existing-homes sales are likely to reach 6.49 million, which would be a 15 percent increase from 5.64 million in 2020. “There will also be slower home price appreciation, likely 6.6 percent... as homebuilders increase housing starts.”

 

Market Update- January 2021

DOWNING-FRYE: EARLY MOMENTUM FOR 2021

“When the pandemic hit last year, our real estate market paused. But then it began to accelerate and it hasn’t slowed down yet,” said Mike Hughes, Vice President of Downing-Frye Realty, Inc. “We had so many pending sales at the end of 2020 that we closed $30 million on the first two days of 2021. The last quarter of 2020 produced 946 pending sales, an increase of more than 150 percent over 2019’s last quarter. The average closed sales price for 2020 was $600,000, 13 percent more than 2019’s figure. 2020 was one of the best years we ever had with $1.768 billion in closed sales volume for 2,950 closed transactions, with the high-end market doing exceptionally well. Real estate markets have cycles, and right now we’re in one that favors sellers, but that can change at any time. What won’t change, though, is the desirability of our low-density Southwest Florida lifestyle. People want to live here.”

NAPLES AREA: MARKET CONTINUES UPWARD

In November 2020, there were 36,508 showings, which represents a 43 percent increase over the same period in 2019. Closed sales for the overall market increased 58.8 percent to 1,126 closed sales in November 2020, up from 709 closed sales in November 2019. At $669,409 the year-to-date average closed sales price in November 2020 reflects a more accurate and modest growth with a 12.7 percent increase over November 2019. Homes priced over $2,000,000 saw the strongest increase in sales, with a 51.6 percent increase in November 2020 over the same time period in 2019. In November 2020 there were 3,658 active listings, down 43.3 percent from the year-ago figure.

MARCO ISLAND AREA: SALES REMAIN STRONG

The Marco Island Area Assoc. of Realtors® reported that December 2020 compared to December 2019 showed the following: Total inventory (663 properties) was down by 55.44 percent and closed sales (276 properties) were up by 58.62 percent with a dollar volume ($179,283,677) that was 73.41 percent higher. The December median sales price was $502,500, which is 25.63 percent higher than December 2019.

BONITA / ESTERO: BUYERS NEED TO MOVE FAST

Pending sales for single family homes and condominiums rose in November 2020 by a staggering 63.3 percent compared to the year-ago figure, while overall new listings decreased by 8.7 percent and the average number of days on the market fell by 16.5 percent. The median closed sales price in November 2020 was $343,000, up 9.5 percent from November 2019. November’s active listings stood at 989 properties, down 36.7 percent from the year-ago figure, representing a 3-month supply. Homes are selling more quickly, averaging only 71 days on the market.

FLORIDA: LOW INVENTORY, HIGHER PRICES

In November, closed sales of single-family homes statewide totaled 26,406, up 22.9 percent year-over-year, while existing condo-townhouse sales totaled 11,003, up 30.2 percent over November 2019. The statewide median sales price for single-family existing homes was $305,000, up 14.1 percent from the previous year, and for condo-townhouse units was $228,000, up 16.9 percent. Florida Realtors Chief Economist Dr. Brad O’Connor noted that November’s closed sales registered the highest percent year-over-year increase of any month this year, except for October’s 26.9% year-over-year rise. On the supply side of the market, inventory (active listings) remains constrained, particularly in the single-family existing home category, which was at a very limited 2-months’ supply in November. Condo-townhouse inventory was at a 4.7-months’ supply.

USA: RECORD HIGH CONTRACT SIGNINGS IN NOV.

Pending home sales declined in November, while year-over-year, contract signings climbed 16.4 percent. “The latest monthly decline is largely due to the shortage of inventory and fast-rising home prices,” said Lawrence Yun, NAR’s chief economist. “It is important to keep in mind that the current sales and prices are far stronger than a year ago. The market is incredibly swift this winter with the listed homes going under contract on average at less than a month due to a backlog of buyers wanting to take advantage of record-low mortgage rates.”

Yun predicts a favorable outlook for the housing market in the coming year. According to his 2021 projections, there will be a slight upward rise in mortgage rates to around 3 percent from the current 2.7 percent rate. Existing-home sales are expected to increase roughly 10% and new home sales by 20 percent next year.

