July Report Shows Soft Summer for Home Sales in Naples

Closed sales of properties in Naples during June and July declined compared to the same months in 2023. According to the July 2024 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), overall closed sales during July decreased 2.6 percent to 608 closed sales from 624 closed sales in July 2023. Furthermore, pending sales activity reported for July decreased 15.7 percent, convincing broker analysts who reviewed the report that we can expect similar closed sales performance in August.

Chasing Yesterday’s Wave

Broker analysts reviewing the monthly Market Reports have been comparing NABOR® data from 2019 to data reported in 2024 – pointing to the fact that 2019 was the last year when our housing market activity was “normal” (pre-pandemic).

The mad rush to relocate to Southwest Florida during the pandemic set a wave in motion based on the temporary increase in demand. Naturally, in response, prices began to increase as inventory vanished; down to 1,042 homes in inventory in December 2021. But this rush was short-lived, and many sellers have been slow to adapt to a new reality.

Overall inventory has been climbing for the last 28 months. For July, inventory increased 50.5 percent to 4,352 properties from 2,892 properties in July 2023. There are 6.2 months of inventory available, up 59 percent from 2.9 in July 2023. Conversely, overall closed sales have been declining since July 2021, or 36 months ago.

Priced Right to Sell

On average, home values in Naples have increased 50 percent since 2019, due in large part to the buying frenzy of the pandemic. But it’s over. Inventory has increased substantially, and sellers need to heed their REALTOR®’s recommendation to price their homes competitively for today’s market. Factors such as high interest rates and high insurance premiums are creating financing obstacles for a large number of buyers. Additionally, the number of cash sale transactions is decreasing, 51.9 percent in July compared to 61.2 percent in January 2024.

The median closed price during both June and July decreased .8 percent. In July, the overall median closed price was $590,000 compared to $595,000 in July 2023. For both summer months, reductions in the median closed price of single-family homes drove the overall median closed price decrease. Conversely, the median closed price of condominiums increased in June and July.

The NABOR® July 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:

Old Habits are Hard to Break

Sellers should be forewarned: If you are attempting to time the market because you believe you can get a higher price for your home when more buyers are predicted to be in town during the winter season, you may regret your decision. More inventory will require sellers to price homes more competitively and entertain more buyer negotiations.

If you are considering buying or selling your home, look to a Naples REALTOR® who has the ability to provide an accurate market comparison and give you expert advice on how to capitalize on today’s market conditions. A REALTOR® can ensure your next purchase or sale in the Naples area is a success. Search for your dream home and find a Naples REALTOR® on Naplesarea.com.