Florida Housing Market Slows: What Sellers in SWFL Need to Know Right Now
Home sales are slowing across Southwest Florida — and sellers are starting to feel it.
In cities like Cape Coral, Fort Myers, and Punta Gorda, many homeowners are dropping their prices but still not getting showings. Even homes priced at the low end of their range are sitting on the market for weeks — sometimes months — with little to no interest.
After years of rapid price growth, median home prices in some of these cities are finally starting to dip. While Florida's home prices are still rising faster than the national average overall, the Sunshine State is now in what many experts call a “market correction.” Demand is cooling, inventory is rising, and sellers are facing new realities.
Here’s what’s driving this shift:
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More Inventory: A boom in new construction combined with more people finally deciding to list has pushed inventory back to pre-pandemic levels. Florida’s housing supply rose by 18.5% year-over-year in February, with more than 224,000 homes on the market statewide.
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Slower In-Migration: During the pandemic, thousands relocated to Florida. But that surge has slowed significantly, which means less buyer demand.
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Still-High Mortgage Rates: Although rates have stabilized, they’re still hovering between 6% and 7%, keeping many buyers cautious.
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Rising Insurance + HOA Costs: Escalating costs for homeowners insurance and HOA fees are pushing some homeowners to list their properties before these fees become unaffordable — flooding the market with listings, especially in aging condo communities.
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New Safety Laws in South Florida: Post-Surfside legislation is requiring stricter building inspections and more money in reserves — causing many condo owners to sell rather than pay steep special assessments.
And the numbers speak for themselves:
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In Cape Coral, nearly 45% of listings had price drops in February. Sales were down from 443 homes last year to 379, and median prices dropped 2.5% to $390,000.
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In Fort Myers, sales fell from 149 to 113, with prices slipping just under 1% to $385,000.
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Punta Gorda saw only a tiny increase in sales (from 58 to 59), but median prices plunged by 35.7% to $360,000.
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Naples bucked the trend with a 43% price increase (up to $1.2M), though sales dropped slightly.
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Sarasota saw small gains in both sales and prices, with home values up 10.4% to $529,900.
Despite some outliers, the trend is clear: homes are sitting longer. Redfin data shows Florida homes spent an average of 75 days on the market in February — 13 days longer than last year.
Real sellers are feeling it. One homeowner in Bonita Springs dropped their price from $850K to $729K and still hasn’t had any serious traffic after 4 months on the market. Another wrote on Reddit that despite pricing their home “at the bottom of the range,” they’ve had zero showings and every home in their area has been listed for over 60 days.
Looking ahead, experts expect the market to continue cooling. According to Nick Gerli of Reventure App, Florida could see a -5% price drop statewide in 2025 as inventory grows and demand shrinks.
But here’s the catch: even with this correction, prices remain well above pre-pandemic levels. So if you’re thinking about selling, there’s still opportunity — but strategy matters more than ever.
Buyers have options now. They’re looking for value, quality, and confidence in what they’re purchasing. Sellers need to stand out with smart pricing, strong presentation, and expert marketing.
If you’re in Southwest Florida and feeling the shift, let’s talk. I’ll help you understand what your home is worth today, how to market it effectively, and what steps you need to take to get it sold — not just listed.