Naples, Florida, is renowned for its stunning beaches, luxurious golf courses, high-end shopping and dining, and the iconic Naples Pier. For generations, tourists and snowbirds have been drawn to this area.
No wonder an increasing number of people are opting to make this gorgeous city their permanent home. If you are among the many considering a move to Naples, continue reading to learn more about the exciting Naples, FL, real estate market.
Naples housing market forecast 2023
Home values look good
In Naples, the median sales price has declined by almost 10% compared to the previous year in July 2022. Nonetheless, 43% of homes possess significant equity, while a mere 0.4% are underwater. The minor price decrease is probably due to a market adjustment affecting most of Florida rather than a signal of decreasing home values.
Rising rates
Interest rates have been up and down like a roller coaster. They were 6.5% in May, then slowly increased to 6.81% in July. Experts are forecasting that the rates will drop by the end of the year. If so, buyers and market investors can benefit by purchasing at lower rates.
Investing is the way to go
In Naples, most residents are homeowners. Precisely 81% reside in their own homes, while the remaining 19% are renters. The median monthly rent in 2021 was $1,412, with a maximum value of $2,000. However, vacation rentals generate a higher profit in the short term, as the median rent for such rentals is $3,292.
Due to the current market prices, many individuals are unable to afford to buy a home and will resort to renting instead. Additionally, given Naples' status as a tourist destination, there will continue to be a demand for short-term rental properties.
Due to the current market prices, many individuals are unable to afford to buy a home and will resort to renting instead. Additionally, given Naples' status as a tourist destination, there will continue to be a demand for short-term rental properties.
Population inching up
It may not be a massive wave like some Florida cities, but according to the U.S. Census, Naples had 19,618 residents in 2022, an increase of 2.6% from 2020.
Collier County housing market trends 2023
The housing prices in the county experienced a slight decline this year. Specifically, the median prices dropped from $607,500 in May 2022 to $600,000 this year, indicating a decrease of 1.2%.
Interestingly, more than a thousand homes reduced their selling price, with 31% fewer listings in May. Additionally, houses stayed on the market for approximately 53 days in May, representing a 231% increase from last year.
Despite these changes, there is still a demand for housing, though buyers seem to be waiting for interest rates to decrease. Furthermore, buyers are interested in move-in-ready homes and new constructions. Unfortunately, only an average of 100 new homes have been built each month over the past year.
Interestingly, more than a thousand homes reduced their selling price, with 31% fewer listings in May. Additionally, houses stayed on the market for approximately 53 days in May, representing a 231% increase from last year.
Despite these changes, there is still a demand for housing, though buyers seem to be waiting for interest rates to decrease. Furthermore, buyers are interested in move-in-ready homes and new constructions. Unfortunately, only an average of 100 new homes have been built each month over the past year.
Covid-19 and the Naples market
The pandemic brought about significant changes to the housing market in Florida. One of the significant changes is the surge in demand for homes, resulting in a depletion of available housing stock and causing home prices to skyrocket.
Naples, in particular, saw increased economic activity, unlike many other parts of the country where numerous businesses were forced to shut down due to the pandemic. Even after the pandemic, people are still relocating to Naples and other areas in Florida, leading to high home prices.
Naples, in particular, saw increased economic activity, unlike many other parts of the country where numerous businesses were forced to shut down due to the pandemic. Even after the pandemic, people are still relocating to Naples and other areas in Florida, leading to high home prices.
Naples foreclosure statistics
As a homeowner, facing the possibility of foreclosure on your property can be distressing. However, there are options to catch up on payments or even sell the home before the process is complete.
Unfortunately, there were 28 foreclosure filings in May, representing a significant increase compared to the previous year. The total number of foreclosure filings for the year so far is 138. However, it’s important to note that the increase in foreclosures is likely a result of recent hurricane damages.
Unfortunately, there were 28 foreclosure filings in May, representing a significant increase compared to the previous year. The total number of foreclosure filings for the year so far is 138. However, it’s important to note that the increase in foreclosures is likely a result of recent hurricane damages.
