MARKET UPDATE

In May 2024, the Naples housing market saw a significant increase in inventory, rising 67.1% to 5,019 properties compared to 3,004 in May 2023. Despite this, closed sales dropped 12.2% to 907 from 1,033 the previous year. New listings increased by 18.4% to 1,201, and price decreases outnumbered new listings, suggesting a shift towards more realistic pricing. The median closed price remained steady at $650,000, an 8.3% increase from May 2023. Inventory growth was notable in lower-priced categories, with properties under $300,000 increasing by 104% and those between $300,000 and $500,000 increasing by 90.1%.

However, high home prices and financing difficulties, with many buyers struggling to qualify for loans, continue to challenge the market. In May, single-family home sales fell 8.1%, while condominium sales dropped 16%. Prices for single-family homes increased by 14.1% to $850,000, while condominium prices rose 4.7% to $505,000. Geographic trends showed significant price variations, with a 26.1% decrease in median prices in the Naples Beach area and a 43.6% increase in South Naples. The Central Naples condominium market saw only a slight increase in median prices.

Overall, the Naples housing market is characterized by a unique dynamic driven by lifestyle preferences rather than job relocations, with both buyers and sellers exhibiting patience and selective behavior.