Naples, FL (November 1, 2024) — The Naples, Florida real estate market experienced a surge in available homes this September, with overall housing inventory increasing by 37.3% compared to last year. According to the Naples Area Board of REALTORS® (NABOR®), the total inventory grew from 3,123 properties in September 2023 to 4,288 in September 2024, providing more options for prospective buyers. This rise in available homes has been met with increased buyer interest, as pending sales — homes under contract — rose by 1% year-over-year. Naples Florida Realtors anticipate more sellers listing homes as the winter season approaches, giving pre-season buyers a broader selection before competition intensifies.
A Shift in Supply and Demand for Naples Florida Real Estate
The months’ supply of homes in Naples real estate has risen by 50% over the past year. Sherry Stein, CRB and Managing Broker at Berkshire Hathaway HomeServices, says, “This is positive news for buyers seeking a home in Naples before peak season, as they now have a greater variety of properties to choose from.” According to the National Association of REALTORS® (NAR), months’ supply data estimates how long it would take to sell the current inventory at the current sales pace. A six-month supply is often considered balanced, but Cindy Carroll of Carroll & Carroll Appraisers & Consultants, LLC, notes that Naples Florida real estate historically sees market balance at a 12-month supply. In a balanced market, buyers and sellers are on equal footing, leading to stable prices.
Closed sales dropped by 13.2% in September, with only 527 completed transactions compared to 607 in September 2023. The average time a property remains on the market also increased, from 59 days in September 2023 to 83 days this year. Naples Florida Realtors are optimistic that the steady growth in pending sales will continue over the next six months, indicating a potential upswing in overall market health.
Market Challenges for Naples Florida Realtors
Mike Hughes, Vice President and General Manager of Downing-Frye Realty, Inc., highlighted past challenges, saying, “Two years ago, we were dealing with issues related to Hurricane Ian, increasing insurance costs, inflation, interest rates, and limited inventory. Now, insurance remains the primary concern.” Some Naples Florida realtors and brokers believe the upcoming election could influence the market, potentially causing some buyers and sellers to wait. Showings in September were down by 11%, according to Dominic Pallini, Broker at Vanderbilt Realty, Inc. However, the Department of Housing and Urban Development and NAR data indicate that home sales have often increased following presidential elections.
Despite rising inventory, Cindy Carroll expects price adjustments, though she has not observed any significant declines in property value. This could be due to sustained demand, buyer caution regarding interest rates, or sellers’ reluctance to lower prices significantly. Adam Vellano, Managing Director of Compass Florida, suggests that as more sellers enter the market in the coming months, adopting competitive pricing strategies will be essential to drive sales and avoid a slowdown.
Naples Florida Real Estate Price Trends
The median closed price in September rose by 2.4% from $575,000 in 2023 to $588,560, though it remains the lowest median price reported in 2024. This price is still well above the $325,000 median reported in September 2019. In the condominium sector, the median closed price dropped 4.3% year-over-year, from $470,000 to $450,000. Jeff Jones, a Naples Florida Realtor with Keller Williams Naples, attributes this drop to rising ownership costs for older condominiums due to factors like flood disclosures, insurance costs, and milestone structural inspections that may lead associations to reserve more funds for potential repairs.
Impact of Storm Concerns and Insurance Changes on Naples Florida Real Estate
Some potential buyers have shown hesitancy about moving to Florida due to storm-related concerns, which could impact relocation rates. According to Mike Bone, Area Sales Manager at D.R. Horton, fears of future storms are influencing job seekers’ decisions to relocate to the area. However, Naples Florida Realtors are keen to emphasize that most of Naples was not significantly impacted by recent hurricanes, with storm damage largely confined to a few coastal areas. Budge Huskey, CEO of Premier Sotheby’s International Realty, reassured buyers, noting that the “vast majority of our market was unaffected by the storms.” Some waterfront sellers are considering relocating within Naples due to “storm fatigue” and street flooding, but overall, the Naples real estate market remains resilient.
Jeff Jones further highlights that the Florida insurance market is showing signs of stabilization, with reinsurance rates holding steady. Additionally, the entry of ten new insurance carriers and stable renewal rates are contributing to a healthier insurance market, supporting Naples Florida realtors in presenting buyers with a favorable environment.
Overall, Naples Florida real estate is experiencing increased inventory, a stable pricing outlook, and more competitive options for buyers as the winter season approaches. This provides an excellent opportunity for those seeking to enter the Naples real estate market or invest in this incredibly attractive and unique area.
