Naples, Fla. – The Naples real estate market witnessed significant changes in June 2024. According to the Naples Area Board of REALTORS® (NABOR®), overall inventory surged by 59 percent compared to June 2023. However, this increase in options didn't translate to more closed sales, which fell by 17.3 percent, from 859 in June 2023 to 710 this year. The data, encompassing home listings and sales in Collier County (excluding Marco Island), also revealed a slight decline in the overall median closed price by 0.8 percent, dropping from $600,000 in June 2023 to $595,000 in June 2024.

Pricing Adjustments and Market Trends

Broker analysts emphasize that a consistent number of price reductions and more realistic pricing by sellers are essential for the Naples market to find its new “sweet spot” for home buying. The June report highlighted 1,351 price reductions compared to just 94 price increases. With a 95 percent list-to-sale price ratio, it appears sellers are increasingly adjusting their initial asking prices to align better with current market conditions, showing a willingness to negotiate to secure buyers.

A Bounty of Options

Summer buyers will benefit from an increased inventory. The 59 percent rise in available properties brought the total to 4,680 in June 2024, compared to 2,943 in June 2023. Confidence in the market remains steady, with new listings increasing by 1.5 percent from 882 in June 2023 to 896 this year. This inventory boost was primarily driven by a 9 percent increase in new condominium listings, despite a 3.9 percent decrease in new single-family home listings.

While inventory is nearly evenly split between single-family homes and condominiums, market trends diverge. The median closed price for single-family homes fell by 3 percent, from $752,500 in June 2023 to $730,000 in June 2024. Conversely, the median closed price for condominiums rose slightly by 0.8 percent, from $481,250 to $485,000.

Geographic Standouts

The South Naples area (34112, 34113) reported the highest inventory increase at 80 percent, with the median closed price rising by 1.1 percent to $477,500 from $472,500 in June 2023. In contrast, North Naples (34109, 34110, 34119) experienced the largest decrease in median closed price, dropping 15.2 percent from $740,000 in June 2023 to $627,500 in June 2024.

Insights from Mike Shoaff, RE/MAX Real Estate Agent

RE/MAX Real Estate agent Mike Shoaff provides additional insights into the current market dynamics. Shoaff notes that while overall pricing remains strong compared to a year ago, many sellers had overinflated their list prices in 2023. This has led to price corrections, bringing values back to 2023 levels.

"I believe the sellers who were testing the waters overvalued their properties by 10+ percent, and we see those prices dropping now," Mike Shoaff says. "A lot of sellers are listing to list and not listing to sell. If a property was listed at market value in 2024, it sold. If it was inflated, it’s probably still on the market today. Those who reduced prices may have done so too late and sold for less than if they had priced their property correctly from the start."

Shoaff emphasizes the importance of pricing properties based on sold comparable sales and working with a knowledgeable listing agent. "If you want to sell, price the property right, and you will see it under contract in 30 days or less. Buyers are still looking, but they are savvy and do not want to overpay. They are willing to wait it out."

For more details on listing a home in the Naples area, contact Naples top REALTOR® Mike Shoaff today.

Summary

The NABOR® June 2024 Market Report offers comprehensive comparisons of single-family home and condominium sales, including price ranges and geographic segmentation. It provides an overall market summary with sales statistics presented in chart format, reflecting the evolving dynamics of the Naples real estate market.