Strong Inventory Favorable for Pre-Season Buyers
Naples, Fla. (November 1, 2024) – Overall inventory of homes in Naples increased 37.3 percent in September to 4,288 properties from 3,123 properties in September 2023, which benefits home buyers. According to the September 2024 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), the rise in inventory was met with increased buyer interest as indicated by pending sales (sales under contract) during September, which increased 1 percent to 622 pending sales from 619 pending sales in September 2023. Broker analysts reviewing the September report are confident more sellers will enter the market in the coming months in anticipation of a visitor increase during the winter. Pre-season buyers are encouraged to take advantage of the increased property selections available before competition heats up.
Will Supply Exceed Demand?
According to the National Association of REALTORS®, the “months’ supply” data refers to the number of months it would take for the current inventory of homes on the market to sell given the current sales pace. Lower levels of months’ supply tend to push prices up, while higher months’ supply puts downward pressure on prices. For the Naples market, the months’ supply in September was 6.3 months. Nationally, a six months’ supply is associated with moderate price appreciation.
However, according to Cindy Carroll of Carroll & Carroll Appraisers & Consultants, LLC, “The Naples market is unique, and in my experience, a 12 months’ supply of homes has historically been where our market enjoys a balance.” A balanced housing market is when the supply of homes for sale is roughly equal to the demand from buyers. In a balanced market, neither buyers nor sellers command an advantage, and prices tend to remain stable.
While overall closed sales decreased 13.2 percent in September to 527 closed sales from 607 closed sales in September 2023, the rise in days on the market (from 59 in September 2023 to 83 in September 2024) means it is taking longer for homes to go from pending status to closed status. According to broker analysts, the monthly pending sales data is a significant contributing factor of the overall housing market health. They are currently optimistic that the recent increase in pending sales will continue to improve over the next six months, suggesting a positive outlook for the housing market.
What Challenges Lie Ahead?
Interestingly, data from the Department of Housing and Urban Development (HUD) and the National Association of REALTORS® (NAR) indicates that home sales increased following nine of the last 11 presidential elections.
Carroll remarked that, “Given the increase in inventory, I would expect to see more prices decreases. But I have not seen a loss in value yet.”
The lack of noticeable price drops could be due to several factors including: still high demand relative to supply, buyer hesitancy related to interest rates or the election, or sellers being reluctant to significantly lower prices.
The overall median closed price in September increased 2.4 percent to $588,560 from $575,000 in September 2023. Compared to previous market reports in 2024, September’s median closed price was the lowest reported so far. However, it is still far above the median closed price reported during September 2019, which was $325,000.
The NABOR® September 2024 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, including these overall (single-family and condominium) findings for 2024:
For more information about buying a home in the Naples, Florida area contact David at David at [email protected] or 239-285-1086.