July Naples Real Estate Report Shows Home Sales Were Slow This summer

Naples, Fla. (August 30, 2024) – Closed sales of properties in Naples during June and July declinedcompared to the same months in 2023. According to the July 2024 Market Report by the Naples AreaBoard 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 15.7percent, convincing broker analysts who review the report that we can expect similar closed salesperformance in August.

Chasing Yesterday’s WaveBroker analysts reviewing the monthly Market Reports have been comparing NABOR® data from 2019 todata reported in 2024 – pointing to the fact that 2019 was the last year when our housing market activitywas “normal” (pre-pandemic). Budge Huskey, CEO, Premier Sotheby’s International Realty, pointed out,“If we compare year-to-date [2024] market results to 2019, sales are down 16 percent. For July, we aredown 29 percent compared to July 2019.”

Overall inventory has been climbing for the last 28 months. For July, inventory increased 50.5 percent to4,352 properties from 2,892 properties in July 2023. There are 6.2 months of inventory available, up 59percent from 2.9 in July 2023. Conversely, overall closed sales have been declining since July 2021, or 36 months ago.

Priced Right to SellPrecisely put by Huskey, “inventory levels have returned to more historically normal levels yet wellabove where we were the last couple of years. With the additional competition for sellers, too many stillexpect to receive aspirational prices when we have fewer buyers seeking greater values.”On average, home values in Naples have increased 50 percent since 2019, due in large part to the buyingfrenzy of the pandemic. But it’s over. Inventory has increased substantially, and sellers need to heed theirREALTOR®’s recommendation to price their homes competitively for today’s market. Factors such ashigh interest rates and high insurance premiums are creating financing obstacles for a large number ofbuyers. Additionally, the number of cash sale transactions is decreasing, 51.9 percent in July compared to 61.2 percent in January 2024

Median closed price during both June and July decreased .8 percent. In July, the overall median closedprice was $590,000 compared to $595,000 in July 2023. For both summer months, reductions in themedian 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.

Old Habits are Hard to BreakAccording to Cindy Carroll of Carroll & Carroll Appraisers & Consultants, LLC, Naples has two distinctmarkets right now. “There is plenty of inventory within five miles of the beach, but virtually none east ofCollier Boulevard. The rate of growth in Golden Gate Estates and in and around Ave Maria today isunreal.”A venerated property appraiser, Carroll confirmed Huskey’s comment about less motivated sellers inNaples adding that she tracks inventory levels throughout Naples and is seeing behavior that isreminiscent of 30 years ago when people listed their homes during winter season, and if it didn’t sellcancelled the contract before summer. “For instance, Aqualane Shores had 3.5 years of inventory inJanuary 2024, but in July it had 1.6 years of supply. This drop is not due to sales because we see a largenumber of the same properties re-added to the market each winter. But this behavior is not occurring inGolden Gate Estates, where demand is outpacing supply.”Sellers should be forewarned: If you are attempting to time the market because you believe you can get ahigher price for your home when more buyers are predicted to be in town during the winter season, youmay regret your decision. More inventory will require sellers price homes more competitively andentertain more buyer negotiations.

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