The inventory of homes held for sale in Naples, Florida, increased 37.3% in September to 4,288 properties from 3,123 properties in September 2023, which should benefit potential home buyers. According to the September 2024 Market Report by the Naples Area Board of REALTORS® (NABOR®), the rise in inventory was met with buyer interest as pending sales (sales under contract) during September increased moderately by 1% to 622 pending sales from 619 pending sales in September 2023. Yet, closed sales decreased 13.2% in September to 527 closed sales from 607 closed sales in September 2023, and the rise in days on the market (from 59 in September 2023 to 83 in September 2024) means it is now taking longer for homes to sell.
For the Naples, Florida, market the months’ supply in September was 6.3 months. Nationally, a six months’ supply is associated with a balanced market. However, according to Cindy Carroll of Carroll & Carroll Appraisers & Consultants, LLC, “The Naples market is unique, and in my experience, a 12 months’ supply of homes has historically been where our market enjoys a balance.” A balanced housing market is when the supply of homes for sale is roughly equal to the demand from buyers. In a balanced market, neither buyers nor sellers command an advantage, and prices tend to remain stable. Carroll remarked that, “Given the increase in inventory, I would expect to see more prices decreases. But I have not seen a loss in value yet.”
The overall median closed sale price in September increased modestly by 2.4% from September 2023. However, in the condominium market, the median closed sale price decreased 4.3% year over year, reflecting downward pricing pressure for older coastal condominiums in Florida, because the costs of ownership could rise significantly, due to flood risk exposure, increasing insurance costs, as well as the newly required milestone structural inspections. If the inspection reveals a potential structural issue, associations will be required to special assess funds to cover any repairs.