One of the themes I have discussed throughout much of the past year has been the transition from the highly competitive seller's market of 2021 and 2022 toward a healthier, more balanced market. Throughout much of 2025, rising inventory and slower buyer activity shifted leverage toward buyers and provided them with more choices and negotiating power.

May's numbers suggest that another shift may be occurring.While we are certainly not returning to the frenzied conditions of the pandemic years, buyer activity has accelerated, inventory is shrinking, and the overall market appears to be finding a more healthy equilibrium. Demand for the Naples lifestyle remains strong, and the market continues to demonstrate remarkable resilience. Now remember last year was bleak, so an improvement over last year doesn't mean things are all bright and cheery for all sellers.

Now I share all of these for the month of May while recognizing that we still have a typical seasonal decline as we leave May and head into the summer months so just know that by the time you read this May report, buyers and sellers may already be feeling that difference.

As always, these reports are released one month behind to allow the Naples Area Board of REALTORS® (NABOR®) time to ensure transactions are fully closed and recorded, providing the most accurate and complete picture possible. The statistics below compare May 2026 with May 2025.

The Headline Numbers

May 2026 At a Glance (Compared to May of 2025)

• Closed sales increased 13.9% to 900 transactions.

• Pending sales rose 12.1% to 1,066 homes.

• Median closed price increased 1.7% to $599,900.

• Inventory declined 22% to 5,299 homes.

• Days on market increased from 87 to 99 days.

• Months of supply fell from 10.6 months to 7.1 months.

Taken together, these numbers tell the story of a market where buyer demand is beginning to outpace supply.

Inventory Continues to Decline

Perhaps the most notable takeaway from May's report is the continued reduction in inventory.

Overall inventory fell from 6,790 homes in May 2025 to 5,299 homes in May 2026 - a decline of 22%.

Months of supply, which is one of the best gauges of overall market balance, fell from 10.6 months to 7.1 months. While that still represents a market with healthy inventory levels, it is a significant tightening from where we stood a year ago. What is driving the decline? Simply put, buyers are purchasing homes faster than sellers are bringing new inventory to market.

During May:

• 991 new listings came on the market.

• 1,066 homes went under contract.

In other words, more homes were absorbed than were added to the marketplace. This trend bears watching because if it continues through the summer and into next season, buyers may find themselves competing for fewer available homes.

Buyer Demand Remains Strong

Despite elevated interest rates and economic uncertainty, buyers continue to choose Naples.

Closed sales rose 13.9%, increasing from 790 transactions last year to 900 closings in May 2026.

Pending sales climbed even faster, rising 12.1%.

Looking at the year-to-date numbers, the story becomes even more impressive:

• Closed sales are up 17.9%.

• Pending sales are up 30.6%.

These are not the statistics of a market in decline.

Instead, they suggest continued confidence in Southwest Florida and reinforce the fact that Naples remains one of the most desirable places in the country to live, retire, and own property.

Prices Continue to Show Stability

One of the biggest questions many buyers and sellers continue to ask is: "Are prices going down?"

Certainly, someone who bought a home in 2021 and is now selling will feel the hit. The answer, broadly speaking, is no on an overall basis. But when comparing to 2025, the overall stats are a bit more encouraging.

The overall median closed price increased 1.7% year over year to $599,900. Average closed price increased 9.2%, reaching nearly $1.17 million. These gains may not be dramatic, but they demonstrate that values remain remarkably stable despite the market normalization we experienced during 2024 and 2025. Real estate markets rarely move in straight lines. Instead, they tend to experience periods of acceleration followed by periods of stabilization. Right now, Naples appears to be in a healthy phase of stabilization. Now remember there is always an element of mix that affects this versus purely hoem value apprecaition.

Working with buyers and sellers and watching broader market behavior, I can definately attest to the fact that buyers are still heavily scrutinizing the pricing. They expect room to negotiate, play close attention to comaprabe broader then just your community and don't hestitate to walk away from properties that are over priced choosing to persue more reasonably priced home versus trying to close too big of a gap on the unrealistically priced home.

Single-Family Homes Continue to Outperform

Single-family homes remain the strongest segment of the Naples market.

Compared to May 2025:

• Closed sales increased 9.9%.

• Pending sales rose 13.7%.

• Median price jumped 7.6%.

• Inventory declined 22.9%.

• Months of supply dropped from 9.8 months to 6.6 months.

