Naples May Real Estate Report: Home Prices Stay Stable

Naples, Fla. (June 23, 2023) – A modest decline in the overall median closed price in May, coupled with a decline in the number of new listings, indicates a window of opportunity for buyers and sellers this summer. According to the May 2023 Market Report by the Naples Area Board of REALTORS® (NABOR®), which monitors home listings and sales within Collier County (excluding Marco Island), the overall median closed price decreased by 1.2 percent, from $607,500 in May 2022, to $600,000. In addition, there were 1,045 price reductions and a 31.2% decline in new listings during the month.“More and more sellers in Naples are adopting the mindset that they must be willing to negotiate on price,” said Jillian Young, president of Premiere Plus Realty, whose statement is supported by data from the May report indicating a 3.8 percent decrease in the percentage of list price received to 96.3 percent from 100.1 percent in May 2022.Although broker analysts reviewing the report noted out that an increase in negotiations does not indicate that home prices in Naples are falling, this does not mean that negotiations are increasing. In fact, according to Molly Lane, Senior Vice President at William Raveis Real Estate, “many people believed that after Hurricane Ian, home prices would decrease. Nonetheless, costs remain unchanged.” In May, the median closed price for condominiums remained unchanged month over month, while the median closed price for single-family homes decreased by 6.5%.In May, there were 990 fewer new listings compared to 1,438 new listings in May 2022. Fewer new listings are straining the overall housing inventory, which is still recovering from the frenzied purchasing that occurred during the pandemic. Young added, “This year, new home construction is not keeping up with demand, and a few homes on the resale market have languished for several months because they are not move-in ready.We’re discovering that there are fewer buyers willing to purchase a home that needs work.”In the past year, a monthly average of 100 new residences have been added to the inventory. In May, the aggregate housing supply increased by 27.6% from 2,155 homes in May 2022 to 2,749 homes. There are historically fewer properties on the market during the summer compared to the winter, which reduces competition, according to broker analysts reviewing the May report.The majority of homeowners who purchased a home in Naples within the past five years have experienced a significant increase in equity, so the profit they realize from a sale will likely counteract any increase in mortgage payments they may incur for a higher-priced home with a higher interest rate.In May, pending and closed sales decreased by 4.4% and 20%, respectively, compared to the previous year.Sherry Stein, CRB, Managing Broker at Berkshire Hathaway HomeServices, stated, “Many buyers are waiting for interest rates to go down, but this summer may be a good time to buy a home because when rates go down, buyer demand will increase and home prices will likely increase as well.”

Original article from Naples Area Board of Realtors.

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