Naples Real Estate Market Update: Full-Year 2025 Compared to 2024
- 2 days ago
- 7 min read
If you’ve been wondering what’s really happening in the Naples real estate market, here is the honest answer:
After several years of rapid price growth, extremely low inventory, and fast-moving sales during and after the pandemic, 2025 was the year the market recalibrated and returned to more normal conditions.
That’s not bad news. In fact, it’s healthy.
Let’s walk through what happened and what it means for you.
The Big Picture: A Market Finding Its Balance
Real estate markets function best when neither buyers nor sellers have extreme leverage. In 2021 and 2022, sellers clearly had the upper hand. Homes sold quickly, often above asking price, and inventory was extremely tight.
In 2025, we moved back toward balance. Buyers gained more choices.Sellers had to price more carefully.Negotiation returned. That is what a stable market looks like.
Home Sales: Activity Improved
In 2025, Naples saw 8,249 closed home sales during the full year, a 3.4% increase over 2024.
This is important because it puts us back into what has historically been a “normal” range of annual sales for our area. Before the pandemic, Naples typically saw between 8,000 and 9,000 home sales per year.
The year unfolded in two parts:
Early 2025
At the beginning of the year, inventory rose quickly. Buyers became cautious. Some waited to see what interest rates would do. Others wanted to see if prices would soften further.
Late 2025
By the second half of the year, mortgage rates stabilized in the low 6% range, economic concerns eased, and buyers regained confidence. Sales activity strengthened meaningfully.
The takeaway? Demand for Naples real estate never disappeared - it simply became more measured.
Home Prices: A Small Adjustment After Big Gains
The median closed price in 2025 was $594,500, which represents a 2.5% decrease from 2024. At first glance, any price decline can sound concerning. But context matters. Since 2019, Naples home values have increased nearly 80%. Single-family homes ended 2025 with a median price of $729,000.Condos ended 2025 with a median price of $488,475.
After several years of rapid appreciation, a modest adjustment is not unusual. In fact, it’s part of a healthy cycle.
Condos saw slightly more price pressure than single-family homes, largely due to higher inventory levels and buyer sensitivity to HOA fees and insurance costs.
This was not a collapse. It was a correction toward balance.
Inventory: More Choices for Buyers
At the end of 2025, there were 5,714 homes actively listed for sale in Naples. That represented about 8.3 months of supply - meaning at the current pace of sales, it would take just over eight months to sell all available homes if no new ones came on the market.
Earlier in the year, supply jumped significantly, giving buyers more negotiating power. As the year progressed, inventory levels moderated and became more stable. For comparison, pre-pandemic inventory levels were often around 7 months of supply. So today’s levels are much closer to historic norms than the extremely tight conditions of 2021 and 2022.
More inventory means:
Buyers have options.
Sellers must be realistic.
Pricing strategy matters.
Homes Are Taking Longer to Sell
In 2025, homes averaged 95 days on the market before selling. That is longer than during the pandemic surge, when many properties sold within days or weeks. But it is much more consistent with how the Naples market functioned historically.
Buyers are:
Comparing more properties.
Taking time with inspections.
Negotiating thoughtfully.
Homes are selling - just not overnight.
Naples Is Not One Market - It’s Many Micro-Markets
One of the most important themes of 2025 is that Naples cannot be described with one headline.
Some areas saw strong price growth.Some saw modest declines.Some communities have limited inventory.Others have more competition.
For example:
Certain coastal and luxury areas saw price increases.
Some inland neighborhoods experienced slight softening.
Emerging areas like Ave Maria saw strong sales growth.
This means general headlines don’t tell the full story. Conditions vary significantly by neighborhood, price range, and property type.
What This Means for Buyers
If you are considering buying in Naples, 2025 created opportunity. You now have:
More homes to choose from.
More negotiating power.
More time to evaluate decisions.
That said, well-priced homes in desirable communities are still selling. Waiting for dramatic price drops may not be realistic. The current environment is balanced, not distressed. Buying in a stable market can often be more strategic than buying during a frenzy.
What This Means for Sellers
If you are considering selling, your home can absolutely sell in today’s market - but strategy matters more than it did a few years ago. You must:
Price appropriately from day one.
Present your home well.
Be prepared for negotiation.
One clear trend from 2025: homes that were priced too high initially often ended up selling for less after multiple price reductions than they would have if they had been priced correctly from the start.
The market is working. It simply requires discipline.
Is This Another 2008?
No. Today’s market is fundamentally different.
Lending standards are strict.
Buyers are financially qualified.
Most homeowners have substantial equity.
There is no widespread speculative building.
That strong foundation is why 2025 stabilized instead of declining sharply.
Looking Ahead to 2026
Mortgage rates stabilized in the low 6% range toward the end of 2025 and are expected to remain near that level. Experts anticipate:
Gradual improvement in sales activity.
Modest price movement.
Continued stability rather than dramatic swings.
If interest rates decline meaningfully, we could see increased buyer activity. If rates remain steady, expect continued balance.
