March 2025 Real Estate MARKET UPDATE

BY: D. MICHAEL BURKE & HUNTER D. HABIB

The real estate market in Southwest Florida is undergoing a significant shift. With inventory rising rapidly and homes taking longer to sell, both buyers and sellers must adjust their strategies to navigate these changing conditions effectively.

Active Listings & Market Trends

The number of active listings in the Southwest Florida market has surged over the past few months, reaching 23,425 homes as of March 3, 2025. This represents a substantial increase from:

• October 2024: 15,256 listings

• November 2024: 15,745 listings

• December 2024: 16,561 listings

• January 2025: 19,288 listings

• February 2025: 22,184 listings

Additionally, 3,011 homes have experienced price reductions in the last seven days alone, signaling a strong shift toward a buyer’s market.

Inventory & Days on Market

The months supply of inventory has reached levels not seen in years:

• Lee County: 9.7 months

• Collier County: 11.1 months

Days on the market have also increased significantly, with Lee County averaging 81 days and Collier County 88 days. These extended timelines indicate that homes are no longer selling as quickly, requiring sellers to be more strategic with pricing and presentation.

What This Means for Sellers

If Your Home Hasn’t Sold in 60 Days, Adjust Your Strategy

With more options available to buyers, homes lingering on the market for over 60 days without strong offers likely need price adjustments or improvements. Pricing competitively from the start can prevent prolonged market exposure and potential value erosion.

Rising Inventory Means More Competition

Buyers now have the luxury of choice. Overpricing your home can cause it to be overlooked in favor of more competitively priced properties. In today’s market, the right price is key to attracting offers.

Well-Priced Homes Sell Faster & for More

Properties listed at the right price from the beginning sell quicker and often at a better price than those that sit unsold and require price cuts. If your home isn’t moving, reassessing the asking price is crucial.

Condition Matters More Than Ever

Even with price adjustments, well-maintained and properly staged homes generate more interest. Small upgrades, fresh paint, and deep cleaning can make a big impact on how buyers perceive your home’s value.

What This Means for Buyers

Now is the Time to Buy

If you’ve been waiting for the market to shift in favor of buyers, that time is now. With increased inventory, you have more options, greater negotiating power, and less urgency to overpay.

More Choices, Less Pressure

Gone are the days of frantic bidding wars. Buyers can now take their time to explore properties, compare options, and make informed decisions.

Negotiating Power is Back

Many sellers who have had their homes listed for months are now more open to price reductions, closing cost assistance, and repair concessions. This creates excellent opportunities for buyers looking to secure a deal.

Act Before the Market Shifts Again

Interest rates and economic factors are always subject to change. Locking in a home now while sellers are motivated could result in better long-term value before market conditions shift once again.

The Importance of Working with the Right Agent

Whether buying or selling, navigating this evolving market requires expertise. A skilled agent will: ✅ Help sellers price competitively and market effectively. ✅ Guide buyers through negotiations to secure the best deal. ✅ Provide insights and data-driven advice to make informed decisions.

The Southwest Florida real estate market is transitioning, and making the right moves now can be the difference between success and frustration. If you’re a seller, price wisely and present your home well. If you’re a buyer, take advantage of the current conditions before they change. Either way, having a knowledgeable agent on your side will ensure you achieve your real estate goals.