 

Market Update- December 2020

DOWNING-FRYE: HEAVY SALES ACTIVITY

“When I heard Florida Realtor’s economist Brad O’Connor say that sales in Collier County were up 73

percent in the second half of this year, I wasn’t surprised,” said Mike Hughes, Vice President of Downing-

Frye Realty, Inc. “Although we have new listings continually coming on the market, they’re selling so

fast that we’ve been breaking records. During the first 11 months of this year, we’ve already had 3,029

transactions, resulting in a 5 percent increase in pending sales over what we did during the first 11 months

of 2019. And, the pending sales above $1 million have increased by over 21 percent. This November was

the fifth month in a row for us to close over 200 transactions per month, and during the last two months we

closed over 300. Although our listing activity remains constant, demand is up, and so overall we’re seeing

a lessening of available properties. We’ve been incredibly busy.”

 

NAPLES AREA: OCTOBER ANOTHER RECORD MONTH

Buyers are getting a jump on the winter seasonal

market as shown by the reduced inventory, increase in

multiple bids and the jump in closed sales. Closed sales

activity for the overall market increased 65.2 percent

to 1,249 closed sales in October 2020 from 756 closed

sales in October 2019. While the overall market

inventory in October 2020 decreased 33.8 percent to

3,543 from 5,351 in October 2019, overall pending

sales for the same time period increased 73.0 percent to

1,708 from 987 in October 2019. The median closed

sales price for single-family homes was $523,000 in

October 2020, up 32.4 percent from the previous year,

and for condos was $284,500, up 11.6 percent.

 

MARCO ISLAND AREA: SALES REMAIN STRONG

The Marco Island Area Assoc. of Realtors® reported that

November 2020 compared to November 2019 showed

the following: Total inventory (789 properties) was down

by 46.9 percent and closed sales (222 properties) were up

by 83.47 percent with a dollar volume ($164,480,057)

that was 124.99 percent higher. The November median

sales price was $518,750, which is 7.12 percent higher

than the median price for October 2020.

 

BONITA / ESTERO: BUSIER THAN NORMAL

Buyer activity remained higher than normal this

October, while many segments of the housing market

were much lower than October 2019. Multiple offers

remained a common occurrence, keeping the housing

market hot while temperatures continued to fall. New

listings of single-family homes decreased by 12.6 percent

and listings for condos increased 14.6 percent. Pending

sales of single-family homes were up 97.4 percent and

were up 101.9 percent for condos, all while inventory

decreased 39.3 percent for single-family and 14.2 percent

for condos. The median sales price for single-family

homes was $449,000 and for condos was $262,000.

 

FLORIDA: MORE SALES, RISING MEDIAN PRICES

In October, closed sales of single-family homes

statewide totaled 29,659, up 26.9 percent year-overyear,

while existing condo-townhouse sales totaled

12,110, up 30.3 percent over October 2019. The

statewide median sales price for single-family existing

homes was $305,000, up 15.6 percent from the previous

year, and for condo-townhouse units was $221,000, up

15.9 percent.

According to Florida Realtors Chief Economist

Dr. Brad O’Connor, “The strong and persistent level

of demand seen throughout the state, coupled with

worsening inventory shortages, continued to drive

up home values in October. A good share of these

increases is still being driven by good, old-fashioned

price appreciation – especially among single-family

starter homes, which are increasingly difficult to find

on the market,” he said.

 

USA: PENDING HOME SALES DIP IN OCTOBER

Pending home sales fell slightly in October. “Pending

home transactions saw a small drop off from the

prior month but still easily outperformed last year’s

numbers for October,” said Lawrence Yun, NAR’s

chief economist. “The housing market is still hot, but

we may be starting to see rising home prices hurting

affordability.” Both the inventory of homes for sale

and mortgage rates are now at historic lows, according

to Yun. “The combination of these factors – scarce

housing and low rates – plus very strong demand has

pushed home prices to levels that are making it difficult

to save for a down payment, particularly among firsttime

buyers, who don’t have the luxury of using housing

equity from a sale to use as a down payment,” said Yun.

“Work-from-home flexibility has also increased the

demand for both primary and secondary homes.”

The only positive month-over-month growth

happened in the South.

