As Reported in The Naples Area Board of REALTORS®:
The Naples real estate market kicked off 2025 with strong momentum, as buyers and sellers saw new opportunities amid rising inventory and stable price trends. According to the latest report from the Naples Area Board of REALTORS® (NABOR®), closed sales in January increased by 12%, with 551 homes sold compared to 492 in January 2024.
Inventory Expands, Giving Buyers More Choices
“A key development in January was the sharp rise in available homes. Total inventory grew by 39.5%, increasing from 4,881 active listings in January 2024 to 6,808 this year! This boost in supply gives buyers more options than they’ve had in the past five years, while sellers must now navigate increased competition. New listings surged by 22.6%, jumping from 1,822 last January to 2,233. While this indicates growing seller confidence, it also means buyers may take longer to make decisions, as they have more properties to compare.
Homes Taking Longer to Sell
The time it takes to sell a home has lengthened, with the average days on market rising to 92—an increase of 50.8% from the 61-day average a year ago. However, this is still lower than the 107-day average seen in January 2020, before the pandemic housing boom. However, Pending sales, which reflect homes under contract but not yet closed, declined by 8%, dropping from 1,010 in January 2024 to 933 this year. This suggests that some buyers are waiting to see how market conditions develop before making a purchase.
Diverging Trends for Single-Family Homes and Condos
The market behaved differently for single-family homes and condominiums.
Single-family home sales increased by 20.9%, with 301 properties sold compared to 249 last January. The median price of single-family homes rose 6.7% to $800,000.
Condominium sales inched up 2.9%, from 243 to 250, but prices declined by 2.7%, falling to $466,000. Inventory for condos increased significantly, rising by 48.7% from 2,411 to 3,584 units.
Market Trends by Price Range and Location
Inventory growth was particularly strong in both the lower and upper ends of the market:
The number of homes available for $300,000 or less skyrocketed by 84.3%, rising from 300 listings last year to 553 this January.
The luxury market ($5 million and above) also saw a notable inventory increase, up 19.7% to 499 properties from 417 last year.
Geographically, North Naples (34109, 34110, 34119) led the market in activity, with a 5% rise in sales. Single-family home prices in this area increased 13.4% to $730,000, while condo prices dropped 8.4% to $466,000. Meanwhile, Central Naples (34104, 34105, 34116) saw the sharpest price decline in the condo sector, with the median price falling 13.5% to $311,250.
What This Means for Buyers and Sellers
The increase in inventory and longer selling times suggest a shift toward a more buyer-friendly market. With more homes available, buyers now have greater negotiating power, especially in areas where price reductions are becoming more common.
Sellers, on the other hand, need to be mindful of pricing strategies. The report noted that 2,668 price reductions occurred in January alone, highlighting the importance of setting realistic expectations in a competitive landscape.
With interest rates stabilizing in the 6-7% range, many sellers who had been holding off due to lower mortgage rates in previous years are now entering the market. This, combined with economic factors such as insurance costs, inflation, and policy changes, is shaping the real estate landscape in Naples for 2025.
As the market evolves, buyers and sellers alike will benefit from staying informed and working with knowledgeable real estate professionals to make the most of the opportunities available.”
It is always best to call a trusted professional to help you navigate through a changing and challenging real estate market. The NaplesRealEstate.com Team hopes to hear from you soon and looks forward to earning your trust and future real estate business here in SW Florida. 1-239-250-4370
Thank you!
The Naples Real Estate Blogger
