The Naples real estate market closed 2024 on a high note, demonstrating its resilience and appeal to both buyers and sellers. For Naples Florida realtors, it’s been a challenging market which is why it’s important to have a full time, experienced agent on your side. According to the Naples Area Board of REALTORS® (NABOR®) December 2024 Market Report, the housing market dispelled concerns about falling values and hesitant buyers.
Naples Real Estate Market Trends in December 2024
The overall median closed price in December decreased slightly by 4%, settling at $600,000 compared to $625,000 in December 2023. This change was driven primarily by a 13.9% decline in the condominium market’s median closed price, which dropped to $447,750 from $520,000. Meanwhile, single-family homes saw a 2.3% increase, with the median price rising to $767,500 from $750,000.
Both buyers and sellers benefited from a robust market in December. Sellers showed confidence, as evidenced by a 26% increase in new listings. Buyers, in turn, responded positively to the increased inventory, leading to a 7.4% rise in pending sales for the month. We’ve previously discussed this trend in a prior post in 2024.
Key Metrics for Naples Real Estate in 2024
Naples Florida realtors observed significant achievements in the 2024 housing market:
- New Listings: The Naples market added15,459 properties, marking a 15.7% increase year-over-year.
- Pending Sales: 10,090 properties went under contract.
- Closed Sales: The Naples Florida market sold 7,966 homes.
The $500,000 to $1.5 million price range was particularly active, with 3,862 closed sales reported.
Area-Specific Highlights
- East Naples (ZIP codes 34114, 34117, 34120, 34137): Recorded the highest number of single-family home sales (1,542), with a median closed price of $650,000.
- North Naples (ZIP codes 34109, 34110, 34119): Led the condominium market, achieving 1,073 closed sales and a median price of $489,000.
Factors Impacting Naples Real Estate Prices
Price adjustments were another key trend in December. Notably, there were 1,076 price decreases, enhancing opportunities for buyers. In the Naples Beach area (ZIP codes 34102, 34103, 34108), the median condominium price dropped 29.6% to $950,000 from $1,350,000 in December 2023.
The new laws requiring structural integrity reserve studies for condominiums with three or more stories has probably contributed to these price shifts. This regulation mandates sufficient reserves for repairs, potentially leading to higher association fees, which could impact the overall cost of condo ownership.
Inventory and Market Balance
Inventory levels in Naples increased significantly, rising 35.7% to 5,695 properties in December 2024 compared to 4,198 in December 2023. With more options available, the average days on market grew to 84 days, a 42.4% increase from the previous year.
There are 8.6 months of inventory currently which is not yet a balanced market. Traditionally a balanced market is 6 months of inventory. We’ve seen record numbers of new listings coming on the market and insufficient sales to clear the inventory of late. Historically, pre-pandemic days on market ranged between 90 and 120 days, indicating that today’s market is stabilizing.
The Changing Landscape of Naples Housing
A notable shift in inventory distribution has emerged. Most properties were priced under $300,000 in 2019. However, by December 2024, the majority of listings fell within the $500,000 to $1.5 million range.
It’s important to note that the pandemic drove up prices in every category in Naples. There are more home priced over $5 million than there are priced under $300,000.
Challenges and Opportunities
Despite strong sales, some homeowners are reluctant to list their properties. This is due to historically low mortgage rates secured in recent years. It’s understandably difficult to part with a low rate mortgage and purchase a home using financing for the move. This has definitely impacted sales but a good Naples Florida realtor can work to overcome many market concerns and issues.
Looking ahead, economic conditions such as inflation and interest rates will continue to shape the market. Could interest rates continue to increase? It’s a possibility since inflation is not yet under control.
Partner with a Naples Florida Realtor
Navigating the Naples real estate market requires expertise and insight. Whether you are buying or selling, working with a knowledgeable Naples Florida realtor ensures you can make informed decisions in this dynamic market. With a thriving market and evolving opportunities, Naples continues to deliver on its reputation as a premier destination for real estate investment.
