NAPLES AREA MARKET UPDATE

 Naples, Fla. (January 24, 2025) – The Naples area housing market ended the year strong, dispelling  whispers of falling values and reluctant buyers. The overall median closed price during December  decreased 4 percent to $600,000 from $625,000 in December 2023. This decrease was driven largely by a  13.9 percent decrease in the median closed price for the condominium market to $447,750 from $520,000  in December 2023. The median closed price in the single family home market increased 2.3 percent to  $767,500 from $750,000 in December 2023. Both sellers, whose confidence in the Naples housing market  was demonstrated in a 26 percent increase in new listings for December; and buyers, whose appreciation  of the increased inventory resulted in a 7.4 percent increase in pending sales during December, reaped the  benefits of a housing market that is delivering on its reputation. According to the December 2024 Market Report by the Naples Area Board of REALTORS® (NABOR®),  which tracks home listings and sales within Collier County (excluding Marco Island), 15,459 new listings were added to the market (a 15.7% increase) in 2024. Also a significant year-end achievement, 10,090  properties went under contract (pending) and 7,966 homes transferred ownership (closed).  For December, overall closed sales increased 4.6 percent to 594 closed sales from 568 closed sales in  December 2023. Of all sales recorded during December, 57.9 percent were cash sales. Overall inventory  increased 35.7 percent to 5,695 properties from 4,198 properties in December 2023. With more options  for buyers, days on the market increased 42.4 percent to 84 days compared to 59 days in December 2023.  “During the 10 years prior to the pandemic, the days on market averaged 90 to 120 days,” said Adam  Vellano, Managing Director of South and Southwest Florida at Compass Florida. “We are also at 8.6  months of inventory in December, and on the path toward a more traditional and balanced market.”  (“Months of inventory” is calculated by dividing the inventory by the number of closed sales in  one month.) The Cool Breeze of Change To provide equitable comparisons during 2024, broker analysts at NABOR® used market report data from  2019 as it was the last year when activity was not influenced by a pandemic or hurricane. But one factor  will make it difficult to continue this practice: the balance of inventory has shifted. In 2019, the majority of the area’s inventory was in the $300,000 and below price category (1,535 properties in December 2019  compared to 427 properties in December 2024). But today, most of the inventory available is in the  $500,000 to $1.5 million price category (1,216 properties in December 2019 compared to 2,609 properties  in December 2024). “When interest in homeownership in Naples spiked following the pandemic, properties on the low end  sold fast,” said Mike Hughes, Vice President and General Manager for Downing-Frye Realty, Inc. “The demand resulted in an increase in overall home values for our area. Where we sit today, there are now  fewer single family homes for sale priced below $300,000 than single family homes for sale priced above  $5 million.” Selling the Dream “The number of home sales in December could have been higher for our area, but many homeowners are  not willing to surrender mortgages they obtained when interest rates were very low,” said Jillian Young,  President, Premiere Plus Realty. Dr. Shelton Weeks, Lucas Professor of Real Estate and Director of the Lucas Institute for Real Estate  Development & Finance at Florida Gulf Coast University responded by stating, “Historically, a 7 percent  interest rate is very good. If we look at the data today, the job market is strong, but inflation is not under  control yet so there is some probability of rate increases this year.” The NABOR® December 2024 Market Report provides comparisons of single-family home and  condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and  includes an overall market summary. NABOR® sales statistics are presented in chart format, including  these overall (single-family and condominium) findings for 2024: CATEGORIES DEC 2023 DEC 2024 CHANGE (percentage) Total closed sales (month/month) 568 594 +4.6% Total pending sales (homes under contract) (month/month) 583 626 +7.4% Median closed price (month/month) $625,000 $600,000 -4.0% New listings (month/month) 940 1,184 +26.0% Total active listings (inventory) 4,198 5,695 +35.7% Average days on market (month/month) 59 84 +42.4% Single-family closed sales (month/month) 305 306 +0.3% Single-family median closed price (month/month) $750,000 $767,500 +2.3% Single-family inventory 2,186 2,769 +26.7% Condominium closed sales (month/month) 263 288 +9.5% Condominium median closed price (month/month) $520,000 $447,750 -13.9% Condominium inventory 2,012 2,926 +45.4% Demographic Standouts According to the December report, the $500,000 to $1.5 million price category reported the highest  number of closed sales (3,862) during 2024. The East Naples area (34114, 34117, 34120, 34137) reported  the highest number of single family home closed sales (1,542) for the year, with a median closed price of  $650,000. The North Naples area (34109, 34110, 34119) reported the highest number of condominium  closed sales (1,073) for the year, with a median closed price of $489,000. The December report also showed 1,076 price decreases for the month, which could make properties  more attractive for buyers during season. In fact, median closed prices for condominiums in the Naples  Beach area (34102, 34103, 34108) decreased 29.6 percent in December to $950,000 from $1,350,000 in  December 2023. A relatively new standout that may continue to impact the cost of condo ownership in Naples is the new  law requiring residential condominium associations to complete structural integrity reserve studies for  buildings that are three or more stories tall. It also requires associations to have sufficient reserves to  cover major repairs and to conduct a survey of reserves every decade. Depending on the age of the  property, the findings of these reports could result in condominium associations assessing higher fees on  owners to fund the reserves and repair costs. Assessment increases may be a factor in the median closed  price decrease for condominiums in the Naples Beach area during December. “Make sure you work with a REALTOR® who understands these new laws and can obtain projected  assessment costs from an association before you view a property,” said Terrilyn Van Gorder, President of  NABOR®, and Broker Associate at John R. Wood Properties. “I make it a habit to also check with a  development’s clubhouse operator to find out what’s included in monthly fees and whether there are any  major renovations planned in the near future that could result in a member dues increase.”