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2024 NAR Membership Guide
Spring 2025 Market Update: Bonita Springs-Estero, Naples & Fort Myers
By Bonita Springs-Estero Realtors®
As Southwest Florida’s winter “season” transitions to summer, our housing market is showing signs of normalization and resilience. The latest data for May 2025 reveals important shifts in market trends, inventory, and prices across Bonita Springs-Estero, Naples, and Fort Myers. Despite some year-over-year cooling from last year’s frenetic pace, the outlook remains optimistic – buyers have more choices, sellers are adjusting, and our community’s real estate market continues to thrive in a more balanced way.
Market Trends
Sales Activity: Home sales in May 2025 softened compared to the same time last year, reflecting a market finding its new equilibrium after the red-hot frenzy of recent years. Closed sales were down year-over-year in all three markets (ranging from a nearly flat -1.0% in Fort Myers to -16–19% in Bonita Springs-Estero and Naples), but this moderation is not cause for alarm. In fact, the dip in closed transactions comes on the heels of an exceptionally busy prior year and higher interest rates, suggesting the market is stabilizing rather than slumping. Importantly, pending sales (homes under contract but not yet closed) actually jumped by double digits across the board – up +18.7% in Bonita Springs-Estero, +17.8% in Naples, and +12.7% in Fort Myers. This surge in pending deals indicates that buyer interest remains strong, even if not every contract had closed by month’s end. Realtors are noting that well-priced homes continue to attract offers, and the increase in pending sales is a positive sign that demand is still active heading into summer.
Pace of Sales: Homes are generally taking a bit longer to sell than they did a year ago, but they’re still moving at a healthy clip by historical standards. The median days on market (DOM) in May was 57 days for Bonita Springs-Estero and 60 days for Naples, indicating roughly two months on average for a home to go under contract. Fort Myers saw a median of 45 days on market, the quickest of the trio – reflecting the relatively high demand for its more affordable offerings. This slight increase in selling time compared to last year actually gives buyers and sellers breathing room to make thoughtful decisions, a notable change from the lightning-fast sales we saw during the pandemic boom. Overall, the current DOM figures suggest a market that is more measured but still quite active – homes are selling in under 2–3 months in most cases, which signals continued buyer engagement in our community.
Inventory Insights
More Homes on the Market: One of the most striking trends in May 2025 is the expansion of housing supply. All three areas have significantly more active listings than a year ago, a welcome development for buyers seeking options. Bonita Springs-Estero’s inventory of homes for sale was up +41.2% year-over-year, and Fort Myers saw a +35.5% rise in active listings. Naples also experienced an increase in inventory, up +20.6% from May 2024. These gains reflect the market’s shift from the ultra-low inventory conditions of the recent past. With more than 20–40% more homes available than last spring, house-hunters now have a broader selection to choose from. This growing inventory is a sign that the market is rebalancing, moving toward a healthier equilibrium between supply and demand.
New Listings & Seller Behavior: The flow of new listings in May varied by area, highlighting different seller dynamics. In Naples, new listings dropped by nearly -18.8% year-over-year – meaning fewer homeowners decided to put their properties up for sale this May compared to last. This could indicate that some Naples sellers are holding off, possibly waiting for market conditions to improve or for peak season later on. In contrast, Fort Myers saw +15.0% more new listings than a year ago, as more sellers entered the market, while Bonita Springs-Estero stayed roughly flat with a modest +0.6% uptick in new listings. The overall rise in inventory despite mixed new listing trends is partly due to homes staying on the market a bit longer and seasonal patterns. In fact, for the first time since last fall, the total number of active listings in Southwest Florida declined slightly from April to May – dropping from about 24,688 in April to 23,854 in early May as the winter selling season wound down. Many sellers who had been “testing the market” during our busy snowbird season took their homes off the market if they didn’t get their price, a normal post-season cooling effect. The net result is that while inventory is way up from a year ago, it’s no longer surging month-to-month – a sign that the market’s supply is starting to stabilize.
Balancing the Market: The boost in inventory has shifted the market toward a more balanced position after a prolonged period favoring sellers. By traditional metrics, the region is approaching a buyer’s market in some segments – for example, in May the months’ supply of homes in Lee County (which includes Bonita Springs, Estero, and Fort Myers) was around 9–10 months, markedly higher than the 2–3 months supply we saw during the peak of the seller’s market. Collier County (Naples) had roughly 11 months of supply in May. More inventory means buyers have greater choice and negotiating power, which has already led to more price flexibility (discussed below). However, this shift doesn’t mean homes aren’t selling – rather, it indicates a healthier, less frenzied market. In fact, the slight dip in inventory from April suggests we may have reached a new equilibrium. Industry observers note that while buyers hold more cards now than a year ago, motivated sellers who price their homes strategically are still succeeding in closing deals. The inventory growth is giving the market a chance to catch its breath, which ultimately is positive for long-term stability and for sustaining our community’s real estate momentum.
