A Fading Shadow
The COVID pandemic and multiple hurricanes cast a shadow over the Naples housing market making it difficult to examine and compare data to activity within the last five years. To provide historic perspective void of these market disruptions, NABOR' began comparing monthly data to data from corresponding months in 2019 (pre-COVID). But this long shadow is finally fading as November's market report shows improvement and stability in several significant areas. "Inventory is finally up to where it was in April 2020!" exclaimed one Broker. "More new listings are expected in December too, which will provide many great, new options for buyers who visit during the 2025 winter season."
Overall median closed price decreased 1.7 percent to $575,000 from $585,000 in November 2023. This decrease was fueled by the condominium market, which reported a median closed price decrease of 10.8 percent. Alternately, the single-family home market's median closed price in November increased 2.8 percent.
Months supply of homes in November was 8.1 months compared to 5.5 months in November 2023. This figure illustrates the number of months it would take for all active homes in the inventory to sell. It is calculated by dividing the number of homes for sale by the number of homes sold in the given month. According to real estate experts, 12 months of inventory is historically considered a balanced market for Naples.
"There were 1 ,288 price reductions in November," noted another Managing Broker. "The practice of aspirational pricing by sellers to 2020-2021 levels is quickly fading as those sellers continue to reduce their prices down to realistic market levels."
"If the Naples market continues on this path, we should expect to see more unit growth in 2025," said yet another Broker. "And home prices will likely return to the mean and pace inflation."
