Market Report

Southwest Florida Market Perspective: 

Overview of Closed Sales:  In January, Southwest Florida recorded 1,376 closed sales, reflecting a 3.1% decrease compared to January 2024. However, this decline is viewed positively, especially considering that five of the previous seven months experienced year-over-year declines of 16% to 22%.

Localized Market Performance: Notably, certain areas such as Naples, Bonita-Estero, and Marco Island experienced year-over-year increases in sales during January.  This indicates that while the overall market is facing challenges, specific localized markets are showing resilience and growth.

Inventory and Supply Analysis: The increase in closed sales is accompanied by an 18% rise in new listings compared to January 2024. As a result, the overall inventory in Southwest Florida surged by 16% since December. By January 31st, the market reported 9.66 months of supply, which is within the 6-12-month range considered balanced.  Areas such as Naples, Marco, Bonita-Estero, Cape Coral, and Fort Myers also remain in this balanced range. However, the island markets in Lee County are experiencing a significantly higher supply, ranging from 16 to 23 months, thereby creating a buyer's market in those regions due to lingering effects from Hurricane Ian.

Market Dynamics: A common trend across various local markets is the rising listing inventory.  While homes are still selling, many properties are remaining on the market without receiving offers or even showings.  The previous environment, where buyers had limited options, has shifted.  Buyers now face a wider selection of homes and can be more selective based on pricing. Overpriced homes may deter buyers, leading them to consider more competitively priced alternatives.

Advice for Sellers: Sellers experiencing insufficient showings or offers should consult with their Realtor to reassess their pricing strategy.  It is crucial to review current listings and recent comparable sales in the area to determine a price that aligns with market expectations and attracts potential buyers.

Navigating Market Conditions:  Market conditions can vary significantly based on location, property type, and price range. Therefore, navigating the current real estate landscape can be challenging.  The expertise of a knowledgeable local Realtor is invaluable, providing clarity and peace of mind throughout the process.

We are pleased to announce that, through January, John R. Wood Christie’s Internation Real Estate has started 2025 where it left off at year-end for 2024, as the top brokerage in total year-to-date sales volume, listings sold, and transaction in Southwest Florida.