Naples area housing market steadies after volatile years

After several years of rapid swings driven by shifting interest rates and uneven inventory, the Naples area housing market showed signs of settling into a more predictable rhythm in 2025, according to year-end data from the Naples Area Board of Realtors. 

Housing analysts shared the findings during the group’s annual year-end conference Feb. 9 at Naples Conference Center, describing a market that slowed early in the year before regaining momentum in the months that followed. NABOR tracks home listings and sales in Collier County, excluding Marco Island. 

Buyer uncertainty weighed on the market during the first half of 2025, said Mike Hughes, vice president and general manager for Downing-Frye Realty Inc., as economic concerns and fluctuating mortgage rates prompted many would-be buyers to wait. 

“In the beginning of the year we faced uncertainty with the tariff situation,” Hughes said. “Buyers hit the pause button, and we were down 709 pending sales by June 30 compared to the same time in 2024. But in the second half of the year, things changed. Mortgage rates stabilized to the low 6s by December … so they began to purchase homes again.” 

By year’s end, pending sales reached 10,178, slightly higher than the 10,090 recorded in 2024 and approaching the 10,345 reported in 2019, which brokers often view as a benchmark for pre-pandemic market conditions. Hughes described the current environment as “a different normal,” shaped by higher borrowing costs and limited inventory in lower price ranges. 

Closed sales also increased, rising 3.4% in 2025 to 8,249 transactions, according to data presented by Jillian Young, president of Premiere Plus Realty. 

“We feel stabilization is strength,” Young said. “While the market didn’t boom in 2025, we think it recalibrated. Buyers adjusted to the interest rates. Sellers adjusted to realistic pricing strategy.” 

Much of the activity occurred in homes priced between $500,000 and $1 million. Eastern Collier County communities, including Ave Maria and Immokalee, saw the sharpest growth, with closed sales rising 19.6% from 2024. 

Inventory levels, which surged at the start of the year, gradually moved closer to historical norms. Ryan Bleggi, regional vice president for William Raveis Real Estate, said housing supply jumped from 8.6 months in December 2024 to 13.1 months in January 2025, increasing competition among sellers and placing downward pressure on prices — a shift that signaled a buyer’s market. 

By December, however, inventory had declined to 5,714 properties, or 8.3 months of supply, slightly below year-end 2024 levels 

“Inventory and months of supply is an indicator of where pricing is headed,” Bleggi said, adding that early data from 2026 suggests a more typical seasonal increase in available homes. 

Even as the market showed signs of balance, home prices remained well above pre-pandemic levels. Jeff Jones, a broker at Keller Williams Naples, said the median closed price rose 79 % to $594,500 in 2025 from $332,000 in 2019. During that period, median prices reached $729,000 for single-family homes and $488,475 for condominiums. 

Jones said the market remains “in good shape with equity and increased market value for homeowners,” noting that homes spent an average of 94 days on the market in 2025, compared with 97 days in 2019. 

Analysts expect the market to remain steady in 2026, supported by relatively stable mortgage rates and growing buyer confidence. Still, they cautioned that conditions may vary significantly by community, with local supply levels likely to shape pricing and demand. 

After years of upheaval, analysts said, the Naples housing market appears to be settling into a more measured pace, one defined less by rapid growth and more by gradual, sustained change.