What Actually Changed for Buyers and Sellers This Past Year
By year-end, the 2025 Southwest Florida housing market looked very different than it had during the fast-moving years that came before it. Inventory built up early in the year, homes took longer to sell, and buyers became more selective about price and condition. Sellers responded in different ways. Some stepped back and relisted later. Others reduced prices or waited for conditions to improve. As the year went on, pending sales activity picked up, but competition between listings remained high, particularly for homes that missed the market early. Those dynamics carried directly into the start of 2026 and continue to shape today’s market.
All data is from the Royal Palm Coast Realtor Association and Florida Gulf Coast MLS via Stellar MLS and is current as of January 2, 2026. These figures are preliminary and will be finalized mid-month, but the direction is already clear.
Key Takeaways (TL;DR)
- Nearly one-third of active listings across Southwest Florida had already failed once in 2025 and returned to the market, making pricing mistakes harder to hide and increasing the risk of buyers moving on to better-priced options.
- Homes priced close to market from the start consistently outperformed those that required later price reductions.
- The $400K–$600K price range faced the most resistance and the highest share of listing failures across the region.
- Sales activity improved late in the year, even as competition among active listings remained elevated.
2025 Southwest Florida Housing Market: A Year-End Snapshot
By December 2025, Southwest Florida was no longer operating under the scarcity-driven conditions that defined the post-pandemic years. Inventory levels were substantially higher, marketing times were longer, and negotiation once again became a standard part of the process. While each city behaved differently, the broader regional pattern was consistent: more listings competing for fewer buyer decisions at any given time.
Inventory pressure peaked earlier in the first quarter of 2025 and gradually eased as absorption improved toward year-end. That improvement came with an important qualifier. A significant portion of available homes were not new to the market. Many had already been listed earlier in the year, failed to sell, and then returned later with adjusted pricing. This created a layer of hidden inventory that was not obvious at first glance.
When those homes came back on the market, their Days on Market reset to zero. On paper, they looked new. In practice, they often carried months of earlier exposure that shaped how buyers viewed them. When that earlier listing history is included, the average relisted home had been on the market for about 281 days, even though the MLS showed roughly 86 days. That pushed true stale inventory to about 45% across the region.
Southwest Florida Market Comparison (December 2025)
| Market | Active Listings | Months Supply | Median List Price | Median $/Sq Ft | Avg DOM (2025) | Relist Share | True Stale Inventory |
| Fort Myers | 3,229 | 7.3 | $335,000 | $221 | 59 | 32.9% | 46.8% |
| Cape Coral | 2,886 | 6.0 | $438,950 | $243 | 58 | 26.6% | 41.4% |
| Estero | 738 | 6.5 | $537,450 | $279 | 64 | 27.8% | 36.3% |
| Bonita Springs | 1,136 | 8.1 | $622,500 | $353 | 63 | 34.2% | 47.9% |
| Naples | 5,463 | 8.2 | $700,000 | $388 | 69 | 31.2% | 46.7% |
| Entire MLS | 13,452 | 7.6 | $500,000 | $289 | 56 | 30.7% | 45.1% |
These figures help explain why buyers felt they had more options in 2025, while sellers often felt pressure increase rather than ease.
How the SWFL Market Evolved from 2020 Through 2025
From 2020 through early 2022, Southwest Florida was a fast-moving seller’s market. Inventory was limited, homes sold quickly, and multiple showings were common as buyers competed for available properties.
That began to change in 2023 and continued through 2024 and 2025. Inventory returned faster than buyer urgency. Homes stayed on the market longer, showings per listing declined, and pricing decisions carried more weight. By mid-2025, median Days on Market were well above what buyers and sellers had grown used to during the peak years, reflecting a slower and more deliberate decision process.
Buyer demand remained present throughout this period. What changed was the balance between how many homes were available and how quickly buyers were willing to act.
Seller Behavior and Pricing Reality in 2025
Most sellers who returned to the market in 2025 did so with price adjustments. About three-quarters reduced their asking price, typically in the 5–7% range, while roughly 22% made reductions greater than 10%.
Homes that entered the market priced close to recent comparable sales consistently performed better than those that required larger corrections later. In many cases, price reductions were less about strategy and more about recovery. Homes that adjusted early often regained momentum, while those that waited tended to accumulate additional time on the market even after prices were lowered.
In 2025, pricing accuracy at the start of the listing mattered more than when a reduction occurred. The longer a home sat mispriced, the harder it became to reset buyer perception.
2025 Southwest Florida Housing Market Conditions by City
Fort Myers
Fort Myers saw more listings expire or withdraw in 2025 than the number of homes available today, underscoring how competitive the market became. Median prices finished the year down about 6.5% year over year, and buyers showed little tolerance for overpricing.
At the community level, Lexington Country Club posted a 45% success rate with 161 average days on market, while WildBlue absorbed more consistently, closing 65% of listings despite a $1.56M median price. Pelican Preserve moved faster at 87 days on market, while Verandah, with heavier active inventory, experienced longer marketing times. Fort Myers finished 2025 as a market where value mattered as much as location.
