Momentum Is Returning to the Market

After several years of uncertainty, Southwest Florida’s housing market is showing clear signs of improvement.

Homes are selling faster, inventory is shrinking, prices are rising modestly, and sellers are receiving a slightly higher percentage of their asking price. While this isn’t a return to the frenzy of 2021, it does appear to be a healthier, more balanced market.

For buyers, there are still opportunities to negotiate and choose from a healthy selection of homes. For sellers, the data suggests that the period of rising inventory and slowing sales may be behind us.

The Numbers

Taken together, these numbers tell a compelling story: inventory is tightening while demand is improving.

Inventory Is Falling

Active listings have dropped by more than 4,400 homes over the past year, and months of inventory has declined from nine months to seven.

For sellers, this means less competition. A properly priced, well-presented home has a much better chance of standing out than it did a year ago.

For buyers, seven months of inventory still provides plenty of choices. However, waiting for inventory to continue increasing may no longer be the safest strategy if this trend continues.

Homes Are Selling Faster

The average home now sells 11 days faster than it did a year ago.

Days on market is often one of the first indicators that buyer confidence is returning. When homes begin selling more quickly, inventory naturally tightens, helping support future price growth.

Prices Continue to Rise

The median sale price increased from $400,000 to $412,500, a healthy 3.1% gain.

Unlike the rapid appreciation of 2021 and 2022, today’s market is seeing steady, sustainable growth. Buyers are still negotiating, but well-priced homes are attracting strong interest.

The average seller is also receiving 96.4% of their asking price, slightly higher than last year. On a $500,000 home, that’s roughly an additional $2,000 in the seller’s pocket.

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Southwest Florida Tourism and Economy Remain Strong

Housing doesn’t exist in a vacuum. Southwest Florida continues to benefit from one of the strongest tourism economies in the state.

During the first quarter of 2026, Lee County welcomed more than one million visitors, generating nearly $1.9 billion in economic impact. Tourist tax collections also increased year over year in both Lee and Collier counties, another sign that visitor demand remains strong.

Tourism supports thousands of local jobs and businesses, and many visitors eventually become seasonal residents or full-time homeowners—helping create long-term housing demand.

Florida Continues to Outperform

While the national housing market continues to battle affordability challenges, Florida has shown stronger momentum.

Statewide, single-family home sales increased more than 9% year over year, with median prices also rising. Here in Southwest Florida, we’re seeing that strength reflected in lower inventory, faster sales, and higher prices.

What This Means for Sellers

The data suggests conditions are improving:

• Inventory is down 17%
• Homes are selling 16% faster
• Median prices are up 3%
• Sellers are keeping more of their asking price

That doesn’t mean every home will sell quickly. Pricing correctly, preparing the home well, and marketing it effectively remain more important than ever. But sellers today are facing significantly less competition than they were just a year ago.

What This Means for Buyers

Today’s buyers are in an unusual position. Inventory is still healthy enough to provide options and negotiating opportunities, but the market is clearly moving in a more competitive direction.

Mortgage rates remain higher than many buyers would like, but if rates decline in the future, increased buyer demand could quickly reduce negotiating power. Many buyers are choosing to purchase now and refinance later if rates improve.

The Bottom Line

Southwest Florida’s housing market appears to be gaining momentum.

Inventory is shrinking, homes are selling faster, prices continue to appreciate, and the region’s economy remains supported by strong population growth and tourism. While every neighborhood and price point is different, the overall direction of the market is encouraging.

For sellers, this could be an opportunity to list before competition tightens even further.

For buyers, this may be one of the last opportunities to purchase while inventory remains relatively favorable and competition is still manageable.

The market isn’t overheated—but it is moving in the right direction. Those who act before everyone else recognizes the shift often have the greatest advantage.

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