The median single-family home price rose from $697,000 to $750,000. Demand for single-family homes continues to be fueled by retirees, second-home buyers, and full-time residents relocating to Southwest Florida.

Move-in-ready properties in desirable locations remain particularly attractive and continue to command premium prices.

Condo Market Showing Signs of Improvement

Condominiums have faced more headwinds over the past several years due to rising insurance costs, reserve requirements, and milestone inspection legislation. Yet May's numbers show encouraging signs.

Compared to last year:

• Closed sales increased 18.2%.

• Pending sales rose 10.2%.

• Inventory declined 21.1%.

• Months of supply dropped from 11.5 months to 7.7 months.

• Median price held essentially flat at $450,000.

These numbers suggest buyers are beginning to adapt to the "new normal" surrounding condominium ownership. While some buildings continue to face challenges, buyers are becoming more comfortable navigating reserve studies, financial statements, and the various factors affecting condo communities. The one thing to be mindful of if you have a multi-family dwelling like a condo, is that as more single family homes or villas that live like single family homes have become available at lower prices it has put pressure on the condos that may be infringing to close to the SFH options.

Homes Are Taking Longer to Sell

One area where buyers continue to benefit is time. Average days on market increased from 87 days to 99 days overall.

Breaking that down:

• Single-family homes averaged 93 days.

• Condos averaged 105 days.

This is dramatically different from the market conditions of 2021 and early 2022 when many homes sold within days.

Today's buyers generally have more time to:

• Conduct inspections.

• Compare properties.

• Negotiate terms.

• Make thoughtful decisions.

However, that does not mean every property sits. Well-priced homes that show beautifully and have been properly prepared for the market are often selling much faster than the averages suggest.

Luxury Buyers Remain Active

The Naples luxury market continues to demonstrate strength.

Rolling twelve-month sales increased:

• 42.3% for properties priced below $300,000.

• 26.5% for homes priced between $1.5 million and $5 million.

• 17.3% for homes above $5 million.

Meanwhile, inventory in many luxury segments has contracted significantly.

Inventory between $1.5 million and $5 million declined nearly 30%.

Inventory above $5 million fell 21%.

Naples continues to attract affluent buyers seeking lifestyle, tax advantages, weather, and long-term wealth preservation. As a result, quality luxury properties continue to experience strong demand.

What This Means for Buyers

Buyers still possess more negotiating power than they had during the pandemic years.

They have:

• More time to evaluate properties.

• Greater opportunities to negotiate.

• More inventory than existed during 2021 and 2022.

But waiting indefinitely for dramatic price reductions may prove risky. If inventory continues to decline and demand remains healthy, buyers may find fewer choices available heading into the 2027 season. For buyers who find the right property, focusing on long-term value rather than trying to perfectly time the market often proves to be the better strategy.

What This Means for Sellers

The market remains favorable for sellers, but success requires strategy. Today's buyers are informed and selective. Many are also a bit relucatant to take on renovation work if they don't need to for other comparable homes. Simply putting a sign in the yard and expecting multiple offers is largely a thing of the past.

Successful sellers are:

• Pricing realistically.

• Preparing the home properly.

• Investing in presentation.

• Marketing aggressively.

• Working with an experienced agent who understands local market dynamics.

Homes that align with buyer expectations are still selling very well. Those that are overpriced or poorly prepared continue to sit and require price reductions.

My Thoughts Moving Forward

May's report paints the picture of a market that is healthier and stronger than many expected. Sales are rising.

Pending contracts are increasing. Inventory is shrinking. Prices remain stable.

The excessive inventory concerns that dominated conversations throughout much of 2025 have begun to moderate, and the Naples market appears to be finding a healthier balance. This is not the runaway seller's market we experienced during the pandemic years, nor is it a distressed market characterized by falling values and declining demand.

Instead, Naples appears to be entering a more sustainable phase - one where buyers still have choices, sellers still possess substantial equity, and realistic pricing is rewarded. As we move deeper into the summer months, it will be interesting to see whether the combination of shrinking inventory and increasing buyer activity continues.

If it does, buyers may discover that the opportunities they enjoyed over the past year become increasingly difficult to find. For now, the Naples real estate market continues to demonstrate why it remains one of the strongest and most resilient housing markets in the country.

Have questions about what these trends mean for your neighborhood or property? I'd be happy to help.

Renee Hahn

Your Naples Real Estate ExpertRanked in the Top 1.5% of Real Estate Agents in the Nation

(239) 287-2576

www.YourNaplesExpert.com