In this Tide Talk market update, Naples real‑estate specialist Renee Han reviews October 2024 conditions, emphasizing the market’s resilience despite two major hurricanes. New listings rose 13.9% to 1,179, pushing total inventory up 30.9% year‑over‑year to 4,746 homes. Sales fell 21.6% and the overall median closed price slipped 3.6%, driven largely by an 8.1% drop in condominium median price to $413,750, while single‑family median fell only 3.2% to $727,500. Over 1,000 price reductions and a dip in cash deals below 50% signal heightened competition for sellers, especially in the condo segment where rising insurance costs, storm‑damage assessments, and upcoming mandatory inspections add pressure. A tentative legislative effort may ease condo reserve‑requirement financing hurdles. Han advises sellers to price aggressively with an experienced realtor and encourages buyers to re‑enter the market, noting the area’s strong storm‑preparedness, infrastructure upgrades, and long‑term desirability. Contact information is provided for personalized queries.
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Hello, this is Renee Han, your Naples real estate expert with Alfred Robbins Realty Group, bringing you this month's market update through our Tide Talk magazine. And I hope you'll stick around to check out the rest of Tide Talk because there's a lot of good information there, including business highlights, um, some local blogs, uh, some community spotlights, that kind of thing. So let's talk real estate market update. So despite two hurricanes 2 major hurricanes interrupting life in Naples this fall, the housing market did display some remarkable resilience in October. So if you think about, you know, those that see the hurricane news outside of our area think our whole area is just devastated, and certainly for those impacted each time it is devastating, but the majority of the homes are left untouched. And because so many homes are left untouched, they're ready to hit the market. So in October We had 1,179 new listings. This was a 13.9% increase compared to September. And at the end of the day, this is more inventory for sure, and there's lots of, of pluses and minuses with that. But on the plus side for sellers and buyers, bringing more options to buyers to choose from can always help, um, what I would say rejuvenate the market as we head into the high season. So buyers like to shop when there's more to choose from. Now the growing inventory is creating some added pressure for sellers to remain competitive. So if you look at October alone, there were over 1,000 price reductions across the market. So it is so, so, so, so important that sellers partner with a qualified and experienced, results-proven realtor that understands the market trends and can help guide them through pricing their home accurately to avoid unnecessary extended days on the market. Now I will tell you, it has been slow, slow, slow. So for the majority of the market, um, it is not unusual to come on the market and maybe not have showings for a while, or maybe to have just a few showings. Now you will always find exceptions to that. So if you've got communities that are highly desirable, there hasn't been much on the market, something unique comes up, it can still get snatched up quickly and for good money. But the, the bigger part of the market is going to experience some slowness, and we are not in the high season yet. Although you look at how much is coming on in inventory, um, you know, you'd think it's a hot market, but you got to watch what's going under contract. The growing inventory is also, by the way, starting to impact pricing, especially in the condominium sector, as we'll discuss a little bit later. So while sales were down 21.6% for the month, rising inventory And easing price competition again provides opportunities for buyers to reenter the market strategically because there were buyers that were holding off waiting for us to get past the election so they knew what was going to happen with that. Regardless of, of how they felt about the election, they at least had the answers they were looking for. Increased competition among sellers contributed to a slight dip in prices with the overall median closed price decreasing by 3.6% year over year. And this decline was largely driven by an 8.1% 1% drop in condominium prices according to the October 2024 market report that Naples Area Board of Realtors releases. So thanks to the storm-ready homes and a community well-versed in hurricane preparation, though, Naples does continue to solidify its reputation as a desirable and resilient place to call home when people are— have the appetite again to seek a Florida residence or second home. So again, we're, you know, we feel optimistic about the fact that when buyers ready to re-enter the market. Naples is still a very desirable place. We have fared well in the storm conditions, especially with so many of them compared to some other areas. But the reality is it's still a slow market for sellers right now, with some price upside for buyers, lots to choose from, so a lot of competition. Um, and, and again, we're also, by the way, seeing an uptick in contingent sales where buyers must sell their current home to proceed with a new purchase. And that was a trend that was picked up at a Naples level with the Naples Area Board of Realtors. So while October saw fewer sales overall due to various distractions including storms, election season, etc., the market offered some encouraging signs for both buyers and sellers. So we talked about inventory. Total inventory rose by 30.9% year over year. That's a pretty significant rise nearing pre-pandemic levels with 4,746 properties available compared to October of '23 where there were only 3,626. 7 properties available. Single-family home prices did hold pretty steady. The median price decreased, decreased by 3.2%, but it's sitting at $727,500. Conversely, as I mentioned, condominiums experienced downward pricing pressure with the overall median price falling to $413,750. That was a year-over-year decline of 8.1%. A lot of that has to do with a number of things. One, availability, so the competition. Two, some of the stringent things happening with condos right now, particularly high-rises, particularly near the beach, whether it's, um, having the big inspection that is, uh, has a deadline at the end of the year, which is sure to uncover some things that the buildings are going to have to invest in in terms of improvements to their dwellings and their building. But it's the insurance costs that have gone up really, really high and assessments that have come by way of storm damage. So that's why the condos are affected so much more than single-family homes. Another point is cash transactions dipped slightly below 50%, and if you follow my, my monthly reports, there have been times we've been up in the 70% for cash deals. So You know, it could be attributed to the very modest interest rate drop we had in September, which brought more financial buyers into the market, or financing buyers, I should say, into the market. It's hard to tell exactly, but that is one of the lower cash buying proportions I've seen in this market in quite a while. Naples continues to lead the way in storm preparedness and infrastructure improvements. I've talked a little bit about that. It's been bolstering its desirability as a destination for homeownership. Despite some of the storms that we have. Um, recent upgrades like installation of advanced stormwater systems in the city to mitigate street flooding, um, that reflects the long-term commitment and resilience that Naples has, and their ongoing commitment to storm preparedness and infrastructure upgrades underscores its reputation as a safe and desirable place to live and invest. And we just need that people outside the area to be able to realize that, understand it, and appreciate it. Condo sellers and buyers may find relief, by the way, not a guarantee, but in the upcoming legislature that's going to be aimed at easing financial pressures tied to maintaining mandated reserves. Now there are certain reserve requirements, and this is for lending, that can sometimes break a deal apart. I had one recently that was within a community that I had the buyer. It was in a community and 90% of the buildings, because the way they set up the condo associations can vary greatly from neighborhood to neighborhood, it's usually in phase So they'll lump certain buildings together and release them, if you will. But most of the neighborhood qualified for the government-backed loans, but the one building that we were interested in did not, and the lender would not fund on it. So there may be some relief coming in that. So such measurements could obviously help stabilize the condominium market as these changes unfold. So with a balanced blend of challenges and opportunities, October's real estate market in Naples did highlight the region's, uh, region's adaptability and resilience. As inventory continues to grow and pricing adjusts to increase competition, the market may offer more possibility to buyers, um, in the coming months while encouraging sellers to remain agile. So yes, there is definitely a tipping of the scales that is more favorable to buyers right now, but you have to take a long-term view of that. If we've been really light on buyers, which we have this year, it's been really slow on the buying activity. They need some encouragement to enter the market. When they enter the market, it can help pick up some momentum. So yes, tougher market for sellers without question. Believe me, I have a lot of listings and I understand what's going on, but we need some upside for the buyers to be able to get them re-engaged in the market. So if you have any questions about this, about your neighborhood, your home valuation, anything related to real estate in the Naples area, You know you can always reach out to me. You can find me at yournaplesexpert.com or give me a call at 239-287-2576. And I hope you have a wonderful, wonderful holiday season.
