Southwest Florida Housing: Stability, momentum are returning

Southwest Florida Housing: Stability, momentum are returning

By Mike Dodge

After several years of disruption caused by pandemic-era volatility, rising interest rates and storm recovery, the Southwest Florida housing market is beginning to show encouraging signs of stabilization and renewed momentum.

Recent data across nine regional market segments and nearly 90 community-level markets shows an important milestone: for the first time since February 2022, every segment recorded year-over-year gains in closed home sales. These figures compare the 12 months ending January 31 with the preceding 12-month period.

Across Collier and Lee counties, closed sales rose 2.7% year over year. Several individual markets experienced even stronger gains, including Pine Island and Matlacha (+11.4%), Sanibel and Captiva (+10.5%), Bonita–Estero (+7.5%) and Fort Myers Beach (+5.4%).

These increases reflect a market gradually regaining its footing after a period of unusually slow activity.

Following the intense housing boom during the pandemic, the region experienced roughly two years of the slowest home sales seen in decades. That cooling period allowed the market to recalibrate after unprecedented demand and rapid price increases.

More recent activity reinforces the sense that conditions are improving. Closed home sales across Southwest Florida rose 23% in February compared with the same month last year, with 2,008 transactions reported, making it the busiest February since the surge in pandemic-driven buying.

At the same time, new listings declined 14% year over year, continuing a pattern of reduced listing activity that fi rst emerged in the second quarter of last year. With sales remaining strong and fewer homes coming to market, overall inventory levels remained relatively stable, increasing just 1% from January, far below the historical February average increase of approximately 6%.

As of February 28, months of supply stood at 8.3, a level widely considered balanced for the local housing market and 19% lower than the same time last year.

 Taken together, these trends suggest the Southwest Florida real estate market is moving toward equilibrium. The market has transitioned from the extraordinary conditions of the pandemic housing boom, through a necessary cooling period, and now toward a more stable environment defined by steady buyer demand and a healthier balance between supply and inventory.

For homeowners considering selling, today’s market presents meaningful opportunities.

Buyer demand remains strong, as evidenced by the sharp rise in closed sales. Meanwhile, the decline in new listings means sellers may encounter less competition from other properties entering the market.

However, today’s buyers are highly informed. If comparable homes nearby are attracting attention while another listing is not, it may signal an opportunity to adjust pricing, presentation or marketing strategy to better align with current buyer expectations.

For buyers, the market also offers a healthier environment than the highly competitive conditions seen from 2020 through 2022. Inventory levels now provide more choice and flexibility, while stable demand shows that desirable homes continue to sell. Buyers who find the right property should still be prepared to act, but they can now do so within a more balanced marketplace.

Looking ahead, Southwest Florida continues to attract both primary residents and seasonal homeowners drawn by the region’s lifestyle, climate and economic growth.

While the housing market will inevitably continue to evolve, the latest data suggests we are moving toward a period defined more by stability than volatility.

That stability is welcome news for buyers, sellers and the communities that make Southwest Florida such a desirable place to live.

Mike Dodge is  Director of Education and Market Research for John R. Wood Christie’s International Real Estate. Founded in 1958, the company is the oldest major real estate brokerage in Southwest Florida. Family-owned and operated, it is consistently the leading firm in market share across Collier, Lee and Charlotte counties*. With 22 offices and approximately 900 agents and staff , the company combines more than 65 years of local expertise with global reach.

*In 2025, John R. Wood Properties surpassed all Southwest Florida real estate brokerages in closed residential sales volume in the combined Lee and Collier County market, based on information from the Southwest Florida Multiple Listing Service (SWFLA MLS) for 1/1/2025 through 12/31/2025.