January 2025 Naples Real Estate Newsletter

NAPLES FLORIDA REAL ESTATE NEWSLETTER

Southwest Florida Real Estate Newsletter – January 2025

Happy New Year!

Naples celebrated remarkable achievements in 2024, including being named the No. 1 Best Place to Retire and the No. 1 Best Place to Live by U.S. News and World Report. These recognitions highlight the unmatched quality of life, vibrant community, and exceptional amenities that Naples offers its residents.

As we step into 2025, I’m filled with gratitude for your unwavering support and engagement.  Even though the market continued to gradually slow down after a couple of hyperactive years in 2021 and 2022, my personal sales total was up year-over-year, thanks to your trust and loyalty.  I appreciate your business and I am thankful for the opportunity to help you!  Also, I always welcome your referrals in Naples or elsewhere as I have great connections with top brokers across the country and globe through my personal connections and affiliation with the Leading Real Estate Companies of the World.

Congratulations to William Raveis Real Estate in 2024 – Our company had a fantastic 2024, dominating zip code 34102, achieving #1 market share in Aqualane Shores, Olde Naples and Port Royal (where we have been #1 the past 6 years).  The company was also named the Winner of the prestigious title of Best Luxury Real Estate Brokerage in Connecticut, Massachusetts, Florida, and for the first time ever–South Carolina! The remarkable achievement coincides with William Raveis’ 50th anniversary as a family-owned luxury brand, solidifying its position as a national and global leader in the marketplace.

In this newsletter I also provide a comprehensive Naples real estate market recap for 2024, highlighting key trends and insights. Additionally, stay tuned for our predictions on the Naples real estate market in 2025—it’s shaping up to be an exciting year for buyers and sellers alike.

Here’s to a fantastic 2025 filled with opportunities, growth, and success. Wishing you and your family a joyful year!

Warm regards,
Matt

In 2024, the Naples real estate market experienced a robust but slower year, shaped by rising inventory levels, a highly anticipated presidential election and evolving buyer preferences.  The number of sales closings in Naples were down 10% compared to 2023 and down 23% compared to a pre-pandemic level in 2019 but the overall dollar volume of sales was up 41% to $8.63B, driven by higher prices and an active luxury market with almost $2B of sales in the $5M+ price segment.

Overall inventory saw a year-over-year increase of 37.6%, rising from 4,198 properties on the market at the end of 2023 to 5,777 at the end of 2024.  After 3 years of inventory growth and gradually slowing sales volumes, Naples now has a very similar number of properties on the market as just prior to the pandemic at the end of 2019 (5,627).  This increase provided buyers with more options and leverage to negotiate feeling the market had shifted to their advantage and contributed to a more favorable buying environment.

Market dynamics remained complex.  The overall average sales price in Naples increased 5.8% in 2024 to $1,028,248 despite more inventory and challenges like higher insurance costs and impact from hurricane Milton.  Condominium prices increased slightly (+1.8%) over the year possibly due to increasing maintenance and insurance costs, while average single-family home prices increased more substantially in 2024 (+7.9%), supported by consistent demand in the $5M+ (+7.8%) and the $10M+ (+50%) price points.  The majority of sales were cash transactions but buyers needed a mortgage showed caution due to interest rates and sellers that had locked in a low rate within the last few years were hesitant to sell and take on more a more costly loan.

For a detailed breakdown of the 2024 Naples real estate market, visit our Market Reports page and take a look at the market trends charts below.

Naples continues to attract new full-time and seasonal residents with its unmatched lifestyle and improving real estate conditions including being ranked the #1 Place in the US to Live and the #1 Place in the US to Retire by US News & World Report for 2024.  The Naples market is poised for a healthy year of sales in 2025 with the Presidential election behind us and a wider variety of condominiums and homes for buyers to choose from than we’ve seen in the last 5 years.  With a steady increase in inventory, the market is transitioning to a more balanced environment, offering buyers more options and greater negotiating power.  The supply of available homes and condominiums is expected to increase slightly but not dramatically due to limited land availability.

There are quite a few significant developments in Naples that will continue to propel the market in 2025 and beyond such as; the extension of commercial development on 5^th Ave South, the highly anticipated new Four Seasons Resort which is expected to open in 2025, Restoration Hardware and other exciting changes coming to the Waterside Shops area including a brand new Boutique Hotel, several exciting new luxury condo developments such as the Ritz Carlton Residences Naples and Rosewood Residences well underway, the Old Naples Hotel on 3^rd Street South in the works, 50+ new Naples restaurants expected in 2025 and a brand new and improved Naples Pier that will be under construction soon.  All of these developments will help make an already fabulous #1 town even more diverse and enjoyable for residents and visitors alike.

