August’s housing metrics across Southwest Florida presented a mixed picture as the market continued its post-boom normalization. Regionwide, closed sales dipped about 11.4% compared to August 2024 even as pending sales climbed roughly 12.7% – a sign that buyer interest is awakening despite fewer completed deals. Notably, new listings increased by 11.3% year-over-year, from around 4,516 last August to 5,024 this August. This influx of listings, combined with slower sales, pushed active inventory up dramatically. Southwest Florida ended August with roughly 1,725 homes on the market, 22.1% more than a year ago, and the months’ supply of inventory jumped to about 9.5 months – up from roughly 7.9 months last summer. With supply approaching balanced-market levels, buyers have gained leverage: median days to contract stretched to ~70 days (versus just 49 days in August 2024) as properties take longer to sell, and on average sellers received only about 94.2% of their list price, down from the ultra-competitive near-100% ratios seen a year ago.
Importantly, prices have essentially flattened out across the region. The overall median sale price in Southwest Florida was approximately $357,000 in August, a slight 0.8% decline year-over-year. In other words, prices held steady, erasing the rapid gains of the pandemic frenzy. By segment, the moderation is more evident in condos: the median condo/townhouse price fell to about $335,000 (down from ~$390,000 last August), while the single-family median edged down only marginally to roughly $415,000 (from $418,000 a year prior). This reflects buyers’ greater price sensitivity in the condo market and the shift toward a more balanced supply. Year-to-date figures reinforce the cooling trend: regional closed sales January–August remain ~11% lower than last year’s pace, even as new listings are up about 3%, and the YTD median price of ~$368K is essentially unchanged from 2024. Overall, the combination of stable listing flow, slower closings and flattening prices signals a far more negotiable market heading into the fall. Buyers have more choices and time, and sellers are adjusting expectations accordingly.
Bonita Springs
The Bonita Springs market in August 2025 saw stable supply and sales activity coupled with a noticeable dip in prices. Inventory levels in Bonita were virtually unchanged from a year ago – the area had about the same number of homes for sale at month’s end as it did last August. As a result, the months’ supply held steady around 7.6 months, almost identical to last year’s level (a minuscule 0.3% year-over-year change). This suggests that buyer demand kept pace with the slight increase in new listings, keeping the market equilibrium intact. Indeed, closed sales in Bonita Springs were roughly flat compared to August 2024, neither surging nor falling dramatically. Buyers had a similar number of transactions to choose from as last summer, and properties moved at a comparable rate. However, prices in Bonita Springs did soften. The median sale price in August was about $500,000, which represents a 9.5% decline from approximately $552,500 a year earlier. This drop in median price indicates that the mix of homes selling skewed a bit more toward lower-priced segments (or that sellers have had to trim pricing) compared to the previous summer.
Despite the price retreat, Bonita’s market remains relatively balanced. Inventory hasn’t flooded the market – it’s holding level – so sellers still find willing buyers, albeit at more conservative prices. Homes in Bonita are taking longer to sell than they did during the red-hot market of 2021–22, but well-priced listings continue to attract attention. Anecdotally, time to contract has lengthened (now often exceeding two months on average), and negotiability has increased – buyers are more likely to get slight discounts off asking price than they were a year ago. In general, Bonita Springs buyers now have a bit more breathing room and bargaining power, while sellers face a more price-sensitive environment. The nearly 10% year-over-year price drop illustrates that buyers are no longer willing to pay last year’s peak prices, yet the steady supply and sales figures show that demand remains in place at these adjusted price points. Overall, Bonita Springs has shifted into a more normalized market phase, with ample inventory and moderate pricing creating opportunities on both sides of the table.
