Naples Housing Market Update: Inventory Surges While Prices Hold in February 2025
Naples, Fla. – April 7, 2025 – The Naples housing market continues to shift as new inventory pours in and buyer activity adjusts. According to the latest February 2025 Market Report from the Naples Area Board of REALTORS® (NABOR®), housing inventory rose sharply year-over-year, increasing by 35.8% to 7,320 active listings—up from 5,389 in February 2024.
Despite this influx of homes on the market, closed sales dropped 9.5% compared to last February, totaling 584 for the month. However, February still showed signs of seasonal strength with a 6% increase in sales compared to January 2025.
Prices Holding Firm, but Strategic Price Cuts Are Common
The overall median closed price in Naples increased 4% year-over-year to $650,000, reflecting the market’s continued resilience. Still, increased competition is prompting sellers to make strategic price reductions. Over 2,800 properties saw price decreases in February alone—an indicator that homeowners are adjusting expectations in response to buyer behavior and growing inventory.
Varying Trends by Neighborhood and Property Type
The February report revealed that pricing and demand are hyper-local. While the overall median closed price rose, certain areas saw sharp declines. For example, single-family homes in Central Naples (zip codes 34104, 34105, 34116) experienced a 28.7% drop in median price, while luxury properties in Naples Beach (34102, 34103, 34108) recorded a staggering 82.2% increase—largely due to high-end sales impacting averages rather than broad market appreciation.
Condominium prices showed relative stability, with only a slight decrease of 0.4% overall. However, some areas like Ave Maria stood out with a 13.4% gain in condo median price, pointing to pockets of strong demand.
Buyer Behavior and Market Dynamics
Buyers in the current Naples market remain highly selective. In February, sellers received an average of 94.8% of their list price, and nearly 77% of all sales were completed in cash—signaling continued confidence from high-net-worth buyers. Homes also spent more time on the market, with average days on market rising from 69 to 85.
Some properties—particularly those purchased at peak pandemic prices—are now seeing downward pressure in value, especially in neighborhoods where new construction has led to inventory saturation. Spec homes and high turnover areas like Old Naples, Vanderbilt, and Lakes Park are feeling the impact of buyer hesitation and competitive pricing.
Naples Outperforming Nearby Markets
While many Florida housing markets such as Sarasota and parts of Lee and Charlotte counties are grappling with oversupply and stagnation, Naples appears to be holding its own. The February 2025 data shows only a minimal decline in new listings—1,710 compared to 1,711 in February 2024—suggesting steady interest in bringing properties to market.
Key February 2025 Housing Stats for Naples:
| Category | Feb 2024 | Feb 2025 | % Change |
|---|---|---|---|
| Total Closed Sales | 645 | 584 | -9.5% |
| Pending Sales (Under Contract) | 1,167 | 843 | -27.8% |
| Median Closed Price (Overall) | $625,000 | $650,000 | +4.0% |
| New Listings | 1,711 | 1,710 | -0.1% |
| Total Inventory | 5,389 | 7,320 | +35.8% |
| Average Days on Market | 69 | 85 | +23.2% |
| Single-Family Sales | 320 | 305 | -4.7% |
| SFH Median Closed Price | $834,500 | $790,000 | -5.3% |
| Single-Family Inventory | 2,670 | 3,490 | +30.7% |
| Condo Sales | 325 | 279 | -14.2% |
| Condo Median Price | $502,000 | $500,000 | -0.4% |
| Condo Inventory | 2,719 | 3,830 | +40.9% |
What This Means for Buyers and Sellers
The Naples real estate market in early 2025 is highly competitive—especially for sellers. With more options available and buyer urgency softening slightly, pricing a home correctly is more important than ever. Sellers who act swiftly with realistic pricing are more likely to capture interest, especially during Southwest Florida’s busy winter season.
For buyers, the increased inventory opens up greater selection and negotiation power, particularly in segments where inventory is rising and prices are softening. Working with a knowledgeable local real estate expert is key to navigating Naples’ diverse and dynamic market.