February 2026 Home Sales Rise 1.7%: What the Latest NAR Data Means for Southwest Florida Buyers and Sellers

Existing-home sales rose 1.7% in February 2026, housing affordability hit its best level since March 2022, and mortgage rates dropped to 6.05% — down nearly a full point from a year ago. The South is the only region posting year-over-year sales growth. Inventory is growing but still tight at 3.8 months of supply, prices continue to appreciate (32 months straight), and homes are sitting about 5 days longer than last year. For Southwest Florida buyers, conditions are improving. For sellers, pricing accurately matters more than ever.

The National Association of REALTORS (NAR) released its February 2026 Existing-Home Sales Report on March 10, 2026, and the headline number is encouraging: existing-home sales increased 1.7% month-over-month, reaching a seasonally adjusted annual rate of 4.09 million units. Affordability hit its highest point since March 2022, and inventory is ticking up.

For buyers and sellers in Southwest Florida — including Naples, Fort Myers, Cape Coral, Bonita Springs, and Estero — this national data provides important context. Here's a breakdown of what the numbers mean and how they apply to our local market.

National Snapshot: Key Numbers from the February 2026 NAR Report

Before we localize the data, here's what NAR reported at the national level:

• Home sales: Up 1.7% month-over-month to a seasonally adjusted annual rate of 4.09 million (down 1.4% year-over-year)
• Median existing-home price: $398,000 — up 0.3% from February 2025, marking 32 consecutive months of year-over-year price increases
• Housing inventory: 1.29 million units, up 2.4% from January and 4.9% from one year ago
• Months of supply: 3.8 months — still a seller's market but improving
• Days on market: 47 days median, up from 42 days a year ago
• Average 30-year mortgage rate: 6.05%, down from 6.84% a year ago
• First-time buyers: 34% of all sales, up from 31% in January
• Cash sales: 31% of transactions

Housing Affordability Is at Its Best Level in Nearly 4 Years

NAR's Housing Affordability Index rose to 117.6 in February — up from 103.1 just one year ago. This is the eighth consecutive month of improvement and the highest reading since March 2022. An index value above 100 means a median-income household can qualify for a median-priced home.

What's driving this? A combination of factors: mortgage rates are down nearly 80 basis points from a year ago, wage growth is outpacing home price appreciation by approximately four percentage points, and more inventory is coming onto the market.

Regionally, the South — where Southwest Florida sits — saw affordability improve 14.1% year-over-year, one of the strongest gains in the country. That's good news for buyers who have been sitting on the sidelines.

The South Is the Strongest Region — And Southwest Florida Is in the Middle of It

Here's how the South region performed in February 2026:

• Sales: Up 1.6% month-over-month to an annualized rate of 1.89 million — the only region with year-over-year growth (+0.5%)
• Median price: $356,800 — up 0.2% from February 2025
• Affordability improvement: +14.1% year-over-year

The South is the only region that posted year-over-year sales growth. While national sales are still below where they were 12 months ago, the Sun Belt is holding up better than the Northeast, Midwest, and West.

For Southwest Florida specifically, those trends are amplified. Naples, Bonita Springs, and Fort Myers continue to attract relocation buyers from the Northeast and Midwest — which means local demand doesn't move in lockstep with national data. We have our own supply-and-demand dynamics, and right now, they remain relatively favorable for sellers while becoming more accessible for qualified buyers.

What This Means If You're Buying a Home in Naples, Fort Myers, or Cape Coral

If you've been waiting for a better entry point, the data suggests you're closer to it than you were a year ago. Here's the practical takeaway:

• Mortgage rates at 6.05% are meaningfully lower than the 6.84% average from February 2025 — that's real savings on your monthly payment.
• More inventory means more options and less pressure to waive contingencies or overbid.
• Median days on market are creeping up (47 days nationally), which means sellers are increasingly open to negotiation.
• First-time buyers made up 34% of February sales nationally — a sign that the market is becoming more accessible again.

In Southwest Florida's luxury market specifically, the dynamic is a little different. High-net-worth buyers purchasing with cash — and 31% of transactions nationally were cash — are less sensitive to rate movements. But even in the $800K–$3M range, improved affordability metrics signal growing buyer confidence.

What This Means If You're Selling a Home in Southwest Florida

Sellers shouldn't panic — but they should be realistic. Here's what the data tells us:

• Prices are still appreciating. The national median hit $398,000 with 32 straight months of year-over-year gains. In the South, the median was $356,800, up 0.2% year-over-year.
• Inventory is growing but still tight. At 3.8 months of supply, we're still technically in seller's market territory (a balanced market is typically 4–6 months).
• Homes are sitting longer. The median 47 days on market is up from 42 days a year ago. Sellers who price aggressively from day one are still winning; those who overprice are getting punished.
• More buyers are re-entering the market. With affordability at a 4-year high, the pool of qualified buyers is growing — which supports prices going forward.

