Naples Real Estate Sees Positive Trends
Naples, Fla. (December 27, 2024) – Real estate in Naples Florida is always on the move. The Naples housing market received a significant boost in November with a 23% rise in new property listings, increasing the overall inventory by 32.4%. The total number of available properties climbed to 5,368 compared to 4,052 in November 2023. This inventory surge was met with enthusiasm from buyers, as overall pending sales increased for the first time in five years. Market experts from the Naples Area Board of REALTORS® (NABOR®) view this as a testament to the resilience and desirability for real estate in Naples Florida.
Resilience and Recovery
The Naples housing market has weathered disruptions like the COVID pandemic and hurricanes over the past few years. NABOR® has addressed this by comparing recent data to pre-COVID metrics from 2019. November’s numbers suggest that these challenges are fading, with key indicators showing improvement and stability.
It is interesting to note that current inventory levels are similar to those in April 2020. Traditionally more listings come on the market in December and January which will present opportunities for buyers at every level.
Pricing and Inventory Trends
The median closed price across all property types decreased slightly by 1.7%, settling at $575,000 compared to $585,000 in November 2023. While condominium prices dropped 10.8%, the single-family home market experienced a 2.8% increase in median prices.
The months’ supply of inventory rose to 8.1 months in November from 5.5 months in 2023. There were also 1,288 price reductions in just November which shows seller realism in a market that is not as hot as 2020 and 2021.
Will the Baby Boomers be selling? Check out our article on that nuance of real estate inventory.
Looking Ahead to 2025
Overall pending sales in November saw a notable increase of 10.7%, reaching 732 pending transactions compared to 661 the previous year. However, closed sales dipped by 18.4%, with 448 sales recorded versus 549 in November 2023. Additionally, the average days on market extended to 83 days from 59 days in the same period last year.
With more inventory, days on market will most likely increase for real estate in Naples Florida. This may be a good bargaining point for buyers however today’s price points are much higher than pre-pandemic prices.
The Role of Interest Rates
According to Dr. Shelton Weeks of Florida Gulf Coast University, interest rates are expected to stabilize between 6.25% and 6.5% in 2025. “Historically, these are favorable rates. With a strong stock market, more buyers may feel confident investing in second homes,” he added.
Focus on Condominiums
Naples’ condominium market saw a 27.9% rise in new listings, increasing inventory by 41.7% to 2,709 units. There will be higher costs, especially for older condominiums that will need to supplement their reserves for repairs and upgrades.
Addressing Insurance Challenges
Insurance remains a critical factor for buyers and sellers. Homes with older roofs may encounter insurability issues, often leading to price reductions. Increased competition among insurance providers in Florida is expected to stabilize costs in the long term.
Conclusion
As real estate in Naples Florida heads into 2025, the housing market shows promise with increased inventory, stabilizing prices, and growing buyer interest. Working with knowledgeable REALTORS® who understand the nuances of the market will be essential for both buyers and sellers looking to make the most of these opportunities.
