Market Data

MARKET DATA

Rising inventory and competitive pricing are favorable for home sales 

Naples, FL. (March 29, 2024) – The overall median closed price in Naples increased 5% to $625,000 from $595,188 in February 2023, but there were also 2,264 price decreases reported. Brokers contend that price decreases may be one indication that sellers are shifting from aspirational pricing to realistic market pricing. According to the February 2024 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), closed sales decreased 9.3% in February despite a 66.6% increase in inventory to 5,139 properties from 3,085 properties in February 2023.

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Area
Home Prices

February’s price decreases demonstrate that REALTORS® are counseling sellers about realistic market pricing. Although some sellers are still struggling to accept the fact that the pandemic buying frenzy years with climbing price increases are over. As more new sellers enter the market (up 24.6% to 1,668 new listings from 1,336 new listings in February 2023), those sellers with overpriced properties risk missing an opportunity to attract and sell to eager buyers.

According to the report, in February 2019 the median closed price was $335,000. Consultants and brokers agree that in the face of far more inventory and opportunity, home values are holding steady in Naples today. People are being highly selective and will wait until they find the right property. Adding that listing agreements that limit terms to three or even six months and reflect aspirational home prices are impeding sales and increasing the days on market (DOM). 

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HOUSING INSIGHTS

The February Market Report showed a 103.4% increase in inventory for properties under $300,000 which might be because “investors are offloading rental property units to capitalize on the winter selling season. Also, the carrying costs on some of these properties has climbed in recent years. This increase in inventory, for buyers looking in this price range, is encouraging as their selection was quite limited a year ago.” It is also believed that property insurance rates are influencing home buying decisions as much as interest rates.

As many Naples residents are discovering, when home values increase, the replacement cost to insure them also increases. Insurance rates and association fees could increase for condominium owners by the end of 2024 as mandatory milestone inspections must be completed by year end. Inventory for condominiums increased 104.2% to 2,614 from 1,280 condominiums in February 2023.

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Inventory
Levels & Related

Upon observation, the February Market Report shows median closed price decreased for condominiums located in the Naples Beach (34102, 34103, 34108); Central Naples (34104, 34105, 34116); and Immokalee/Ave Maria areas. And the area with most closed sales of single family homes in February was East Naples (34114, 34117, 34120 and 34137), which also reported the highest inventory of available properties (1,125).

Broker analysts reviewing the report recommend that homebuyers discuss getting a prelisting appraisal with their REALTOR® so they can compare prices of homes currently listed along with a comparison of recently sold properties to help them determine a realistic market price. This offers the advantage of positioning their listing price accurately to sell successfully.

Some brokers commented, “More choices don’t seem to outweigh the other factors facing buyers right now, and so buyer sense of urgency has diminished. It isn’t like 2021 when a home would be listed and sold in the same day. Plus, many people today are hoping the Fed will drop rates again. But we always remind people that ‘if you see a property you like, there are likely many others who will like it too.’ As we say in the business, ‘marry the house and date the rate’ as you can always look into refinancing if rates go down.”

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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].

February market Numbers will be issued approximately mid-March 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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John Robert

Phone

(239) 571-2231

Email

[email protected]

Matt Robert

Phone

(239) 231-9222

Email

[email protected]

Address

3255 TAMIAMI TRL N NAPLES FL 34103

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