Southwest Florida’s housing market recorded its first year-over-year gains in closed home sales since February 2022, with Collier and Lee counties posting a 2.7% increase as the region shows signs of stabilization after years of pandemic-era volatility and storm recovery. For the first time since February 2022, every segment recorded year-over-year gains in closed home sales across nine regional market segments and nearly 90 community-level markets. The data compares the 12 months ending January 31 with the preceding 12-month period.
Several individual markets experienced even stronger performance, with Pine Island and Matlacha leading gains at 11.4%, followed by Sanibel and Captiva at 10.5%. Bonita-Estero recorded a 7.5% increase while Fort Myers Beach saw gains of 5.4%. These increases reflect a market gradually regaining its footing after a period of unusually slow activity that followed the intense housing boom during the pandemic.
Closed home sales across Southwest Florida rose 23% in February compared with the same month last year, with 2,008 transactions reported, making it the busiest February since the surge in pandemic-driven buying. The region experienced roughly two years of the slowest home sales seen in decades following the unprecedented demand and rapid price increases of the pandemic era. That cooling period allowed the market to recalibrate after the extraordinary conditions.
New listings declined 14% year over year, continuing a pattern of reduced listing activity that first emerged in the second quarter of last year. With sales remaining strong and fewer homes coming to market, overall inventory levels remained relatively stable, increasing just 1% from January, far below the historical February average increase of approximately 6%. As of February 28, months of supply stood at a level widely considered balanced for the local housing market and 19% lower than the same time last year.
Despite the market improvements, affordable housing remains a significant challenge across the region. Affordable housing is a national problem made even more difficult in places like Naples, Sanibel, Marco Island and Fort Myers, where land prices, construction costs and lengthy permitting processes make low rents and reasonably priced homes unprofitable and unattractive to developers. Southwest Florida housing prices remain some of the highest priced in the country, with most new construction falling under the luxury label.
The current market conditions present meaningful opportunities for homeowners considering selling, as buyer demand remains strong evidenced by the sharp rise in closed sales. Meanwhile, the decline in new listings means sellers may encounter less competition from other properties entering the market. The market has transitioned from the extraordinary conditions of the pandemic housing boom, through a necessary cooling period, and now toward a more stable environment defined by steady buyer demand and a healthier balance between supply and inventory.
The stabilization comes after the region weathered multiple challenges including rising interest rates and storm recovery efforts that disrupted normal market activity. The Southwest Florida real estate market is moving toward equilibrium, with trends suggesting a return to more predictable patterns after years of volatility. Market analysts will continue monitoring monthly sales data and inventory levels to track whether the positive momentum continues through the spring selling season.