The bottom line for sellers: strategic pricing and marketing still win. With inventory rising and days on market increasing, the era of 'price it high and wait' is behind us. But sellers who present their homes well and price accurately are still selling — and still seeing appreciation.

The Condo Market Deserves a Separate Look

One area worth watching: condos and co-ops saw a 5.3% month-over-month decline in sales nationally in February — and are down 5.3% year-over-year. That's a notable divergence from single-family homes, which posted a 2.5% month-over-month sales increase.

In Southwest Florida, this matters. The Naples and Fort Myers condo markets — particularly high-rises and beachfront properties — face a unique headwind: Florida's new condo inspection and reserve funding requirements stemming from the 2021 Surfside collapse legislation. Higher HOA fees and special assessments are softening demand in some condo segments. If you own or are considering buying a condo here, it's worth having a detailed conversation about what those costs look like over time.

What to Watch in the Coming Months

NAR Chief Economist Dr. Lawrence Yun noted that while affordability is improving, the market is still well below pre-pandemic transaction levels. "There are more than 6 million more jobs than in 2019, yet home sales per year are down by one million," he said.

He also flagged a potential inflection point: if demand picks up faster than inventory can grow, prices could accelerate. That's particularly relevant in supply-constrained coastal markets like Naples and Bonita Springs.

Key dates to watch:

• March 17, 2026 — NAR Pending Home Sales Index for February (a leading indicator of closings)
• April 13, 2026 — NAR Existing-Home Sales Report for March

Frequently Asked Questions

Is it a good time to buy a home in Southwest Florida in 2026?

For many buyers, yes — particularly compared to 2023 and early 2024. Mortgage rates have dropped from a peak near 8% to around 6.05% as of February 2026, and the Housing Affordability Index is at its highest level since March 2022. Inventory is also improving, giving buyers more options and negotiating room. That said, 'good time to buy' depends heavily on your personal financial situation, how long you plan to stay, and which segment of the market you're targeting (single-family vs. condo, entry-level vs. luxury).

Are home prices going up or down in Naples and Fort Myers?

Nationally, home prices have increased for 32 consecutive months on a year-over-year basis. The national median hit $398,000 in February 2026. In the South region, the median was $356,800 — up modestly year-over-year. Southwest Florida's luxury segments have experienced some price normalization after the post-pandemic run-up, but well-priced homes in desirable neighborhoods continue to sell. Pricing accurately based on current comps is more important than ever.

How much is the average mortgage rate right now?

According to Freddie Mac, the average 30-year fixed mortgage rate in February 2026 was 6.05%, down from 6.10% in January and significantly lower than the 6.84% average from February 2025. That decline has made a measurable impact on monthly payments and overall buying power.

Is the Southwest Florida real estate market a buyer's or seller's market right now?

Nationally, inventory stands at 3.8 months of supply — technically still a seller's market (balanced is 4–6 months). Southwest Florida varies by micro-market. Naples luxury inventory has grown, giving buyers more leverage than they had in 2021–2022. But well-priced, well-marketed properties are still selling, often with multiple offers. The short answer: it depends on the price point, neighborhood, and property type. Reach out for a specific market analysis.

Should I sell my Fort Myers or Naples home now or wait?

The data supports selling sooner rather than later if you're on the fence. Prices are still appreciating (32 consecutive months of national year-over-year gains), but homes are sitting on the market longer (47-day median nationally). A rising inventory environment with more buyer options means the premium for being first, priced right, and marketed aggressively is growing. Waiting for rates to drop could also bring more competition from other sellers. The best move is to get a current comparative market analysis and make a decision based on real numbers.

What's happening with condos in Southwest Florida?

Condo sales nationally fell 5.3% in February both month-over-month and year-over-year — underperforming single-family homes considerably. In Florida, this trend is compounded by new state legislation requiring condo buildings to conduct structural inspections and fully fund reserve accounts. The result in many buildings has been sharp increases in HOA fees and special assessments. If you own or are looking at a condo in Southwest Florida, it's critical to review the association's financials and reserve study before making any decisions.

Thinking About Buying or Selling in Southwest Florida?

Daniel Abreu is a luxury real estate agent, founder of the Abreu Group at Realty ONE Group MVP, serving Naples, Fort Myers, Cape Coral, Bonita Springs, and Estero. Having studied law at Ave Maria School of Law and has a background in title processing and closings, Daniel brings a perspective most agents can't offer — as a realtor, a title professional, and a real estate investor.

Whether you're looking to buy a waterfront property, sell a luxury home, or navigate a complex transaction involving divorce or probate, Daniel has the expertise to guide you through it. Contact The Abreu Group today for a no-pressure market consultation. Call or text 727.638.1704, or simply CLICK HERE to schedule your one-on-one consultation today.