Ed DiMarco MS, MA
- Aug 10
- 3 min read

Naples Real Estate Market Downturn in Late 2024

Analyzing Challenges and Market Trends in the Naples Real Estate Market: July 2024

As a real estate professional, it is crucial to analyze various metrics to gain a comprehensive understanding of current market trends. In this analysis, we will examine these key metrics and consider some emerging challenges that could impact the Naples real estate market as we move further into 2024.

Naples Real Estate Market Metrics Overview

Months Supply of Inventory:

The Months Supply of Inventory in Naples stands at 6, indicating a balanced market where supply meets demand. A market with around 6 months of inventory is generally considered healthy, signifying a good equilibrium between buyers and sellers. However, the significant increase in the 12-month Change in Months of Inventory, up by +86.92%, suggests that this balance might shift toward a buyer's market. This rise in inventory is a clear indicator that buyers might soon have more options, which could lead to increased competition among sellers and potential downward pressure on prices.

Median Days Homes are On the Market:

Homes in Naples are selling relatively quickly, with a median of 68 days on the market. This quick turnover can be attributed to several factors, including the ongoing demand for properties in desirable locations, competitive pricing, and Naples's overall appeal as a residential and investment destination. Despite the growing inventory, the market remains active, though this could change if supply continues to outpace demand.

List to Sold Price Percentage:

The List-to-Sold Price Percentage stands at 96.2%, indicating that most homes are selling close to their listing price. This suggests that sellers generally price their properties accurately, and buyers are willing to meet these prices. However, sellers might need to adjust their expectations and pricing strategies as inventory rises to remain competitive, mainly if buyer demand does not keep pace with the growing supply.

Median Sold Price:

The Median Sold Price in Naples is $599,999, providing a benchmark for the local market. This price point reflects the market's overall health, but it also highlights potential affordability issues, particularly for first-time buyers and middle-income families. As more properties come onto the market, sellers could be pressured to lower prices, especially in the face of rising costs associated with homeownership, such as insurance premiums and property taxes.

Emerging Challenges in the Naples Real Estate Market

Rising Inventory and Potential Price Corrections:

One of the most significant challenges facing the Naples real estate market is the rapid increase in inventory. With the number of active listings surging, there is growing concern that the market could see price corrections soon. This is especially true if buyer demand fails to absorb the increasing supply of homes. Some analysts have already identified Naples as one of the Florida markets at risk of price declines, particularly if these trends continue.

Affordability Issues:

Affordability remains a critical issue in the Naples market. The rising cost of living and high property taxes and insurance premiums make it increasingly difficult for many potential buyers to enter the market. This could lead to a softening of demand, especially among middle-income families and first-time buyers, further exacerbating the supply-demand imbalance.

Economic and Regulatory Pressures:

Economic pressures, including rising interest rates and the overall cost of living, also contribute to the Naples market challenges. Additionally, new regulatory requirements following the Surfside condo collapse have increased the costs of maintaining older properties, particularly condos. These factors could deter some buyers and potentially reduce the attractiveness of particular market segments.

Real Estate Advice for a Market Downturn

The Naples real estate market in July 2024 presents a complex picture. On the one hand, key metrics such as the Median Days on the Market and the List Sold Price Percentage suggest a still active and balanced market. On the other hand, rising inventory levels, affordability issues, and economic pressures point to potential challenges ahead. For sellers, the key will be to remain competitive and adaptable, potentially adjusting pricing strategies as the market evolves. Buyers, meanwhile, may find themselves with more options and negotiating power but should also be mindful of the broader economic factors at play.

Staying informed about these trends and working with knowledgeable real estate professionals will be crucial for anyone looking to navigate the Naples market successfully in 2024.