Southwest Florida Housing Market Booms with 6.4% Price Increase in October 2025

Southwest Florida Real Estate Market Experiences Significant Growth in October 2025

The Southwest Florida housing market has shown strong growth from October 2024 to October 2025, with an average sale price increase of 6.4% and a 22% rise in closed sales. This robust performance is attributed to a surge in new listings, which increased by 27.6% year-over-year. Notably, October alone saw a 39% month-over-month jump in new listings, indicating a growing number of sellers entering the market. This influx of properties suggests a trend towards a more balanced market, potentially stabilizing prices and offering healthier negotiation opportunities for buyers and sellers. According to Paradise Luxury Group, this shift hints at moderate price growth and balanced market conditions expected in 2026.

Lee and Collier Counties Record High Inventory Levels

As of October 2025, the number of active listings in Southwest Florida stands at 16,911, providing buyers with more options and signaling a shift in market dynamics. Lee County currently has a months' supply of 7.0, while Collier County records a slightly higher supply of 7.2 months. These inventory levels are crucial for understanding the market's equilibrium between supply and demand. The increased inventory is a positive sign for buyers who have faced limited options and competitive pricing in previous months. Longer days on the market, averaging 94 days in Lee County and 111 days in Collier County, reflect a slower pace of sales, allowing buyers more time for decision-making. These changes indicate a market moving towards stabilization, as reported by Paradise Luxury Group.

Fort Myers pending sales increase 29.4%, showing heightened buyer demand.

Fort Myers Market Shows Increased Buyer Demand

The Fort Myers real estate market has exhibited rising buyer demand, highlighted by a 29.4% increase in pending sales year-over-year. The median sale price remains stable at $347,000, indicating a consistent market environment. However, the median days on the market have increased by 41% to 79 days, and inventory levels have tightened to a 6.9 months' supply, down from 11 months in the spring. This suggests a shift towards a more balanced market, albeit still slightly favoring buyers. According to Worthington Realty, these dynamics point to a stabilization in pricing and increased negotiation power for buyers.

Bonita Springs and Naples Maintain Consistent Market Trends

In Bonita Springs, the housing market is experiencing approximately 9 months of inventory, with homes spending around 70 days on the market. This balanced inventory level provides buyers with ample choices while maintaining market stability. Similarly, in Naples, the median sale price holds steady at $588,000, suggesting a resilient and robust market. The balanced market conditions in these areas are indicative of a broader trend across Southwest Florida, where increased inventory levels are aligning with buyer demand. These insights were highlighted in a recent report by SWFL Life.

Foreclosure Rates Increase but Remain Below Historical Highs

Despite the positive growth in the housing market, foreclosure activity in Florida has seen an increase. In October 2025, foreclosure filings in the U.S. rose for the eighth consecutive month, with Florida among the states with the highest foreclosure rates. However, foreclosure volumes remain below historical highs, suggesting a normalization as the market adjusts to higher housing and borrowing costs. The ATTOM Data Solutions report indicates that while challenges persist, the market is gradually stabilizing.

Future Outlook: A More Balanced Market Anticipated in 2026

Looking ahead, the Southwest Florida housing market is anticipated to continue its trajectory towards a more balanced state in 2026. The rise in new listings, coupled with a stable demand, suggests moderate price growth and healthier market conditions for negotiation. With increased inventory and a slower pace of sales, buyers can expect an improved purchasing environment. RealEstateAbroad.com analysis predicts that these trends will foster a more equitable relationship between buyers and sellers, paving the way for sustainable market dynamics in the coming year.