Southwest Florida Housing Market Update: Inventory Surges, Buyer Power Grows in 2025

Southwest Florida Housing Market Update: Inventory Surges, Buyer Power Grows in 2025

📈 Southwest Florida Real Estate Market Update – June 2025

The real estate market in Southwest Florida is undergoing a noticeable shift in mid-2025, with fresh data showing a rise in active listings, longer days on market, and declining prices across key property types.

If you're a buyer, this could be your chance to enter the market with more leverage. If you're a seller, it’s more important than ever to price strategically and market aggressively.

Let’s break down what’s happening in Naples and Fort Myers — two of Florida’s most sought-after markets.


🏠 Inventory Hits a New High

Nationwide, sellers are sitting on nearly $700 billion in home listings — the highest ever recorded. Of that, $331 billionworth of inventory has been sitting for over 60 days, signaling a notable slowdown.

In Southwest Florida:

  • Naples has 9.05 months of inventory, up from 7.2 months last year — a 25.7% increase YoY.

  • Fort Myers has 8.1 months of inventory, up from 6.4 months — a 26.6% jump YoY.

More inventory means more choices for buyers and increased competition for sellers.


Days on Market Are Climbing

Homes are taking longer to sell — both nationally and here in SWFL. According to recent data:

  • Naples listings are averaging 88 days on market (a 31.3% increase YoY).

  • Fort Myers homes are averaging 84 days (up 27.9% YoY).

The national average is just 40 days. These extended listing times reflect buyer hesitancy and suggest a more deliberate buying process — or overpriced homes not adjusting to current demand.


💵 Home Prices by the Numbers

Naples:

  • Median home price: $627,002 (down 1.9% YoY)

  • Price per sq. ft.: $348

  • 1–3 bedroom homes saw price drops from 5.4% to 6.2%

  • 4-bedroom homes rose 7.6%

  • 5-bedroom homes surged 40.9%

Fort Myers:

  • Median home price: $370,551 (up 0.2% YoY)

  • Price per sq. ft.: $225

  • All bedroom categories saw YoY price drops, especially 1-bedrooms (-13.5%) and 2-bedrooms (-11.0%)

The takeaway? Luxury and larger homes remain in demand, while smaller homes are seeing price corrections.


🔍 Buyer Behavior Is Changing

  • In Naples, 87% of homes sold under asking, and only 3% over asking.

  • In Fort Myers, 83% sold under asking, with just 5% over asking.

  • Pending and closed sales were down 17.1% in Naples and 12.4% in Fort Myers, month-over-month.

Buyers are taking their time, negotiating harder, and looking for value — which could spell opportunity for well-prepared buyers.


📊 What This Means for Buyers and Sellers

Buyers:
This is a strategic window to enter the market. With rising inventory and slower sales, you have negotiating power not seen in years — especially in homes that have lingered 60+ days.

Sellers:
Pricing and presentation are everything. Homes that are overpriced or not staged properly are sitting. Working with a local expert who knows how to position your listing for maximum exposure is key.


Bottom Line

The Southwest Florida housing market is experiencing a buyer-friendly shift in 2025, with longer days on market, increased inventory, and fewer homes selling at or above asking. Whether you're buying or selling, staying ahead of these trends can help you make smarter real estate decisions.

📲 Want a personalized strategy for buying or selling in Naples or Fort Myers? Click here to schedule a consultation.

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