May 2025 Real Estate MARKET UPDATEBY: D. MICHAEL BURKE, Mich Kanigsberg, & … Continue reading...

Paradise Luxury Group: Where Your Dream Home Becomes Reality
After months of rising inventory and cooling momentum, May 2025 has delivered the first meaningful shift in Southwest Florida’s housing market since late last year. For the first time since October 2024, active inventory has declined—a sign that seasonal dynamics and seller sentiment are beginning to rebalance the market.
As of May 2, 2025, there are 23,854 homes on the market, down from 24,688 in April. Here’s a breakdown of recent inventory levels:
October 2024: 15,256
November 2024: 15,745
December 2024: 16,561
January 2025: 19,288
February 2025: 22,184
April 2025: 24,688
May 2025: 23,854
This small but notable dip is largely due to the end of snowbird season. Many homeowners who listed to “test the market” during the busy winter months are now pulling their properties, either having not received their target price or simply waiting for market conditions to improve.
In the last 7 days alone, 2,172 price decreases were recorded. While lower than April’s 3,164 cuts, it still reflects that sellers are adjusting to increased competition and buyer expectations.
The months supply of inventory has also inched downward:
Lee County: 9.5 months (down from 9.8)
Collier County: 11.3 months (down from 11.4)
While these figures still point to a buyer’s market, the month-over-month improvement suggests a market heading toward normalization.
Lee County: 82 days on average
Collier County: 87 days on average
Time on market has remained relatively stable, which may indicate consistent buyer demand even as listings fluctuate.
Closed Sales: 2,725 (down 15.3% from March)
Median Sales Price: $435,000 (up 1.2% MoM)
Median Price per SqFt: $262 (up 1.2%)
Median Days on Market: 60 (up 7.1%)
New Listings: Down 10.3% from March
List Price Received: 95.2% (down 0.5%)
Key Takeaways:
Fewer new listings and more homes being pulled off the market suggest seller fatigue.
Slight gains in sales price and price per square foot show some stabilization.
Inventory is trending downward slightly, signaling that the post-seasonal market is returning to a more grounded pace.
As snowbird season wraps and speculative listings exit the market, we’re beginning to see the first signs of a more normalized real estate environment in Southwest Florida. While buyers still hold the upper hand, especially in negotiation power, sellers who are motivated and price strategically can still find success.
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!
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May 2025 Real Estate MARKET UPDATEBY: D. MICHAEL BURKE, Mich Kanigsberg, & … Continue reading...