Naples Market Report – May 2025

Published on June 20, 2025 by Mike Shoaff

Here’s your May 2025 Naples market update. And let’s clear this up right out of the gate—Naples isn’t sliding into the Gulf, no matter what the headlines suggest. But I won’t sugarcoat it. The market has been flip-flopping more than a tourist in beach sandals. Let me break down what I’m seeing on the ground, in the numbers, and behind the scenes.

Let’s Start with the Usual Delay

This update covers May stats because real estate data always trails by about a month. Closings need to be processed and recorded before we get a clear and accurate picture. So no, we’re not behind. We’re just being precise.

Market Mood: Buyers Are Wary, But Naples Still Shines

Buyer confidence is uncertain. Many are taking a pause. Economic factors like tariffs, global tensions, and interest rate concerns are keeping people cautious. Even our steady Canadian buyers are hesitating, thanks to currency exchange rates and changing immigration vibes. That said, Naples is still outperforming. According to Dr. Shelton Weeks at FGCU, Collier County currently has the lowest housing inventory in the region—only 3.5% of homes are on the market. That’s tight. Historically, when the national market does okay, Naples tends to do better. That pattern is still holding up, even in a shifting market.

Inventory and Sales: A Balancing Act

Inventory jumped 23.9% compared to last May, rising from 5,265 to 6,524 homes. Buyers and sellers are cautious. A lot of people are in “wait and see” mode. At the same time, 31% of active listings—more than 2,000 homes—dropped their asking price last month. Sellers are adjusting. Closed sales were down 16.5% year over year, dropping from 933 to 779. But pending sales were up 10.9%. The takeaway? Motivated sellers who price their homes right are still getting deals done. This market rewards realism.

New Listings Are Down, Too

New listings dropped 23% compared to last year. That’s a clear sign that many homeowners are waiting for more certainty—or they’re not quite ready to accept today’s pricing.

Median Price Trends

The median closed price in Naples fell 9.1%, from $649,000 to $590,000. South Naples single-family homes saw the biggest hit, down 23.1%. Meanwhile, the ultra-luxury segment actually jumped 18.6% to a median of $2.71 million. That bump was driven by a handful of significant sales, not a broad market shift. There are still segments struggling, especially those with too much inventory or lingering storm-related challenges.

Where I’m Seeing Softness

Old Naples is feeling saturated. A wave of spec homes came online after Hurricane Ian—some were rebuilds, others were just speculation. Either way, it’s crowding the market and making it harder to stand out. Beachfront condos are also slow. Real and perceived storm damage, along with insurance costs and assessments, are keeping buyers on the fence.

Days on Market: The Market’s Loudest Signal

A growing number of homes are sitting for over 90 days. That’s a message: pricing matters. I’ve had more than a few recent scenarios where I bring a solid pricing recommendation to a seller. They want to push higher. We list, it sits, and by the time they’re ready to reduce, the market has shifted further. At that point, we’ve missed the fresh-on-market buzz and are now chasing prices downward. It’s not about underpricing—it’s about timing and understanding the trend.

Builders Are Starting to Blink

Some big names, like DR Horton, are pumping the brakes. They’re slowing permits, cutting staff, and rethinking expansion. That’s not panic. That’s a calculated adjustment to meet the market where it is.

Final Take: This Isn’t a Crash. It’s a Correction.

We saw a post-COVID surge that was never going to last forever. That hump was temporary. What we’re seeing now is a return to a more balanced, stable market. Prices are adjusting. Sellers are adjusting. Smart buyers are still active. And in the middle of all this, opportunities are still out there—especially for those who price or negotiate with strategy.

Frequently Asked Questions – May 2025 Naples Market

Is now a good time to buy in Naples?
That depends on your goals. If you’re planning to hold long term or want a second home in Naples, this softer market can work in your favor. Sellers are more negotiable, and there’s less competition than a year ago. If you’re waiting for the bottom, just remember—you usually don’t know it was the bottom until it’s behind you.

Should I wait to sell until the market comes back up?
Maybe. But we’re in a correction, not a crash. It could take time for prices to climb again. If you’re motivated to sell, pricing correctly now still gets results. Waiting could mean missing your window or chasing values down further.

Why isn’t my home getting showings?
It almost always comes down to price. Buyers are focused on value and are more selective. If your home isn’t getting attention, the market is telling you something.

Are price reductions a red flag to buyers?
Not anymore. In today’s market, a price drop shows the seller is paying attention. Often, it brings new buyers back into play. It’s a sign of motivation, not desperation.

Who’s still buying in this market?
Smart, financially ready buyers who understand Naples’ long-term value. Many are relocating, downsizing, or buying second homes. Cash buyers are especially active and watching closely for deals.

Are new builds still a smart option?
They can be. Some builders are offering solid incentives. Others are still holding 2022 price expectations. It depends on the area and the timing. I’m watching it closely.

What areas of Naples are seeing the biggest pricing changes?
South Naples single-family homes saw the sharpest drop. Beachfront condos are still slow to recover. Ultra-luxury is holding up, but that segment moves fast based on just a few big sales.

Who should I trust for real-time market advice?
You need someone local who’s tracking the market daily and understands both the data and the sentiment. That’s what I do. If you want the real story and a strategy tailored to your goals, I’m here to help.

Ready to Buy or Sell in Naples, FL?

As a Naples resident and experienced Naples Fl Realtor with REMAX Hallmark, I track daily market trends to help you navigate this shifting landscape. Whether you’re targeting luxury homes, looking for value in South Naples, or planning to sell, I’ll help you approach it strategically.