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Business Observer Friday, Feb. 5, 2021 3 weeks ago

Sizzling hot real estate market faces lack of inventory

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If sales volumes do slow in the region, it may be from a lack of inventory.
by: Alexander Walsh Contributor

Real estate sales in most of the markets in the region outpaced the statewide trend in 2020, with the Naples-Immokalee-Marco Island market leading the way.

Single-family home sales in Naples grew by 24% on a unit basis, according to MSA-level data provided by Florida Realtors. That’s more than quadruple the statewide growth rate of 6%. And those homes were not purchased cheaply, as the Naples median sale price reached nearly $500,000 (vs. $290,000 statewide), up 15% from last year.

Townhouse and condo sales were strong too, up more than 18% on a unit basis in Naples, far surpassing the statewide rate of 2.5%. And the Naples success story may not be over yet: in December, single-family home sales were up 46% over last year, more than double the statewide rate for the month (21%).

The only Gulf Coast real estate market that failed to grow at the statewide rate was the region’s largest. That’s the Tampa-St. Petersburg-Clearwater MSA, where single-family home sales grew just under 2% — although the median price increased 11%.

If sales volumes do slow in the region, it may be from a lack of inventory. That’s a challenge real estate agents and brokers are facing in many markets. At the end of last year, foer example, the number of active listings statewide was 33% lower than a year earlier. Along the Gulf Coast, most inventories are down more than 40%, with Cape Coral-Fort Myers, North Port-Sarasota-Bradenton and Tampa markets each down more than 46%.

See charts for full MSA-level details on Gulf Coast real estate trends.

 

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