Fort Myers real estate market update coming soon.
Cape Coral
Cape Coral experienced nearly twice as many listing failures in 2025 as homes currently for sale, the widest gap in Southwest Florida. It also recorded the lowest relist rate at 26.6%, indicating that many sellers chose to step away rather than re-enter at adjusted prices. No featured community exceeded a 50% success rate.
Cape Royal Golf Club came closest at 49%, while Tarpon Point, despite averaging 104 days on market, closed only 42% of listings. Sandoval recorded the highest number of failures, and the Cape Coral Yacht Club averaged 156 days on market. Pricing discipline played a central role in outcomes throughout the city.
Cape Coral real estate market update coming soon.
Estero
Estero stood out as the most balanced market in Southwest Florida during 2025. Closed sales finished the year up about 8% year over year, and Estero recorded the lowest level of true stale inventory at roughly 36%.
Stoneybrook led all tracked communities with a 77% success rate and 69 average days on market, followed by Verdana Village at 71%. Even The Place at Corkscrew, which carried the most active inventory in Estero, posted a 54% success rate, exceeding every featured Cape Coral community. Estero demonstrated that demand remained present when pricing, product, and location aligned.
Estero real estate market update coming soon.
Bonita Springs
Bonita Springs recorded the highest relist share in Southwest Florida, with more than one-third of active listings returning to the market after an earlier failure in 2025. Despite a price decline of about 7.5% year over year, closed sales still finished up roughly 8.9%, showing that buyer demand responded to pricing adjustments.
Village Walk of Bonita Springs posted a 68% success rate with 70 average days on market, while Bonita National and Valencia Bonita also absorbed well. At the opposite end, Seasons at Bonita recorded a 39% success rate with 139 days on market, highlighting the performance gap between communities. Community-level factors played a meaningful role in outcomes across the city.
Bonita Springs real estate market update coming soon.
Naples
Naples remained distinct in 2025 due to its concentration of luxury and discretionary inventory. Prices declined only about 1.8% year over year, the smallest adjustment in the region, while sales finished up roughly 2.2%.
Community performance varied widely. Grey Oaks posted a 79% success rate, the highest among tracked communities, while Lely Resort closed 48% of listings. Pelican Bay carried 196 active listings and averaged 151 days on market, reflecting internal competition even in established locations. Esplanade moved faster, averaging 90 days on market. Naples continued to reward accurate positioning more than broad market momentum.
Naples real estate market update coming soon.
Questions Southwest Florida Buyers and Sellers Are Asking
It means the first few weeks matter more than they used to. Homes that came out priced close to recent comparable sales consistently outperformed those that needed later corrections. Buyers now compare multiple options at once, and listings that miss early often struggle to regain attention.
Because many of those homes weren’t new to buyers. About 31% of active listings late in 2025 had already been listed once earlier in the year, failed to sell, and then returned. Even as pending sales improved, those listings were still competing against newer and better-positioned options.
Buyers are active, but selective. The pickup in pending sales late in 2025 showed that demand is there when pricing and condition line up. Communities like Stoneybrook in Estero, which posted a 77% success rate, showed that buyers will move when listings are positioned well.
Yes. That range faced the most resistance in 2025 and produced the highest share of listing failures across the region. It attracts the largest buyer pool, but it also has the most competition. Small pricing or condition issues often made the difference between selling and sitting.
Waiting too long to adjust. Sellers who made aggressive late-stage cuts still averaged about 106 days on market, compared to roughly 69 days for homes priced close to market from the start.
Listing history. Understanding whether a home has already been on and off the market helps explain pricing, flexibility, and how buyers are likely to view it. In a market where many listings already had one attempt, context matters as much as the asking price.
Final Thoughts on the 2025 Southwest Florida Housing Market
The 2025 Southwest Florida housing market reflected a period of adjustment rather than reversal. Inventory increased, buyer urgency moderated, and sellers were required to respond to changing conditions. By year-end, sales activity improved, but competition among listings remained elevated due to long-exposed inventory returning to the market.
If you are considering buying or selling, understanding listing history, pricing alignment, and local market behavior is essential. You can search for homes across Southwest Florida or contact our team to discuss how current conditions apply to your situation.
Most homeowners feel overwhelmed when it is time to move. At Worthington Realty, we provide personalized guidance and clear communication so that you feel heard, valued, and confident in your decisions.
Sources & Methodology: All data in this report is based on finalized MLS records through December 2025 from the Royal Palm Coast REALTOR® Association, Florida Gulf Coast MLS, and Stellar MLS. Citywide metrics reflect regional MLS activity, while community-level success rates were calculated by tracking individual properties across multiple listing attempts during 2025.
“Relist share” reflects the percentage of active listings that previously expired, withdrew, or were terminated earlier in the year. “True stale inventory” includes homes with more than 180 days of combined exposure across all listing attempts, not just current MLS Days on Market.
