January 2025 Real Estate MARKET UPDATE

BY: D. MICHAEL BURKE & HUNTER D. HABIB

The Southwest Florida real estate market continues to evolve, with notable shifts in inventory levels, pricing trends, and buyer activity as we head into the new year. Here’s an in-depth look at the current state of the market as of January 2025.

Active Listings on the Rise

Over the past four months, the number of active listings in Southwest Florida has seen steady growth. As of January 8, 2025, there are 20,423 homes on the market. This marks a significant increase compared to previous months, as illustrated by the inventory levels from 2024:

• 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

The recent surge in listings reflects growing seller confidence, possibly driven by seasonal demand and shifting market conditions. This uptick provides buyers with a wider range of options but also signals a need for sellers to strategically position their homes to stand out.

Price Adjustments Highlight Market Realities

In the last seven days alone, there have been 1,928 price decreases across the region. This trend suggests that sellers are becoming more realistic about pricing as buyers remain cautious and selective. While competition among listings is intensifying, these price adjustments may offer opportunities for savvy buyers to negotiate favorable deals.

Months Supply of Inventory and Market Balance

The months supply of inventory has been gradually decreasing since its peak in March 2024. As of now:

• Lee County: 7.9 months

• Collier County: 8.6 months

These figures indicate that while the market is shifting towards equilibrium, it remains slightly favorable to buyers. Sellers should take note of this trend and prepare for longer transaction timelines.

Days on Market Increase

Homes are taking longer to sell, with the average days on market reaching 79 days in Lee County and 87 days in Collier County. This significant increase highlights the importance of effective marketing strategies and realistic pricing to attract qualified buyers in a timely manner.

Season is Here — Time to Shine

The much-anticipated seasonal influx of buyers has begun in Southwest Florida. With an increase in demand from snowbirds and seasonal residents, now is the ideal time for sellers to list their homes. However, standing out in this competitive market requires more than just a “For Sale” sign.

If you want to get your home sold this season, partnering with a seasoned team is crucial. An experienced real estate team can leverage exceptional home marketing strategies, including professional photography, staging, digital advertising, and targeted outreach, to ensure your home attracts the right buyers and closes quickly.

Conclusion

The Southwest Florida real estate market is dynamic, offering both opportunities and challenges for buyers and sellers alike. Whether you’re looking to capitalize on the season’s momentum or navigate the growing inventory, working with knowledgeable real estate professionals is the key to success.

If you’re considering buying or selling a home in Southwest Florida, now is the time to act. Contact us today to make the most of the current market conditions and achieve your real estate goals!