Why Are Homes Staying on the Market Longer in Naples? What It Means for Buyers and Sellers
- Ed DiMarco
- Jul 16
- 6 min read
In recent years, Naples, Florida, has been a hotspot for real estate activity, known for its luxurious properties, high-end communities, and desirable Gulf Coast lifestyle. However, 2025 is witnessing a notable shift: homes in Naples are staying on the market longer than in previous years. This change marks a significant development for both buyers and sellers, hinting at deeper market trends and reshaping local real estate strategies. If you're wondering why homes are staying longer on the market in Naples, Florida, in 2025, you're not alone.
Slowing Demand and Rising Inventory
Several factors contribute to the longer listing times. One primary reason is the cooling demand. After the pandemic-era boom, which saw buyers flocking to Florida from other states, demand has tapered off. Many out-of-state buyers have already relocated, and with rising interest rates and inflationary pressures, fewer people are entering the market now.
Meanwhile, inventory levels are rising. More homes are being listed than sold, creating a more competitive environment for sellers. In Naples, the months of housing supply rose from approximately 3 months in early 2023 to over 6 months by mid-2025, a clear sign of a shifting market. As of Q2 2025, active listings in Naples have increased by 43% year-over-year, reaching approximately 6,200 homes on the market, up from around 4,300 in mid-2024. By July 2025, this number further increased to 6,400, marking a 47% year-over-year surge. This trend is a defining feature of the Naples, Florida, real estate market in July 2025.
Impact of Mortgage Rates on the Market
One of the most significant factors contributing to Naples’ current housing slowdown is the rise in mortgage rates. As of June and July 2025, the average 30-year fixed mortgage rate has held steady at approximately 6.65%, significantly higher than the sub-3% rates seen during the 2020–2021 boom.
This rise in financing costs has directly impacted affordability. For a typical buyer in Naples looking at a median-priced home around $709,000, even a 1% increase in interest rate can add hundreds of dollars to monthly mortgage payments. As a result, many potential buyers are delaying purchases, opting to rent, or downsizing their budgets, especially first-time buyers and retirees on fixed incomes. This demonstrates how rising mortgage rates affect home sales in Naples and the impact of 6.65% mortgage rates on the Naples real estate market.
Key Effects:
Buyer hesitation has increased, with a rise in financing contingencies and prolonged closing times.
More activity is seen in the $300K–$600K segment, while luxury homes experience stagnation.
Buyers are capitalizing on the current rate environment to negotiate more favorable prices and terms.
Changing Buyer Behavior
Buyers today are more cautious. With higher mortgage rates and a general sense of economic uncertainty, they’re taking their time before making significant financial commitments. Unlike the frenzied bidding wars of 2021–2022, today’s buyers are shopping around, negotiating more aggressively, and prioritizing value over urgency. The average time a home spends on the market in Naples rose to 89 days in May 2025, up from 52 days in May 2024. By July 2025, that number had grown further to 91 days.
Additionally, many are waiting for prices to drop further. Although Naples remains a premium market, price growth has slowed, and in some segments, even declined slightly. Median home prices in Naples declined by 3.8% year-over-year, with the current median price sitting at approximately $710,000 as of mid-2025. In June 2025, the median list price dropped slightly again to $709,000. This "wait-and-see" approach further extends the time properties stay listed, and is reflected in the rising number of home price reductions in Naples, summer 2025.
What This Means for Sellers
Sellers need to adjust their expectations. The days of multiple offers within 48 hours are gone—at least for now. Pricing a home competitively from the start is more critical than ever. Overpricing can lead to prolonged listings and ultimately result in price reductions. As of June 2025, 44% of active listings in Naples included at least one price reduction.
It’s also essential for sellers to invest in presentation and marketing. Staging homes, hiring professional photographers, and offering virtual tours can set listings apart in a crowded market. Incentives like seller-paid closing costs or rate buydowns are also gaining popularity to entice hesitant buyers. Properties listed over $1.5 million are experiencing the most significant slowdown, with average days on market exceeding 100 days. In the luxury tier above $2 million, average days on market reached 112 in July 2025, with typical price reductions averaging 7.5%. These patterns reveal the extent of the Naples luxury housing slowdown in 2025 and offer insights into how to sell a home in Naples during a slow market.
What This Means for Buyers
For buyers, the extended market time presents opportunities. There’s more room to negotiate prices and terms, less pressure to make snap decisions, and a wider selection of homes to choose from. It’s a buyer’s market in the making, especially in mid-range and high-end segments where inventory is growing fastest. In fact, many are exploring Naples, Florida buyer’s market conditions 2025 to time their purchases strategically.
However, buyers should still act strategically. While prices may decline in some areas, others—especially in prime locations—are holding firm. Working with a local agent who understands Naples' micro-markets can help buyers identify the best opportunities. With 30-year fixed mortgage rates averaging 6.65% as of June and July 2025, affordability remains a key concern and continues to influence buyer hesitation. If you’re planning a purchase, consider these tips for buying property in Naples during high interest rates.
Final Takeaways for the Naples Real Estate Market in 2025
The longer listing times in Naples reflect a broader shift in the real estate landscape. While the market is far from crashing, it’s clearly normalizing after an unprecedented boom. Both buyers and sellers must adapt to this new reality—one where patience, pricing, and preparation are key to successful transactions. Whether you’re an investor, retiree, or relocating family, understanding what to expect in the Naples housing market mid 2025 is crucial.
Whether you’re looking to buy your dream coastal retreat or sell an investment property, understanding the dynamics of Naples’ evolving market is essential in 2025 and beyond.
Frequently Asked Questions About the Naples Housing Market in 2025
1. Why are homes staying on the market longer in Naples in 2025?
Homes are lingering longer due to a combination of high mortgage rates (averaging 6.65%), rising inventory levels, and more cautious buyer behavior. These factors are creating a more balanced market compared to the rapid sales seen during 2020–2022.
2. How are rising mortgage rates impacting homebuyers in Naples?
Higher mortgage rates are reducing affordability, causing many buyers to delay purchases, seek lower-priced homes, or negotiate better terms. This has resulted in fewer closed sales and longer days on the market.
3. Is Naples currently a buyer’s or seller’s market?
As of mid-2025, Naples is transitioning into a buyer’s market. Inventory is up 47% year-over-year, and nearly half of active listings have seen price reductions, giving buyers more leverage.
4. Are luxury homes in Naples being affected more than mid-range homes?
Yes, luxury homes priced above $2 million are experiencing the longest time on market, averaging 112 days, and the steepest price cuts. Mid-range homes between $300K–$600K are seeing more buyer activity.
5. What should sellers do to stay competitive in the current market?
To attract buyers, sellers should price homes realistically, invest in professional staging and photography, and consider offering incentives such as rate buydowns or seller-paid closing costs.
____________________________________________________________________________________________________________________________________________________________________
Article By: Ed DiMarco, MS, MA
Ed DiMarco is a seasoned Naples real estate broker with nearly 20 years of experience in residential, luxury, and investment properties. He holds dual master’s degrees in Business and Communication and is recognized for his strategic insights and advocacy in Florida’s housing market. Ed was the founder of Ed DiMarco Realty, LLC, and a trusted voice on market trends in Southwest Florida.