Naples home prices
According to recent data, in 2022, Naples witnessed the sale of 12,540 homes; this year, there have been 5,896 homes sold, although there’s still plenty of time. The median home price in May was $660,000, reflecting a 4.7% decline from the previous year.
However, there is no indication of any further reduction in home values or a downward trend in the market. The demand for homes is still high, while the inventory is limited.
However, there is no indication of any further reduction in home values or a downward trend in the market. The demand for homes is still high, while the inventory is limited.
Should you invest?
Naples is becoming increasingly popular, with a projected 78% increase in population for the Naples-Marco Island area by 2060. New homes are being constructed, and the rental market looks optimistic.
The job market is also expected to grow by 90% during this timeframe. This presents an ideal opportunity to invest early and be a part of the city's growth. Below are just a few of the many neighborhoods with excellent investment potential.
The job market is also expected to grow by 90% during this timeframe. This presents an ideal opportunity to invest early and be a part of the city's growth. Below are just a few of the many neighborhoods with excellent investment potential.
Pelican Bay
For years, Pelican Bay has been a top-notch neighborhood in Naples, offering various housing options and an unparalleled waterfront lifestyle. Its residents enjoy easy access to the Gulf of Mexico and a private beach surrounded by lush mangrove trees, well-manicured landscapes, and stunning architecture.
The community offers numerous amenities, including the Club Pelican Bay Golf Course, tennis courts, and two boardwalks, filling life in Pelican Bay with activities.
The community offers numerous amenities, including the Club Pelican Bay Golf Course, tennis courts, and two boardwalks, filling life in Pelican Bay with activities.
Conners at Vanderbilt Beach
Vanderbilt Beach's Conners community boasts around 500 single-family homes along picturesque canals. The community comprises only 17 cul-de-sac streets, ensuring a peaceful and serene environment. Boating enthusiasts can easily access the open water from their private docks. Additionally, residents can take a short stroll to reach Vanderbilt Beach.
The neighborhood blends classic Florida-style homes and modern upscale builds, replacing some older properties with contemporary designs. This presents an exciting opportunity for buyers and investors to create unique homes.
The neighborhood blends classic Florida-style homes and modern upscale builds, replacing some older properties with contemporary designs. This presents an exciting opportunity for buyers and investors to create unique homes.
Moorings
The Moorings is a well-established community with around 4,000 single-family homes and condominiums. Prospective buyers can discover a wide range of options, from opulent mansions to humble bungalows and everything in between. Quiet streets and a canopy of mature trees enhance the serene quality of the area.
Residents who live along the waterfront can quickly launch their boats into the open waters of the Gulf, while others enjoy kayaking and paddle boarding in Moorings Bay. The homeowner's association regularly sponsors community events, and the private member-owned Moorings Golf and Country Club offers endless entertainment opportunities.
Residents who live along the waterfront can quickly launch their boats into the open waters of the Gulf, while others enjoy kayaking and paddle boarding in Moorings Bay. The homeowner's association regularly sponsors community events, and the private member-owned Moorings Golf and Country Club offers endless entertainment opportunities.
Your journey starts here
Looking for a new home in the highly sought-after Naples real estate market can be challenging. While you can certainly search on your own, having the guidance of a seasoned professional can make a big difference in your success.
Meet Walter Patrick, a globally recognized real estate advisor specializing in luxury properties. As a Naples local, he possesses an in-depth knowledge of the local real estate scene and is committed to helping his clients achieve their goals with utmost privacy and confidentiality.
Walter's marketing expertise and familiarity with the area will give you an edge in the market. Whether you are looking for homes for sale in Naples, exploring investment opportunities, or selling a home, he can help. Contact Walter today and get started on your journey!
Meet Walter Patrick, a globally recognized real estate advisor specializing in luxury properties. As a Naples local, he possesses an in-depth knowledge of the local real estate scene and is committed to helping his clients achieve their goals with utmost privacy and confidentiality.
Walter's marketing expertise and familiarity with the area will give you an edge in the market. Whether you are looking for homes for sale in Naples, exploring investment opportunities, or selling a home, he can help. Contact Walter today and get started on your journey!
