Price Climb Slows as Inventory Heats Up for Summer

Naples, Fla. (June 28, 2024) – As competition grows in the Naples housing market ­– overall inventory increased 67.1 percent in May to 5,019 properties from 3,004 properties in May 2023 – monthly closed sales for the month decreased 12.2 percent to 907 closed sales from 1,033 closed sales in May 2023.

Broker analysts reviewing the May 2024 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), are closely monitoring the number of monthly price decreases to see whether it could turn the tide and improve sales this summer.

One thing was certain in the May Market Report: summer buyers will have many more options than winter buyers.

A Different Seller/Buyer Dynamic

Unlike other cities in the U.S. where home sales are driven by people relocating for work, Naples has always been a lifestyle destination. “People live here because they want to. People are not moving here for jobs,” said Kunkle. In response, Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc., added, “That means we have a different mix of sellers and buyer here. A majority of our sales are second homes. That said, these sellers don’t have an urgency to sell or won’t risk someone stealing it. On the other hand, second home buyers don’t have an urgency to buy because they have the time and cash to wait until they find exactly what they want.”

Another challenge for buyers and sellers in Naples during 2024, and across Florida, will be condominium sales. As Jillian Young, President, Premiere Plus Realty, explained, “By December 31st, the structural integrity reserve law requires all Florida condominiums three stories and higher and 25 to 30 years old have a milestone inspection and use the results to guide them to maintain financial reserves that will pay for future maintenance, inspections and repairs. The burden to raise these funds will require mandatory assessments on current and future owners. Sellers will need to take into account the additional cost to maintain the reserves.”

Geographic Standouts

In May, the median closed price for a single family home in the Naples Beach area (34102, 34103, 34108) decreased 26.1 percent to $2,262,500 from $3,062,500. Conversely, the median closed price for a single family home in the South Naples area (34112, 34113) increased 43.6 percent to $930,000 from $647,500. The lowest median closed price reported during May was in the Central Naples (34104, 34105, 34116) condominium market, which increased only 1.4 percent to $355,000 from $350,000 in May 2023.

If you are looking to buy a home, income producing property or sell a house in Naples, contact me. My abilities stretch way beyond just listing the house. I provide a concierge approach to selling your house starting with an accurate market comparison, creating your listing with exceptional marketing tools, managing all showings, negotiate offers, contingencies plus so much more!

~ Felicia, xoxo