Naples, Fla. (February 21, 2025) – The Naples real estate market kicked off the year with promising trends for both buyers and sellers. According to the latest January 2025 Market Report from the Naples Area Board of REALTORS® (NABOR®), home sales in Collier County (excluding Marco Island) surged by 12%, reaching 551 closed transactions compared to 492 in January 2024. Additionally, the median closed price climbed 9.4%, rising to $659,000 from $602,000 a year ago.
Rising Inventory Creates More Buyer Opportunities
A significant 22.6% increase in new listings reflects growing seller confidence in the Naples housing market. There are a lot more options for buyers than in the past few years with more homes going on the market.
While home values continue to appreciate, the increase in available inventory also gives buyers negotiating power. In January, the market saw 2,668 price reductions, presenting opportunities for those looking to purchase a home in Naples.
Shifts in Market Timing: Homes Taking Longer to Sell
The report highlights an increase in the average days on market, rising from 61 days in January 2024 to 92 days in January 2025. “This timeframe is still shorter than pre-pandemic levels when homes took around 107 days to sell,” noted Mike Hughes, Vice President and General Manager of Downing-Frye Realty, Inc.
Interest Rates and Market Dynamics
While demand remains strong, some sellers have delayed listing their homes due to reluctance to part with historically low mortgage rates. What we’ve seen is that many homeowners were reluctant to sell because they had a low interest rate on their mortgages. However, it looks like 6-7% is becoming the new normal for buyers using financing and buyers are adjusting to these rates.
The Naples housing market remains resilient despite national fluctuations. Out-of-state buyers have shown a slight slowdown in activity due to lagging home sales in northern states, but Naples continues to attract interest from buyers seeking luxury properties and investment opportunities.
Inventory Growth and Pricing Trends
Naples’ housing inventory expanded by 39.5% in January 2025, reaching 6,808 available properties, up from 4,881 the previous year. Despite the increase, demand remains strong, especially in desirable areas like North Naples, where sales rose by 5%.
- Single-family home sales increased by 20.9%, with a median price jump of 6.7% to $800,000.
- Condominium sales saw a modest 2.9% increase, with prices adjusting slightly downward by 2.7% to $466,000.
Notably, entry-level homes priced below $300,000 experienced an 84.3% inventory increase, providing even more affordable options for buyers entering the market.
Key Takeaways for Buyers and Sellers
The evolving Naples real estate trends and landscape presents both opportunities and challenges. Buyers now have a wider selection of homes, while sellers must remain strategic with pricing and negotiations. The reality check for sellers is that if you aren’t getting showings, your home is priced too high.
For those considering a sale, working with us would be essential part of getting top dollar in this challenging market. We can put our market knowledge to help you navigate market trends, set competitive prices, and negotiate effectively to maximize value.
Looking Ahead
With steady demand, growing inventory, and an active start to 2025, the Naples real estate market remains an attractive destination for homebuyers and investors. Whether buying or selling, staying informed on local market trends is key to making the best real estate decisions in Naples, Florida.
For personalized real estate guidance in Naples, contact us at 239.293.0246.