A Deeper Look at the Numbers: What Really Shifted in 2025
If you look past the surface-level statistics, several meaningful structural shifts occurred in 2025 that tell a more nuanced story about the Naples market.
1️⃣ The Inventory Spike That Reset Leverage
One of the most defining moments of 2025 happened in January. Months of supply jumped sharply at the start of the year, officially placing Naples into buyer’s market territory. That sudden increase in available homes changed psychology almost overnight.
When buyers see:
Rising inventory
Increasing price reductions
Longer days on market
They feel less urgency. That psychological shift was just as important as the numeric shift. Buyers no longer felt pressured to “act now or lose out.” Instead, they felt empowered to wait, compare, and negotiate. As the year progressed, inventory moderated, but the mindset adjustment remained. Sellers who recognized this early and priced accordingly performed far better than those who held onto 2022 pricing expectations.
2️⃣ List-to-Sale Price Ratio: Negotiation Is Back
In 2025, sellers received on average 94.2% of their list price. That may not sound dramatic, but it reflects a meaningful change from the ultra-tight years when many homes sold at or above asking price. This 5–6% negotiation window became the new norm.
But here’s the important detail:
Well-priced homes still sold close to list.
Overpriced homes saw larger reductions and longer timelines.
In many cases, sellers who declined early offers - labeling them “low” - later accepted contracts below those original numbers after months of price adjustments. The lesson: the first offer often reflects real market feedback.
3️⃣ Price Bands Behaved Differently
Not all price ranges performed the same.
Under $300,000
Sales increased significantly in this category, although overall inventory in this range remains limited. Entry-level housing continues to face supply constraints.
$500,000–$1.5 Million
This remains the core of the Naples market and the largest share of transactions. Activity softened slightly in this band as buyers became more value-conscious.
$5 Million and Above
Luxury remained surprisingly resilient. High-net-worth buyers tend to be less rate-sensitive and more lifestyle-driven. Naples continues to attract discretionary wealth. The takeaway: The “middle” of the market experienced the most recalibration, while entry-level and ultra-luxury segments showed relative resilience.
4️⃣ Condo vs. Single-Family Divergence
Condos experienced more pricing pressure than single-family homes in 2025.
Several contributing factors:
Higher inventory concentration in certain condo communities
Insurance and HOA cost sensitivity
Increased buyer scrutiny on reserves and structural studies
Single-family homes held value more firmly, particularly in desirable school zones and lifestyle-driven communities. This divergence highlights why analyzing property type separately is critical.
5️⃣ Days on Market: The Return of Due Diligence
Average days on market rose to 95 days, but the more important observation is how homes are moving.
Buyers are:
Conducting more thorough inspections
Comparing multiple properties
Evaluating HOA budgets more carefully
Negotiating credits and repairs
In short, due diligence is back. This is not a panic market - it is a thoughtful one.
6️⃣ Geographic Spread: Uneven Inventory Creates Uneven Pressure
Months of supply vary dramatically by ZIP code and neighborhood. Some communities operate near balanced conditions (5–6 months of supply), while others have 12–18 months. That creates vastly different pricing pressure depending on location.
In areas with:
Higher supply → More price reductions and negotiation
Lower supply → Flatter pricing and quicker sales
This hyper-local variability is one of the defining characteristics of the 2025 market.
7️⃣ Equity Cushion: The Silent Stabilizer
Perhaps the most important structural detail: Homeowners in Naples are sitting on substantial equity gains from 2020–2023. Because of that:
There is no wave of forced selling.
There is no distressed inventory flooding the market.
Sellers have flexibility.
This equity cushion is what allowed 2025 to stabilize rather than spiral.
8️⃣ Market Psychology Shift: From Emotional to Rational
2021–2022 was emotionally driven.2025 was analytically driven.
Buyers:
Evaluated value per square foot.
Compared absorption rates.
Studied price reduction patterns.
Sellers:
Had to respond to data, not hope.
That shift toward rational decision-making is a hallmark of a maturing market.
So what?
The Naples real estate market in 2025 shifted from volatility to stability.
Sales increased modestly.
Prices adjusted slightly after years of strong growth.
Pricing discipline separated success from stagnation.
Inventory returned to more normal levels.
Negotiation returned to transactions.
Buyers and sellers recalibrated expectations.
Micro-markets became more important than macro headlines.
Equity remained strong.
When you examine the details, the story is not one of instability - it’s one of transition from extraordinary conditions back to sustainable fundamentals.This is what a healthy market looks like. Naples remains a highly desirable place to live, supported by lifestyle demand, strong equity positions, and long-term confidence in the area.
If you would like to understand what these broader trends mean for your specific neighborhood or property, local data matters far more than national headlines. And in Naples, the details always matter.
MORE INFORMATION:
If you are considering buying or selling a home in Naples and surrounding areas and you aren’t satisified with average services, you will want to contact Your Naples Real Estate Expert, Renee Hahn, to ensure you get the service, attention and outcomes you deserve.
Renee Hahn, Ranked in the top 0.5% in the Nation
📍Naples, Florida
📞(239) 287-2576
🌐 www.YourNaplesExpert.com
📧 Renee@YourNaplesExpert.com
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