The Market Has Shifted—Big Time
If you’re trying to sell your Southwest Florida home right now and it’s not flying off the market like it might have a year or two ago, you’re definitely not alone. The game has changed across Cape Coral, Fort Myers, Naples, and beyond. We’ve officially moved away from the “blink and you’ll miss it” seller’s market of 2021–2022 and entered full-on buyer’s market territory.
What does that actually mean? In short: buyers are in the driver’s seat. They have more choices, more time, and more negotiating power than we’ve seen in years. As a result, many homes now linger for weeks or even months on the market—something that would’ve been hard to imagine not long ago.
Let’s dive into the real reasons behind these longer wait times, what’s fueling the shift, and what you can do about it if you’re looking to sell.
1. The Inventory Surge: Too Many Choices, Not Enough Buyers
One of the most obvious changes is the sheer number of homes for sale. Over the past year, the percentage of housing units actively listed has risen across almost all Southwest Florida counties. More inventory gives buyers the luxury of choice—and when there are hundreds of listings to scroll through, there’s zero urgency to pounce on any one place.
This surge is partly the result of homeowners who want (or need) to move, plus those who hoped to cash in on high prices. Put together, it means buyers no longer compete for the same few properties—instead, sellers compete to attract those pickier buyers.
2. Price Corrections Are Making Waves
Remember those wild bidding wars and “best and final offers” from 2022? They’re gone. As inventory climbed, prices started sliding. Throughout Lee County, for example, average sales prices have dropped by more than 3-5% year-over-year (mostly due to the inflated prices post pandemic), and almost every county in SWFL has seen a similar cooling.
What’s even more interesting is how these declines affect buyer behavior. Many buyers are aware that prices are no longer soaring—some are holding out, hoping values will dip further. Others are negotiating harder. And many sellers, understandably, are struggling to come to terms with a new reality where their home may not fetch last year’s peak price.
3. Interest Rates and Affordability Jitters
After years of ultra-low rates, today’s higher mortgage rates are making buyers pause. Most experts agree rates are likely to drift lower by the end of 2025, but for now, higher monthly payments are squeezing budgets. Combined with inflated insurance costs (more on that next), many would-be buyers are sitting on the sidelines, waiting for a better deal.
The combo of cooling prices and higher borrowing costs has created what you might call a “psychological freeze.” Even motivated buyers are hesitant to act quickly, which adds more days on the market for sellers.
4. Insurance Woes — The Elephant in the Room
Let’s address the topic almost every Florida homeowner is talking about: property insurance. Rates have skyrocketed across much of the state, and some buyers are finding coverage difficult to secure—especially for older homes or properties in certain areas.
For buyers, rising insurance premiums hit monthly affordability just as hard as higher mortgage rates. In some cases, buyer deals collapse at the eleventh hour when insurance quotes come in higher than expected. For sellers, this means you might need to price more competitively or be ready to negotiate on closing costs to keep deals alive.
5. Buyer Psychology: “Let’s Take Our Time”
One of the biggest—and trickiest—factors is the change in psychology among buyers. After watching the feeding frenzy of 2021 and 2022, today’s buyers feel far more confident. The fear of missing out (FOMO) is gone. Instead, many buyers are happy to take their time, compare options, and negotiate hard or walk away. There’s a sense that “if I don’t get this one, another will pop up next week.”
This newfound confidence stretches the time homes spend on the market and gives the upper hand to buyers who understand the current dynamics.
6. Not All Markets Are Created Equal
Even within Southwest Florida, there’s a lot of local variation. Naples, for example, has shown different trends compared to places like Cape Coral or Fort Myers. Some areas—especially those with newer construction, good insurance options, or excellent schools—remain hotter than others.
Collier County faces steep affordability challenges, while Lee and Charlotte counties have seen modest improvements in price-to-income ratios. If your home is in a particularly desirable location or in move-in-ready shape, you could still find buyers eager to move quickly.
7. The New Seller Playbook: What to Do Now
With all these factors at play, what’s the best way forward if you’re selling in SWFL right now? Here’s the insider’s list:
- Price realistically from the start. The days of testing the waters with high asking prices are over. Overpricing almost guarantees your home will linger, piling onto the “stale” listings buyers skip over.
- Get your home show-ready. Clean, declutter, tackle repairs, and consider some basic staging. With so many homes on the market, presentation matters more than ever.
- Market aggressively. Professional photos, great listing descriptions, and targeted digital outreach (think: social media, real estate apps) can elevate your listing above the crowd.
- Be flexible & patient. Expect more low offers, longer negotiations, and contingency requests. The process could take weeks or months, not days.
- Work with a local expert. The SWFL market has always been unique. A seasoned local agent (like those at RE/MAX Realty Team) can position your home for maximum visibility and guide you through tough negotiations.
8. Should You Wait to List?
A common question we hear every week: “Should I just wait until things heat up again?” The answer depends on your individual situation. If you bought at the height of the market after 2020 and need to sell, you might face some financial pain if prices haven’t rebounded. But if you have time to spare, keeping an eye on market signals makes sense.
That said: no one can predict exactly when the market will fully rebound. If you must move, focus on making your property the most attractive option for current buyers, even if it means adjusting your expectations a bit.
A Quick Recap
Southwest Florida’s real estate landscape in 2025 is dramatically different than it was just a few years ago. Homes are sitting on the market longer thanks to a big jump in inventory, price corrections, insurance and affordability hurdles, and a total flip in buyer psychology.
Sellers who adapt to these changes—by pricing right, investing in great presentation, and responding quickly to buyer concerns—will find success even in this new, slower pace. The market’s more challenging, sure, but with the right strategy and a little patience, your property can still stand out from the crowd.
Want more tips or a free home valuation? Reach out to us at RE/MAX Realty Team anytime. We’re here to help SWFL sellers navigate whatever the market throws their way.