Market Data

MARKET DATA

January Housing Market Shines with Opportunities

Naples, Fla. (April 25, 2025) - Brokers reviewing the March 2025 Market Report by the Naples Area Board of REALTORS (NABOR), which tracks home listings and sales within Collier County (excluding Marco Island), agree that the Naples area housing market has become a buyer's market - where the supply exceeds the demand - as reflected in a 36.1 percent increase in overall inventory to 7,483 properties from 5,500 in March 2024. Overall closed sales decreased 9.3 percent in March to 820 closed sales from 904 closed sales in March of 2024, putting pressure on sellers to drop prices before season ends. Even with 3,305 price decreases reported during March - the highest on record - overall pending sales decreased 7.3 percent to 1,212 pending sales from 1,300 pending sales in March 2024.

"This is good news for buyers as there are some more choices, less competition and better terms to be negotiated," said one Managing Broker, "Sellers should expect a home to be on the market longer now and are being encouraged to entertain offers and contingencies."

Inventory levels finally exceeded pre-Covid levels in March - 7,483 properties vs. 6,829 properties in March 2019. With more options for buyers to consider, days on market for March increased 26.5 percent to 86 days from 68 days in March 2024. Plus, the 5.1 percent increase in new listings during March to 1,617 new listings from 1,538 new listings in March 2024 has pushed our market to 11.4 months of inventory compared to 7.7 months of inventory in March 2024.

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It's Paradise, Not Fantasyland

According to Cindy Carroll of Carroll & Carroll Appraisers & Consultants, LLC, "Sellers who purchased a property in Naples at the top of the market during the pandemic and did major home renovations may not get back all the money they put in." But she admits that there exceptions depending on where the home is located. "Some neighborhoods in Aqualane Shores, Old Naples, off Crayton, and in Lake Park are oversaturated with spec homes, which is hurting the resale market. If you've been waiting months to get your price thinking things will be better, that's not a good strategy today."

Several brokers reviewing the March report, listened intently as Carroll announced that she is seeing a half percent decrease in home values each month in some market areas and predicts the market decline rate may be up to 1 percent a month by the end of the summer.

A broker responded, "Sellers who are goal oriented should look at the sold price of the most recent closing in their neighborhood. With the supply of homes for sale on the rise, those chasing the market with small price decreases each month will be disappointed. But those willing to sell for fair market value are going to get ahead of the market, sell faster, and net a higher return."

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Priced to Sell with a Profit

While the median closed price barely changed compared to last March, a .1 percent increase to $650,000 from $649,450 in March 2024, it decreased 2.4 percent compared to February's median closed price of $666,250. The median closed price of single-family homes reported no change in price year over year, $770,000. But the median closed price for condominiums decreased 7.1 percent to $486,000 from $523,000 in March 2024.

"Holding it for months to get a price that is aspirational is not a good profit-making strategy in today's market," said one broker. "Consider the cost to maintain a home that doesn't sell for months versus accepting a reasonable offer that provides a nice profit and avoids months of frustration."

Brokers identified the top issues contributing to slow sales today: economic uncertainty, sellers who aren't willing to lower the price, homeowners unwilling to let go of a lower mortgage rate, and buyers on the fence because they believe prices are going to drop drastically.

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Pulling Back the Curtain

"The MLS does not capture all the information," said another broker. "For example, the percent of list price received was reported as 94.7 percent in March, but that's the last list price to sale, not the first price the home went on the market for when it was originally listed. There may have been multiple price drops between those dates, and it might have been pulled of the market during the summer too. The MLS also does not capture pertinent data on homes that will be financed, which may include a seller credit or buydown on closing costs."   

An MLS does not capture 100 percent of new home sales from developers either. According to one developer, "Builders are seeing a 25 percent cancellation rate due to credit issues after the buyer pre-qualifies. Even with the interest rate buydowns, major developers in some parts of Florida are reporting shrinking profit margins."

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The Insurance Obstacle

It was remarked that, "A home with an old roof may cause insurance coverage issues for the buyer. In some of these cases, instead of delaying a sale until a roof is replaced, sellers are reducing prices."
 
Brokers recommend sellers and buyers work with a REALTOR' to identify any characteristics that could impact insurability. REALTOR' members can access NABOR' classes that provide information on contributing factors influencing the cost of homeownership like home and flood insurance, building codes, new condo/HOA codes, and changing FEMA guidelines.
 
"Oftentimes, small independent insurance brokers can offer coverage options that the large insurers don't offer." "Working with a professional REALTOR' who can navigate the Naples market and who has relationships with auxiliary professionals in areas like inspections, financing, and insurance will make a big difference for both sellers and buyers in 2025," was suggested by various Brokers.
 
Many agreed and added, "There are several new companies offering coverage options in Florida now and the added competition will eventually help to reduce price spikes."

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FREE MARKET ANALYSIS

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].

April market Numbers will be issued approximately late May 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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