Naples, FL Housing Market: A Shift Towards a Buyer's Market
The Naples, FL metro area housing market is currently experiencing a notable shift, characterized by declining sales prices and increased inventory. As of September 2024, the Median Sales Price stands at $589,950, reflecting a year-over-year decrease of 5.2%. This decline in sales prices suggests a cooling market, potentially offering more opportunities for buyers.
Conversely, the Median List Price has seen a slight increase of 2.2% year-over-year, now at $669,000. This divergence between sales and list prices indicates that sellers may still be optimistic about their property's value, despite the downward pressure on actual sales prices. The median Price Per Square Foot has decreased by 2.5% to $339.67, while the Median List Price per square foot has dropped by 3.7% to $384.67, further highlighting the market's current dynamics.
Sales activity has slowed significantly, with Homes Sold down by 17.0% year-over-year, totaling 568 units. Pending Sales have also decreased by 19.5%, indicating a continued slowdown in buyer activity. New Listings have seen a modest decline of 1.4%, suggesting that while fewer homes are entering the market, the existing inventory is sufficient to meet current demand.
Inventory levels have surged by 36.6% year-over-year, reaching 4,348 units. This increase in available homes has contributed to a substantial rise in the Months of Supply, now at 7.7 months, a 300% increase from the previous year. Such a significant rise in supply indicates a shift towards a buyer's market, where buyers have more options and potentially more negotiating power.
The Median Days on Market have increased by 39.0% to 86 days, further emphasizing the slower pace of sales. The average sale to list ratio has slightly decreased to 94.9%, down by 0.9% year-over-year, indicating that homes are selling closer to their list prices but still below them. The percentage of Homes Sold above list price has dropped by 4.3% to 3.9%, suggesting that competitive bidding situations are becoming less common.
Price Drops have remained relatively stable, with a slight decrease of 0.5% year-over-year, now at 19.6%. This stability in price reductions indicates that sellers are adjusting their expectations in response to market conditions. Additionally, the percentage of homes going off the market within two weeks has decreased by 12.7% to 16.1%, reflecting the slower pace of transactions.
Overall, the Naples, FL metro area housing market is experiencing a transition towards a more balanced or buyer-favored environment. With declining sales prices, increased inventory, and longer days on market, buyers may find more favorable conditions, while sellers may need to adjust their strategies to align with the current market realities.
