The March 2025 Market Report published by the Naples, Florida, Board of REALTORS® (NABOR®), confirms that the Naples area housing market has officially become a ‘buyer’s market’ – where supply exceeds demand – as reflected in a 36.1% increase in overall inventory to 7,483 properties from 5,500 properties in March 2024. Overall closed sales decreased 9.3% in March to 820 from 904 closed sales in March 2024, putting pressure on sellers to drop prices before ‘season’ ends. Even with 3,305 price decreases reported during March – the highest on record – overall pending sales still decreased 7.3% to 1,212 from 1,300 pending sales in March 2024. This is good news for buyers as there are more choices, less competition and better terms to be negotiated. Sellers should expect a home to be on the market longer now and they are being encouraged to entertain offers and contingencies.
Inventory levels finally exceeded pre-Covid levels in March – 7,483 properties vs. 6,829 properties in March 2019. With more options for buyers to consider, days on market for March increased 26.5% to 86 days from 68 days in March 2024. Furthermore, the 5.1% increase in new listings during March to 1,617 from 1,538 new listings in March 2024 has pushed our market to 11.4 months of supply compared to 7.7 months of inventory in March 2024. For buyers, this is a rare opportunity to negotiate their way into paradise.
According to Cindy Carroll of Carroll & Carroll Appraisers & Consultants, LLC: “Sellers who purchased a property in Naples at the top of the market during the pandemic and did major home renovations may not get back all the money they put in.” Yet, she admits that there are exceptions depending on where the home is located. “Some neighborhoods in Aqualane Shores, Old Naples, off Crayton, and in Lake Park are oversaturated with spec homes, which is hurting the resale market. If you’ve been waiting months to get your price, thinking things will be better, that’s not a good strategy today.” Carroll announced that she is seeing a half percent decrease in home values each month in some market areas and predicts the market value decline may be up to 1% per month by the end of summer.
While the median closed sale price barely changed compared to March 2024, it decreased 2.4% compared to February. The median closed sale price of single-family homes was unchanged year over year. However, the median closed sale price of condominiums decreased 7.1%. Sellers who are goal oriented should look at the closed sale price of the most recent comparable closings in their neighborhood. With the supply of homes for sale on the rise, those chasing the market with small incremental price decreases each month will be disappointed. But those willing to sell for fair market value are going to get ahead of the market, sell faster, and net a high return.
The Report also identified the top issues contributing to slow sales today: economic uncertainty, sellers who aren’t willing to lower their list price, and buyers on the fence because they believe prices are going to drop further.