Naples February 2025 Housing Market Update

There will always be an abundant supply of things and happenings to worry about, and to the contrary, an abundant supply of reasons, realities and hopes to be incredibly grateful and excited for. Every morning, we wake up facing a choice to be grateful and optimistic, or worried and bitter for the delay in expected gratification. Just the realization that we have that choice should bring joy to our hearts. The world and the mechanics thereof can only push you around if you let it. I discovered this notion a few years ago, the assuredness in the true freedom of steering one’s attitude daily and the multitude of benefits that follow. Bad things are going to happen and there are certainly challenges in the Naples housing market right now.

There is a lot going on, but when is there not a lot going on? Mortgage interest rates have been sliding down recently and there are signs that buying activity will start increasing. I certainly have been seeing activity on my desirable and unique listings recently. Take a gander if you are in the market for one of them:

 

MarketWatch has reported as of March 12th, 2025 that mortgage applications are up 7% over a week ago, but refinances are up 16.2% from a week ago which may be a sign that a higher number of people plan on staying in their homes that they bought within the last couple of years. But maybe that is not such a bad thing due to the already elevated inventory levels. Depends on who you ask, everyone has an opinion.

Many speculations I have heard as to why the market is sluggish are all rooted in logic. But despite the weak Pending Sales, and even weaker Total Sales in February 2025, the Median Sales Price for homes and condos are up 4% in Overall Naples and even more in 34102 & 34103. In fact, ZIP 34102 (Old Naples, Royal Harbor, Port Royal) almost hit an ALL TIME record for Median Sales Price at $3,084,500 in February 2025. Only January 2019 was higher at $3,225,000. Look at the huge spike! December 2018 and February 2019 both were in the $800,000’s. Golden Gate Estates floundered a bit in February, which isn’t the recent norm. GGE is usually leading the price growth, if you have read any of my previous Naples Housing Market Updates.

Overall Naples Market – $650,000 | +4.0%

ZIP 34102 – $3,084,500 | +35.6%

ZIP 34103 – $1,922,500 | +52.3%

Golden Gate Estates – $559,900 | -0.7%

 

 

ZIP 34102 is the clear winner in the Pending Sales category with a 29.3% uptick in February 2025 over February 2024, revealing much more movement at the higher end of the Naples market. Are rick folk moving money from the stock market to Old Naples because of fears of a downturn in the equity markets? Maybe, but the uptick wasn’t due to any price decreases as 34102 had the second highest Median Sales Price in Naples history in February 2025. Pending Sales for the rest of our subject areas are all down from last February, but don’t panic. February Pending Sales have been lower than the previous February for the last 3 years as we have been recovering from the “Unicorn Years” of Covid. Looking back at years 2012-2015, each consecutive February saw a higher number of Pending Sales than the previous year, but then dropped 22.3% in February 2016 from February 2015. From 2016 to 2019 each February saw growth over the previous February before stalling out a little in February 2020 when the whole world was taking notice of this little problem called “Covid 19”. My point is, -2% in Pending Sales for February is not something anyone should worry about. Even 34103 that is down 38.3%. That’s only 22 contracts less than last February, which very well could be made up for next month. Also, 34103 was up 50% in Pending Sales in January 2025 over December 2024 and was only off by 1 Pending Sale in January 2025 from January 2024.

Lackluster Total Sales really paints the picture of what everyone in the Naples Housing Market is experiencing. It also highlights all those cancelled transactions in January. While there was a surge of optimism right after the 2024 Presidential Election, sentiment seems to have tempered as we enter an unprecedented “transition period” of our country. Tariffs, mass federal worker layoffs, Talk of ending whole departments and challenges economically are causing folks to pump the brakes a little. Makes sense, but at the end of the day, people will continue to go about their lives as they must. Eventually more offers will be written and sellers who truly want to sell and move on to the next chapter will meet buyers in some determined middle ground. This is the nature of deal making. The reality is that tension and anxiety exists in the market because it exists in people’s lives, which saddens me. The median Total Sales for February for Naples Overall Market from 2012-2020 was 705. Naples was 16.7% lower for Total Sales in February than the 9 years leading up to the “Unicorn Years”.

 

We will always have an endless fountain of available worry to wash over us and the flowing waters of anxiety can be paralyzingly cold. Getting out to dry ground and basking in the sunlight is often all it takes to not only thaw out, but to see more clearly.