March 2024 Naples Market Report: NAR Settlement Update

The average single family home sale over $2M in the past 12 months was $4.35M, down 9.5% over the previous 12-month period and down 11% from a peak of $4.89M in AUG of 2022. The average sales price for a condominium over $2M in Naples over the last 12 months was relatively stable at $3.49M.

The average single family home sales price-per-square-foot over $2M over the past 12 months was $1,099/SF, down 10.3% over the previous 12 month period which was an all-time peak of $1,225/SF in FEB and MAY of 2023. The average sales price-per-square-foot for a condominium over $2M in Naples over the last 12 months was relatively stable at $1,187/SF.

At the end of FEB 2024, there were 791 single family homes over $2M on the market in Naples, up 35.7% from FEB 2023 and well above the previous peaks in the high 500s. At the end of FEB, there were 375 condos on the market over $2M, also well above the highs in previous years which was around 175 units on the market over $2M. Properties available above $2M are above previous peaks because overall property values have gone up roughly 1.5 to 2x since the pandemic so we expect to see this trend.

At price points over $2M in Naples, there were 188 single family homes and 113 condos added to the market in FEB 2024. This is representative of our annual peak listing period during the busy winter high season.

For properties priced over $2M in Naples, there was a spike in sales activity in FEB 2024 with 85 single family homes pending as well as 45 condominiums, activity which was fairly similar to that seen in FEB 2023.

Total sales activity for properties over $2M in Naples was down for both single family homes (-6.5%) and condominiums (-15.4%) in FEB 2024. APR and MAY tend to be the busiest months of the year for sales closings as properties that go into contract during peak season JAN-FEB-MAR tend to close in APR and MAY.

As of FEB 2024, the trailing 12-month sales total for single family homes over $2M was 583 homes, down 15.9% from a year ago. Single family home sales activity has been steadily trending downward as the market cools off from a pandemic era sales activity surge of 885 homes closed over $2M from mid-2020 to mid-2021. The 12-month rolling total sales count has flattened out for condominiums over $2M over the past 2.5 years with a consistent range of 280 to 320 condos closed over a 1 year period.

The total dollar volume of closed single family home sales over $2M in Naples over the last 6 months was $990M, down 24.4% from FEB 2023 and up slightly from JAN 2023. The total dollar volume of closed condominium sales over $2M in Naples over the last 6 months was $390M, up 0.7% from FEB 2023.

Over the last 6 months, single family properties over $2M in Naples spent an average of 80 days on the market, a statistic that has been gradually increasing since the low point in SEPT 2022 of 39 days but is still significantly lower than the average of 150-175 days on the market that were the norm for several years before the pandemic. Over the past 6 months, condominiums spent an average of 72 days on the market, up from a low point of 23 days on the market in AUG of 2022 and the preceding 6 month period.

For single family homes over $2M in Naples over the last 6 months, the average amount of negotiation from the last list price was 5.6%. Over the last 6 months, condominiums over $2M saw an average of 4.9% of negotiation from the last list price. These indicators are similar to the pre-pandemic “normal” range of negotiation in Naples which has typically been 4 to 7% negotiation from the last asking price.