By Robert Nardi
The housing market in Naples during October was remarkably resilient despite interruptions from two major hurricanes. There were 1,179 new listings in October, a 13.9 percent increase compared to September. More inventory means more competition. As such, the overall median closed price in October decreased by 3.6 percent (year over year), fueled by an 8.1 percent decrease in the condominium market. The storm-ready homes and storm-familiar residents help the Naples housing market rebound quickly after a storm, and these safeguards strengthen its reputation as a desirable homeownership destination. Home buyers were distracted by two storms, and buyers were also distracted by the election and what it could mean for the economy. Sales were down 21.6 percent for the month. However, overall inventory continues to rise, and we are almost back to pre-pandemic (2019) levels. For October, inventory increased 30.9 percent to 4,746 properties from 3,627 properties in October 2023. And while new listings were down 6.6 percent compared to October 2023, they rose 13.9 percent compared to September 2024. Prices remained stable in the single-family market in October, but we saw some downward pressure on condo prices during the month.
The median closed price in October was $568,500, a 3.6 percent decrease from $590,000 in October 2023. The median closed price in the single-family home market increased 3.2 percent to $727,500 from $705,000 in October 2023. And condominiums' median closed price decreased 8.1 percent to $413,750 from $450,000 in October 2023. A small interest rate drop made a difference, as cash sales were only 48.6 percent of all sales reported in October. For many years, cash sales have been above 50 percent.
Sellers are chasing the market. Every month, a home doesn't sell, which means the seller must carry the cost of homeownership. There were 1,003 price reductions on existing homes for sale in October, too. Sellers need to stay competitive, especially with our rising inventory. Sellers and buyers of condominiums may find some relief in the new year as state legislators may explore the possibility of delaying the deadline for mandated reserves. Structural studies still require completion by December 31st, but associations won't have to budget the money for reserves until they adopt their budgets for 2025.
The NABOR® October 2024 Market Report compares 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 in chart format. Please (CLICK HERE) to see the full report.
What does this mean?
The market is starting to shift to a Buyers' market. However, prices are still stable. Sellers generally reduce their asking price by 5 to 10% when negotiating contracts. However, the Sellers' gains over the past 4 years far offset these price reductions. Therefore, both the Sellers and Buyers are winners.
Seasonal Rentals
Are you thinking about getting out of the snow and cold? We have some great seasonal rentals available in all price ranges. To see what is available in our inventory, call our office at 239-213-1616 and ask for a rental representative, or e-mail me at RobertNardi@aol.com.
Happy Holidays from sunny Naples, Florida! If you wish to get out of the snow and cold, you can start your search at www.BuyNaples.net.
I wish you a very Healthy and Happy New Year!