Estero
In Estero, the market tightened noticeably over the past year, bucking some regional trends. Inventory has contracted in Estero, leading to significantly lower supply than a year ago. The town’s months’ supply of homes dropped to about 7.3 months in August – a 25.3% decline from last August’s levels. This steep reduction in supply indicates that either listings have pulled back or sales picked up (or both), leaving far fewer homes per buyer in Estero than before. Indeed, local agents report that quality listings, especially in desirable Estero communities, have been getting snapped up, reducing the glut of inventory that had built up. Buyers in Estero now face tighter competition and fewer options compared to last summer, a contrast to the inventory gains seen elsewhere in Southwest Florida.
Even as supply tightened, prices in Estero have adjusted downward, suggesting buyers remain value-conscious. The median sale price in Estero for August was roughly $490,000, down 10.1% year-over-year from around $545,000 in August 2024. This double-digit percentage drop in median price mirrors the trend in nearby Bonita and reflects sellers pricing more realistically in order to move properties. The price decline may also result from a different mix of homes selling (perhaps more moderate-priced homes this year versus luxury homes last year). It’s worth noting that despite fewer homes on the market, Estero sellers cannot count on last year’s record prices; buyers have become more discerning and cost-sensitive. Time to contract in Estero has lengthened as well, though with inventory down sharply, well-priced homes can still attract multiple offers. Sellers in Estero who adapt to the new pricing reality are finding success, but those clinging to 2022’s peak values often see their homes linger. Overall, Estero’s market in August 2025 can be characterized as leaner and more balanced: inventory has thinned out, forcing buyers to act decisively, yet prices have moderated enough to keep those buyers in the game. The result is a market that, while cooler than the frenzy of two years ago, is healthier and more sustainable, with supply and demand moving toward equilibrium.
Naples (Collier County)
The Naples area experienced a notable rebound in sales activity in August, fueled by more competitive pricing and an uptick in supply. In contrast to the broader region, Naples saw a surge in closed sales: the number of homes sold jumped 21.8% year-over-year (218 sales this August versus 179 a year prior). Buyers clearly responded to improved affordability and increased choice in the Naples market. Pending sales also ticked up about 7.6%, signaling sustained buyer interest heading into fall. At the same time, new listings in Naples rose 7.2% from last year, modestly expanding the selection of homes for sale. This combination of higher sales and more new listings means inventory has been replenishing even as purchases occur. In fact, active inventory in Naples is up significantly from a year ago – about a 22% increase – which pushed the months’ supply to roughly 7.9 months (up from around 6.5 months last August). While Naples still has fewer homes for sale than its long-term average, the supply situation has markedly improved from the extreme scarcity of 18–24 months ago. Buyers now have a bit more leverage, and it shows in the pricing and timing metrics: homes are taking much longer to sell, with median days on market ballooning to 83 days (nearly three months) compared to just 51 days in August 2024. Moreover, sellers have had to temper their expectations – on average, final sale prices are coming in around 94.3% of list price, whereas a year ago many homes were fetching closer to full asking.
The most dramatic change in Naples has been price adjustments. The overall median sale price in the Naples/Collier County market fell to $496,000, a 16.6% drop from the $595,000 median of last August. This sizable year-over-year decline illustrates the reset in home values after the meteoric rise during the pandemic. Buyers, constrained by higher interest rates and economic uncertainty, have become more selective, and sellers have had to cut prices to meet the market. By property type, the corrections were even more pronounced: the median single-family home price in Naples was about $570,000, down from roughly $692,500 in July/August 2024, while the median condo price dropped to approximately $387,500 from $490,000 last year. That’s a 17–21% price reduction in each segment – a remarkable swing that has improved affordability and drawn more buyers back into the Naples market. These price declines, though challenging for sellers to accept, have had the positive effect of boosting sales volume, as evidenced by the double-digit jump in closings. In essence, Naples has shifted from an overheated seller’s market to a more buyer-friendly environment: inventory is up, prices are down, and buyers are negotiating harder on the homes that are selling. The trend favors well-priced properties – those listed at realistic market values are the ones moving in ~3 months, whereas overpriced listings are lingering despite Naples’ renewed buyer demand. All told, Naples in August 2025 was a story of market correction and revival: after a year of adjustment, buyers are re-engaging at lower price points, and the market is finding a new equilibrium with healthier sales activity.
