Naples Real Estate Market Overview: 2024 Trends and Statewide Context
- Ed DiMarco MS, MA
- Oct 22, 2024
- 4 min read
Updated: Aug 26
The Naples real estate market in 2024 is undergoing significant changes, shaped by increased inventory, shifting buyer preferences, and broader economic factors impacting the entire state of Florida. Understanding these trends is crucial for anyone interested in the Naples real estate market, whether you are a buyer, seller, or investor.
Months Supply of Inventory in the Naples Real Estate Market
The Months Supply of Inventory in Naples currently stands at 6.06, indicating the months it would take to sell all the homes on the market at the current sales pace. This figure suggests a shift towards a more balanced market, particularly compared to the tighter seller's market conditions experienced over the past several years. A higher supply of inventory, such as this, typically points to a Naples buyer's market, giving buyers more options and negotiating power.
Statewide, inventory levels have similarly increased, with Florida’s housing supply reaching around 4.3 months as of mid-2024. While this is still below the balanced threshold of 6 months, it represents an easing from the scarcity seen in previous years. The increase in inventory can be attributed to ongoing construction projects, including condo developments in South Florida, which have contributed to rising supply. This increased inventory is helping to moderate price growth and ease some of the competitive pressure for buyers across the state.
Inventory Growth and Its Implications for Naples Real Estate
In Naples, the 12-month change in months of inventory has surged by 83.64%, indicating a significant increase in the number of available homes over the past year. This trend mirrors statewide patterns, with a notable rise in the inventory of homes, especially condos. An increase in available properties can often result in decreased demand and longer market times for sellers, as buyers benefit from having more options.
The statewide increase in inventory levels, particularly in Naples and Southeast Florida, has led to a shift towards a more buyer-friendly environment. This change is also evident in the Naples condo market, where the supply has expanded significantly, and sales have slowed—reflecting a 21% year-over-year decline in Naples condo sales as buyers take their time making decisions in an increasingly less competitive market.
Median Days on the Market and Naples Pricing Trends
The Median Days Homes are On the Market in Naples currently stands at 75 days, indicating a longer time frame for selling properties than in previous years. This trend mirrors the extended sales timelines across Florida, with the Naples condo market experiencing a rise in median time to contract from 44 days in 2023 to 83 days in 2024—an 88.6% increase. Longer days on the market may suggest that Naples homes are priced too high for current market conditions or that buyer demand has softened amid economic pressures, such as rising interest rates and higher homeowners' insurance premiums.
Despite the extended timelines, Naples real estate pricing remains relatively strong. The List-to-Sold Price Percentage is currently at 95.1%, indicating that homes are still selling relatively close to their list prices. Similarly, statewide, the median percentage of the original list price received has decreased slightly, reflecting more negotiation room for buyers, but still indicating a stable pricing environment overall.
The Median Sold Price in Naples stands at $590,000, offering insight into the current pricing trends. Statewide, the median sale price for homes in Florida reached $419,000 in mid-2024, representing a slight moderation from the rapid increases seen during the pandemic years. In Naples, condo prices have seen mixed trends, with the median sale price for condos increasing by 5.7% year-over-year, reaching $527,500 in August 2024. This price increase underscores ongoing demand for properties in desirable areas, even as overall market conditions become more balanced.
Statewide Economic Factors and Affordability Initiatives Impacting Naples
Economic pressures, such as higher mortgage rates averaging over 6%, impact affordability across Florida, including Naples. Although the Federal Reserve cut interest rates in September 2024, making mortgages somewhat more accessible, affordability remains challenging for many buyers. Statewide, despite increased inventory levels, the market continues to see demand outpace supply in many areas, particularly for high-quality single-family homes.
Florida has introduced the Live Local Act to address affordability issues, a statewide initiative aimed at creating affordable and workforce housing. This act is crucial for areas like Naples, where rising property values have priced many essential workers out of the housing market. By incentivizing multifamily developments with affordability requirements, the Live Local Act aims to create more accessible housing options, which could help mitigate some of the pressures in the Naples real estate market.
Looking Ahead: Naples Real Estate Market Expectations for 2025
These metrics suggest that the Naples real estate market is shifting toward a more balanced state, with increased inventory and longer days on the market providing buyers with more opportunities. Sellers may need to adjust their pricing strategies to remain competitive in the current environment, mainly as economic factors such as interest rates and insurance costs weigh on buyer affordability.
Looking forward to 2025, the statewide forecast predicts continued demand for single-family homes, while Naples condo sales are expected to remain flat. Interest rate cuts expected towards the end of 2024 could spur a recovery in sales, particularly for single-family homes, with potential price increases of up to 10%. In Naples, understanding these evolving market dynamics will be essential for buyers and sellers to navigate successfully. Buyers can benefit from the increased inventory and softer market conditions, while sellers must stay flexible and realistic to achieve their desired outcomes.
