June 2025 Real Estate MARKET UPDATE

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

The market is shifting—again. After a brief period of stability, active inventory has taken a sharp dip. As of June 2025, there are 20,974 homes on the market, down significantly from 24,688 in May. This is the lowest inventory level we’ve seen since February. Whether you’re a buyer, seller, or investor, here’s what this all means for you.

Active Inventory Drops Hard

Let’s break it down by the numbers:

• October 2024: 15,256

• November 2024: 15,745

• December 2024: 16,561

• January 2025: 19,288

• February 2025: 22,184

• May 2025: 24,688

• June 2025: 20,974

That’s a dramatic drop of nearly 3,700 listings in just one month. A big factor? Snowbird season is over, and many who were “testing the waters” with a listing during high season have now pulled back.

Price Reductions Still Rolling

In the last week alone, we saw 1,749 price decreases across the region. So while inventory is tightening, sellers who remain on the market are still adjusting expectations to attract buyers.

Months of Inventory Trending Down

• Lee County: 9.1 months (down from 9.5)

• Collier County: 10.3 months (down from 11.3)

We’re still in buyer’s market territory, but the edge is softening as fewer homes stay on the market.

Days on Market Edging Up

• Lee County: 84 days on average

• Collier County: 87 days on average

Homes are sitting just a bit longer than last month, likely due to summer seasonality and some lingering overpricing.

Interest Rates and Rental Trends

Interest rates are hovering around 6.9%, nearly unchanged from this time last year. We’re not expecting much fluctuation this year or even into early next. While that may limit some buying power, it’s brought some stability to financing expectations.

On the rental side, we’re seeing a shift. Many homes that didn’t sell in the spring have now been pushed into the rental pool, increasing supply. As a result, rents are starting to slide due to basic supply and demand. It’s giving tenants more negotiating power and cooling the rental market.

What’s Ahead This Summer

With school out and schedules more flexible, summer is prime time for local buyers to make a move—especially those hunting for homes under $500K. We typically see solid activity in June and July, and this year is shaping up to follow suit.

What’s interesting this season is the uptick in what I like to call “fly-in-and-buy” buyers. These are out-of-state, often northern, second-home shoppers flying down for a few days, touring properties, and locking in that perfect waterfront home now—so it’s ready for the 2025–2026 season. Even though it’s off-season, the luxury end of the market is still seeing movement thanks to these strategic buyers.

Bottom Line

Fewer listings. More rental conversions. Buyer activity shifting local. While the market still leans in the buyer’s favor, sellers who are priced right and strategic are seeing success. If you’re thinking of making a move this summer, now’s the time to get serious about your plan.

Stay informed. Stay strategic. If you’re thinking of making a move, now is the time to plan your next steps with a local expert who understands the nuances of this evolving market.

For personalized guidance on buying or selling in Southwest Florida, feel free to reach out to The Paradise Luxury Group. Stay informed, stay ahead!