REAL ESTATE MARKET UPDATE AND ADVICE – FEBRUARY 2025

For Buyers: This is your time – especially if you are a cash buyer. In most neighborhoods, there is greater inventory of homes and condos on the market for sale, so you have more to choose from than recent history. In Naples, we have several real estate markets so it is not possible to make sweeping generalizations about the current market conditions. That is a good thing because it makes it much easier to stay on top of a particular location, neighborhood or type of property. You can keep your finger on the pulse.

Our market is segmented geographically to begin with – examples are “west of 41” (a phrase you may have heard a few hundred times), “east of 75,” beachfront and waterfront. The single-family home market is quite different from the condo market. Then digging deeper, the conditions are neighborhood by neighborhood.

A good comparison to explain with current real life examples is two neighborhoods, essentially side-by-side, those being single-family homes in Pelican Bay and single-family homes in Naples Park.

As a community, Pelican Bay holds its own through thick and thin as a prestigious, amenity-rich, beachfront community with impressive loyalty. Single-family homes make up only 10% of the doors in the community, so we never have enough for the demand. Between the strength of the community and the limited number of single-family homes, the prices have not been impacted like we have seen other communities with price reductions. The neighboring Naples Park community has more inventory than we have ever seen, putting pressure on prices and inviting investor buyers to find the motivated sellers.

Both communities are located west of 41, same zip code, two different prices ranges, two different buyers, and two entirely different real estate market conditions.

As a buyer, be prepared. Align yourself with a full-time, professional REALTOR^® (look for the ABR^® designation, too) who knows the local market and follows the neighborhoods in which you are interested. Also, you might already know there is a legal requirement to sign a buyer agreement nowadays. Just FYI, this document can be structured in different ways to accommodate your particular situation. It can be written for a period of time, a designated community, or a particular property, as examples.

Don’t be put off when this topic comes up as it works to your advantage in representation. Know that there may be different contract forms available which may be appropriate in a transaction. If you are going to borrow money, then jump on that with a local lender representative who knows the ins and outs as well as our area contract forms. If you are an investor, try not to fall in love with one home but have options depending on how negotiations evolve.

For Sellers: First and foremost, set your asking price accurately from Day One. Consult your listing agent for recent comparable sales and the direction of the market in your particular neighborhood. Choose a listing agent who gives it to you straight forward and will communicate with you regularly with updates. There is a honeymoon period when a listing is new, and you don’t want to squander it. If there is a buyer for your property that is actively looking right now, you want to attract that buyer.

The last thing you want to do is to “chase the market down” with price reductions that are behind the trend. You are better off pricing low to attract showings and interest than to have prospective buyers regard your home as overpriced and not even want to look at it until, in their opinion, you become more realistic. You can always stick to your guns when an offer is written. You are in a much better negotiating position after a potential buyer has seen your place and is already picturing themselves there.

With the increased inventory and sellers competing with other listings to get that one buyer, a “no-stone-unturned” marketing approach is mandatory. Just putting your listing into the MLS system and hoping is not enough.

Marketing begins with excellent professional photographs for the MLS, all of the real estate related websites (Realtor.com, Zillow, Trulia, Redfin, etc.) and printed materials. The marketing campaign has to advertise to other real estate agents as well as the public. There is a much, much better chance that your home will sell to a buyer with a buyer agent than to someone off the street or someone through the listing agent. If a listing agent claims to have buyers for your property, run in the other direction.

In general, the inventory is high and presents a competitive situation for sellers. Good for buyers and more challenging for sellers. Regarding condos, there are other things to consider when selling or buying at this time…….special assessments, competition dropping their prices, milestone inspections for beachfront high-rise condominiums and timing.

Overall: It is a buyer’s market, especially if you are a cash buyer. If you want/need a mortgage, then consider some available loan programs to lower interest rates and/or refinance later. As mentioned, conditions can vary neighborhood-by-neighborhood but don’t expect prices to dramatically lower. Naples has always been somewhat insulated by what might be happening nationwide. If you see something you like, take action. You are not the only active buyer out there and things are still moving. As a seller, price accurately and maximize marketing and exposure. You have competition and you need to present the property in the best possible way.

If you want to follow the market or a particular community, either as a buyer or a seller, we can set up an email alert system with a few clicks on the computer. It’s the best and most accurate method to really know what is happening. You will only receive an email when there is a change in status such as a new listing, a pending contract, or details of a closed sale. Just let us know your interest.