 

Market Update- November 2020

DOWNING-FRYE: MARKET RECOVERY CONTINUES

“Our real estate market is recovering at an amazing pace,” said Mike Hughes, Vice President of
Downing-Frye Realty, Inc. “This has actually been the best October in six years, plus we’ve had 5 straight
months of more closings than the month before. October’s closings were up 43 percent over last October
and our pending sales were up 32 percent. Our year-to-date closed sales volume has already surpassed
last year’s figure at this same time by more than $100,000 million. What has helped propel this market is
that the high-end buyers who weren’t able to be here last winter have now arrived early this fall, resulting in
a whopping 67 percent increase in sales over $1 million during this October compared to last. November
is already off to a good start with 22 pending sales recorded on the first day of the month.”

NAPLES AREA: BEST SEPTEMBER ON RECORD

Comparing September 2020 with September 2019:
Closed sales increased 52.9 percent to 1,096 from
717 closed sales in September 2019. Pending sales
activity also increased a whopping 83.4 percent to
1,509 pending sales from 823 last September. Median
closed prices increased 18.2 percent to $384,000
from $325,000. Inventory continues to be a challenge
for buyers due to a decrease of 32.2 percent to 3,980
properties from 5,873 properties in September 2019.
The availability of homes with four or more bedrooms
decreased 37.9 percent to 779 properties compared to
1,255 in September 2019. Closed sales of homes above
$2 million increased 30.7 percent in the 12-months
ending September 2020.

MARCO ISLAND AREA: SALES ARE STRONG

The Marco Island Area Assoc. of Realtors® reported that
October 2020 compared to October 2019 showed the
following: Total inventory (812 properties) was down
by 43.18 percent and closed sales (244 properties) were
up by 78.1 percent with a dollar volume ($173,936,696)
that was 160.58 percent higher. The October median
sales price was $482,251, which is 10.1 percent higher
than the median price for September 2020.

BONITA / ESTERO: BUYER DEMAND CONTINUES

Closed sales in Bonita Springs and Estero increased
in September 2020 by a notable 42.6 percent versus
September 2019. Long timelines and rising costs for
new construction have prompted many buyers to
consider resale properties located in older, established
neighborhoods. Low interest rates mean that buyers
can get more house for their money. Activity in
September 2020 vs September 2019: Closed sales were
up 52.8 percent, pending sales were up 80.2 percent,
new listings were up 18.7 percent and the median
closed sales price was up 7.1 percent to $325,500. The
current inventory in September was 1,102 properties.

FLORIDA: MORE SALES, RISING MEDIAN PRICES

“And all indications are that we will continue to see
strong sales this fall as mortgage interest rates will
almost certainly remain at or near record lows. New
pending sales of single-family homes were very strong
in September, rising by 31.4 percent year-over-year,
while new pending sales of condos and townhouses
were up a dramatic 43 percent,” said Florida Realtors
Chief Economist Dr. Brad O’Connor. “Given all that’s
occurred this year, it’s hard to believe we’re already in
positive territory again, but here we are,” he said.
On the supply side of the market, inventory (active
listings) continues to be tight, especially for singlefamily
existing homes, which were at a 2.2-months’
supply in September. Condo-townhouse inventory was
at a 5.1-months’ supply. According to Freddie Mac, the
interest rate for a 30-year fixed-rate mortgage averaged
2.89 percent in September 2020, down from the 3.61
percent averaged during the same month a year earlier.

USA: EXISTING HOME SALES SOAR

Existing-home sales grew for the fourth consecutive
month in September to a seasonally-adjusted annual
rate of 6.54 million – up 9.4 percent from the prior
month and nearly 21 percent from one year ago. The
median existing-home price was $311,800, almost 15
percent more than in September 2019. Total housing
inventory in September declined from the prior month
and one year ago to 1.47 million, enough to last 2.7
months – a record low – at the current sales pace.
More than 7 in 10 homes sold in September 2020 (71
percent) were on the market for less than a month.
“Home sales traditionally taper off toward the end of
the year, but in September they surged beyond what we
normally see during this season,” said Lawrence Yun,
NAR’s chief economist. “I would attribute this jump to
record-low interest rates and an abundance of buyers
in the marketplace, including buyers of vacation homes
given the greater flexibility to work from home.”
 

