In this May 2024 market update, Naples real estate expert Renee Hahn reports a significant rise in new listings (up 18.4% YoY) and total inventory (up 67.1% YoY), driven largely by a surge in condo listings (+88.8%) and a solid increase in single‑family homes (+49.5%). While price reductions outpaced new listings (1,710 reductions), the median closed price held steady at $650,000, indicating that recent sales still reflect prior pricing. Closed sales fell 12.2% to 909, and days on market rose 26.4%, signaling a cooling of demand. Notably, the lower‑price segment rebounded, with homes ≤$300k up 104% and $300‑$500k up 90.1%, offering more affordable options. Buyers face financing hurdles, with roughly 40% struggling to secure loans despite lower rates, compounded by rising insurance, HOA fees, and upcoming mandatory condo reserve assessments. Geographic analysis shows a 26.1% drop in median single‑family price on Naples Beach (to $2.26M), a 43.6% rise in South Naples (to $930k), and a modest 1.4% increase in Central Naples condo median ($355k). Hahn directs viewers to additional resources (Tide Talk, NABOR report) and offers personalized assistance for Naples and surrounding markets.
Chapters
Good morning, and it is a good morning as I come to you from our lake house in Georgia. This is Renee Han, your Naples real estate expert, bringing you the monthly Naples real estate market update for May 2024. This is vacation time for me, so pardon my casual nature as well as my apparent cold that I picked up from my beautiful grandson Grayson. Let's dive into the latest trends and stats that are shaping our beautiful community. As you likely already know, Naples is unique compared to other cities in the US because it's a lifestyle destination. A majority of the sales here continue to be second homes. That's just the nature of the beast. This dynamic means that sellers and buyers are going to be less urgent, waiting for the perfect deal. In May, new listings surged a whole 18.4%, climbing from 1,014 in May 2023 to 1,201 this year in May. When you shift from purely new listings to look at the broader total listings were up a staggering 67.1% year over year. So 3,004 properties on the market during the month of May in 2023 and 5,019 in May of 2024. Inventory in the condo market made the largest leap. That inventory was up 88.8%. Yikes! Versus single-family homes, which was still up 49.5%. While it's great to see more homes entering the market, it is also noteworthy that price price decreases have outnumbered new listings. There were 1,710 price decreases during the month of May. This is a clear message that today's market won't support overly ambitious pricing. It just is what it is. So as a seller— pardon me— you need to keep that in mind. While there's been some price resetting though, I do want to point out that the median closed price— so the price of those that closed, not the price of those that are still on the market— stayed consistent with April of 24 at $650,000. To me, this says that although the houses that sold did experience some price drops, and they did, they're part of that list of homes that went through price drops, the list of price drops was, I think, greater, um, in those that remain unsold. And that's not expected, you know, unexpectedly. Monthly closed sales for the month decreased 12.2%. So they were 1,033 closed sales in May of 2023, and it was down to 909. 7 in May of 2024. Days on market rose 26.4%. At the same time, the number of showings in May of 2024 was down from last year as well. So less homes going under contract, less showings, no surprise there, right? A significant benefit of the rising inventory and the price reductions though is the increase in properties available in the lower end of the market. So if you think back to the last couple years, we've talked about the low end of the market seems to have completely fallen off the face of the earth. But in May, homes priced at $300,000 or below jumped 104% compared to last year. Similarly, homes in the $300,000 to $500,000 price range saw a 90.1% increase in availability. So keep in mind, it's the same thing when the prices were shooting up and I had somebody, let's say, come into the market at $1 million in a single-family home. All of a sudden, $1 million was buying a villa. Well, now that we're coming down in pricing, now you've got these lower priced homes becoming available again where their price points were in that higher bracket before that. Of course, this is fantastic news for buyers looking for more affordable options. Although Naples remains a cash-heavy market, we also can't ignore that current conditions are creating difficulties for buyers in terms of qualifying for loans due to high prices and additional expenses like insurance and association fees. Even with rate down— buy down programs and incentives, around 40% of the potential buyers are still struggling to secure financing. It's clear that while demand is high, financial hurdles persist. In addition to rising mortgage costs and insurance costs, and then another challenge brewing is the upcoming regulations on condominium reserves that's going to impact current and future owners with mandatory assessments likely raising costs. Geographically, I want to do a real quick cut. The Naples Beach area saw a significant decrease in the median closed price for single-family homes. It was down 26.1%. To $2,262,000. On the flip side, South Naples experienced a 43.6% increase, taking their average or median price, sold price, to $930,000. Meanwhile, Central Naples condominium market saw a slight increase in the median closed price. It was up 1.4% to $355,000. Every neighborhood in Naples tells its own story, and you need to make sure that when we're talking about this high-level, uh, stats, that it may or may not be representative of where you are interested in buying a home or where your home is. So it's important if you want more particulars as it relates to your specific investment options and situation that you engage a real estate agent, and a qualified one. So that's it for this month's market update. I encourage you to go through the Tide Talk. There's some cool new businesses that are on the horizon that we highlight, always some good blog topics. I do a showcase on a neighborhood every month, and then if you backtrack to the market update website, you'll see some really exhaustive metrics that will take you through a much deeper dive into the metrics. I've also got the full NABOR Naples Area Board of Realtors report posted on that page. So lots of resources for you because I do this for you. This is about keeping you informed and updated on what's going on in the Naples real estate market. In addition to talking things that may be more particular for your property or area of Naples, please know I also service the surrounding areas. So if you ever want information on Marco, Estero, Bonita Springs, etc., uh, you can also reach out to me. My primary focus is always going to remain to be Naples. That's where my home base is, and that's where the core part of my business is. But I do expand out for clients. So if you want to know more about those markets, don't ever hesitate to reach out. I'm here for you, and I am happy to answer questions, give you personalized advice and guidance. So don't hesitate to reach out. Again, I'm Renee Han, your Naples real estate expert. See you next month with more insights. Have a fabulous day.
