Has the market peaked?

More sellers are dropping their asking price, 12% this year vs. 9% at this same time last year

There's a glimmer of hope for buyers in Naples. Nationwide, more sellers are dropping their asking price than a year ago. Of course, the spring season in Naples has traditionally started the off season when "snowbirds" return to their homes in the north. This trend has in turn always signaled a drop in demand for houses, but in the post-COVID, telework world, the number of full-time residents has increased dramatically, as anyone who drives downtown can attest to. This new trend has, in turn, driven demand for houses in the traditional "off season" higher than ever.

We've noticed, however, that Naples has followed the national trend with more sellers dropping their asking price, indicating there is some kind of short-term upper limit to the area's housing prices. It's not clear what is driving the upper limit, but mortgage rates have been climbing, pricing out many aspiring home buyers, and sellers may be taking notice. Of course, many Naples-area buyers are paying with cash, so that effect is limited here, but another cause may be that builders are building houses as fast as they can to keep up with demand. Eventually, they'll catch up, even if they haven't quite yet. Whatever the cause, it shows that there’s a limit to our sellers’ market. There is still much more demand than supply, and buyer agents are still working hard to find homes for their buyers, but this trend demonstrates that there is a limit.

Overall, however, prices in Naples will never go back down to what they were, or even close to that. The area has intrinsic value as a spot where you can feel like you're on vacation all the time, with great beaches, fishing, golfing, and other outdoor activities. (See some of our other blog posts.) What this means for you, the buyer, is that you'll still have to pay a price to live here and enjoy all there is to do, but then, isn't it worth it to never have to shovel snow again? Contact us and we'll help you claim a piece of paradise.