March 2026 Real Estate MARKET UPDATE

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

The Southwest Florida real estate market is active as we move through the heart of the winter season. Buyers are in town, inventory has adjusted over the past year, and the market is settling into a more balanced environment.

If you are wondering whether now is a good time to buy or sell in Southwest Florida, the latest numbers give a clear picture of where things stand.

Inventory in Southwest Florida

As of March 2026 there are 20,260 active homes for sale across Southwest Florida. This is a small seasonal increase, which is normal during peak season when more homeowners choose to list their properties.

Here is how inventory has changed over the past year.

After peaking in mid 2025, inventory has started to stabilize. Buyers now have more options than they did a few years ago, while sellers who price their homes correctly are still finding success.

Price Reductions Are Increasing

In the past 7 days alone there have been 2,417 price reductions across the Southwest Florida MLS.

This is not unusual in a market that is adjusting. Many sellers initially test higher price points and then make adjustments to match current buyer demand. Homes that are priced correctly from the beginning are still attracting buyers and selling.

Months Supply of Inventory

Months supply of inventory helps measure whether the market favors buyers or sellers.

Current levels are:

Lee County: 7.6 months of inventory
Collier County: 8.8 months of inventory

Both counties saw a small decrease recently, showing that buyers are still actively purchasing homes.

Days on Market

Homes are also selling a bit faster compared to earlier in the year.

Lee County average days on market: 90 days
Collier County average days on market: 92 days

While homes may take longer to sell compared to the fast paced pandemic years, these numbers are very normal for a healthy real estate market.

Home Sales Remain Strong

Southwest Florida continues to see solid transaction volume.

Total homes sold in 2025: 30,655
Total homes sold in 2024: 30,171

So far in 2026 there have already been 4,936 homes sold, and with season in full swing we expect strong activity to continue through the spring months.

The Myth About Selling Only During Season

Many people believe the only time to sell a home in Southwest Florida is during winter season.

That is simply not true.

Homes sell in Southwest Florida all year long. Our market is driven by relocation buyers, retirees, second home buyers, investors, and local homeowners moving within the area.

While winter certainly brings more seasonal buyers, great opportunities to sell exist throughout the entire year. In fact, listing outside of peak season can sometimes mean less competition from other homes on the market.

What This Means for Buyers and Sellers

Buyers today have more inventory to choose from and more room to negotiate than they did just a few years ago.

Sellers can still achieve excellent results, but success comes down to proper pricing, strong marketing, and a clear strategy from the beginning.

The Southwest Florida market remains active and healthy, and with thousands of homes already sold this year, demand for the Southwest Florida lifestyle continues.

Mortgage Minute

Have you ever heard the phrase “catching lightning in a bottle”? It describes something extremely difficult to accomplish. In real estate, trying to perfectly time the housing market or mortgage rates can feel the same way.

Many buyers wait for the perfect interest rate or the perfect moment to buy or sell. The reality is that timing the market perfectly is nearly impossible.

Today’s market is really about value, affordability, and preparation. Helping buyers and sellers connect and move toward a successful closing starts long before the offer is written.

Whether you are a first time homebuyer, an experienced investor, or planning to sell, being prepared is more important than ever. Mortgage rates change and homes move on and off the market constantly. Those factors are largely outside of anyone’s control, but there are several things buyers and sellers can do to set themselves up for success.

Start the process early. Time is your friend when it comes to mortgage financing. Talking with a loan officer about your goals and options will give you clarity and confidence when the right property comes along.

Be ready to write an offer. Having a preapproval in place helps you understand your payment, fees, and cash needed to close. Sellers also prefer to see a preapproval letter attached to any offer.

Keep an eye on your credit. Monitoring your credit regularly allows you to address any issues early. If there are credit challenges, taking care of them before starting the home search can make the approval process much smoother.

Know your options. Understanding the different loan programs and strategies available will help you move quickly and confidently when the right opportunity appears.

Preparation may not guarantee you catch lightning in a bottle, but it will give you a clear path forward when the right opportunity presents itself.

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