The Naples area housing market ended the year strong, dispelling whispers of falling values and reluctant buyers. The median closed price in December decreased 4 percent to $600,000 from $625,000 in December 2023. This decrease was driven by a 13.9 percent decrease in the median closed price for the condominium market to $447,750 from $520,000 in December 2023. The median closed price in the single-family home market increased 2.3 percent to $767,500 from $750,000 in December 2023. Both sellers, whose confidence in the Naples housing market demonstrated a 26 percent increase in new listings for December, and buyers, whose appreciation of the increased inventory resulted in a 7.4 percent increase in pending sales during December, reaped the benefits of a delivering housing market.
According to the December 2024 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), 15,459 new listings were added to the market (a 15.7% increase) in 2024. Also, a significant year-end achievement, 10,090 properties went under contract (pending), and 7,966 homes transferred ownership (closed). Overall closed sales increased 4.6 percent to 594 closed sales from 568 closed sales in December 2023. Of all sales recorded during December, 57.9 percent were cash sales. Overall inventory increased 35.7 percent to 5,695 properties from 4,198 properties in December 2023. With more options for buyers, days on the market increased 42.4 percent to 84 days compared to 59 days in December 2023. There are 8.6 months of inventory in December, and we are on the path toward a more traditional and balanced market.
Finding single-family homes for $300,000 or less is a challenge in today's market. During the supply and demand days of the pandemic, sales prices rose significantly. Most of the inventory available is in the $500,000 to $1.5 million price category (1,216 properties in December 2019 compared to 2,609 properties in December 2024). The NABOR® December 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 presented in chart format and can be viewed (CLICK HERE).
Standouts according to the December report, the $500,000 to $1.5 million price category reported the highest number of closed sales (3,862) during 2024. The East Naples area (34114, 34117, 34120, 34137) reported the highest number of single-family home closed sales (1,542) for the year, with a median closed price of $650,000. The North Naples area (34109, 34110, 34119) reported the highest number of condominiums closed sales (1,073) for the year, with a median closed price of $489,000. The December report also showed 1,076 monthly price decreases, which could make properties more attractive for buyers during season. In fact, median closed prices for condominiums in the Naples Beach area (34102, 34103, 34108) decreased 29.6 percent in December to $950,000 from $1,350,000 in December 2023. Assessment increases may factor in the median closed price decrease for the Naples Beach area condominiums during December.
What does this mean?
Despite the higher interest rates, the Naples housing market is moving inventory, and buyers now have a slight advantage. They have more to choose from and can "wait" for the perfect home, meaning homes will remain on the market longer. When homes remain longer, the technique to lure buyers is to lower prices. I predict that closed sales will be lower, ranging from 5% to 10% off the asking price. Please remember that many buyers who bought 5 years ago almost doubled their money. So, a 5% to 10% reduction has less impact.
Looking to buy or sell?
You can always start your search at www.BuyNaples.com, and now you have a second website you can go to as well: www.SellingNaples.com. You can navigate both and see which one you prefer. Each offers property searches and valuation tools for your current home.
If you need any assistance or would like a personal Comparative Market Analysis to see what your home can be listed for, please feel free to contact me directly at 239-293-3592 or via email at robertnardi@aol.com.
Lastly, we still have seasonal rentals available if you would like to get out of the cold and enjoy some warmth and sunshine. Our weather has been outstanding, with low 80s and humidity in the daytime and mid-60s in the evening. Please call our office at 239-213-1616 and ask for one of our rental administrators.
Happy Valentine's Day and a great February.