Naples area home sales surge as buyers absorb inventory

A surge of seasonal buyers in February accelerated home sales across the Naples area, shrinking inventory and reinforcing demand as Southwest Florida’s peak season continues.

Pending sales, which track homes under contract, jumped 55.9% from a year earlier and rose 23.4% from January, according to the Naples Area Board of Realtors’ February 2026 Market Report. Much of the activity came from out-of-state buyers, particularly from the Northeast, alongside steady interest in both resale homes and new construction.

Condominiums drove much of the increase. Pending condo sales climbed 82% year over year to 714 transactions. Brokers said the completion of state-required structural integrity inspections for older buildings has helped ease buyer concerns.

“Unlike many areas on the east coast of Florida, milestone inspections of condominiums that fell under the new state requirements in the Naples area revealed fewer issues because they were built well originally and have been maintained to a higher standard,” said Jeff Jones, Broker at Keller Williams Naples.

Closed sales also rose, with overall transactions increasing 21.3% to 718 in February, up from 592 a year earlier. Condo closings surged 39.3%, while single-family home sales rose 5.1%. Activity in the single-family segment is expected to pick up further, with pending sales up 33% year over year.

“We will continue to see solid closed sales numbers in the next few months, and in the Naples beach [34102, 34103, 34108 zip codes] condominium market where closed sales in February increased 63%,” said Ryan Bleggi, regional vice president at West Coast of Florida for William Raveis Real Estate.

Prices were largely steady. The median closed price slipped 0.4% from a year earlier to $647,500. More than 2,100 price reductions in February suggest sellers are adjusting expectations to keep deals moving.

Inventory declined alongside the rise in sales. Available listings fell 15.1% year over year to 6,447 properties, while new listings dropped 13.5%, limiting the supply pipeline.

Builders have helped offset some of that pressure. New construction activity has strengthened in recent months, supported by incentives and more favorable financing options.

“Sales of homes in the Southwest Florida new construction market hit their stride in January and improved in February. Some builders sold more homes in January than the previous 15 months,” said Mike Bone, Director of Sales at Christopher Alan Homes. “Builders are still offering incentives which are driving the sales. And they are also able to provide some lower interest rates, often one to one and a half points lower than the market rate.”

Still, conditions vary by segment. In some high-end neighborhoods, including Aqualane Shores and Old Naples, speculative building has led to pockets of elevated inventory, according to Cindy Carroll of Carroll & Carroll Appraisers & Consultants LLC.

Looking ahead, developers are planning thousands of new homes in eastern Collier County, where relatively lower prices are drawing buyers priced out of coastal areas. Brokers say that shift reflects changing priorities, including access to jobs and more flexible school options.

“This is great news for buyers from the east coast like Miami who are looking for more affordable single-family home options or need a home that is more centrally located because members of the family work on both coasts,” said Albert Yabor, Managing Broker, Coldwell Banker Realty.

Some buyers, however, remain on the sidelines, waiting for interest rates to fall. Brokers caution that waiting could limit negotiating power if inventory continues to tighten.

“Some buyers are still sitting on the fence because they believe interest rates will go back down soon,” said Mike Hughes, vice president and general manager for Downing-Frye Realty Inc. “But the reality is, if sales activity continues to reduce inventory … then it’s likely these buyers will have less room to negotiate price when they do finally reenter the market.”