April 2025 Real Estate MARKET UPDATE BY: D. MICHAEL BURKE, Mich Kanigsberg, … Continue reading...

Paradise Luxury Group: Where Your Dream Home Becomes Reality
The Southwest Florida real estate market has seen significant changes over the past few months, with a continued rise in active listings, shifting inventory trends, and evolving buyer-seller dynamics. Here’s an in-depth look at where things stand as of April 2025.
The number of homes on the market in Southwest Florida has been rising rapidly. As of April 3, 2025, there are 24,688 active listings, marking a substantial increase from previous months:
October 2024: 15,256
November 2024: 15,745
December 2024: 16,561
January 2025: 20,168
February 2025: 22,184
This sharp rise in inventory suggests that more sellers are entering the market, possibly in response to shifting demand and economic conditions. In just the past week, 3,164 price decreases have been recorded, signaling potential adjustments to align with buyer expectations.
Months’ supply of inventory is a critical metric for assessing market balance. As of April:
Lee County: 9.8 months of inventory
Collier County: 11.4 months of inventory
A balanced market typically has 5-6 months of inventory, meaning both counties are well into buyer’s market territory, where buyers have more negotiating power, and sellers may need to adjust pricing strategies accordingly.
Despite increasing inventory, the time it takes to sell a home has stabilized:
Lee County: 80 days on average
Collier County: 88 days on average
This suggests that while there are more homes available, buyer demand is still active enough to keep transaction timelines relatively steady.
A broader look at Florida’s housing inventory, based on the Shift in Statewide Active Housing Inventory for Sale chart, reveals that Florida’s active listings are now above pre-pandemic levels (2019). This contrasts with states like New York and Pennsylvania, which remain below pre-pandemic inventory levels. Florida’s rapid growth and population influx may be contributing to this increased supply.
According to Zillow’s Market Heat Index for February 2025, Southwest Florida presents a mixed picture. Some metro areas remain in seller’s market conditions, while others are cooling toward buyer-friendly territory. Red areas on the map indicate stronger seller markets, whereas blue areas suggest buyer leverage is increasing.
Buyers: With more inventory available and price reductions increasing, this is an excellent time to negotiate better deals and find homes at more competitive prices.
Sellers: Pricing strategy is critical in today’s market. Overpricing could lead to longer days on market and eventual price cuts, so working with an experienced real estate professional to set a realistic price is key.
As we move further into 2025, all eyes are on mortgage rates, economic conditions, and potential policy changes that could further impact buyer demand. If inventory continues rising and demand doesn’t match pace, the market could see additional price corrections.
For personalized guidance on buying or selling in Southwest Florida, feel free to reach out to The Paradise Luxury Group. Stay informed, stay ahead!
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April 2025 Real Estate MARKET UPDATE BY: D. MICHAEL BURKE, Mich Kanigsberg, … Continue reading...