January Market Update: Promising Opportunities for Buyers and Sellers

Naples, Fla. (February 21, 2025) – The Naples real estate market kicked off 2025 with encouraging news for both buyers and sellers. According to the latest Market Report from the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales in Collier County (excluding Marco Island), closed sales rose 12% year-over-year. In January, Naples recorded 551 closed sales, up from 492 in January 2024. The median closed price also climbed 9.4%, reaching $659,000 compared to $602,000 last year.

"The notable 22.6% increase in new listings this January demonstrates strong seller confidence in our local market," said Jillian Young, President of Premiere Plus Realty. "Buyers are benefiting from more options than they’ve seen in the past five years."

Market Trends and Buyer Opportunities While overall market activity remains robust, homes are spending more time on the market. The average days on market increased to 92 days, up from 61 in January 2024. Still, this figure is below the pre-pandemic average of 107 days in January 2020.

Pending sales saw an 8% dip to 933 contracts in January 2025 from 1,010 the previous year, with some buyers taking a wait-and-see approach. "Out-of-state buyer activity has slowed slightly, reflecting softer markets in some northern states," said Mike Shoaff, REALTOR® with REMAX Hallmark Naples. "However, the overall health of Naples real estate remains strong as we head deeper into the year."

Rising interest rates have also influenced market behavior. "Many sellers hesitated earlier in the year due to their low mortgage rates," noted Wes Kunkle, President of Kunkle International Realty. "But with buyers adjusting to 6-7% interest rates, listings surged as 2025 began."

Inventory Growth Creates a Balanced Market Inventory expanded significantly, up 39.5% to 6,808 active listings from 4,881 a year ago. With more homes available, buyers can be more selective, while sellers must stay competitive with pricing and terms. January also saw 2,668 price reductions across the market.

"If your home isn’t attracting showings, it’s likely priced above the market," said Mike Shoaff. "Today’s buyers are mindful of costs, including insurance and taxes. Sellers should work with a knowledgeable REALTOR® to navigate these shifting dynamics and price their homes competitively."

Market Segment Highlights

• Single-Family Homes: Closed sales rose 20.9% to 301, with a median closed price of $800,000, a 6.7% increase from last year.

• Condominiums: Closed sales increased modestly by 2.9% to 250 units. The median closed price dipped 2.7% to $466,000, while inventory surged 48.7% to 3,584 units.

• Affordable Options: Properties priced at $300,000 and below saw an 84.3% inventory increase, offering more entry-level opportunities.

• Luxury Market: Listings in the $5 million+ range rose nearly 20%, reaching 499 active listings.
  
  

Geographic Insights North Naples (zip codes 34109, 34110, 34119) recorded a 5% increase in sales, with single-family home prices up 13.4% to a median of $730,000. Conversely, Central Naples condominiums experienced a 13.5% price decline, dropping to $311,250.

Looking Ahead "Sellers with substantial equity gains over the past five years can still capitalize on favorable prices," said Shoaff. "But with rising inventory and price adjustments, strategic pricing and flexibility are key to attracting buyers in today’s market."

Whether you’re planning to buy or sell, working with a local expert is essential. Connect with Mike Shoaff, your trusted Naples FL real estate agent and REALTOR® with REMAX Hallmark Naples, for tailored advice and market insights to help you achieve your real estate goals.