Naples, Fla. (July 26, 2024) – Despite a 59% increase in overall inventory during June (compared to June 2023), overall closed sales during the month decreased 17.3 % to 710 closed sales from 859 closed sales in June 2023. Data reflected in the June 2024 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), showed the overall median closed price decreased .8 % to $595,000 from $600,000 in June 2023. Broker analysts say a steady number of list price reductions each month coupled with more realistic prices set by sellers will help the Naples market find its new “sweet spot” for home buying.
It needs to be noted that the inventory decreased in June compared to the previous month (May 2024).
4,680 overall inventory in June 2024 - 5,283 in May 2024.
“I consider price reductions to be new listings because these homes become a new option for a larger pool of buyers,” said Jeff Jones, Broker at Keller Williams Naples. “This is helpful to buyers because June was the first month in 2024 where new listings were not above 1,200.”
Price reductions occur for many reasons: nearby comparative homes are priced lower, there have been no recent showings or offers, the home has received a low appraisal, or to attract more buyers.
The June report showed 1,351 price reductions compared to 94 price increases. Coupled with a 95 percent list to sale price ratio, the data indicates that sellers are making headway to adjust their initial asking prices to better reflect today’s market and, to some degree, are entertaining negotiations to secure a buyer.
Summer buyers will enjoy more home options as the inventory of properties continues to rise compared to the last three years.
In June, the 59 % increase in inventory resulted in an available pool of 4,680 properties compared to only 2,943 properties during June 2023. Plus, confidence in the market remains steady with overall new listings in June increasing 1.5 % to 896 new listings from 882 new listings in June 2023. Driving this influx of inventory was the number of new listings in the condominium market, which increased 9 % compared to a 3.9 % decrease in new listings for the single-family home market.
“The condominium market is challenging right now because fees are increasing to meet structural integrity reserve law requirements,” said Molly Lane, Senior VP at William Raveis Real Estate. Condominium sellers and buyers should work with an experienced REALTOR® because they can help figure out pricing, given the future financial impact of these new reserve requirements on condominium values. This knowledge can also help during negotiations.”
While inventory is nearly split between single-family homes and condominiums, the median close price in the single family home market decreased 3 % in June to $730,000 from $752,500 in June 2023, while the median closed price in the condominium market increased .8 % to $485,000 from $481,250.
The NABOR® June 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:
The South Naples area (34112, 34113) reported the highest percentage of inventory increase in June (+80%) compared to other geographic areas tracked by NABOR®. The median closed price in South Naples increased 1.1% in June to $477,500 from $472,500 in June 2023. Alternately, the North Naples area (34109, 34110, 34119) showed the highest decrease in median closed price in June (-15.2%) to $627,500 from $740,000 in June 2023.
Sales activity in the Naples area housing market during the off-season summer months is historically lower than sales activity reported during its high-visitor winter season. The days on market in June increased 56% to 78 days from 50 days in June 2023. According to Adam Vellano, managing director of South and Southwest Florida at Compass Florida, “Before the pandemic, we were between 90 and 120 days on the market, so we are still well below our traditional average.”
