October 2025 Southwest Florida Real Estate Market: Inventory Rises, Buyers Return

Southwest Florida Housing Market Heats Up as Inventory Grows

FORT MYERS, FL – April 21, 2026 – The Southwest Florida real estate market is showing significant signs of heating up as the region heads into its traditional season, according to the Royal Palm Coast Realtor® Association (RPCRA) October 2025 market statistics for Lee and Hendry counties. After several years marked by extremely low inventory and rapid price increases following Hurricane Ian, October brought a surge in new listings and a dramatic jump in pending sales, indicating a more balanced market for buyers.

The data, which covers areas including Fort Myers, Cape Coral, Fort Myers Beach, Lehigh Acres, Bonita Springs, Estero, Sanibel, Captiva, and Pine Island, reveals that while median prices remain remarkably stable, the market is becoming more buyer-friendly than it has been since 2021.

Key Highlights from October 2025:

• Single-Family Homes: The median sales price for single-family homes in Lee and Hendry counties was $364,900, a 5.2% decrease year-over-year but a 2.8% increase month-over-month. Closed sales reached 1,001, up 18.7% from October 2024. New listings saw a substantial 24.0% year-over-year increase to 2,071, and pending sales soared by 54.7% year-over-year to 1,134. Median days on market stood at 57 days. Active inventory increased to 7,262 listings, resulting in 7.3 months of supply, placing the market in "balanced" territory.
• Condominiums & Townhomes: The median sales price for condos and townhomes was $247,990, down 5.5% year-over-year. Closed sales were up 33.1% year-over-year to 229 units. New listings jumped by 52.3% year-over-year to 760, and pending sales saw an impressive 81.3% year-over-year increase to 281. Median days on market decreased by 15.6% to 65 days. Months of supply for condos reached 12.3 months, indicating a buyer-friendly market.

This surge in activity suggests that deferred buyer demand from 2023–2024 is now meeting a significant increase in available properties. The highest October single-family new-listing count in at least four years contributes to this trend.

Why the Increase in Inventory?

Several factors are contributing to more homes coming onto the market:

• The post-Hurricane Ian reconstruction phase is largely complete, allowing many owners to list their properties.
• Stabilization in the insurance market, despite elevated premiums, has given owners more confidence to sell.
• Lower mortgage rates, following Federal Reserve rate cuts in 2024–2025, have re-engaged move-up buyers.
• Seasonal timing, as snowbirds often decide on property sales in October and November.

Buyer Behavior Shifts

The dramatic increase in pending sales points to the return of move-up and second-home buyers. Many are taking advantage of sub-6% mortgage rates, with 30-year fixed rates dipping below 6.1% in parts of October. Cash-heavy second-home and retirement buyers, who had been on the sidelines during the low-inventory years, are now re-entering the market. Investors are also selectively returning, particularly in areas like Lehigh Acres and eastern Cape Coral.

Well-priced, updated properties, especially gulf-access waterfront homes along the Caloosahatchee River in Cape Coral, new construction in Babcock Ranch, and move-in-ready homes in gated communities, continue to see strong demand and quick sales.

Local Market Spotlight:

• Cape Coral: Remains the volume leader for new listings and pending sales, with gulf-access pool homes under $600K moving fastest.
• Fort Myers / Gateway / South Fort Myers: Experiencing strong move-up activity in neighborhoods such as the historic River District, with median prices holding steady in the high $300Ks–low $400Ks.
• Fort Myers Beach & Estero/Bonita Springs: Condo pending sales surged as buyers acquire post-Ian rebuilt units.
• Lehigh Acres: Features the highest inventory levels in the region, with over 9 months of supply in many zip codes, signaling a true buyer’s market.
• Sanibel & Captiva Islands: Separate MLS data showed inventory exploding to 12.9–16+ months supply, yet median prices remain resilient, with Sanibel single-family median hitting $815,000 in October.

What This Means for Buyers:

For the first time in four years, buyers have more leverage. Increased inventory means more choices and less pressure to waive inspections. Sellers are also offering concessions, such as roof credits, flood insurance credits, and rate buydowns. There is more negotiation room on price, especially for properties that have been on the market for 60 days or more. The best selection since 2021 is available, particularly in the $400K–$800K single-family and $250K–$450K condo ranges.