Naples Real Estate Market Update: First Quarter 2025

Naples Real Estate Market Update: First Quarter 2025 (January – March)

As we conclude the first quarter of 2025, the Naples real estate market is exhibiting signs of stabilization. The interplay between increased inventory, moderated buyer activity, and sustained luxury demand is reshaping the local landscape. Here's an updated overview of the market performance from January to March 2025 in Naples, Florida.

Inventory Surge and Market Balance

The Naples Area Board of REALTORS® (NABOR®) reported a 39.5% increase in active listings in January 2025, with inventory rising from 4,881 properties in January 2024 to 6,808 in January 2025. This upward trend continued into February, with inventory reaching 7,320 properties, marking a 35.8% year-over-year increase. By March, the months' supply of inventory had climbed to an estimated 8–9 months, indicating a shift towards a more balanced market. This growing supply provides buyers with more options and negotiating power. ​

Sales Activity Trends

In January 2025, closed sales increased by 12% year-over-year, reaching 551 transactions compared to 492 in January 2024. However, February saw a 9.5% decrease in closed sales, with 584 homes sold compared to 645 in February 2024. This decline is attributed to factors such as higher interest rates, economic uncertainty, and buyer caution. 

Pricing Dynamics

The median closed price in January 2025 rose by 9.4% year-over-year to $659,000. In February, the median closed price increased by 4% to $650,000 compared to $625,000 in February 2024. Despite these increases, price reductions have become more common, with 2,883 price decreases reported in February 2025, reflecting seller adjustments to align with current market conditions. ​

Market Conditions for Buyers and Sellers

The median days on market in February 2025 rose to 92 days, up from 61 days in February 2024, indicating that homes are taking longer to sell. Buyers are now securing properties at approximately 94.8% of the original list price, down from near-100% in previous years. This trend underscores a market in transition, where strategic pricing and patience are key for sellers. ​

Luxury Market Resilience

Despite broader market cooling, Naples' luxury real estate segment remains robust. High-net-worth individuals continue to be drawn to the city's upscale lifestyle, pristine beaches, and exclusive communities like Port Royal and Pelican Bay. Properties with Gulf access and modern amenities are commanding premium prices, with average sales in this tier approaching $1 million in early 2025. New developments, such as Kalea Bay and The Ritz-Carlton Residences, are also bolstering this segment, catering to demand for turnkey luxury living.​

Outlook for Q2 2025

As we move into the second quarter of 2025, the Naples real estate market is expected to continue its trend towards balance. Buyers will benefit from increased inventory and more favorable negotiating conditions, while sellers will need to be strategic with pricing and presentation to attract serious buyers. Staying informed and adaptable will be key to success in this evolving market.