By Robert Nardi
Sellers in the Naples area housing market enjoyed increased buyer activity in January as pending sales increased 40.3 percent to 1,065 pending sales from 759 pending sales in January 2025. According to the January 2026 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), there were 2,053 price decreases during January and 1,906 new listings, which opened the door to buyers seeking more choices in all price points and home types. Broker analysts reviewing the report anticipated January would enjoy continued sales momentum, as seen during the second half of 2025, and point to the 9.2 months of inventory as a signal that Naples has returned to a balanced market.
It seems competitive pricing is sparking sales! The overall median closed price in January decreased 4.1 percent to $627,500 from $654,000 in January 2025. However, this was driven by the condominium market, which had a 3.4 percent decrease in median closed price, to $450,000 from $466,000 in January 2025. The single-family home market, which had about 500 fewer properties for sale than the condominium market, reported a 1.6 percent increase in median closed price, to $812,500 from $800,000 in January 2025.
Despite a surge of 907 more new listings in January compared to December, overall inventory during January decreased 10.6 percent to 6,328 properties from 7,082 properties in January 2025, which highlights a rapid pace of sales outpacing new supply. Historically, sellers drop prices at the end of season, but we are seeing a shift as more sellers understand being competitive from the start of season is an advantage. The report showed 67 percent of sales during January were cash sales. In January 2025, 61 percent were cash sales.
Overall closed sales increased 0.5 percent to 564 closed sales from 561 closed sales in January 2025. Closed sales of condominiums increased 8.2 percent to 276 closed sales from 255 closed sales in January 2025. However, closed sales of single-family homes decreased 5.9 percent to 288 closed sales from 306 closed sales.
The NABOR® January 2025 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 (CLICK HERE).
The luxury market shines. The median closed price of single-family homes nearest the beach continue to rise. In Central Naples (34104, 34105, 34116), the median closed price of single-family homes increased 11.4 percent in January to $715,000 from $642,000 in January 2025. And in the Naples Beach area (34102, 34103, 34108), the median closed price of single-family homes increased 5.8 percent to $2,645,000 from $2,500,000 in January 2025. Interestingly, condominiums price $5 million or more sold faster than any other home type and price point this January. Days on market for this property type in January fell 30.9 percent to 105 days from 152 days in January 2025. And in the 12 months ending January 2026, closed sales of homes with 4 or more bedrooms increased 9 percent.
What does this all mean?
The real estate market appears to be returning to a more balanced, “normal” pace. Interestingly, some of the strongest price gains are occurring in the luxury segment. Properties priced under $2 million are moving more slowly, even when price reductions are made. Meanwhile, homes priced above $2 million are selling faster and often seeing stronger appreciation.
Why the difference? Much of it comes down to financing. At price points below $2 million, buyers are more likely to rely on a mortgage. That means navigating loan options, underwriting requirements, and today’s rising insurance costs—factors that can make the process more complicated and time-consuming. Once all is said and done, the old saying still rings true: cash is king. Many sellers would rather accept a slightly lower all-cash offer than a higher offer that depends on financing.
In the luxury market, the real “sweet spot” appears to be $5 million and above. Buyers in this range often have the flexibility to purchase exactly what they want. When the right property comes along, they move decisively. Simply put—if the shoe fits, they wear it.
For buyers who will need financing, my best advice is to prepare early. Connect with a bank or mortgage broker before you begin your search and provide all the necessary documentation upfront. When you’re fully pre-approved, you can often close in 30 days or less, making your offer far more attractive to sellers—almost like a cash buyer.
It’s also wise to contact your preferred property insurance agent ahead of time and request quotes on any property you’re seriously considering before submitting an offer. This helps avoid surprises. For example, if a property is in a flood zone, flood insurance premiums can vary significantly.
The bottom line is simple: get all your ducks in a row before starting the buying process. Doing so can reduce stress and lead to a better outcome—physically, emotionally, and financially.
If you have any questions, please feel free to call me at 239-293-3592 or email me at RobertNardi@aol.com.
Wishing everyone a Happy and Healthy Spring. Enjoy!