Let’s take a quick look at what is going on in the Naples real estate market 2023 through the end of March. First, closed sales of homes in Naples during the first quarter of 2023 surpassed the first quarter of 2019. At that time inventory levels were almost three times the current level. Right now in Naples Florida, we have 3.6 months of inventory which is far better than the historic low of 0.8 months in December 2021. However, at 3.6 months that is still not considered a balanced market for buyers and sellers as the standard for this market is considered to be a the 6 months of inventory mark.
Naples Florida Buyers
What are the challenges to buyers today? There are several factors that are affecting some of the buyers in the Naples real estate market 2023. First, interest rates which affect up to 40% of current homebuyers as the cash sales are between 60-90% of the sales. Second, increases in property and flood insurance coupled with low inventory is actually not decreasing the desirability of Naples but is definitely a consideration for some buyers who are getting priced out of the market. Here’s a link to a mortgage calculator for you to see what your payments might be.
Naples Real Estate Inventory
When you look closely at inventory, it is dependent on the location in Naples where one is buying a home. For example, there are areas that have very little inventory (the lower end of the market, especially in single family homes) and then areas with over a year of inventory (for example, Port Royal). Experts in the local area believe that we are heading towards a more stable and logical market. When compared to 2019, the last “normal year” on record, sales are up 2.6 percent. Pending sales in 2023 compared to 2019 are up 22 percent.
Is it a good time to sell?
There may be some potential sellers in Naples who haven’t made the move to list due to several factors. They may fear a potential recession negatively impacting their home value or that can’t get an interest rate that makes good sense to them on purchasing. The overall median closed sales price in Naples increased 7.3% year over year, mostly driven by the condominium market which increased 5.9% while single family homes did not increase. It is still impossible to categorize the Naples Florida real estate market as being either a buyer or seller market today. If sellers are downsizing and getting equity from the homes they are selling then the increase in interest rates will not affect them as significantly as those sellers who are looking to upsize.
Two interesting notes. First, the average 30 year fixed mortgage rate since 1971 is 7.75 according to Freddie Mac. Second, the average sales price in Naples in March 2019 was $597,081 and now it’s $1,018,469.
