March Housing Market Report: Buyers Take the Lead as Naples Inventory Surges

Naples’ real estate market took a definitive turn in March 2025, favoring buyers for the first time in recent years. A significant increase in active listings, coupled with a slowdown in both pending and closed sales, has reshaped the dynamics in Collier County’s residential market.

Inventory Boom, Sales Slowdown
Inventory soared to 7,483 homes — a 36.1% jump from March 2024 — officially surpassing pre-pandemic levels and offering buyers more leverage in negotiations. However, this growing supply hasn’t been met with equal demand. Closed sales fell 9.3% year-over-year, landing at 820 for the month, while pending sales dropped 7.3% to 1,212.

Despite the largest monthly number of price reductions on record (3,305 in March), buyers remain selective, often waiting for even better deals. Homes are staying on the market longer, with average days on market climbing to 86 — a 26.5% increase over last year.

Price Adjustments & Market Pressure
Prices across the region are stabilizing or declining. The median closed price for all property types was virtually flat at $650,000, up just 0.1% from the previous March. Compared to February 2025, however, the median price dropped by 2.4%.

Single-family homes held steady at $770,000 year-over-year, but condos saw a noticeable dip in value, with median prices falling 7.1% to $486,000. Some neighborhoods with high concentrations of speculative new construction are under added pressure, pushing values down further in those areas.

Seller Strategies Must Shift
Sellers are being advised to adjust their expectations. Overpricing homes in this environment often results in prolonged listing times and repeated reductions. Accepting fair market offers early on may prove to be more profitable in the long run, especially when factoring in the ongoing costs of holding unsold property.

Contributing factors to slower sales include economic uncertainty, rate-locked homeowners reluctant to give up low-interest mortgages, and buyer hesitation due to expectations of further price drops. Sellers who remain inflexible on price are more likely to be left behind as inventory builds.

Condos vs. Single-Family Homes
Condominiums faced the largest inventory increase at 42.8%, rising from 2,787 to 3,979 units. Sales volume declined by 6.8%, and median pricing dropped over $37,000 year-over-year.
Single-family homes saw a 29.2% increase in inventory and an 11.7% drop in closed sales, holding pricing steady — for now.

Not All Discounts Are Obvious
Price reductions aren’t always fully captured in MLS data. The final recorded sales price often reflects the most recent listing price, not the original. In many cases, homes undergo multiple price drops or are temporarily taken off the market before being sold. Additional buyer incentives — like closing cost credits or interest rate buydowns — may also be negotiated behind the scenes.

The Bottom Line
Buyers now have the upper hand with more choices, less competition, and room to negotiate. Sellers who adjust to the reality of current market trends and price strategically can still walk away with strong returns — but only if they move quickly and realistically.