As reported this week, according to data collected by the Naples Area Board of Realtors, here is a summary of the Naples Real Estate market activity.
Naples, Fla. (September 27, 2024) – The median closed price for homes in Naples during August 2024 was $600,000. This is the same price as reported in July 2024 and, by coincidence, August 2023. According to the August 2024 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), there were 1,096 price decreases during August. While this is the lowest number of price decreases reported for a month so far in 2024, it does indicate that sellers are continuing to adjust their prices to better reflect today’s housing market.
Monthly inventory levels have risen compared to 2023 statistics (40.3 % in August) and they have been decreasing over the last five months. Broker analysts speculate this trend is short lived as there have been 1,861 units withdrawn from the MLS in the past 120 days. Another local broker said, “This is a common trend annually as some sellers pull down their listings because they don’t think they’ll get the highest price during “off” season months. Unfortunately, if inventory begins to rise in the coming months, in anticipation of our winter season visitors, the added competition will likely put pressure on sellers to lower their initial list prices or entertain offers below list price.”
In March, Naples enjoyed 5,283 properties in inventory. Yet by the end of August, inventory had decreased 28 percent to 4,127 properties. Though compared to August 2023, inventory has increased 40.3 percent from 2,942 properties. That is a huge jump in inventory year-over-year!
Overall closed sales in August decreased 27.8 percent to 524 closed sales from 726 closed sales in August 2023. ‘Setting the Cruise Control’ According to Cindy Carroll of Carroll & Carroll Appraisers & Consultants, LLC, “Similar to the Naples housing market’s performance from 1992 through 1996, the current housing market is taking a much-needed intermission from the harrowing ups and downs it experienced during the last few years.” Carroll contends that it takes a long time for market participants to reset their minds after coming out of a series of crazy appreciation years. I have to agree with that, as many of our sellers are still hanging onto the market peak prices. She added, “The median closed price is holding steady, with no declines in the last year. This is the proof we finally need to see that people are gradually accepting today’s market reality.” ~I contend that since the luxury market is strong, and median prices remain constant, that signals a downward pressure on lower price points.
It is interesting to report that sales of properties over $5 million are performing better than other price categories that NABOR® tracks. Though it’s taking longer for them to sell. Condominium sales in this top price category increased 28.1 percent to 41 condominiums over $5 million in August 2024 compared to 32 condominiums over $5 million in August 2023. Single family home sales in this price category for August increased 3.2 percent to 161 single family homes over $5 million from 156 single family homes over $5 million in August 2023. However it is important to note, the median closed price in this price category decreased 13.5 percent in August to $6,095,000 from $7,050,000 in August 2023.
Another local broker brought to my attention the fact that although “Days on Market” are up 51.9 percent, historically, this is still low. The norm for our area is 90 to 110 days. He added, “Buyers of condominiums should work closely with a REALTOR® to determine the full cost of ownership. Especially for condos three stories and higher that are 25 years or older as the costs of ownership may rise significantly due to flood disclosures and insurance costs, and the results of milestone structural inspections, which may require associations increase reserves or reveal some imminent and costly repair needs.”
Whether you are looking to buy or sell, please consider hiring The NaplesRealEstate.com Team. They have served Naples since 1981, and are licensed with Coldwell Banker Realty which recently celebrated their 118th year in the real estate business!
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