Thursday, January 4, 2024

Inventory increases while home prices decline in November.


The Naples housing market in December 2023 saw a significant increase in residential properties, yet the supply for buyers remained limited since September 2020. The November 2023 Market Report by the Naples Area Board of REALTORS® (NABOR®) highlighted a rise in price reductions, leading to a 3.3 percent decline in the aggregate median closed price. Notably, most price reductions were due to homes being initially listed at higher prices compared to recent comparable sales.

November marked the highest number of price reductions in six months, resulting in a decrease in the median closed price from $600,000 to $580,000 compared to the previous year. This decrease was one of only four instances in the year when median prices dropped, highlighting a shift in the market trend.

Moreover, pending sales fell by 13.8 percent, and closed sales dropped by 6.1 percent in November 2023 compared to the same period in 2022. Analysts speculated whether the Federal Reserve's plan to reduce interest rates in 2024 might have deterred some buyers.

The report also emphasized differences in inventory levels between single-family homes and condominiums. Condo inventory surged by 74.5 percent, attributed in part to obstacles preventing sellers from listing properties affected by hurricane damage from the previous year. Additionally, rising interest rates, property insurance, and taxes in 2023 made home maintenance costs in Florida challenging for many homeowners, contrasting with the urgency seen in 2021 and 2022 when rates were low.

Overall, the market appears positioned for robust winter sales contingent on sellers setting competitive prices and buyers maintaining confidence in their investments. The report signifies a complex interplay of factors influencing the Naples real estate market.

Connect with Mike Shoaff, Naples Florida REALTOR, for expert guidance on selling or buying in this market. Start your 2024 selling plans today!

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