Naples, Fla. (November 29, 2024) – The housing market in Naples during October was remarkably resilient even as it faced interruptions from two major hurricanes. There were 1,179 new listings in October, a 13.9% increase compared to September. More inventory means more competition.
As such, the overall median closed price in October decreased 3.6% (year over year), which was fueled by an 8.1% decrease in the condominium market. Broker analysts reviewing the October 2024 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), agree that storm-ready homes and storm-familiar residents help the Naples housing market rebound quickly after a storm and these safeguards strengthen its reputation as a desirable homeownership destination.
A Month of Distractions
“October was an outlier month this year for home buyers because of the election too,” said Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc. “So, in addition to being distracted by the two storms, buyers were also distracted by the election and what it could mean for the economy. In the end, sales were down 21.6% for the month, but there were some positives too.”
Overall inventory continues to rise, and we are almost back to pre-pandemic (2019) levels. For October, inventory increased 30.9% to 4,746 properties from 3,627 properties in October 2023. And while new listings were down 6.6% compared to October 2023; they rose 13.9% compared to September 2024.
“Prices are beginning to reflect the added competition,” said Budge Huskey, CEO, Premier Sotheby’s International Realty. “Although prices remained stable in the single family market in October, we did see some downward pressure on condo prices during the month.”
The overall median closed price in October was $568,500, a 3.6% decrease from $590,000 in October 2023. The median closed price in the single-family home market increased 3.2% to $727,500 from $705,000 in October 2023. And for condominiums, the median closed price decreased 8.1% to $413,750 from $450,000 in October 2023.
“I was expecting a rush of sales in October because interest rates dropped in September,” said Jillian Young, President, Premiere Plus Realty. “Unfortunately, the overall pending and closed sales statistics didn’t meet my expectations. But the interest rate drop did make a difference as cash sales were only 48.6% of all sales reported in October. For many years, cash sales have been above 50%.”
The Impediments That Remain
As identified by Molly Lane, Senior Vice President at William Raveis Real Estate, a recent increase in home sales is contingent upon the buyer selling their home. “Power is beginning to shift to the buyer, but we are still only at 7.1 months of inventory, so we are not quite there yet.”
“A seller is chasing the market if they are not working with a REALTOR® to review prices of comparable new listings each month,” said Jeff Jones, Broker at Keller Williams Naples. “Every month a home doesn’t sell means the seller must carry the cost of homeownership. There were 1,003 price reductions on existing homes for sale in October too. Sellers need to stay competitive especially with our rising inventory.”
Sellers and buyers of condominiums may find some relief in the new year as state legislators may explore the possibility of delaying the deadline for mandated reserves. Structural studies must still be completed by December 31st, but associations won’t have to budget the money for reserves until they adopt their budgets for 2025. One option that may be explored during the 2025 Legislative Session is low or zero-interest loans for associations or condominium owners to help pay for special assessments.
The NABOR® October 2024 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. NABOR® sales statistics are presented in chart format, including these overall (single-family and condominium) findings for 2024:
Hurricane Ready Homes Abound
It’s been over 30 years since Hurricane Andrew tore through South Florida, necessitating new building standards and regulations. Since then, Florida and Naples have continued to make stormwater and infrastructure improvements a priority. As such, most homes today that are on or near the water in Naples can endure tidal surges and hurricane-force winds.
“Storm hardiness projects, like the installation of new stormwater pipes that were recently approved for the City of Naples to reduce street flooding, are a positive sign that we are continuing to move in the right direction, so our neighborhoods are safer and more resilient,” said PJ Smith, President of NABOR®, and the Broker/Owner of Naples Golf to Gulf Real Estate Services.
Jones pointed out that most homes in the Naples Beach area, including most of the area’s luxury properties, are already 12 feet above sea level. These homeowners also tend to invest in added storm protections. Also, NABOR® increased its member education in 2024 to include resources and classes that provide REALTOR® members with information on several factors influencing the cost of homeownership like home and flood insurance, building codes, new condo/HOA codes, and changing FEMA guidelines.
