April 2025 Spring Inventory Blooms. The Real Estate Market is becoming a Buyer’s Market
The U.S. housing market is seeing signs of continued recovery this spring, with more homes hitting the market and total inventory rising for the 17th straight month, according to Realtor.com. In Florida, for-sale inventory in the state has reached the highest levels on record, and homes are staying on the market longer even as peak homebuying season kicks off. Listings across the state surpassed pre-pandemic levels in January, according to Realtor.com. Florida ended January with the highest inventory of any month on record dating back to 2012, according to Redfin data. Homes on the market were up 17.8% from a year earlier.
In many parts of the state, prices are starting to fall. Some areas, particularly around the Gulf, are experiencing more home price corrections. These dynamics are especially clear in Southwest Florida, where inventory is piling up, forcing sellers to slash prices and meet buyers’ demands.
Southwest Florida Real Estate Market Overview
The Southwest Florida housing market has been shifting to a Buyer's market since late 2023, with increased inventory and softening prices across the region, particularly in areas like Punta Gorda and Cape Coral, while Naples is experiencing moderation after years of rapid growth. The increased inventory and softening prices offer more opportunities for buyers to negotiate lower prices and better terms. For Sellers, this means they need to be prepared to meet the demand with asking prices that fit the current market. Home prices continue to appreciate; however, the pace of growth has slowed, and in some areas, prices are falling. Median home prices showed a downward trend in Q4 2024. This creates new opportunities for buyers entering the market.
Specific Cities:
• Punta Gorda: Home prices are down significantly year-over-year. Home prices in Punta Gorda have dropped significantly since January 2024.
• Cape Coral: Home prices have dropped, and a large percentage of homes for sale have price reductions. Cape Coral is experiencing a significant drop in home prices and a high percentage of homes with price reductions.
• Naples: The market is moderating after years of rapid growth, with prices still appreciating but at a slower pace. Prices in North Port and the high-end, golf-focused city of Naples have also fallen by more than 3% in the last year.
• Fort Myers: The market is competitive with a median sale price slightly lower than the national average. Fort Myers is also seeing a decrease in home sales and a high percentage of homes with price reductions.
• Sarasota and Bradenton: Home shoppers in Bradenton and Sarasota are in for a treat with climbing inventory, falling prices, and longer time on market.
• Lee and Collier Counties: These counties have a growing number of homes being dumped onto the market for sale.
Factors Influencing the Market:
• Pandemic Boom: The rapid growth in demand during the pandemic has subsided, leading to a more balanced market.
• Hedge Funds Investors Selling: Large hedge fund buyers are beginning to sell off their home portfolios, increasing inventory.
• Mortgage Rates: Mortgage rates are slowly decreasing, helping with affordability
New Construction
There are deals to be found in Florida new construction too. Unlike many housing markets in the Northeast and Midwest, Florida has a higher level of homebuilding and multifamily construction. As new supply enters the market, inventory of existing homes is building up, making Florida one of the few housing markets where active listings now exceeds pre-pandemic 2019 levels.
In the past few years, Florida built the most new homes in the country to meet growing demand, but the end of the pandemic and a decline in remote working opportunities, have led to a significant slowdown. Several years of aggressive development have left many builders sitting on unsold homes. It is becoming more common for builders to offer incentives, be willing to buy down mortgage rates, cover closing costs and offer credits toward upgrades. Some are cutting prices on homes entirely.
Cape Coral-Fort Myers Construction Boom: The area leads with 30.7 new homes per 1,000 existing properties built in 2023.
Florida Overview Comparison
SINGLE FAMILY
When it comes to home prices, Florida single-family prices are holding up better than condo prices, however, there’s softening there too. Among 29 major Florida single-family markets, single-family home prices are falling on a year-over-year basis in 19 metro area markets…nearly 66% of Florida’s housing markets. The biggest year-over-year FL single-family home price declines are in:
• Punta Gorda: -7.3%
• Cape Coral: -5.3%
• North Port: -5.0%
• Naples: -2.7%
• Palm Bay: -1.6%
• Sebastian: -1.5%
• Key West: -1.5%
• Panama City: -1.4%
• Crestview: -1.4%
• Deltona: -1.3%
Florida’s 3 largest metros: Miami, FL (+3.2%); Tampa, FL (-1.2%), and Orlando, FL (+0.4%).
CONDO SALES
Among the 26 major Florida condo markets, condo prices are falling on a year-over-year basis in 24 metro area markets, equal to 92% of Florida’s markets. The biggest year-over-year FL condo price declines are in:
• Punta Gorda: -11.4%
• North Port: -8.9%
• The Villages: -8.4%
• Panama City: -8.4%
• Cape Coral: -8.2%
• Tampa: -7.9%
• Sebastian: -7.7%
• Port St. Lucie: -7.3%
• Naples: -7.2%
• Deltona: -6.6%
Florida’s 3 largest metros: Miami, FL (-3.4%); Tampa, FL (-7.9%), and Orlando, FL (-4.7%).
Summary and Outlook
• Buyer's market with high inventory levels, providing buyers with more leverage.
• Price Reductions: Home prices are declining in some areas, though not across the board.
• Sellers are increasingly offering price reductions and concessions to compete for buyers, and
being more open to completing repairs that may arise during an inspection.
• Seasonal Trends: Southwest Florida's real estate market is highly seasonal; demand typically peaks in the winter months. Off-season pricing adjustments are not uncommon.
• Mid-2025 - Gradual stabilization as affordability improves
• Late 2025 – Expecting growing buyer confidence and market recovery
• Potential Rate Cuts: Anticipated Federal Reserve interest rate reductions in 2025, which could
stimulate market activity. Lower rates typically increase buyer purchasing power.
• Long-Term - Innovative development and revitalized spaces
Slowing price increases and increased inventory are helping the Florida housing market transition into a Buyer’s market, providing savvy Buyers with more opportunities.
As always, it is important to do your homework and decide your needs and comfort level when purchasing a home. As a Seller, you need to understand the market to accurately price your home. There are several moving parts to completing a real estate transaction, and Florida real estate has unique nuances. It is strongly recommended that you consult a knowledgeable real estate professional, who knows the market, can provide you with resources and guide you through and assist you with your home purchasing or selling journey.
Contact a Maxim Properties Real Estate Consultant for your Michigan and Florida real estate needs.
