Naples Real Estate Shifts to Buyer’s Market as Inventory Surges and Sales Slow

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Naples Real Estate Shifts to Buyer’s Market as Inventory Surges and Sales Slow

Naples Market Snapshot: March 2025 Reveals Buyer-Driven Conditions

Naples, FL – The March 2025 Market Report from the Naples Area Board of REALTORS® (NABOR®) reveals a significant shift in the local real estate landscape, favoring buyers for the first time in several years. With a sharp increase in inventory and declining sales activity, buyers now have greater leverage in negotiations, while sellers are under growing pressure to adjust their expectations.

The most notable trend is the substantial rise in available properties. Active inventory soared by 36.1%, reaching 7,483 homes, compared to 5,500 in March 2024. This marks the highest inventory level seen since before the pandemic. The surge in listings, including a 5.1% increase in new listings over the month, has resulted in 11.4 months of inventory on the market—well above last year’s 7.7-month supply.

Closed sales dropped 9.3% year-over-year to 820 in March, down from 904 a year earlier. Meanwhile, pending sales fell 7.3% to 1,212, even as price reductions hit a record high of 3,305 in a single month. The average days on market also lengthened by over 25%, rising to 86 days from 68 in March 2024.

The pricing data shows modest overall changes, but notable weakness in the condo segment. The median closed price across all property types edged up only 0.1% to $650,000. Single-family homes held steady at $770,000, but condo prices declined by 7.1%, falling to $486,000 from $523,000 last March.

Behind the numbers, agents and analysts are observing increased realism from sellers. Many who bought at the height of the market—and invested in renovations—are now facing the reality that they may not recoup all their costs. Oversaturation in high-end neighborhoods like Aqualane Shores and Old Naples is creating additional challenges, particularly for speculative homes.

Some market watchers note a slow but steady decline in values in certain areas—down as much as 0.5% per month—with projections suggesting further softening could reach 1% monthly by summer’s end. Sellers clinging to outdated price expectations or minor monthly cuts are finding themselves outpaced by a shifting market. In contrast, those willing to price competitively are achieving faster sales and stronger returns.

While the overall market correction is measured, it’s clear that economic uncertainty, lingering attachment to low mortgage rates, and a cautious buyer base are all weighing on transaction volume. Buyers remain hesitant, with many expecting prices to drop further before committing to a purchase.

Other complexities are adding friction to the market as well. The reported sales-to-list ratio of 94.7% only reflects the final listing price before the sale, masking the full extent of prior reductions. In addition, financing challenges are affecting both resale and new construction markets. Builders are experiencing a 25% cancellation rate among pre-qualified buyers, and even with rate buydown incentives, profit margins are thinning.

Still, this environment offers clear advantages to buyers—less competition, more room for negotiation, and a wide array of choices. With inventory outpacing demand, Naples' market conditions now favor those ready to make deals, rather than hold out for top dollar.

The latest NABOR® data paints a full picture of the current shift:

As the busy season winds down, buyers are poised to benefit most from the evolving market. For sellers, staying competitive now means pricing realistically, being open to contingencies, and recognizing that a fast sale at market value may yield better returns than months of holding out.

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