Naples, Fla. – December 26, 2023 – The Naples real estate market experienced significant changes in November 2023, as reported by the Naples Area Board of REALTORS® (NABOR®). The market saw a notable increase in home inventory and a decrease in median closed prices, indicating a shift towards a more balanced market.
Increased Inventory Offers More Choices
The overall inventory of homes in Naples for November 2023 increased by 38.8 percent to 3,795 properties, up from 2,734 properties in November 2022. This level of choice for buyers has not been seen since September 2020. The month also witnessed 1,080 price decreases, leading to a 3.3 percent decrease in the overall median closed price.
Median Closed Prices Dip
The overall median closed price dropped to $580,000 from $600,000 in November 2022. This decrease marks one of the few times this year that median closed prices have fallen, a trend not seen since 2019.
Market Dynamics
Budge Huskey, CEO of Premier Sotheby’s International Realty, noted that the primary challenge in the market is the buyers’ perception of higher costs due to inflation, which is impacting real estate decisions. Mike Bone, Area Sales Manager with D.R. Horton, also highlighted a slower fall sales market and high cancellation rates on contracts due to higher interest rates.
Sales Activity
Pending sales in November decreased by 13.8 percent to 661 from 767 in November 2022. Closed sales also saw a decrease of 6.1 percent. This slowdown in sales activity may be attributed to buyers waiting for potential interest rate decreases in 2024.
Segment-Specific Trends
- Single-family closed sales decreased by 14.5 percent.
- Single-family median closed price fell by 9.6 percent to $725,000.
- Condominium closed sales increased slightly by 2.9 percent.
- Condominium median closed price rose by 3.3 percent to $465,000.
Looking Ahead
The market is poised for a potentially healthy winter sales season, depending on sellers’ pricing strategies and buyers’ perceptions of value. Jeff Jones of Keller Williams Naples and Molly Lane of William Raveis Real Estate pointed out challenges such as insurance rate changes and sellers holding onto pandemic-level price expectations.
Expert Advice
NABOR® encourages those considering buying or selling homes to seek advice from Naples REALTORS® who can provide accurate market comparisons and expert guidance in today’s market conditions.
About NABOR®
The Naples Area Board of REALTORS® (NABOR®), chartered in 1949, is a local board of REALTORS® and real estate professionals with a legacy of over 60 years serving more than 8,500 members. NABOR® is a member of Florida Realtors® and the National Association of REALTORS®.
This article is based on the November 2023 Market Report by the Naples Area Board of REALTORS® (NABOR®).