The Fort Myers area (including Cape Coral and the greater Lee County market outside Bonita/Estero) experienced a more subdued summer relative to Naples, continuing a gradual cooling from the 2021 frenzy. Closed sales in Fort Myers and Cape Coral were down compared to last year, contributing to Lee County’s overall 11.4% decline in August sales. Unlike Collier’s big sales jump, Lee County’s transaction pace eased, reflecting some lingering buyer caution. However, there were encouraging signs: buyer interest has not disappeared. In fact, countywide pending sales rose about 12.7% and new listings climbed 11.3% year-over-year, which suggests that buyers and sellers are still actively engaging, just with longer timelines to closing. The higher new listing count gave buyers more options, but with sales lagging, it also led to a buildup of inventory. By the end of August, the Fort Myers/Cape area had over 20% more homes for sale than a year prior, a trend similar to the overall region. This swelling inventory pushed the months’ supply in greater Fort Myers toward 9–10 months, firmly into a balanced-market territory and well above the ultra-tight 3–4 months supply of the boom era. Buyers in Fort Myers now have a much deeper pool of listings to choose from, especially in popular mid-range price bands, and that has eased the competitive pressure significantly.
With abundant supply, market speed in Fort Myers has downshifted. Homes are taking longer to go under contract – the typical property now spends around 2+ months on the market, whereas last summer many were selling in just over one month. Sellers have had to adjust to this slower pace and to more discerning buyers. Crucially, though, home values in Fort Myers have held up far better than in Naples. The median sale price in the Fort Myers area was approximately $357,000 in August, essentially flat (only 0.8% lower) than the same time last year. In other words, prices in Lee County stabilized over the past year rather than dropping sharply. The single-family segment was particularly resilient – the median house price stayed around $415K, virtually unchanged from $418K last August. The condo/townhouse segment saw more softening, with the median condo price around $335K, down from $390K last year, but this decline was not as steep as the condo price corrections in Naples. This suggests that the Fort Myers/Cape Coral market did not overheat to the same extent as Naples, so it hasn’t required as big a price correction. Sellers in Lee County are still achieving around 94–95% of their list prices on average, similar to the regional trend, which points to increased but reasonable negotiation room. Overall, Fort Myers has shifted into a more buyer-friendly, balanced market without a dramatic crash in prices. Buyers have the upper hand of plentiful inventory and time to shop, but they’re finding prices more or less on par with last year (especially for single-family homes). Sellers, for their part, face more competition and must price competitively, but those who do so are still finding solid offers. The Fort Myers area market in August can be characterized as leveling off – the exuberance of the pandemic years is gone, replaced by a normalizing dynamic where supply and demand are coming into alignment and price growth has flattened out.
In summary, Southwest Florida’s housing market in August 2025 shows clear signs of normalization and recalibration. The overheated conditions of 2021-2022 have given way to rising inventories, longer selling times, and more negotiable prices across the board. Buyers are benefitting from more choices and improved affordability, while sellers are navigating a more competitive landscape that rewards realistic pricing and property condition. Market health varies by locale – Naples saw a sharp price-driven sales resurgence, whereas Fort Myers/Cape Coral remained steady and balanced, and communities like Bonita Springs and Estero hovered in between with modest inventory shifts and price declines. But the common thread is a move toward equilibrium. With around 9 months of supply regionwide and prices down or flat year-on-year, Southwest Florida real estate has transitioned out of its frenzy and into a phase defined by greater buyer leverage and prudent, value-focused behavior. As we head into the fall, the region appears firmly in a post-boom correction that, while slowing the market’s pace, is setting the stage for more sustainable activity going forward. Both buyers and sellers are adjusting to this new normal – one marked by neither a strong seller’s market nor a buyer’s collapse, but rather a balanced environment where well-informed, patient negotiating wins the day.
