The Naples, FL metro area housing market in January 2025 presents a dynamic landscape with notable shifts in key metrics. The Median Sales Price has risen to $699,607.50, marking a significant year-over-year increase of 11.0%. This upward trend in sales prices indicates a strong demand for homes in the area, despite broader market fluctuations.

Conversely, the Median List Price has seen a more modest increase of 3.7% year-over-year, reaching $777,450.00. This disparity between sales and list price growth suggests that while sellers are adjusting their expectations, buyers are willing to pay a premium, potentially due to limited inventory or desirable market conditions.

The median Price Per Square Foot has increased slightly by 1.6% year-over-year to $385.57, while the Median List Price per square foot has risen by 6.9% to $439.01. These figures highlight a competitive market where buyers are paying more per square foot, reflecting the overall appreciation in property values.

In terms of sales activity, the number of Homes Sold has increased by 12.0% year-over-year, totaling 626 transactions. However, Pending Sales have decreased by 17.1%, indicating a potential slowdown in future sales activity. This decline in Pending Sales could be attributed to various factors, including buyer hesitation or increased competition.

New Listings have surged by 18.5% year-over-year, reaching 2,188, while inventory has expanded significantly by 34.5% to 6,812 homes. The increase in inventory and New Listings suggests that more homeowners are entering the market, possibly in response to rising prices. However, the Months of Supply have dramatically increased by 180.0% to 10.90 months, indicating a shift towards a buyer's market where supply is beginning to outpace demand.

The Median Days on Market have increased by 13.0% to 67 days, reflecting a slower pace of sales. This trend, coupled with the average sale to list ratio declining by 0.9% to 94.7%, suggests that buyers are gaining more negotiating power, leading to longer selling times and potentially lower final sale prices relative to initial list prices.

Price Drops have increased by 2.0% year-over-year to 34.6%, further indicating that sellers are adjusting their pricing strategies to attract buyers. Meanwhile, the percentage of Homes Sold above list price has seen a slight increase of 0.2% to 4.3%, suggesting that while some properties are commanding premiums, the majority are selling at or below list price.

The percentage of homes going off the market within two weeks has decreased by 3.2% to 19.4%, reinforcing the trend of a slower market where properties are taking longer to sell.

Overall, the Naples, FL housing market in January 2025 is characterized by rising prices and increased inventory, with a notable shift towards a more balanced or buyer-favorable market. While demand remains strong, as evidenced by rising sales prices and increased transaction volumes, the growing inventory and extended selling times suggest that buyers may have more options and negotiating power in the coming months.