NAPLES, FL — After years of one of the country’s hottest housing markets, Naples and the Southwest Florida region are now seeing measurable price declines, extended listing times and growing inventory, signaling a shift toward a more balanced — or even buyer-friendly — market.

Local data and third-party market analyses show Naples sitting among the markets with some of the largest year-over-year home price drops in Florida, alongside peers like Cape Coral and Punta Gorda. While exact percent changes vary by data source and segment (single-family vs. condos), the trend of declining median prices has become unmistakable as buyer demand has not kept pace with supply.

What’s Driving the Shift

Several overlapping factors have contributed to this evolving landscape in Naples and Southwest Florida:

  • Increased Inventory: More homes are on the market than in recent boom cycles, giving buyers more options and bargaining power.

  • Higher Ownership Costs: Rising insurance premiums, property taxes and HOA costs have dampened demand in some segments.

  • Mortgage Rate Sensitivity: Although recent Federal Reserve rate cuts have eased some pressure, mortgage rates remain significantly above historic lows, keeping buyers cautious.

  • Post-Boom Adjustment: After rapid pandemic-era appreciation — often exceeding the national average — a natural correction phase is underway, not unlike earlier historical cycles.

Foreclosures & Market Normalization

Statewide, Florida led the nation in foreclosure activity during 2025, as measured by filings per residential property, even though the overall rate remained far below historic crisis periods. This uptick reflects broader housing market normalization and credit conditions rather than a systemic crisis akin to the 2008 housing collapse.

For Naples, this means that while price pressure exists, most owners still hold significant equity and aren’t being forced into distress sales at scale.

How This Affects Buyers & Sellers

Buyers are seeing some welcome developments:

  • More listings to compare

  • Longer days on market — less bidding pressure

  • More negotiating leverage on price and terms

Sellers face tougher conditions than recent years:

  • Homes often stay listed longer before going under contract

  • Pricing strategies matter more than ever to attract offers

  • Some segments have seen multiple price reductions before sale

Local brokerage leaders say the market is transitioning from frenzied to balanced, where thoughtful pricing and realistic expectations drive results.

Local Perspective

In Naples proper, median price adjustments have been most visible in resale markets, with some neighborhoods experiencing mild to moderate softening compared to peak prices in 2022–2023. However, long-term values remain well above historical norms.

Market specialists emphasize that this isn’t a “crash,” but rather a cooling and correction phase following unprecedented growth. Houses that are competitively priced and well-prepared for sale continue to attract interest from both local and out-of-state buyers.