Naples Housing Market: Prices, Trends, Forecast 2023-2024 – Norada Real Estate Investments

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Naples Housing Market

Naples is a beautiful coastal city located in the southwestern part of Florida. The Naples housing market has been experiencing some interesting trends in recent times. Although there has been a slight decrease in median sale prices, Naples remains an attractive location for homeowners. In this report, we’ll take a closer look at the latest housing market data for Naples, including sales, prices, and supply trends, as well as provide a forecast for what we can expect in 2024.

Naples Housing Market: House Prices & Trends

The Naples housing market boasts a unique landscape with distinct features. It is characterized by a lack of intense competition, with homes receiving an average of 1 offer and selling in approximately 49.5 days. According to Redfin, the median sale price for a home in Naples stood at $815K last month, reflecting a noteworthy 5.2% increase from the previous year.


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Naples is classified as Not Very Competitive according to the Redfin Compete Score™, which rates the competitiveness of an area on a scale of 0 to 100. Multiple offers are rare, and homes generally sell for about 4% below the list price, going pending in around 50 days. Hot homes, on the other hand, may sell for around the list price and go pending in approximately 13 days.

Examining the migration patterns in Naples reveals that 1% of homebuyers searched to move into Naples from outside metros. Among them, Chicago homebuyers showed the highest interest, followed by Miami and New York. Additionally, 58% of Naples homebuyers sought to stay within the Naples metropolitan area. Sarasota emerged as the most popular destination, with Tampa and Knoxville following closely.

Is Naples a Buyer’s or Seller’s Housing Market?

In the current Naples housing market, the moderate competitiveness indicates a balanced scenario for both buyers and sellers. With homes receiving an average of 1 offer and selling in around 49.5 days, it suggests a market that provides opportunities for both parties.

Are Home Prices Dropping in Naples?

The median sale price of homes in Naples was $815K last month, showing a notable 5.2% increase compared to the previous year. This upward trend in home prices suggests that, currently, home prices in Naples are not dropping. The market remains dynamic, and potential buyers should be aware of the evolving pricing landscape.

Naples Housing Market Forecast 2023-2024

Naples, along with its neighboring areas of Immokalee and Marco Island, forms the Naples-Immokalee-Marco Island Metropolitan Statistical Area (MSA). This MSA boasts a vibrant housing market that has experienced notable trends and forecasts. Let us take a closer look at the current state of the market and its forecast for the near future.

According to Zillow, the average Naples-Immokalee-Marco Island home value stands at $603,009, reflecting a 1.5% increase over the past year. Homes in this area typically go pending in around 32 days, indicating a relatively brisk market.

1-year Market Forecast

  • Market Value Forecast: +2.0%
  • For Sale Inventory: 4,118
  • New Listings: 1,155
  • Median Sale to List Ratio (October 31, 2023): 0.962
  • Median Sale Price (October 31, 2023): $561,983
  • Median List Price (November 30, 2023): $772,000
  • Percent of Sales Over List Price (October 31, 2023): 6.1%
  • Percent of Sales Under List Price (October 31, 2023): 82.9%

Will the Naples Housing Market Crash?

As of the provided data, there is no indication or forecast suggesting a housing market crash in Naples. The market forecast indicates a modest 2.0% increase in the market value over the next year, and the key metrics such as median sale price and list price remain stable. However, it’s essential to stay vigilant and regularly assess market conditions for any potential changes that may impact the real estate landscape.

Naples Housing Market Forecast 2023-2024Naples Housing Market Forecast 2023-2024
Source: Zillow

Naples Real Estate Investment Overview

Naples, Florida, is a popular real estate investment destination due to its location, thriving economy, and desirable quality of life. The city has been experiencing steady growth in population and housing demand, making it an attractive market for real estate investors. In this section, we will discuss Naples real estate investment overview and seven reasons why investors should consider investing in this market.

Naples Real Estate Investment Overview

Naples is known for its upscale homes, beachfront properties, and high-end condominiums. The city offers a unique combination of natural beauty, excellent climate, and world-class amenities, making it an ideal place for people looking to invest in a vacation home or rental property. The city’s real estate market has been growing steadily over the past few years, with prices continuing to rise due to strong demand and limited inventory.

In recent years, the Naples real estate market has experienced steady appreciation in property values, making it an attractive investment opportunity for both local and international investors. The city’s high-end real estate market has been particularly strong, with luxury homes and condos selling at a premium. Additionally, Naples has a thriving vacation rental market, with many tourists flocking to the city’s beaches and attractions throughout the year.

