August 2026 Edition The Southwest Florida real estate market continues to move … Continue reading...
Paradise Luxury Group: Where Your Dream Home Becomes Reality
July 2026 Real Estate MARKET UPDATE
BY: D. MICHAEL BURKE, Mich Kanigsberg, HUNTER D. HABIB, & Shawn Flinders
The Southwest Florida real estate market continues to move toward a healthier and more balanced environment as we settle into the summer months. With season behind us and many seasonal residents back up north, inventory continues to decline while motivated buyers remain active.
The days of homes selling within hours are behind us, but that is not a bad thing. Today’s market offers buyers more negotiating power while giving sellers the opportunity to stand out by pricing their homes correctly and presenting them well.
If you are thinking about buying or selling, here is where the Southwest Florida market stands today.
Active Listings Continue to Decline
As of July 2026, there are 16,324 active listings across Southwest Florida.
That is another significant decrease from June’s 17,559 active listings. This reduction is largely seasonal as fewer homeowners list during the summer months and many snowbirds have returned north.
While inventory remains higher than it was during the pandemic, we are seeing a healthy reduction in the number of homes available for sale. That is helping move the market toward a more balanced level.
| Month | Active Listings |
|---|---|
| January 2025 | 20,168 |
| February 2025 | 22,184 |
| May 2025 | 24,688 |
| June 2025 | 20,974 |
| September 2025 | 17,529 |
| October 2025 | 16,911 |
| December 2025 | 19,694 |
| January 2026 | 18,873 |
| February 2026 | 20,908 |
| March 2026 | 20,266 |
| April 2026 | 20,299 |
| May 2026 | 19,177 |
| June 2026 | 17,559 |
| July 2026 | 16,324 |
Price Reductions Continue to Slow
During the past seven days, there have been 1,043 price reductions across Southwest Florida.
That is another noticeable improvement compared to previous months and indicates sellers are entering the market with more realistic pricing expectations. Properly priced homes continue to attract buyers, while overpriced homes are still taking longer to sell.
Lee County Market Snapshot
Months Supply of Inventory: 5.8 Months
Average Days on Market: 84 Days
Lee County continues to improve as inventory declines and homes are selling more quickly than they were earlier this year. With inventory now below six months, the market is becoming more balanced.
Collier County Market Snapshot
Months Supply of Inventory: 6.1 Months
Average Days on Market: 104 Days
Collier County remains a slightly slower market, particularly in the luxury segment, but well priced homes continue to generate strong interest from qualified buyers.
Homes Continue to Sell
Despite changing market conditions, buyers are still purchasing homes throughout Southwest Florida.
2024 Total Home Sales: 30,171
2025 Total Home Sales: 30,655
2026 Year to Date Sales: 18,934
Nearly 19,000 homes have already sold this year, proving that demand for Southwest Florida real estate remains strong.
Why Now Is a Great Time to Buy
Today’s buyers have opportunities they simply did not have just a few years ago.
• More inventory provides more choices.
• Sellers are more willing to negotiate on price, repairs, and closing costs.
• Less competition means buyers have more time to make informed decisions.
Why Now Is Still a Great Time to Sell
A balanced market does not mean homes are not selling.
• Inventory has continued to decline for two straight months.
• Nearly 19,000 homes have already sold this year.
• Buyers are still actively searching for well maintained and properly priced homes.
Southwest Florida Economic Update
The latest report from the FGCU Regional Economic Research Institute continues to paint a positive long term picture for Southwest Florida.
Some highlights include:
• Tourist tax revenues remain higher than last year, reflecting continued strength in our tourism industry.
• Single family home sales continue to outpace last year, showing buyers remain active despite higher interest rates.
• Residential inventory remains below last year’s levels, helping create a healthier balance between buyers and sellers.
• Home prices remain stable throughout much of Southwest Florida, with some markets continuing to appreciate.
• Building permits remain lower than last year, which could help prevent excess inventory in the years ahead.
While there are still economic headwinds including higher unemployment and softer consumer spending, Southwest Florida continues to benefit from population growth, tourism, and long term demand for housing.
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Mortgage Minute
As we begin the third quarter, the mortgage market continues to navigate a mix of encouraging economic news and ongoing uncertainty.
One of the biggest developments is the arrival of new Federal Reserve Chair Kevin Warsh. In his first public comments, Chair Warsh emphasized that the Federal Reserve remains committed to bringing inflation back to its two percent target before considering meaningful policy changes. While the Federal Reserve does not directly set mortgage rates, its decisions strongly influence the bond market, which in turn affects long term mortgage rates. The result is that buyers should continue to expect some rate volatility rather than a rapid drop.
The encouraging news is that most housing economists still expect gradual improvement during the second half of the year. Freddie Mac recently reported the average 30 year fixed mortgage rate at 6.43 percent, the lowest level in seven weeks. Purchase activity has also started to improve as buyers adjust to today’s market.
Looking ahead, both Fannie Mae and the National Association of REALTORS® expect mortgage rates to trend modestly lower over time. Buyers waiting for rates to return to the four or five percent range may be waiting much longer than expected. Instead, many buyers are choosing to purchase today and refinance later if rates improve.
Florida buyers also have another reason to be excited. The Florida Hometown Heroes Program officially relaunched on July 13 and offers eligible first time homebuyers up to $35,000 for down payment and closing cost assistance. The program begins with $50 million in available funding and is expected to help teachers, healthcare professionals, law enforcement officers, firefighters, military personnel, and many other eligible Florida workers purchase a home.
Another major topic this year is Amendment 3, the proposed Homestead Exemption amendment that will appear on the November ballot. If approved by at least 60 percent of Florida voters, the proposal would increase the homestead exemption for non school property taxes to $150,000 in 2027 and $250,000 in 2028, index the exemption for inflation, reduce the assessment cap on non homestead properties from 10 percent to 5 percent annually, and create a framework for eventually eliminating certain non school property taxes on homestead properties.
One aspect generating debate is the proposed waiting period. Homeowners establishing Florida residency after January 1, 2027 would initially receive the current exemption and generally would not qualify for the larger exemption until after several years of Florida residency. Supporters believe the proposal rewards long term Florida homeowners, while critics argue it creates different benefits for new residents.
The bottom line is simple. Southwest Florida continues to offer excellent opportunities for both buyers and sellers. Buyers have more negotiating power than they have had in years, while sellers who price strategically continue to achieve strong results. Having the right plan and the right team is more important than ever.
Shawn Flinders
Sales Manager | NMLS #628471
1222 SE 47th St., Suite 204
Cape Coral, FL 33904
M: 239-385-2240 FL
Company NMLS #3274
Equal Housing Opportunity
Real-Time Southwest Florida Real Estate Data:
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