February 2025 Real Estate MARKET UPDATE

BY: D. MICHAEL BURKE & HUNTER D. HABIB

As we step into February 2025, the real estate market in Southwest Florida is experiencing a major shift. Inventory levels have surged, price reductions are widespread, and homes are sitting on the market longer than they have in recent years. If you’re considering buying or selling, here’s what you need to know about the current market conditions and how to navigate them successfully.

Active Listings Are on the Rise

Over the past few months, the number of homes for sale has dramatically increased. As of February 3, 2025, there are 22,184 active listings, a significant jump from the previous months:

• June 2024: 17,022

• July 2024: 16,367

• August 2024: 15,604

• September 2024: 15,256

• October 2024: 15,745

• November 2024: 16,561

• December 2024: 19,288

• January 2025: 20,423

This increase in inventory is giving buyers more options and shifting the market dynamics. Sellers now face heightened competition, requiring strategic pricing and strong marketing efforts to attract the right buyers.

Price Reductions Reflect a Market Adjustment

In the last seven days alone, there have been 1,724 price decreases across Southwest Florida. With more homes on the market and buyers becoming more selective, sellers are adjusting their expectations and pricing their homes more competitively. This trend underscores the importance of working with a knowledgeable real estate professional who can effectively position a property for success.

Months Supply of Inventory & Days on Market

The months supply of inventory, a key indicator of market balance, has reached its highest level in years:

• Lee County: 9.2 months of inventory

• Collier County: 10.1 months of inventory

Additionally, homes are taking longer to sell:

• Lee County: 78 days on average

• Collier County: 92 days on average

For sellers, this means patience and the right marketing strategy are crucial. Pricing appropriately and ensuring your home stands out among the growing inventory will be essential for a successful sale.

Season is Here – But High Inventory Means Longer Days on the Market

Southwest Florida’s peak season is in full swing, and many sellers are “testing the waters” to see if they can attract buyers. While this is typical for this time of year, the already high inventory has resulted in extremely high days on market. Buyers have a wealth of options and are in no rush to make a decision unless they perceive significant value in a property.

If you’re considering selling, it’s more important than ever to work with a seasoned real estate team that understands how to market your home effectively. Professional photography, compelling listing descriptions, targeted digital marketing, and strategic pricing are just a few of the elements that will set your property apart.

Final Thoughts

The Southwest Florida real estate market is evolving rapidly. Buyers have more options, and sellers need to be strategic. Whether you’re looking to buy, sell, or invest, partnering with an experienced team that understands the market’s complexities will make all the difference.

If you’re ready to make a move, let’s connect and develop a plan that gets results!