December 2025 Real Estate MARKET UPDATE

BY: D. MICHAEL BURKE, Mich Kanigsberg, HUNTER D. HABIB, & Shawn Flinders

As we close out 2025, the Southwest Florida housing market is showing a clear trend: inventory is climbing, days on market are stretching, and full season is about to hit full stride. If you’re thinking about making a move, this is the window to pay attention to.

Active Listings Continue to Rise

Right now, active listings sit at 19,694, another month of upward movement as we head into peak season across Southwest Florida.

Here’s a look at how inventory has trended:

• October 2024: 15,256

• November 2024: 15,745

• December 2024: 19,288

• January 2025: 20,168

• February 2025: 22,184

• May 2025: 24,688

• June 2025: 20,974

• September 2025: 17,529

• October 2025: 16,911

• November 2025: 18,777

• December 2025: 19,694

The story is clear: inventory is building, and that’s expected as sellers position their homes ahead of the heavy January surge.

Pricing Pressure Continues

There were 1,001 price decreases in the past seven days, a sign that sellers are adjusting to a more competitive landscape. Buyers have more negotiating power, and proper pricing has never been more important.

Months of Inventory & Days on Market

• Lee County: 7.5 months of inventory

• Collier County: 8.4 months of inventory

These levels are slightly higher than last month and continue to lean the market toward balance.

Days on Market (DOM):

• Lee County: 93 days

• Collier County: 109 days

Buyers aren’t rushing — they’re comparing, analyzing, and taking their time.

Tourism & Seasonal Activity Are Heating Up

The local tourism snapshot from the attached image shows strong demand: higher visitation, robust hotel activity, and the typical seasonal upswing that arrives every winter.

As always, January kicks off full season in Southwest Florida. Traffic increases, buyers arrive, and competition rises.

If you’re planning to sell this season, listing sooner gives you a real edge.
By January, the market typically sees inventory jump 25% or more, which means more competition and fewer eyes on your listing.

Mortgage Minute — Provided by Shawn Flinders of Guild Mortgage

Over the past three months, the Lee and Collier County markets have shifted into a more balanced gear. Inventory has continued to build, giving buyers more choices and nudging sellers to price homes realistically. Demand is still there — just more cautious — and price growth has flattened in most segments, especially in the mid-market range. Homes that are clean, updated, and correctly priced are still moving; the rest are learning patience. Sharp buyers are capitalizing on a falling rate environment and coupling that with seller incentives to secure below market rates, closing cost assistance or both.

Looking ahead to the next three months, the big story is interest rates. With the Fed signaling a softer stance and the possibility of cuts, mortgage rates are expected to ease modestly. Economic reporting will be the key to further Fed rate cuts as they position for sustained economic growth while keeping the lid on higher inflation forecasts. Should we see further rate cuts into 2026 we are likely to see a spark a jump in early-year buyer activity and even some refinancing as homeowners look to shed the high-rate hangover. Bottom line: expect a steadier, more predictable market with slightly improving affordability — not a boom, but definitely a better runway than we had earlier in the year!

Shawn Flinders
Sales Manager | NMLS #628471
1222 SE 47th St., Suite 204
Cape Coral, FL 33904
M: 239-385-2240 FL
Company NMLS #3274
Equal Housing Opportunity

RSW Airport Traffic Reports Another Strong Month

According to Gulfshore Business, RSW saw higher-than-usual October passenger traffic, signaling continued momentum in regional tourism. Strong airport activity typically translates into stronger buyer traffic and more second-home shoppers.

Major Development Update: Kingston Project Breaks Ground

Another Gulfshore Business report highlights that work has officially begun on Kingston, the massive 11,000-home master-planned community coming to Lee County.
This development will reshape long-term housing supply and influence market stability for years to come.

Buyers: New Construction Deals Are Peaking Right Now

If you’re in the market for a new construction home, this is a prime time to shop:

• Lennar’s fiscal year ends November 30

• Pulte’s fiscal year ends December 31

Builders are highly motivated to close out the year strong, which means discounts, rate buydowns, and incentives on spec homes are at their peak.

Bottom Line

December’s numbers show a market that’s transitioning into balance as we head into full season:

• Inventory is rising.

• Price reductions remain consistent.

• Days on market continue to stretch.

• Tourism and seasonal traffic are kicking into high gear.

• Buyers and sellers both have opportunities — if they time their move strategically.