Naples, Fla. (November 1, 2024) – Overall inventory of homes in Naples increased 37.3 percent in September to 4,288 properties from 3,123 properties in September 2023, which benefits home buyers. According to the September 2024 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), the rise in inventory was met with increased buyer interest as indicated by pending sales (sales under contract) during September, which increased 1 percent to 622 pending sales from 619 pending sales in September 2023. Broker analysts reviewing the September report are confident more sellers will enter the market in the coming months in anticipation of a visitor increase during the winter. Pre-season buyers are encouraged to take advantage of the increased property selections available before competition heats up.
“The months’ supply of homes is up 50 percent compared to last year,” said Broker Analysts. “This is good news for buyers looking to purchase a home before season starts as there are many more home choices available and interest rates may still creep downward.”
According to the National Association of REALTORS®, the “months’ supply” data refers to the number of months it would take for the current inventory of homes on the market to sell given the current sales pace. Lower levels of months’ supply tend to push prices up, while higher months’ supply puts downward pressure on prices. For the Naples market, the months’ supply in September was 6.3 months. Nationally, a six months’ supply is associated with moderate price appreciation.
However, according to Cindy Carroll of Carroll & Carroll Appraisers & Consultants, LLC, “The Naples market is unique, and in my experience, a 12 months’ supply of homes has historically been where our market enjoys a balance.” A balanced housing market is when the supply of homes for sale is roughly equal to the demand from buyers. In a balanced market, neither buyers nor sellers command an advantage, and prices tend to remain stable.
While overall closed sales decreased 13.2 percent in September to 527 closed sales from 607 closed sales in September 2023, the rise in days on the market (from 59 in September 2023 to 83 in September 2024) means it is taking longer for homes to go from pending status to closed status. According to broker analysts, the monthly pending sales data is a significant contributing factor of the overall housing market health. They are currently optimistic that the recent increase in pending sales will continue to improve over the next six months, suggesting a positive outlook for the housing market.
While showings in September were down 11 percent, there was interesting data from the Department of Housing and Urban Development (HUD) and the National Association of REALTORS® (NAR) indicates that home sales increased following nine of the last 11 presidential elections.
Carroll remarked that, “Given the increase in inventory, I would expect to see more prices decreases. But I have not seen a loss in value yet.” The lack of noticeable price drops could be due to several factors including: still high demand relative to supply, buyer hesitancy related to interest rates or the election, or sellers being reluctant to significantly lower prices.
Broker Analysts stated, “If and when these sellers re-enter the market – which will likely be in the next few months – we are going to see a surge in inventory. Unless they adjust their pricing strategy to stay competitive, we’re going to continue to see lackluster closed sales. Sellers are encouraged to adopt pricing strategies that reflect today’s competitive market.”
The overall median closed price in September increased 2.4 percent to $588,560 from $575,000 in September 2023. Compared to previous market reports in 2024, September’s median closed price was the lowest reported so far. However, it is still far above the median closed price reported during September 2019, which was $325,000.
In the condominium market, the median closed price in September decreased 4.3 percent to $450,000 from $470,000 in September 2023. According to Brokers, “Prices may experience downward pressure for condominiums three stories and higher that are 25 years or older because the costs of ownership may rise significantly due to flood disclosures and insurance costs, and the results of milestone structural inspections. If the results of the inspections find a potential structural problem that is determined to need repair, associations will be required to reserve funds to cover those costs.”
“Word on the street is that some job seekers are less eager to move to Florida because they fear being in the path of a future storm,” stated a local builder Sales Manager. Brokers reviewing the report are concerned that national news coverage makes it appear as if damage from the hurricanes was widespread, even though the most significant storm damage was concentrated in a relatively small area along the gulf coast. The Naples beachfront and inter-coastal areas experienced some storm surge and high winds, while inland regions saw much less to no damage. The misinformation being reported may contribute to slower market activity in the last quarter of 2024.
Brokers also responded by stating that the “vast majority of our market was unphased by the recent hurricanes.” It was added that storm fatigue and street flooding is convincing a few sellers to move off the water, but not necessarily out of the area. “What’s impressive is that our market did not falter in terms of performance due to the storms.” Additionally, “the insurance market in Florida is becoming healthier and reinsurance rates have been stable. Ten new insurance carriers have also entered the market and renewal rates have not increased significantly.”
It is also agreed that “Days on market for properties over $1 million have risen to 97 days compared to our market average of 82 days. And while the report shows that we have six months of inventory; in the $1 million and above market, there is eight months of inventory.”
Days on market may be up 51.9%, but historically, this is still low. The norm for our area is 90 to 110 days.
It was concluded that Buyers of condominiums should work closely with a REALTOR® to determine the full cost of ownership. Especially for condos three stories and higher that are 25 years or older, the costs of ownership may rise significantly due to flood disclosures and insurance costs, and the results of milestone structural inspections, which may require associations increase reserves or reveal some imminent and costly repair needs.
Contact us today with any questions. We serve the Luxury, Waterfront, and inland residential markets of Naples and other nearby Southwest Florida communities. We would be happy to offer a Complementary Comparative Market Analysis of your neighborhood or if you have any questions about the value of your home, please feel free to contact us at 239-571-2231 or 239-231-9222 or send us an email at [email protected] or [email protected].
October market Numbers will be issued approximately late November by Naples Area Board of Realtors (NABOR)
If your home is currently listed, this is not a solicitation of that listing
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