By Robert Nardi
Motivated sellers in Naples who took advantage of getting ahead of the market with prices that pleased buyers found success during May as overall pending sales (homes under contract) increased 10.9 percent to 951 pending sales from 919 pending sales in May 2024. According to the May 2025 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), 2,023 properties on the market in May reported a list price decrease, 31 percent of the overall inventory. The number of homes for sale increased 23.9 percent to 6,524 properties from 5,265 properties in May 2024.
The Naples housing market appears to be experiencing mixed consumer confidence due to uncertainty caused by tariffs and rising military tensions in the Middle East. International buyers, especially Canadians, are finding that the new American temperament toward immigration is creating discord and decreasing interest in making a second-home investment in Naples. Affordability is another reason international buyers aren’t rushing to our shores this year. The dollar was strong last summer, but now it doesn’t go far enough for them. Buyers in general are hesitant to commit because they are unsure of the direction the economy is taking. We observed the impact of the tariff situation on the stock market in April, resulting in numerous sales losses. People are notably nervous today. With another war possible and the tariff situation at hand, it’s giving buyers more reason to sit on the fence, and the wall is getting heavy.
Closed sales in May decreased 16.5 percent to 779 closed sales from 933 closed sales in May 2024, but the Naples market is still doing better than other areas in Florida. Collier has the lowest stock available in the region, just 3.5 percent of total homes. Compared to the rest of the state, values are holding up much better in Naples. Historically, if the country performs well, Naples tends to do better. Large markets like Miami and Tampa enjoy greater local economic diversity, but Naples depends on wealth generated elsewhere. The tariff situation is concerning because we were told it is a pathway to economic growth and prosperity, although nothing in economics supports this theory. As time passes, we can only watch to see whether this tactic will get other countries back to the bargaining table.
Currently, all eyes are fixed on the stock market and waiting for evidence that this is working. When the uncertainty dissipates, the question becomes, will people feel confident enough to pull the trigger on a home purchase? In the short term, it’s hard to be optimistic. However, the value of the dollar has been declining relative to the Euro since the first of the year and is now at about the same level it was back in November 2021. If the current relative value holds, this should help to bring European investors back to our market.
The overall median closed price in May decreased 9.1 percent to $590,000 from $649,000 in May 2024. However, the luxury market remains strong; single-family home prices in the Naples Beach area (34102, 34103, 34108) increased 18.6 percent to $2,712,500 in May 2025, up from $2,287,500 in May 2024.
The NABOR May 2025 Market Report provides comparisons of single-family home and condominium sales (via Southwest Florida MLS), price ranges, and geographic segmentation, along with an overall market summary (CLICK HERE).
What does this all mean?
Unfortunately, the current economic uncertainty is creating challenges for both today’s buyers and sellers, even in paradise. If you bought your home four to five years ago, it has likely appreciated by at least 100%. This is good news. However, the market has now experienced a downturn, with interest rates remaining at 6.85% for a 30-year fixed mortgage and uncertainty of economic conditions causing a glut of inventory (10-11 months). The best advice I can give a seller is to price the property right before it hits the market if you wish to sell. Examine closed sales for the past month, not what was sold 6 months ago. I urge sellers not to start high, because what happens is you begin to chase the market, and “days on market” is the enemy of home values.
For buyers in this market, it is a good time to purchase, because you could negotiate an excellent price for a home with a motivated seller. You could cut thousands of dollars off the price, and it will make up for the 6.85% interest rate. And don’t forget, you could always refinance once mortgage rates drop. Plus, you have a large amount of inventory to choose from. At this moment, there is no better time to find your dream property in paradise.
Lastly, we have some great seasonal rentals available in Southwest Florida. January through April is a perfect time to “test drive” this beautiful area.
If you require personal guidance in this market, please get in touch with me at 239-293-3592 or email me at robertnardi@aol.com .
I hope you are having a fantastic summer!