Data reflecting activity in the Naples area housing market during June showed signs of a return to pre-pandemic summer activity when market conditions were balanced. According to the June 2022 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), pending sales decreased 36.8 percent in June to 794 pending sales from 1,236 pending sales in June 2021, and closed sales decreased 38.4 percent in June to 952 closed sales from 1,545 closed in June 2021. On the positive side, an 80.5 percent increase in inventory during June to 2,294 properties from 1,271 properties in June 2021 is expected to spark sales.
“It appears the housing market in Florida is returning to a more traditional seasonal environment,” said Budge Huskey, CEO, Premier Sotheby’s International Realty. “We began to see a deceleration in sales during May and median closed prices for single family homes dropped in June compared to May as well.”
With 2.2 months of inventory available in June (up from .8 months in December 2021), the journey back to a balanced market is starting to take place. But broker analysts say it will be a slow climb. Huskey added that, “We will remain in a sustained low inventory environment this year, which will serve to insulate prices. In almost all segments of the market, it will prove a story of deceleration rather than depreciation.”
Upon reviewing the June 2022 Market Report, Mike Dodge, Director of Education and Market Research for John R. Wood Properties, commented that his agents tell him, “People want to list their homes but think they should wait for season because they think they’ll get more money for it. Although it remains to be seen where values will go from here, what we do know based on the report is that inventory is on the rise. Also, sellers who wait for season to list will likely have more competition than they would if they listed now.”
Adam Vellano, a Naples Sales Manager at Compass Florida responded that there has been an increase in international buyers traveling to America again this summer and that one in four of them are looking for homes in Florida. “Demand is still outpacing supply today, and our prices are still very attractive.”
Seasonality is also on the mind of Jeff Jones, Broker at Keller Williams Naples, who remarked that “in June 2019 we had the same number of price reductions as this past June, but during June 2019 we had three times the number of properties in inventory. That said, nearly 50 percent of our inventory this past June had a price reduction. These price reductions should be viewed as new listings because the newly lowered price is now attractive to a larger pool of buyers. Thus, there are more opportunities available for home buyers.”