The Naples real estate market closed 2024 with strong sales activity and rising inventory, providing new opportunities for both buyers and sellers. While condo prices saw a dip, single-family home prices held firm, and an increase in available properties helped shift the market toward more balanced conditions.

More Homes on the Market & Increased Sales Activity

The Naples housing inventory surged by 35.7% in December compared to the previous year, with 5,695 properties available for sale. The market also saw a 26% jump in new listings for December, reflecting seller confidence.

Annual market data for 2024:

• 15,459 new listings were added (a 15.7% increase from 2023).

• 10,090 properties went under contract (pending sales).

• 7,966 homes were sold (closed sales).

• December 2024 alone saw a 4.6% increase in closed sales, reaching 594 transactions compared to 568 in December 2023.

• 57.9% of December sales were cash transactions, underscoring continued demand from affluent buyers and investors.

With a higher number of available homes, the average days on the market increased by 42.4% to 84 days, compared to 59 days in December 2023.

Price Trends: Condo Prices Decline, Single-Family Homes Rise

The overall median closed price fell 4% to $600,000 in December, driven mainly by a 13.9% decline in the condo market, where prices dropped to $447,750 from $520,000 in December 2023.

In contrast, single-family home prices increased by 2.3%, with the median price rising to $767,500 from $750,000 in December 2023.

Mid-Range & Luxury Homes Drive Market Activity

Properties priced between $500,000 and $1.5 million dominated Naples home sales, accounting for 3,862 transactions in 2024.

Top-performing areas in 2024:

• East Naples (34114, 34117, 34120, 34137) led single-family home sales with 1,542 closings, with a median price of $650,000.

• North Naples (34109, 34110, 34119) saw the highest condo sales, with 1,073 closings and a median price of $489,000.

Shifting Market Conditions & Buyer Opportunities

With 8.6 months of inventory, Naples is trending toward a more balanced housing market, giving buyers more negotiating power.

Additionally, over 1,076 price reductions were recorded in December, particularly in the Naples Beach area, where the median condo price fell by 29.6% to $950,000, compared to $1.35 million the previous year.

A key factor in the condo price decline is the new Florida law requiring residential condominium associations to complete structural integrity reserve studies and maintain higher reserve funds for repairs. These changes may result in increased association fees, affecting overall condo affordability.

Looking Ahead to 2025: What to Expect

While some homeowners are reluctant to sell due to previously locked-in low mortgage rates, experts note that historically, 7% interest rates remain favorable.

As the Naples market adjusts to higher inventory and evolving buyer demand, both buyers and sellers should work closely with a knowledgeable Naples real estate expert to navigate this changing landscape.

The post Naples Real Estate Market Update – December 2024: Rising Inventory and Market Shifts appeared first on Naples News Now.