Top Reasons to Invest in Naples Real Estate:

  • Strong Rental Market: Naples is a popular vacation destination, which translates into a high demand for rental properties. Investors can enjoy high occupancy rates and attractive rental yields by investing in vacation homes or rental properties.
  • Growing Population: Naples has been experiencing steady population growth, making it an attractive market for real estate investors. As more people move to the city, demand for housing continues to rise, which can translate into higher property values.
  • Strong Economy: Naples has a thriving economy, with a diverse range of industries, including tourism, healthcare, and construction. The city’s economy is expected to continue to grow, which can translate into higher property values over time.
  • Desirable Location: Naples is located in Southwest Florida, offering easy access to some of the state’s most popular attractions, including the Everglades, Sanibel Island, and Marco Island. The city’s desirable location makes it an attractive place to live, work, and vacation.
  • High-Quality Lifestyle: Naples is known for its high-quality lifestyle, with world-class amenities, including top-rated restaurants, shopping centers, and cultural attractions. The city’s desirable lifestyle is a significant draw for both local and international real estate investors.
  • Limited Inventory: The Naples real estate market has limited inventory, particularly in the luxury home and condo segments. Limited inventory can translate into higher property values over time.
  • Stable Real Estate Market: Naples has a stable real estate market, with steady appreciation in property values over the past few years. The city’s real estate market has been relatively resilient to economic downturns, making it an attractive investment opportunity for long-term investors.

While there are many advantages to investing in Naples real estate, there are also a few drawbacks to consider. One of the most significant drawbacks is the high cost of entry, particularly in the luxury home and condo segments. Additionally, property taxes and insurance rates in Naples can be relatively high compared to other Florida cities. Finally, investing in vacation rental properties can be challenging, particularly given the city’s strict zoning laws and regulations.

In conclusion, the Naples real estate market offers many opportunities for investors looking to capitalize on the city’s growing population, strong economy, and high-quality lifestyle. While there are some drawbacks to consider, the overall market conditions and long-term appreciation potential make Naples an attractive investment destination. Investors should conduct their due diligence and work with experienced real estate professionals to navigate the local market successfully.

Florida is a great place to invest in real estate with several affordable and growing markets. While there are investment opportunities in the Florida housing market, major metros are some of the most popular choices, like Jacksonville, Orlando, Miami, St. Petersburg, and Tampa. Another market that we suggest is the housing market in Lakeland, Florida. The Lakeland housing market presents the perfect balance of currently affordable real estate for buyers and future growth. We can expect the population of the area to grow rapidly, and the renting population will grow even faster. The time to buy real estate in Lakeland is now.

While the Lakeland FL real estate market is cheaper than Orlando and Tampa, it is not a good overall value given the lower average wages of its residents. That explains why U.S. News and World Report gave the city an index score of 5.5 out of ten. This is due to the average resident earning around $23,000 a year, several thousand less than the U.S. average. Median household incomes are no better.

You can also invest in another hot market in Ocala, Florida. Ocala is an affordable real estate market for investors who can still reap a decent return on investment. The area has recovered from the Great Recession, and several factors will insulate it from a future downturn. The Ocala housing market is buoyed by several near-recession-proof industries.

It is quite affordable for investors compared to the rest of Florida markets like Tampa where the median home value is $221,500. The median home price in Ocala in 2018 was around $150,000. You can buy several homes in the Ocala FL real estate market for the price you would of one mid-market condo in the Miami real estate market.

The Tampa real estate market has been seeing constant development for the last two years, a trend that does not seem to be stopping any time soon. The real estate in Tampa Florida has been estimated to grow rapidly during 2020. Investors are recommended to buy properties now and hold on to them until good price appreciation for maximum return on investment.

Tampa has the headquarters of four Fortune 500 companies which makes it a moderately attractive city for work and economic growth. In addition to this, many entrepreneurs and small businesses are also making their way to Tampa in search of better prospects and lesser expenses for running their start-ups. Acquiring residential spaces is one of the earliest priorities for such professionals when they move here.

Tampa, FL has a very diverse economy with financial services, STEM, health care, research, education, tourism, beaches, and military bases all making significant contributions to jobs and growth. These factors make the Tampa housing market a hot destination for real estate investors in 2019.

NORADA REAL ESTATE INVESTMENTS has extensive experience investing in turnkey real estate and cash-flow properties. We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in many other growth markets in the United States. We can help you succeed by minimizing risk and maximizing the profitability of your investment property in Naples.

Consult with one of the investment counselors who can help build you a custom portfolio of Naples turnkey properties. These are “Cash-Flow Rental Properties” located in some of the best neighborhoods of Naples.

Not just limited to Naples or Florida but you can also invest in some of the best real estate markets in the United States. All you have to do is fill up this form and schedule a consultation at your convenience. We’re standing by to help you take the guesswork out of real estate investing. By researching and structuring complete turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability.

Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process. They are well-informed about critical factors that affect your specific market areas, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates.

Let us know which real estate markets in the United States you consider best for real estate investing!


Sources:

  • https://www.zillow.com/naples-fl/home-values
  • https://www.redfin.com/city/12171/FL/Naples/housing-market
  • https://www.neighborhoodscout.com/fl/naples/real-estate
  • https://www.realtor.com/realestateandhomes-search/Naples_FL/overview

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