The May 2023 market report reveals a slight dip in the median closed price and a decrease in new listings, presenting an opportunity for both buyers and sellers this summer. As per the report by the Naples Area Board of REALTORS® (NABOR®), the median closed price experienced a marginal decline of 1.2 percent, settling at $600,000 down from $607,500 in May 2022.
There were 1,045 price reductions and a 31.2 percent drop in new listings. More sellers are demonstrating flexibility in price negotiations, backed by a 3.8 percent decrease in the percentage of list price received, now at 96.3 percent compared to 100.1 percent in May 2022. However, brokers have cautioned that increased negotiations do not imply a decline in Naples’ home prices. Post-Hurricane Ian, prices have remained stable rather than decreasing.
The report indicates no month-over-month median price decrease for condominiums in May. However, a 6.5 percent decrease was observed in the single-family home market. New listings in May diminished by 31.2 percent, dropping to 990 from 1,438 in May 2022. This decline in new listings is putting pressure on the overall home inventory, still rebounding from the hectic buying activity during the pandemic. New construction isn’t matching demand, and a few resale homes are staying on the market due to not being ready for immediate occupancy.
Inventory has been steadily creeping up, adding an average of 100 new homes monthly. For May, overall inventory increased 27.6 percent to 2,749 homes from 2,155 in May 2022. Brokers argue that listing homes for sale this summer could be beneficial due to traditionally less competition compared to the winter season. Homeowners who have purchased in the last five years are likely to enjoy a significant increase in equity, offsetting the cost of a new mortgage even with higher prices and interest rates.
In May, both pending and closed sales saw a decline of 4.4 percent and 20 percent respectively compared to last year. While many buyers are anticipating lower interest rates, summer might present a ripe opportunity. As rates drop, demand, and likely home prices, are expected to rise.
Despite being 150 closed sales shy of May 2019, the demand for Naples homes remains robust, even with half the inventory. Summer buyers are typically serious, and based on May’s market conditions, brokers recommend sellers keep listings active during the summer. Since 2021, closed sales of high-end properties have seen an increase during the summer months. In May, the median closed price for beach-proximate single-family homes rose 20.2 percent to $3,125,000 from $2,600,000 in May 2022.
Considering the dynamic market conditions, potential buyers and sellers in the Naples area are advised to seek professional guidance from a local REALTOR®. The Michelle Thomas Team offers expert advice and accurate market comparisons to help you navigate the market effectively and successfully. Contact us to find your dream home!
| CATEGORIES | MAY 2022 | MAY 2023 | CHANGE |
| Total Inventory | 2,155 | 2,749 | +27.6% |
| New Listings | 1,438 | 990 | -31.2% |
| Total Showings | 29,431 | 26,076 | -11% |
| Total Pending Sales | 1,084 | 1,036 | -4.4% |
| Total Closed Sales | 1,267 | 1,013 | -20% |
| Median Closed Price | $607,500 | $600,000 | -1.2% |
| Average Days on Market | 16 | 53 | +231.3% |
| Single-Family Inventory | 1,297 | 1,514 | +16.7% |
| Single-Family Closed Sales | 600 | 482 | -19.7% |
| Single-Family Median Closed Price | $805,250 | $752,890 | -6.5% |
| Condominium Inventory | 858 | 1,235 | +43.9% |
| Condominium Closed Sales | 667 | 531 | -20.4% |
| Condominium Median Closed Price | $485,000 | 485,000 | 0% |