Naples Market Update | Provided by Naples Area Board of Realtors
Naples Market Report
Naples Market Update | Provided by Naples Area Board of Realtors
|
|
“Two years ago we were complaining about having only 2,800 homes in inventory,” said Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc. “February’s inventory was far from the 12,000 properties we had in inventory during March 2007, but that’s a good thing because the circumstances are very different today.”
The lax lending standards that ultimately led to a high number of foreclosures and short sales in 2007 is not occurring in 2025. Hughes and other brokers reviewing the February Market Report say today’s seller is better positioned than a seller in 2007 because most have built substantial home equity.
“If you bought a home before the pandemic, you’re in a very good position if you decide to sell today,” said Adam Vellano, Managing Director of South and Southwest Florida at Compass Florida.
“Deceleration was an eventuality,” said Budge Huskey, CEO, Premier Sotheby’s International Realty, “The report shows evidence that our market is self-correcting. Prices are not appreciating at an alarming rate anymore, and sales in 2025 have slowed slightly for a number of reasons like recent economic disruptions and a general lack of buyer urgency.”
Broker analysts recommend working with a REALTOR® who understands the Naples market because market conditions vary widely based on home location and home type. For example, the February report shows the overall median closed price for properties in Naples increased 4 percent, but the median closed price for single-family homes in Central Naples [34104, 34105, 34116] decreased 28.7 percent. Conversely, the median closed price of single-family homes in the Naples Beach area (34102, 34103, 34108) increased 82.2 percent. Though this increase was more likely due to the sale of a few very high priced properties that created statistical disparity than actual organic price expansion. Similarly, the median closed price of condominiums decreased .4 percent in February; but in Ave Maria, the median closed price of condominiums increased 13.4 percent.
According to Cindy Carroll of Carroll & Carroll Appraisers & Consultants, LLC, “We are starting to see values declining for homes that were purchased in 2022, especially in markets that are saturated with homes for sale. Selling a home can become especially challenging when the spec home market has produced an oversupply of homes for sale in many popular neighborhoods around Old Naples, Vanderbilt and Lakes Park.”
Hughes responded, “Sellers fall into two groups today: those who are inching prices down but not catching up to the market; and those that are making significant cuts to get ahead of the pack.”
Brokers remarked that the Naples housing market is performing much better than other markets in Florida like Sarasota and Palm Beach. Dr. H. Shelton Weeks, Director of the Lucas Institute for Real Estate Development & Finance at FGCU’s Lutgert College of Business, added that “Collier County gets lost in the narrative when it comes to the media’s portrayal of housing market performance across Southwest Florida. People are seeing stories about oversupply in Charlotte and parts of Lee County and assume the same is true for Collier County, but that’s not the case.”
New listings during February barely decreased (.1 percent) to 1,710 new listings from 1,711 new listings in February 2024. The added competition means sellers must be ready to meet the demand with asking prices that fit today’s market. During February, sellers were getting an average of 94.8 percent of their asking price. Of those buyers in February, 76.9 percent of them paid for the purchase in cash.
“Buyers seeking the right home in Naples can afford to be highly selective,” added Huskey. “If you’re a seller and not getting a lot of showings, talk to your REALTOR® about your home’s list price because it’s likely the reason you may miss out on an opportunity to sell during season.”
