October 2025 Southwest Florida Real Estate Market Update: Momentum Builds as Inventory Rises and Buyers Return in Force

Southwest Florida Housing Market Heats Up as Inventory Rises and Buyers Return

FORT MYERS, FL – April 21, 2026 – The Southwest Florida real estate market is showing clear 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. This includes key areas like Fort Myers, Cape Coral, Fort Myers Beach, Lehigh Acres, Bonita Springs, Estero, Sanibel, Captiva, and Pine Island.

After several years marked by extremely low inventory and rapid price increases following Hurricane Ian, October 2025 delivered a significant surge in new listings, a dramatic jump in pending sales, and continued strong absorption. Remarkably, median prices have remained stable, signaling the most balanced and buyer-friendly market seen since 2021, while property values hold firm.

Key Market Highlights for October 2025 (Year-over-Year Comparison)

Single-Family Homes (Lee & Hendry Counties):

• Median Sales Price: $364,900 (down 5.2% YoY, up 2.8% MoM)
• Closed Sales: 1,001 (up 18.7% YoY, down 3.1% MoM)
• New Listings: 2,071 (up 24.0% YoY, up 22.6% MoM)
• Pending Sales: 1,134 (up 54.7% YoY, up 11.6% MoM)
• Median Days on Market: 57 days (up 3.6% YoY, down 3.4% MoM)
• Active Inventory: 7,262 listings (up 7.4% YoY)
• Months Supply of Inventory: 7.3 months (down 9.6% YoY, but up from September)

Condominiums & Townhomes:

• Median Sales Price: $247,990 (down 5.5% YoY, flat MoM)
• Closed Sales: 229 (up 33.1% YoY, down 0.9% MoM)
• New Listings: 760 (up 52.3% YoY, up 56.7% MoM)
• Pending Sales: 281 (up 81.3% YoY, up 16.6% MoM)
• Median Days on Market: 65 days (down 15.6% YoY)
• Months Supply: 12.3 months (down 18.7% YoY, but up 8.4% from September)

The significant increase in pending sales, up 54.7% for single-family homes and a staggering 81.3% for condos year-over-year, indicates that deferred buyer demand from 2023–2024 is now meeting a meaningful increase in available properties. October 2025 saw the highest single-family new listing count in at least four years, pushing inventory to more balanced levels. Single-family supply now stands at 7.3 months, considered neutral territory, while condo supply at 12.3 months leans towards a buyer-friendly market.

Several factors are contributing to this rise in inventory. The post-Ian reconstruction phase is largely complete, allowing many owners to list their homes at peak equity values. Stabilization in the insurance market, despite elevated premiums, has also given owners more confidence to sell. Furthermore, Federal Reserve rate cuts in 2024–2025 have lowered mortgage rates, bringing back move-up buyers who were previously 'rate-locked.' Seasonal timing, with snowbirds deciding on their Florida properties, also plays a role.

Buyers are returning, particularly move-up buyers taking advantage of sub-6% mortgage rates (30-year fixed rates dipped below 6.1% in parts of October). Cash-heavy second-home and retirement buyers are also re-entering the market after a period of low inventory. Investors are selectively returning, especially in areas like Lehigh Acres and eastern Cape Coral, where price-per-square-foot remains attractive.

Well-priced, updated properties, such as gulf-access waterfront homes in Cape Coral, new construction in Babcock Ranch, and move-in-ready homes in gated communities, continue to see multiple offers and sell quickly.

Regional Spotlight

• Cape Coral: Continues as the volume leader for new listings and pending sales, with gulf-access pool homes under $600K moving fastest.
• Fort Myers / Gateway / South Fort Myers, including the vibrant River District: Experiencing strong move-up activity, 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 with assessments already paid.
• Lehigh Acres: Features the highest inventory levels in the region, with over 9 months supply in many zip codes, indicating 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. Island buyers now have significant selection.

The single-family median price of $364,900 is down only 5% from the 2024 peak of approximately $385,000. Condo median at $247,990 reflects some discounting on older coastal properties. Sellers who price realistically are achieving 95–98% of list price and selling within 30–60 days.

For buyers heading into the 2025–2026 season, this means more choices, less pressure to waive inspections, and potential for negotiation on price, especially for listings that have been on the market for over 60 days. The best selection since 2021 is available, particularly in the $400K–$800K single-family and $250K–$450K condo ranges.