While interest rates and higher insurance costs have impacted buyer affordability, Naples remains a sought-after destination for retirees and second-home buyers. The area’s appeal is underscored by its desirable lifestyle, picturesque beaches, and robust local economy. Furthermore, new construction projects in both luxury homes and high-rise condos are anticipated to support price appreciation, especially in premium neighborhoods.

With increased inventory, Sellers will need to adjust their expectations, as homes may take longer to sell, but the market is still expected to remain favorable for those looking to buy in one of Florida’s most desirable coastal cities.

Exciting developments shaped Naples’ growth in 2024, showcasing luxury, innovation, and expanded real estate opportunities.

The Ritz-Carlton Residences, Naples progressed toward completion, offering 128 estate-style residences across five boutique buildings. These homes, currently priced from $5.2 million, feature three to five bedrooms, European-style kitchens, and private elevators. Approximately 70% of units are sold, emphasizing their popularity. Amenities include a 28,000-square-foot Vanderbilt Club, a 22-slip marina, rooftop lounges, and resort-style pools. Completion is expected by early 2026.

Aura at Metropolitan Naples is now under construction and offers residences starting at $2 million.  Advanced with its sleek design, rooftop pool, and Gulf views, this project blends luxury condos with retail spaces, making it a key addition to Naples’ skyline.  It’s convenient downtown Naples location featuring a 15th floor rooftop infinity-edge pool & fitness center with expansive views is a very unique offering.  It is expected to be completed by Q3 of 2026.

Fifth Avenue South dining / shopping / living will be extended with The Avenue, a project spanning 4.3 acres on nearly 2 city blocks on 5^th Ave S.  The luxury mixed-use project is expected to start sales in 2025 and start construction in 2026.  Located near Four Corners, the gateway to downtown Naples. It’s bounded by 6^th Ave S, 9^th and 11^th streets.  Two floors of luxury condominiums will sit atop 75,000 SF of boutique shops, restaurants and commercial uses on lushly landscaped open-air walkways that will resemble old European streets. A ground-floor garage will accommodate residents and commercial uses.  Homes will range from 2 to 4 bedrooms, expected to be in the $3M to $8M range, with amenities ranging from rooftop pools, state-of-the-art fitness centers and club rooms tailored for co-working and social gatherings. Other amenities include a doorman, on-site management and concierge services to coordinate home watch, shuttle service, electric Moke America Naples Beach House Cruisers, outdoor activities, theater reservations, personal training, grocery delivery and home setup assistance.

Saltleaf expanded its residential offering with waterfront condominiums within the Ritz-Carlton Estero Bay 2-tower development featuring modern designs. Located along Estero Bay, it provides direct water access, private docks, and a private golf course for residents, emphasizing an upscale and sustainable lifestyle. The South Tower at the Ritz-Carlton Estero Bay is 90% sold out and expected to be completed by early 2026, while the North Tower is anticipated by mid-2027.  Prices range from around $3.5 million to $17 million.

Rosewood Residences Naples stands as one of the newest additions to the beachfront condo scene in Naples, marking a significant development in many years. It might be hard to believe but the last beachfront condominium building to be completed in Naples was North Naples’ Moraya Bay which was built in 2009!  When Rosewood is completed in late 2026, there will be a 17 year spread between them.  Situated on a sizable 5.25 acre parcel boasting a remarkable 482 linear feet of beachfront on the Florida Gulf Coast, this exclusive enclave offers 42 meticulously crafted ultra-luxury condominiums, each providing access to the exceptional amenities and services that define the Rosewood experience.  Rosewood offers floor plans ranging from 4,226 to 9,673 square feet, priced from $12.75 million.

Kalea Bay released its final phase with luxury high-rise condos for sale, offering stunning Gulf views from the 5th and final tower of 120 condominiums. The development includes rooftop pools, a fitness center, and a private beach club, creating an exclusive waterfront community with modern amenities. The Tower 500 is anticipated to be completed by September 2026 with prices that start around $3.3 million.

Naples Beach Club and Four Seasons Resort made strides, promising unmatched luxury upon completion. This project combines world-class hospitality with exclusive residences, redefining beachfront living in the area.

• The Four Seasons Hotel is well underway and on schedule for a Fall 2025 opening.
• The Beachside Residences are getting closer to completion with an anticipated Winter 2025 delivery.
• The Golfside Residences were recently fully approved by the Naples City Council and will be released for reservation shortly.  The Golfside Residences will consist of 95 luxury condominium homes spread across five elegant buildings, ranging from 4 to 7 stories.
• All Naples Beach Club residents will enjoy exclusive access to a curated collection of private amenities and experiences. The Golfside Residences will feature a large family pool with private cabanas, spas and lounge seating, a kids’ splash pad, al fresco dining with poolside and tableside service, and a lakeside pavilion with a spacious boardwalk along the golf course’s first hole. Additionally, all residents have access to extensive Beachside amenities including the Residents Beach Club and Residents Beach House, which host three resort-style pools, a luxurious residents-only spa and fitness center, club lounge and two waterfront restaurants.

