Motivated sellers in Naples who took advantage of getting ahead of the market with prices that pleased buyers found success during May as overall pending sales (homes under contract) increased 10.9 percent to 951 pending sales, up from 919 pending sales in May 2024.
According to the May 2025 Market Report by the Naples Area Board of REALTORS® (NABOR®), which tracks home listings and sales within Collier County (excluding Marco Island), 2,023 properties on the market in May reported a list price decrease, representing 31 percent of the overall inventory.
The number of homes for sale increased 23.9 percent to 6,524 properties, up from 5,265 properties in May 2024, but economic uncertainty continues to create challenges for today’s buyers and sellers—even in paradise.
Economic Discomforts
Broker analysts reviewing the May Market Report say the Naples housing market is experiencing mixed consumer confidence due to uncertainty surrounding tariffs and rising military tensions in the Middle East.
International buyers, particularly Canadians, are showing decreased interest in second-home purchases. Shifts in the American temperament toward immigration and affordability concerns are contributing to hesitation.
Terrilyn Van Gorder noted that affordability is another reason international buyers aren’t rushing to Naples this year. The dollar was strong last summer, but now it doesn’t stretch as far for them.
Adam Vellano added that buyers in general are hesitant to commit because they don’t know which direction the economy is heading.
Mike Hughes explained that the tariff situation impacted the stock market in April, resulting in lost deals. With ongoing tariff concerns and the possibility of additional global conflict, buyers are increasingly cautious and choosing to wait on the sidelines.
Closed sales in May decreased 16.5 percent to 779 closed sales, down from 933 in May 2024. Despite this decline, Naples continues to outperform many other Florida markets.
Dr. Shelton Weeks Lucas shared that Collier County has the lowest housing stock in the region at just 3.5 percent of total homes. Compared to the rest of Florida, values are holding much better in Naples. While large markets like Miami and Tampa benefit from local economic diversity, Naples relies heavily on wealth generated elsewhere. He noted that although tariffs were presented as a path to growth, economic theory does not support that claim. As uncertainty lingers, buyers are watching the stock market closely to see if conditions improve.
One positive indicator is the declining value of the dollar relative to the Euro since the beginning of the year. If this trend continues, it could help bring European investors back into the Naples market.
Hughes also reminded that markets rarely stay the same.
Motivating Drivers
New listings in May decreased 22.9 percent to 952, down from 1,235 new listings in May 2024, while buyer hesitancy kept sales activity modest.
Jillian Young explained that motivated sellers are still coming out ahead because equity grew exponentially during the pandemic. Buyers waiting for an interest rate drop may be overlooking opportunities to negotiate with today’s sellers. She encourages buyers to speak with their REALTOR® about offer strategies, as current market conditions may present cost advantages that rival future rate decreases.
The overall median closed price in May decreased 9.1 percent to $590,000, down from $649,000 in May 2024.
Among all reported areas and home types, single-family homes in South Naples (34112, 34113) experienced the largest decline, dropping 23.1 percent to $772,500 from $940,000 one year ago.
Meanwhile, the luxury market remains strong. Single-family home prices in the Naples Beach area (34102, 34103, 34108) increased 18.6 percent to $2,712,500, up from $2,287,500 in May 2024. Brokers are monitoring oversaturation of speculative homes in these areas, where inventory has reached 17.9 months, which could soften prices later this year.
Jeff Jones emphasized that days on market are the enemy of home values. Homes listed for more than 90 days are often overpriced, as sellers are still seeking more than the market is willing to offer. He stressed that sellers without true motivation may be better off waiting, while serious sellers must be open to aggressive pricing strategies.
Market Snapshot
The NABOR® May 2025 Market Report provides detailed comparisons of single-family home and condominium sales using Southwest Florida MLS data. It includes price ranges, geographic segmentation, and an overall market summary presented in chart format.
Where the Pinch Hurts
Mike Bone shared that many home builders in Florida are pausing developments until economic conditions improve. Downsizing in staffing, new investment, and planned product output is becoming more common.
Brokers Hughes, Jones, and Bone agree that the slower pace offers an opportunity for skills training and professional development within the real estate community. Top agents are being asked to share best practices with agents who are struggling in the current market.
Hughes noted that this type of market is where good brokers stand out. Leaders must keep morale up while also being honest about the challenges ahead. Having realistic pricing conversations with clients is more important now than ever.
The Naples Area Board of REALTORS® (NABOR®) was chartered in 1949 and has served the Naples community for more than 75 years. NABOR® represents over 8,500 members and is affiliated with Florida Realtors® and the National Association of REALTORS®.
The term REALTOR® is a registered collective membership mark identifying real estate professionals who subscribe to the National Association of REALTORS® Code of Ethics.
