The Southwest Florida real estate market is undergoing a major shift in summer 2025. After several years of intense competition, price spikes, and low inventory, we’re now seeing a more balanced—and even buyer-friendly—environment across areas like Naples, Fort Myers, Bonita Springs, and Cape Coral.
If you’re thinking about buying or building a home, understanding the current trends can help you make smart, confident decisions. Here’s what you need to know right now.
A Shift Toward a Buyer’s Market
For the first time in years, the scales have tipped in favor of buyers. Homes are sitting on the market longer, sellers are more open to negotiation, and there’s less pressure to make lightning-fast decisions. This is a welcome change from the post-pandemic market, when bidding wars and over-asking offers were the norm.
Now, with more options available, buyers can be more selective and deliberate—especially when building new construction. You have time to weigh your decisions and focus on finding or designing a home that fits your lifestyle.
Inventory Is Up, Especially in Some Areas
Inventory has increased across Southwest Florida, giving buyers more options at a wider range of price points. While some communities are still competitive, others—especially in areas like Cape Coral and Bonita Springs—are seeing months’ worth of available homes, a strong indicator of a buyer-favorable market.
For those considering new construction, this also means more available lots, flexible build timelines, and less pressure to act on impulse. Builders like Lifestyle Design Homes are releasing new phases this summer with a variety of homesites and floorplans ready to go.
Prices Are Cooling Off
Home prices are no longer climbing at the breakneck pace we saw over the past few years. While values are still strong in desirable areas, most cities in Southwest Florida have seen slight declines or leveling off in median prices.
This correction is not a crash—it’s a healthy adjustment that’s creating opportunities for well-prepared buyers. If you’ve been priced out in previous seasons, now might be the time to re-enter the market with more leverage and less competition.
Homes Are Taking Longer to Sell
Gone are the days of homes flying off the market within hours of being listed. Today, average days on market are stretching out, with many listings staying active for 30, 60, or even 90 days. For buyers, this means more time to compare properties, negotiate, and complete due diligence without pressure.
This also applies to spec homes and move-in ready new construction—more availability means better deals and upgrade incentives from builders looking to move inventory.
It’s a Great Time to Negotiate
In this slower-paced market, buyers have the upper hand in negotiations. Many sellers are offering closing cost assistance, price reductions, or incentives like upgraded appliances and rate buy-downs. Builders are also more open to including custom features or offering credits at the design center to help buyers personalize their homes.
Whether you’re buying a resale home or starting fresh with a custom build, now is a smart time to ask for more—and get it.
Be Prepared for New Realities in Financing and Insurance
While mortgage rates have stabilized in the 6–7% range, Florida buyers still need to factor in rising insurance premiums and property taxes, especially in coastal or flood-prone zones. These added costs make it more important than ever to understand your total monthly payment—not just your mortgage rate.
The good news? Builders like Lifestyle Design Homes are working with trusted lenders and insurance partners to help you estimate and manage these costs early in the process.
At Lifestyle Design Homes, we’re here to guide you every step of the way. From choosing the right floor plan to navigating market trends and securing financing, we’ll make sure your homebuying journey is informed, rewarding, and stress-free.
Let’s talk about building your future. Contact us today to schedule a consultation and see available homesites across Southwest Florida.