New listings in May increased 18.4 percent to 1,201 new listings from 1,014 in May 2023.  Sellers understand that the market today won't support aspirational pricing.  In addition to 1,710 price decreases reported in May, the median closed price was $650,000, the same as the median closed price reported in April, which enjoyed 2,365 price decreases. Comparatively, the median closed price increased 8.3 percent to $650,000 from $600,000 in May 2023.

Another benefit of rising inventory and list price decreases has been the rise in the number of properties for sale in the lower end of the market. For May, properties in the $300,000 and below price category increased 104 percent to 308 from 151 in May 2023. Similarly, properties in the $300,000 to $500,000 price category increased 90.1 percent to 1,032 from 543 in May 2023.  Since 2019, home prices have risen 83% and mortgage rates have increased to over 7%, making it a challenge for some buyers to qualify for a mortgage.  The demand is out there; it's just that many people are either unable to come up with the down payment or realize the burden of additional high-item expenses like homeowner's insurance and association fees prohibit them from purchasing a home.

The NABOR® May 2024 Market Report compares single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. NABOR® sales statistics are in a chart format ( CLICK HERE ) for viewing.

What does this all mean?

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. The bottom line is that people live here because they want to.  People are not moving here for jobs.  Most of our sales are second homes.  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 the "picture-perfect" property.

If you analyze the May statistics, 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.

These statistics speak for themselves.  The cost of maintaining a single-family near the beach has risen simply because of home and flood insurance.  In addition, the public is hearing about a very active hurricane season this season, and buyers are cautious in purchasing.  Buyers are waiting until hurricane season ends to see where Southwest Florida fares.

In South Naples, there is an abundance of new construction along Collier Blvd. and Tamiami Trail South. New construction tends to produce larger homes, 2000+ sq. feet, and sell for higher price points. In addition, many developers are offering financing incentives by reducing mortgage rates.

Central Naples is built out, and land is scarce. Therefore, price points stay pretty much the same, with only a slight increase in the median price.

To navigate the Southwest Florida landscape, an experienced REALTOR® is essential.  If you have any questions, please feel free to contact me directly at 239-293-3592 or via email at robertnardi@aol.com .

Lastly, our rental department has an excellent selection of seasonal and annual rentals. If you or someone you know wants to rent or purchase in Southwest Florida, please use www.BuyNaples.net or www.SellingNaples.com .

Happy Summer!