Price Analysis
Median Price Movements: Home prices in Southwest Florida are adjusting downward from last year’s record highs, providing some relief on affordability while still preserving much of the gains sellers accrued over the past few years. Each of our three markets saw a year-over-year decline in median sales price in May 2025, but the magnitude varied. Naples experienced the largest price correction – the median price was about $760,000, which is -15.6% lower than in May 2024. This significant drop suggests that the Naples market, which had skyrocketed in 2021–2022, is normalizing; prices are coming off the peak, partly as higher-end sellers adjust expectations and buyers resist overinflated values. Meanwhile, Fort Myers’ median price fell around -11.6% year-over-year to roughly $475,000, indicating a noticeable but more moderate price improvement for buyers. Bonita Springs-Estero stands out for its price resilience – the median price in May was $771,000, only -1.8% lower than a year ago. Essentially, Bonita-Estero prices held steady, suggesting continued strong demand for the area’s homes (often ranging from upscale golf community properties to gated neighborhoods). This slight dip is minor compared to other areas and shows that property values in Bonita Springs-Estero have remained robust.
What Lower Prices Mean: The year-over-year price declines can be viewed as a market correction after the unprecedented run-up in values during the pandemic boom. Rather than a negative omen, many local experts see this as a healthy adjustment. Prices in Naples and Fort Myers, even after these drops, are still well above where they were a few years ago – so homeowners have largely retained substantial equity gains. For buyers, the easing of prices is a welcome development: previously, rapid price increases had stretched affordability to the limit. Now, with Naples’ median down to ~$760K and Fort Myers around $475K, more buyers can find options within reach, and luxury segments are a bit more attainable than last year. In Bonita Springs-Estero, the minimal price change suggests that the area remains highly sought-after, and values are holding firm due to desirable inventory and community appeal. Overall, the price trend indicates that the market is cooling off just enough to reintroduce balance. We’re no longer seeing the double-digit annual price jumps that defined the frenzy; instead, Southwest Florida real estate is settling into a sustainable price range that benefits long-term market health. Sellers might not command the record prices of 2022, but they are still achieving strong values for their homes, and buyers now have a fighting chance to purchase without engaging in bidding wars. This new normal of slightly lower prices and slower growth is a positive sign of a market avoiding a bubble and instead leveling out.
Community Outlook
Optimism in a Normalizing Market: The Bonita Springs-Estero Realtors® community remains optimistic and forward-looking as we head into the summer of 2025. The latest statistics paint a picture of a market that is calming and normalizing, which is good news for the overall community. A year ago, rapid rises in prices and scant inventory made the market challenging for many local families and newcomers. Today, with inventory up and prices adjusting, more opportunities are opening up for homebuyers to find their place in Southwest Florida. Sellers, while facing more competition, are still benefiting from values that are historically high, and with the guidance of professional Realtors they are learning to navigate the new conditions – pricing homes right, staging them effectively, and being open to negotiation. This balanced environment is fostering a healthier relationship between buyers and sellers, one built on fair value and mutual benefit rather than frenzy. Our Realtors are reporting that clients on both sides of the transaction feel a sense of relief that the market is less chaotic. There’s a growing feeling that we are shifting out of the overheated pandemic-era market into a sustainable phase where normal seasonality and local fundamentals drive the activity.
Seasonal Transitions & Looking Ahead: May marks the end of the traditional winter/spring “season” in Southwest Florida – when our area sees an influx of snowbirds and seasonal visitors. As those part-time residents head north for the summer, the housing market typically enters a slower pace. This year, that seasonal transition has been evident: some listings have been withdrawn after season, and active inventory dipped slightly from April’s peak. But unlike some past years, demand hasn’t disappeared. The rise in pending sales in May shows that serious buyers are still in the market, perhaps local move-up buyers or new families moving into the area, taking advantage of the greater selection. Our region’s enduring appeal – sunny weather, lifestyle amenities, and tight-knit communities – continues to draw people even in the off-season. In Bonita Springs and Estero especially, where homeownership rates are among the highest in the nation, we see consistent interest from those looking to put down roots. Fort Myers and Naples likewise remain highly desirable, each for their own reasons (Fort Myers for its growing job market and relative affordability; Naples for its upscale amenities and coastal charm). The community outlook for real estate is bright: with the market leveling out, we expect a stable environment in the coming months, characterized by steady sales and moderate price growth rather than extreme spikes.
Building a Strong Community Through Real Estate: Ultimately, these market trends point to a Southwest Florida real estate scene that is healthier and more sustainable for everyone. A balanced market means first-time buyers, young families, and our workforce have a better chance to find homes, which in turn strengthens the fabric of our community. Sellers are still seeing excellent returns on their investments, just without the speculative excess. The rebalancing we’re experiencing is laying the groundwork for long-term community stability – homes are not just investment assets here, but the places where our neighbors live, work, and thrive. As Realtors, we celebrate this return to normalcy because it makes the dream of homeownership more attainable and transactions more collaborative. Moving forward, we will continue to monitor these trends and support our clients with up-to-date insights. Whether you’re considering buying your first home, upgrading, downsizing, or selling, the current market offers prospects and possibilities that simply didn’t exist during the ultra-competitive frenzy of 2021–2022. With a positive mindset and the help of our local real estate professionals, the community can navigate this evolving market confidently. Southwest Florida’s housing market remains strong, bolstered by the enduring desirability of our region. As May 2025’s numbers show, we are entering a new chapter of steady, sustainable growth – one that benefits homeowners, buyers, and the community at large. Here’s to a healthy market and a thriving Southwest Florida community in the months ahead!