Naples’ 2024 real estate evolution underscores its balance of luxury, resilience, and lifestyle opportunities, setting the stage for an exciting 2025.

Year-end Annual Summary 2024: Naples Market Trends and Commentary

In this month’s Naples real estate market trend review, I included only properties above $1 million in sales price which represents the top 25% of the market (2,045 sales out of 7,969 total for 2024).  The charts below represent separate trend lines for single family homes and condominiums and display key market metric trends over the last 6 years.
Annual Summary for properties in Naples over $1 million:  2024 vs 2023

• Average Sales Prices: +7-8% for homes and condos.
• Average Price per Square Foot: +1% for homes and +5% for condos.
• Months of Supply: +25% for homes and +62% for condos
• Properties for Sale: +18% for homes and +40% for condos
• Pending Sales: +3% for homes and -5% for condos
• Total Sales: -6% for homes and -14% for condos
• Dollar Volume of Closed Sales: +1% for homes and -8% for condos
• Average Days on Market: +27% for homes and +54% for condos
• Average Discount from Last Asking: +13% for homes and +33% for condos

Top 15 Highest Sales in 2024:

• Single Family Homes: VIEW 15 LISTINGS
• Condominiums: VIEW 15 LISITNGS

AVERAGE SALES PRICE (12-month rolling average)

The average sales price for a property over $1M in Naples in 2024 (compared to 2023):

• Single Family Home: $2,822,281 (+7.1%)
• Condominium: $2,375,834 (+7.8%)

AVERAGE PRICE PER SQFT (12-month rolling average)

The average sales price per square foot for a property over $1M in Naples in 2024 (compared to 2023):

• Single Family Home: $792 (+0.8%)
• Condominium: $960 (+4.6%)

MONTHS SUPPLY

This is one of the most informative metrics regarding the current supply/demand balance of the real estate market activity since it combines the pace of sales with the number of properties currently available.  The months of supply metric tells us how long it would take for all the properties on the market to be sold if sales continued at the current pace and no additional listings came on the market.  Nationwide 6 months of supply is often considered to be a balanced market but within Naples luxury market, the typical level of supply escalates to up 24 months as the price point increases.
The months of supply for properties in Naples over $1M in December 2024 (compared to December 2023):

• Single Family Homes: 12.0 months (+25.0%)
• Condominiums: 13.3 months (+62.2%)

HOMES FOR SALE

The number of  properties for sale in Naples over $1M in December 2024 (compared to December 2023):

• Single Family Homes: 1,391 (+18.0%)
• Condominiums: 730 (+39.6%)

NEW LISTINGS (12-month rolling total)

The number of  property listings in Naples over $1M the last 12 months (compared to 2023):

• Single Family Homes: 3,338 (+14.0%)
• Condominiums: 1,582 (+14.5%)

PENDING SALES (12-month rolling total)

The number of pending sales in Naples over $1M in 2024 (compared to 2023):

• Single Family Homes: 1,585 (+3.1%)
• Condominiums: 700 (-5.4%)

TOTAL SALES (12-month rolling total)

The number of sales in Naples over $1M in 2024 (compared to 2023):

• Single Family Homes: 1,387 (-5.6%)
• Condominiums: 658 (-14.2%)

DOLLAR VOLUME OF CLOSED SALES (12-month rolling total)

The total dollar volume of property sales in Naples over $1M in 2024 (compared to 2023):

• Single Family Homes: $3,914,504,390 (+1.2%)
• Condominiums: $1,563,298,800 (-7.5%)

AVERAGE DAYS ON MARKET (12-month rolling average)

The average days on the market for a property that closed in 2024 (compared to 2023):

• Single Family Homes: 81 (+26.6%)
• Condominiums: 88 (+54.4%)

AVERAGE PERCENT OF LAST SALES PRICE (12-month rolling average)

The average discount below the last asking price for a property in Naples that sold above $1M in 2024 (compared to 2023):

• Single Family Homes: 6.1% discount from last asking (+13%: avg 5.4% discount in 2023)
• Condominiums: 5.7% discount from last asking (+32.5%: avg 4.3% discount in 2023)

Southwest Florida & Naples Real Estate Market Reports

Each month our real estate newsletter includes previous months published market reports for the Naples Florida area, which includes the William Raveis luxury real estate market report and the Naples Board of Realtors (NABOR) market report.

To check out previous months market reports head to my website > RESOURCES > Market Reports.

Naples Board of Realtors (NABOR) – December 2024

Naples & Bonita Springs (Willam Raveis) – December 2024

If you would like to look back at all our monthly news posts, check out our Facebook feed or our LinkedIn feed.

Below are Naples newest waterfront properties on the market priced above $2,000,000. See any which are interesting, lets connect!  If you would like to search all Southwest Florida properties, visit our website > SEARCH > Search Properties page.