SOUTHWEST FLORIDA MARKET REPORT

Southwest Florida’s housing market has entered a significant "rebalancing" phase in early 2026, transitioning from the frantic seller's market of the post-pandemic years to a buyer-friendly environment.

1. Market Inventory:

The most dramatic change is the explosion of available homes. In 2021, supply often dipped below one month; as of February 2026, the region averages roughly 8.0 to 12

months of supply, depending on the property type.

• Active Listings: Regional inventory recently hit over 28,000 homes, providing buyers with the most choice they’ve had in years.
• Buyer Leverage: With more options, buyers are no longer skipping inspections or paying massive appraisal gaps. The typical home now sells for 94% to 96% of its list price.
• Time on Market: The"days on market" (DOM) metric has returned to historic norms, with the median home taking 60 to 90+ days to find a buyer.

2. Pricing Trends by City

Prices are no longer skyrocketing, but they haven't collapsed. Instead, they are finding a "new normal" roughly 30% above pre-2021 levels.

3. Cash vs. Financing

Southwest Florida remains a stronghold for high-equity buyers.

• Cash Buyers: Approximately 38% to 67% of transactions (especially in the luxury $1M+ segment) are all-cash deals.
• Mortgage Buyers: For those financing, rates have settled in the mid 6% range.

This has caused many buyers back to the sidelines awaiting rates to soften to the lower 6% or high 5% ranges.

4. Strategy for 2026

• For Sellers: Aggressive Pricing is your only defense against a "stale" listing. Overpriced homes sit 20–60% longer and eventually sell for less than if they had been priced correctly from day one.
• For Buyers: This is a great opportunity. You have the leverage to negotiate a great deal and possible seller concessions such as credits and rate buy downs.

As we head into the second quarter of 2026, pending sales have increased as buyers are now coming into the market recognizing the opportunities that exist market wide.

The bottom line is if you are a seller, price your property at or below comparable trailing sales. If you are a buyer, it is time to seriously consider looking for the low hanging fruit within your search criteria.