Naples, Fla. (May 31, 2024)The payoff of months of rising inventory was finally realized in April as closed sales increased by 3.8% to 999 closed sales from 962 closed sales in April 2023.

This is the first month closed sales have exceeded past years’ monthly comparable sales since June 2021. According to the April 2024 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), the 2,365 price reductions in April stimulated sales in the right direction.

Growth in inventory does not appear to be slowing down either, as new listings in April increased 16.3% to 1,335 new listings from 1,148 new listings in April 2023.

Infographics April 2024 - Greater Naples Real Estate

“Three things could help our market if they trended in the right direction: mother nature, insurance, and interest rates. But those are out of our control.”

Broker analysts believe “Interest rates are likely to stay above 5% for a long time.” But Jeff Jones, Broker at Keller Williams Naples, added that there is good news on the insurance front as “nine new companies have recently entered the Florida market, and 19 others have said they will lower rates or at least not increase them in 2025.”

The New Average

Demand for the Naples lifestyle increased during the pandemic, which depleted inventory for homes in the under $300,000 market – there were 315 homes for sale under $300,000 in April.
Conversely, demand for luxury properties has soared, especially in the $500,000 to $1.5 million price category, which increased 68.1% compared to April 2023 and occupies the highest number of properties available (2,410) in the current inventory.

“The average closed price in Naples is over $1 million,” remarked Budge Huskey, CEO, Premier Sotheby’s International Realty.


However, according to the report, closed sales influencing the overall average price growth was in the Naples Beach area.
For April, the average closed price of single family homes in communities located in the Naples Beach area (34102, 34103, 34108) increased 61.6% to $4,309,475 from $2,666,512 in April 2023.
That said, this area was also where a large majority of properties sold for less than original list price as the percentage of list price received decreased to 93.3% for single family homes and 94.8% for condominiums. This indicates sellers are reducing prices to meet the market.

Future Fit & Forward

According to the April report, the average monthly inventory in Naples is back to its familiar pre-pandemic level. April’s inventory increased 68.1% to 5,240 properties from 3,118 properties in April 2023. 

And the months supply of homes is up to 7.3 months. Huskey commented, “Typically, we begin to see prices slide once the months supply gets above 6 months, but we’re not seeing this in our market today. Inventory is growing, and prices remain stable.”

“Home values have doubled since 2019,” said Cindy Carroll of Carroll & Carroll Appraisers & Consultants, LLC. “And there’s no indication that homeowners are at risk of losing this growth in value.”

Carroll said there will be spots in the county that will experience a slight loss in value, but nothing on a large scale or that would take us back to pre-pandemic prices. “I am unable to find anything in my research that is alarming.
The thing we have to focus on now is re-educating our sellers on home prices today. Their home’s value has likely increased, but the number of price reductions each month tells me that prices are still starting out too high. If a home is not priced competitively when it’s listed, sellers will likely need to lower the price to meet the market.”

“It’s time to shake off the COVID years,” said Sherry Stein, CRB, Managing Broker, Berkshire Hathaway HomeServices. “Compared to 2019, we are doing great today with higher inventory, low days on market, and remarkable increases in overall home values.”

As more high-end buyers discover the allure of Naples, broker analysts do not foresee the median closed price decreasing dramatically.
For April, the overall median closed price increased 4% to $450,000 from $425,000 in April 2023. Though price adjustments are moving the needle in certain markets. April reported 2,365 price decreases, which decreased the median closed price 3.2% in the single family home market to $793,750 from $820,000 in April 2023.

The NABOR® April 2024 Market Report compares 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:

Naples Chart - April 2024 - Greater Naples Real Estate

Busting Assumptions

The cost of building is higher than before the pandemic, too. Mike Bone, Area Sales Manager, D.R. Horton, says, “The average new construction entry-level price today is around $450,000 in Southwest Florida.”

The heightened cost to repair or rebuild is a primary factor in rising insurance rates. Yet, with more buyers in Naples paying cash – 65.4% of all transactions recorded in April – insurance and interest rates may not be as great an obstacle as some assume.

Growth in overall closed sales in April shows that the Naples real estate market is on track to outperform sales in 2023. “Historically, May has the highest number of closings,” said Huskey. Molly Lane, Senior Vice President at William Raveis Real Estate remarked, “If we can continue the growth we saw in April closed sales in May, this portends good things to come for our market.”

View Detailed Statistics for April 2024...