Market Update- October 2020

DOWNING-FRYE: ONE OF THE BEST SEPTEMBERS IN 20 YEARS

“September is usually a quiet month – but not this year,” said Mike Hughes, Vice President of Downing-
Frye Realty, Inc. “This September our closed sales were up 41 percent over last September, and our
pending sales were up an incredible 63 percent – making it one of the best Septembers in the last 20 years.
Pending sales in the $1 million+ market were up 78 percent compared to last September. The high-end buyers
are not waiting to purchase later in the season. They’re here now (or virtually here) making their picks while there
are still choices. (Purchasing earlier helps buyers avoid multiple-offer situations.) And, due to the incredible work
of our listing agents, our inventory of available properties increased last month despite having 250 closings.
We’ve now closed $162 million in volume for two months in a row.”

NAPLES AREA: SALES MOMENTUM CONTINUES
Homebuying activity (3,133 closed sales) in Naples
during June, July and August exceeded activity
reported (2,659 closed sales) for January, February
and March, the peak resident season. August had
the highest month-over-month increase in overall
pending sales in 2020, with a 70.4 percent increase to
1,479 overall pending sales from 868 pending sales in
August 2019. (Pending sales of single-family homes in
August increased by 76.4 percent while pending sales
of condominiums increased 63.9 percent.) Overall
median closed prices in August increased 26.7 percent
over August 2019 to $399,000. The median price for
single-family homes was $457,000 (up 15.7 percent),
and for condominiums was $290,000 (up 18.4 percent.)

MARCO ISLAND AREA: SALES HEALTHY
The Marco Island Area Assoc. of Realtors® reported
that September 2020 compared to September
2019 showed the following: Total inventory (891
properties) was down by 35.2 percent and closed sales
(236 properties) more than doubled (up by 112.61
percent), with a dollar volume ($142,357,254 ) that
was 119.03 percent higher – again more than double.
The September median sales price was 438,000.

BONITA / ESTERO: BUYER DEMAND CONTINUES
Area brokers have reported that buyers are challenged
with finding homes to buy, as inventory for resale
homes continues to shrink. The market is still seeing
an influx of buyers from the Northeast and Midwest
United States, and if Canada lifts their Covid-19
safety ban of entry into the United States prior to the
beginning of 2021, the demand could increase more.
In comparing August 2020 activity with the previous
August: new listings increased by 36.5 percent, pending
sales increased by 82.7 percent, and closed sale units by
30.5 percent. The median closed sales price in August
2020 was $335,500, up 9.8 percent from August 2019.

FLORIDA: HOUSING MARKET SHOWS GAINS
Florida’s housing market reported more closed sales,
more new pending sales, higher median prices and
more new listings in August compared to a year ago.
Single family existing homes sales (29,495 homes) were
up 8.8 percent compared to August 2019, while existing
condo-townhouse sales (11,100 homes) increased 10.3
percent.
The statewide median sales price for single-family
existing homes was $300,000, up 13.2 percent from
the previous year, and for condo-townhouse units was
$217,500, up 14.5 percent. New listings rose year-overyear
in both property type categories in August, up by
2 percent for single-family existing homes and 15.1
percent for condo and townhouse units. Inventory
(active listings) remains restricted, particularly in
the single-family existing home category, which was
at a limited 2.3-months’ supply in August. Condotownhouse
inventory was at a 5.3-months’ supply.

USA: HIGHEST LEVEL OF SALES SINCE 2006
Existing home sales continued to climb in August,
marking three consecutive months of positive sales
gains, and up 10.5 percent from a year ago. The
median existing home price for all housing types in
August was $310,600, up 11.4 percent from August
2019 ($278,800), as prices rose in every region.
Total housing inventory at the end of August totaled
1.49 million units, down 0.7 percent from July and
down 18.6 percent from one year ago. Sixty-nine
percent of homes sold in August 2020 were on the
market for less than a month. First-time buyers were
responsible for 33 percent of sales in August, while
individual investors or second home buyers, who
account for many cash sales, purchased 14 percent.
Distressed sales – foreclosures and short sales –
represented less than 1 percent of August’s sales.
Properties typically remained on the market for 22
days in August, down from 31 days in August 2019.

Sources: The Bonita Springs-Estero REALTORS®/SWFLMLS, Naples Area Board of
REALTORS®, National Assoc. of REALTORS®, Florida REALTORS® Marco Island Area Assoc. of REALTORS®

If your property is currently listed with another broker, this is not a solicitation of that listing.

