Naples Housing Market Update – May 2024
Naples, Fla. – The housing market in Naples is seeing notable changes as we head into the summer, and the May Market Update from NABOR was just released. The inventory of available properties has increased dramatically, with a 67.1% rise from 3,004 properties in May 2023 to 5,019 properties in May 2024. However, despite the increase in available homes, closed sales have decreased by 12.2%, from 1,033 in May 2023 to 907 in May 2024. This trend suggests a shift towards a more balanced market where buyers have more choices.
Increased Listings and Price Adjustments
New listings in May saw an 18.4% increase, reaching 1,201 compared to 1,014 in the same month last year. The market has also seen a significant number of price decreases, with 1,710 reductions reported in May. This trend is a positive indicator for buyers as it signals that sellers are adjusting their expectations to match current market conditions. The median closed price in May remained steady at $650,000, identical to April’s figure, but up 8.3% from $600,000 in May 2023.
Affordable Housing Market Expands
One of the noteworthy outcomes of the rising inventory and price adjustments is the increase in properties available in the lower price categories. Listings for homes priced $300,000 and below have more than doubled, up 104% from 151 to 308. Similarly, properties priced between $300,000 and $500,000 have increased by 90.1%, reaching 1,032 from 543.
Geographic Market Trends
There are notable geographic disparities within the Naples market. For example, the median closed price for single-family homes in the Naples Beach area has decreased by 26.1% to $2,262,500 from $3,062,500. Conversely, in South Naples, the median closed price has increased by 43.6% to $930,000 from $647,500. The Central Naples condominium market remains the most affordable, with a modest price increase of 1.4%, bringing the median price to $355,000.
Condominium Sales Outlook
The upcoming structural integrity reserve law, effective by December 31, will impact condominium sales. The law mandates milestone inspections and financial reserves for maintenance, potentially leading to higher costs for current and future owners. This requirement may influence both sellers’ pricing strategies and buyers’ willingness to purchase older condominiums.
Conclusion
The current Naples housing market presents both opportunities and challenges. With increased inventory and price adjustments, buyers have more options, but financing hurdles remain significant. Geographic variations also play a crucial role in market dynamics, with some areas experiencing price decreases while others see substantial increases. As always, working with a knowledgeable REALTOR® is essential to navigate these complexities and make informed decisions in the Naples real estate market.
Expert Guidance
For those looking to buy or sell, now is an excellent time. Higher inventory and competitive pricing create favorable conditions. Partner with a knowledgeable Naples REALTOR® to navigate this dynamic market successfully.
It’s time.
Shawn Stuben