October 2025 Southwest Florida Real Estate Market Update:

Momentum Builds as Inventory Rises and Buyers Return in Force

The Royal Palm Coast Realtor® Association (RPCRA) released its October 2025 market statistics covering Lee and Hendry counties (including Cape Coral, Fort Myers, Fort Myers Beach, Lehigh Acres, Bonita Springs, Estero, Sanibel, Captiva, Pine Island, and surrounding areas), and the headline is unmistakable: Southwest Florida’s housing market is heating up heading into season.

After several years of ultra-low inventory and rapid price appreciation in the wake of Hurricane Ian, October delivered a surge in new listings, a dramatic jump in pending sales, and continued strong absorption — all while median prices remain remarkably stable. In short, this is the most balanced and buyer-friendly market we’ve seen since 2021, yet values are holding firm.

Here’s the complete expert-level breakdown of the October 2025 data, plus actionable insights for buyers, sellers, and investors.

Key Market-Wide Highlights – October 2025 vs October 2024

Single-Family Homes (Lee & Hendry Counties)

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

Condominiums & Townhomes

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

The Big Picture: A Classic “Thawing” Market

October 2025 delivered the clearest evidence yet that deferred buyer demand from 2023–2024 is finally meeting meaningful new supply.

• Pending sales exploded — up 54.7% YoY for single-family and a staggering 81.3% YoY for condos. This is the strongest forward-looking indicator we track.
• New listings surged — the highest October single-family new-listing count in at least four years.
• Inventory is finally normalizing — 7.3 months of single-family supply puts us solidly in “balanced” territory (6–8 months is considered neutral). Condo supply at 12.3 months leans buyer-friendly.

Yet despite the influx of competition, median prices have not collapsed — they’re only down about 5% from last year’s peak levels and actually ticked up month-over-month for single-family homes.

Why Is Inventory Finally Rising?

Multiple converging factors are bringing homes back to market:

1. Post-Ian reconstruction phase is largely complete — Many owners who rebuilt or elevated homes after 2022 are now listing at peak equity values.
2. Insurance market stabilization — While premiums remain elevated, the catastrophic rate spikes of 2023–2024 have moderated, giving owners confidence to sell.
3. Lower mortgage rates — The Federal Reserve’s 2024–2025 rate cuts have unlocked move-up buyers who were previously “rate-locked” in 3–4% mortgages.
4. Seasonal timing — October–November is traditionally when snowbirds decide whether to keep or sell their Florida properties.

Buyer Behavior: The Return of the Move-Up & Second-Home Buyer

The dramatic spike in pending sales tells us exactly who is driving this market:

• Move-up buyers from within Florida and out-of-state are taking advantage of sub-6% rates (30-year fixed rates dipped below 6.1% in parts of October).
• Cash-heavy second-home and retirement buyers are jumping back in after sitting on the sidelines during the ultra-low-inventory years.
• Investors are selectively returning, particularly in Lehigh Acres and eastern Cape Coral where price-per-square-foot remains attractive.

Well-priced, updated properties — especially gulf-access waterfront in Cape Coral, new-construction in Babcock Ranch, or move-in-ready homes in gated communities — are still seeing multiple offers and selling in under 30 days.

Regional Spotlight: How Individual Markets Performed

Cape Coral Remains the volume leader with the highest number of new listings and pending sales. Gulf-access pool homes under $600K are moving fastest.

Fort Myers / Gateway / South Fort Myers Strong move-up activity. Median price holding steady in the high $300Ks–low $400Ks.

Fort Myers Beach & Estero/Bonita Springs Condo pending sales surged as buyers scoop up post-Ian rebuilt units with new assessments already paid.

Lehigh Acres Highest inventory levels in the region — true buyer’s market conditions with 9+ months supply in many zip codes.

Sanibel & Captiva Islands Separate Sanibel & Captiva MLS data (released simultaneously) showed inventory exploding to 12.9–16+ months supply, yet median prices remain resilient (Sanibel single-family median hit $815,000 in October). Island buyers finally have legitimate selection again.

Pricing Trends: Stability Amid Rising Supply

• Single-family median price sits at $364,900 — down only 5% from the 2024 peak of ~$385,000.
• Condo median at $247,990 reflects heavy discounting on older, non-warranted coastal product.
• Price per square foot for single-family homes: $214 — still well above pre-Ian levels but off the 2022–2023 highs of $226–$240.

Sellers who price realistically to current comparable sales (not 2023 comps) are achieving 95–98% of list price and selling in 30–60 days.

What This Means for Buyers Heading Into Season 2025–2026

For the first time in four years, buyers have real leverage:

• More inventory = more choices and less pressure to waive inspections
• Sellers are offering concessions: roof credits, flood insurance credits, rate buydowns, HOA fee coverage
• Negotiation room on price — especially on listings that have sat 60+ days
• Best selection since 2021, particularly in the $400K–$800K single-family and $250K–$450K condo range

What This Means for Sellers

1. Price aggressively — the days of setting a number 10–15% above the last comp are over.
2. Highlight post-Ian upgrades — new roof, impact windows, elevated mechanicals, and generator are now table stakes.
3. Professional staging & photography are non-negotiable in a 7+ month supply environment.
4. Be transparent about insurance and any past flood claims — today’s buyers are doing thorough due diligence.

Outlook for Winter 2025–2026: One of the Strongest Seasons in Years?

With pending sales at multi-year highs, new listings flowing, and mortgage rates trending lower, most local brokerages are forecasting 2026 to be the highest-volume sales year since 2021.

The combination of deferred demand finally meeting real supply — without a collapse in pricing — creates the classic “Goldilocks” scenario for a robust, healthy market.

Southwest Florida remains one of the most desirable relocation and retirement destinations in the country. October 2025 data confirms that after a three-year supply-constrained rollercoaster, the market is settling into a sustainable, balanced groove exactly as high season arrives.

Whether you’re a buyer who’s been patiently waiting, a seller ready to capitalize on years of equity growth, or an investor looking for cash-flow opportunities, the numbers don’t lie: now is the moment Southwest Florida’s real estate market is truly reopening for business.

Data sourced from Royal Palm Coast Realtor® Association MLS and Sanibel & Captiva Islands Association of Realtors® MLS as of November 11, 2025. Percentages calculated from reported figures. All statistics are deemed reliable but not guaranteed.