Market Update-September 2020

DOWNING-FRYE: SUMMER OF SURPRISES

"We’re selling as many properties as we’re listing," said Mike Hughes, Vice President of Downing-Frye Realty, Inc. "We began the year with 1,006 properties for sale and now we have 1,010, but in the meantime we’ve had 1,513 closed transactional sides. This summer has exceeded all expectations. Comparing this June and July to the same period last year, our pending sales volume is UP 71 percent with $310 million in pending sales volume compared to $181 million during the same period last year. Our pending sale transactions are up 33 percent with increases in every price range. Notably, pending sales above $1,000,000 are up 120 percent, and single family homes continue to be the most desirable property type."

NAPLES AREA: STRONG SUMMER SALES

Pending sales in June 2020 increased 61.3 percent compared to June 2019, while new listings during June 2020 increased 25.8 percent compared to June 2019. The desirability of the Naples real estate market was undeniable in June, especially in the single-family home market where pending sales increased 83.9 percent to 835 pending sales from 454 pending sales in June 2019, while pending sales of condominiums increased 38.7 percent to 634 pending sales from 457 pending sales in June 2019. Inventory decreased 27.6 percent to 4,739 homes in June 2020 from 6,547 homes in June 2019, with the majority reported in the single-family home market, which decreased 34.5 percent. The condominium market had a decrease in inventory of 20.3 percent.

MARCO ISLAND AREA: SALES UP, INVENTORY DOWN

The Marco Island Area Assoc. of Realtors® reported that June 2020 compared to June 2019 showed the following: Total inventory (736 properties) was down by 26 percent and closed sales (95 properties) were up by 22 percent with a dollar volume ($82.6 million) that was 62 percent higher. The median single family sales price for June 2020 ($800,000) was 3 percent lower than the year ago figure, and for condos ($405,000) was 17 percent higher than last June.

BONITA / ESTERO: DEMAND HIGH, INVENTORY LOW

As of June 2020, the days on market decreased by 18 percent, as pending sales increased by 44.7 percent. New listings increased by 59.4 percent over June 2019, but area brokers say the new inventory is still not enough to keep up with increasing buyer demand. In comparing June 2020 with June 2019, pending sales are up 44.7 percent and the median closed sales price of $325,000 is up 6.6 percent. The current inventory stands at 1,272 available properties, which is down 20.8 percent from last year, and represents 4.6 months supply.

FLORIDA: STRONG MARKET POINTS TO RECOVERY

June’s closed sales of single-family homes statewide rose 1.3 percent year-over-year, totaling 27,650, while condo-townhouse sales decreased 10.9 percent, for a total of 8,996. In June, the statewide median sales prices for all housing types rose year-over-year for 102 consecutive months. The statewide median sales price for single-family existing homes was $282,000, up 4.4 percent from the previous year. Florida Realtors Chief Economist Dr. Brad O’Connor said, "Statewide new pending sales of single-family homes were up 23.2 percent year-over-year. Meanwhile, new pending sales of condo-townhouse units rose 19.8 percent compared to June 2019. Several factors are playing into this renewed demand for housing, but by far, the most important factors are record-low mortgage interest rates and the release of all the pent-up demand from our derailed spring buying season."

USA: SALES CLIMB IN JUNE

Existing-home sales rebounded at a record pace in June, showing strong signs of a market turnaround after three straight months of sales declines caused by the ongoing pandemic. "The sales recovery is strong, as buyers were eager to purchase homes and properties that they had been eyeing during the shutdown," said Lawrence Yun, NAR’s chief economist. "This revitalization looks to be sustainable for many months ahead as long as mortgage rates remain low and job gains continue." The median existing-home price for all housing types in June was $295,300, up 3.5 percent from June 2019 ($285,400). Total housing inventory at the end of June totaled 1.57 million units, up 1.3 percent from May, but still down 18.2 percent from one year ago (1.92 million). Properties typically remained on the market for 24 days in June, seasonally down from 26 days in May, and down from 27 days in June 2019. Sixty-two percent of homes sold in June 2020 were on the market for less than a month.

If your property is currently listed with another broker, this is not a solicitation of that listing.

Sources: The Bonita Springs-Estero REALTORS®/SWFLMLS, Naples Area Board of REALTORS®, National Assoc. of REALTORS®, Florida REALTORS®, Marco Island Area Assoc. of REALTORS®