Annual Report on the Naples Area Housing Market

ANNUAL MARKET REPORT 2021

Naples Area Housing Market

Fervent buyer demand, driven by pandemic-induced changes to housing needs and preferences, reached extraordinary levels in Yearly Housing Report 2021. The inventory of homes for sale remained low, as home seller activity did not rise proportionally to meet this demand. New construction activity, while strong, remains limited by a combination of material and labor shortages, rising material costs, and a regulatory and operational environment that makes it difficult to scale quickly.

The strong seller’s market of 2020 continued and even strengthened in 2021, with inventory levels remaining low and multiple offer situations common across much of the housing market both locally and nationally. Multiple offers again drove prices significantly higher for the year.

Sales: Total sales were up 25.8 percent to end the year at 15,523.

Prices: Home prices were up compared to last year in the Yearly Housing Report 2021. The overall median sales price increased 20.3 percent to $445,000 for the year. Single Family home prices were up 27.6 percent compared to last year, and Townhouse-Condo home prices were up 20.7 percent.

List Price Received: Sellers received, on average, 98.6 percent of their original list price at sale, up 2.7 percent from last year.

Listings: Comparing 2021 to the prior year, the number of homes available for sale was lower by 76.6 percent. There were 1,042 active listings at the end of 2021. New listings decreased by 5.9 percent to finish the year at 14,755.

Sales by Price Range: The number of homes sold in the $500,001 to $1,000,000 price range rose 75.2 percent to 4,053 homes. Homes sold in the $300,000 and Below price range were fell 7.4 percent to 4,074 homes.

Bedroom Count: Increases in closed sales occurred across homes of all sizes over the last year. In 2021, properties with 2 Bedrooms or Less saw the largest growth at 43.7 percent. The highest percent of original list price received at sale went to
properties with 3 bedrooms at 98.9 percent.

The Housing Market 2021 was once again strong both locally and nationally. Inventory shortages and high buyer demand continued to push home prices higher, with multiple offers on a limited number of homes the common theme in most market
segments.

This year looks to continue the trends seen in the last 18 months, pushing home prices higher still. As mortgage rates are likely to continue to rise over the year as well, housing affordability will remain an important factor to watch.

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