The Naples real estate market in 2021 was dominated by low inventory and high buyer demand. Naples homes for sale were on the market mere hours before eager buyers snatched them up.
Let’s review the numbers from 2021, which was a year that broke all past annual closed sales records.
- New Listings – Although down somewhat from 2020, new residences to the Naples real estate market still came in at a steady pace, but most were spoken for by buyers right away, sometimes even prior to the listings making it to the Multiple Listing System and thereby never being counted in the standing inventory. New listings in all of Southwest Florida for the 12-month period ending December 31 were down 4% from the preceding 12 months, from 37,855 to 36,282. When you break out just the Naples real estate market from that number, new listings were down 5.9%, from 15,672 to 14,755.
- Average Sales Price – 2021 also realized a notable increase in the average sales price with a 24% gain to $641,354 over the preceding year which was $518,791. By comparison, 2020 posted a 17% increase. Notably, prior to these considerable increases, the average price only rose an average of 2% per year from 2016 through 2019. The average sales price in Southwest Florida has risen an average of 11% per year over the past five years. In the Naples real estate market place alone, the average sales price jumped 17.4% over 2020 to $807,695.
- Closed Sales – For the 12-month period ending December 31, closed sales in Naples were up 23% from the preceding 12-months, from 31,834 to 39,179. Sales for the month of December, although down 20% from the unprecedented surge we experienced in 2020, were up 34% when compared to pre-pandemic levels of the three preceding years. In the Naples market place, closed sales were up 25.8% to end the year at 15,523.
- Inventory – With 2,108 properties on the market in all of Southwest Florida as of December 31, listing inventory remains low. This is less due to a lack of listings entering the market than it is to the rate at which listings are selling. In Naples, at the end of 2021, there were 1,042 properties for sale. Compare that with more normal years – 2017 there were 6,246 for sale and 2018 there were 6,836.
To read the full Naples market report for December 2021 and to see how certain neighborhoods fared, click here.