What the 2025 Southwest Florida Market Shift Means for 2026

The Southwest Florida real estate market went through a noticeable shift in 2025. After several years of intense competition and limited inventory, conditions started to move toward what many would call a more balanced market.

Shift in inventory. We went from almost no months of supply to roughly a seven to nine-month inventory range. That alone changed how buyers and sellers approached the market. More homes available meant more choice, more comparison, and more negotiation.

Price adjustments. In many areas, values stabilized and in some cases declined year over year. To put that into perspective, here’s a breakdown per area:

● Bonita Springs saw median single-family home prices sitting around $500,000, about 7% lower than the year before.

● Naples experienced a slightly larger adjustment, roughly 8% to 9%, bringing the median single-family price close to $540,000.

● Fort Myers, Cape Coral, and Lehigh had the largest reset, with prices down close to 20% and median single-family homes hovering around $330,000.

Sales activity. The first three quarters of 2025 were slow. Buyers were cautious, and many took a wait-and-see approach. That changed in the fourth quarter. Pending sales increased by as much as 20%, showing renewed confidence and movement.

Days on market. Homes that once sold in days were now taking longer. Average days on market moved from the low teens to roughly fifty to sixty days. With more inventory to choose from, buyers no longer felt rushed.

What it meant for 2025 buyers and sellers. For buyers, leverage returned. More inventory allowed time to review options, research insurance costs, consider interest rates, and complete inspections without pressure. Contingencies like appraisals and home inspections became part of the process again instead of being waived.

For sellers, competition increased. Pricing had to be strategic, and presentation mattered more. Homes needed strong curb appeal, thoughtful staging, and realistic expectations. Sellers were no longer the only option on the market.

Early 2026 market trends. As we moved into early 2026, new trends started to appear, as follows:

● Pending sales were already up by about 20% by mid-January. Buyers were no longer sitting on the sidelines.

● Closings were increasing even as new listings slowed. That slowdown in new listings helped begin absorbing the excess inventory from 2025.

● Negotiations also became more balanced. List price to sales price ratios showed sellers offering five to ten percent flexibility.

● Days on market continued to trend upward and could reach seventy to eighty days as buyers worked through available inventory.

One important reminder for sellers in this environment is to be flexible. In today’s market, the first offer may very well be the strongest one. Negotiations now involve more give-and-take than they did a couple of years ago.

The Southwest Florida market is no longer extreme in either direction. It is steadier, more deliberate, and more thoughtful. Understanding these shifts helps buyers and sellers make better decisions in 2026.

If you’re thinking about buying or selling in Southwest Florida and want to talk through your options, feel free to call me at (239) 444-6100 or send a message to cory@thecorylauergroup.com.

You can also book a free strategy call with me by clicking this link. I’m always happy to share what I’m seeing locally and help you decide what makes sense for your situation.