Ed DiMarco MS, MA

May 145 min read

Southwest Florida Real Estate Trends to Watch in 2024

Updated: Jul 6

The Southwest Florida real estate market is dynamic, with various factors influencing its trajectory. As we move through 2024, several key trends emerge that buyers, sellers, and investors should watch. This forward-looking analysis will delve into these trends, offering insights into how they might shape the market in cities such as Fort Myers, Cape Coral, Naples, Bonita Springs, and Marco Island.

Here are 10 Trends in Southwest Florida Real Estate to Watch in 2024:

1. Rising Inventory Levels

One of the most significant trends across Southwest Florida is the rising inventory levels. Fort Myers, for example, has seen a staggering 115.59% increase in inventory over the past year. Bonita Springs follows closely with a 114.71% rise, and Naples with a 102.55% increase. This surge indicates that more homes are entering the market, which could lead to more choices for buyers and potentially lower prices as competition among sellers intensifies.

2. Shift Towards Buyer’s Markets

With inventory levels on the rise, several cities are showing signs of shifting toward buyer-friendly markets. Fort Myers and Bonita Springs are prime examples of substantial inventory increases. This trend means buyers may have more negotiating power, leading to better deals and favorable terms. Sellers in these areas might need to adjust their pricing strategies to attract buyers in a more competitive environment.

3. Median Sold Price Variations

The median sold prices vary significantly across Southwest Florida, reflecting the diverse nature of its real estate markets. Marco Island leads with a high median sold price of $1,175,000, indicative of its premium market status. Conversely, Fort Myers has the most affordable median sold price at $372,000. These variations highlight the importance of location and market segment when making buying or investment decisions.

4. Quick Sales in Competitive Markets

Despite rising inventories, homes in several cities are still selling quickly. The median days on the market in Naples is 45, while in Bonita Springs, it’s even shorter at 42 days. These quick sales are driven by competitive pricing, desirable locations, and strong demand. Buyers need to be prepared to act swiftly in these fast-moving markets.

5. List to Sold Price Percentages Remain High

List-to-sold price percentages remain robust across Southwest Florida, indicating that homes sell close to their asking prices. Cape Coral leads with 96.8%, followed by Naples and Bonita Springs at 95.8%. This trend reflects strong buyer demand and sellers' accurate pricing strategies. It also suggests buyers are willing to meet sellers' expectations to secure properties in desirable locations.

6. Emerging Luxury Market in Marco Island

Marco Island stands out as a luxury market, with its high median sold price and balanced Months Supply of Inventory (MSI) at 8.42. The slight increase in inventory (+26.62%) suggests more high-end properties are becoming available, offering opportunities for luxury buyers. This trend solidifies Marco Island’s reputation as a premium real estate destination.

7. Affordability in Fort Myers and Cape Coral

Fort Myers and Cape Coral present attractive options for buyers seeking affordability. With median sold prices of $372,000 and $399,999, respectively, these markets provide more budget-friendly alternatives without sacrificing quality. Rising inventory levels also mean buyers may find more favorable deals in these areas.

8. Balanced Markets in Naples and Bonita Springs

Naples and Bonita Springs maintain a balanced MSI of 7.15, reflecting a healthy equilibrium between supply and demand. This balance ensures stable market conditions, making these cities reliable choices for both buyers and sellers. The stable list of sold price percentages further reinforces the market’s equilibrium.

9. Increasing Buyer Competition in Popular Areas

Despite rising inventories, certain popular areas in these cities continue seeing intense buyer competition. Desirable neighborhoods with high demand still experience quick sales and competitive bidding, emphasizing the importance of location within these broader market trends.

10. Potential Impact of Economic Factors

Economic factors such as interest rates, employment levels, and economic growth will continue to impact the real estate market in Southwest Florida. Buyers and investors should stay informed about these broader economic trends as they can influence purchasing power and market dynamics.

Rising inventories, shifting market dynamics, and diverse price points shape the Southwest Florida real estate market in 2024. Whether you are a buyer seeking affordability in Fort Myers or Cape Coral, a luxury investor eyeing Marco Island, or looking for balanced market conditions in Naples and Bonita Springs, understanding these key trends will help you navigate the market effectively. Staying informed and working with knowledgeable real estate professionals can ensure you make the most of the opportunities presented in this dynamic region.

Southwest Florida Real Estate Trends in 2024: FAQ

1. What is one of the significant trends in the Southwest Florida real estate market for 2024?

One significant trend is the rising inventory levels across several cities, such as Fort Myers, Bonita Springs, and Naples, which have substantially increased over the past year.

2. How does the increase in inventory affect the market dynamics?

The increase in inventory can lead to more choices for buyers and potentially lower prices as competition among sellers intensifies, shifting some markets towards a buyer-friendly environment.

3. Which city has the highest median sold price in Southwest Florida?

Marco Island has the highest median sold price at $1,175,000, indicating its status as a premium market.

4. What is the median sold price in Fort Myers?

Fort Myers's median sold price is $372,000, making it the most affordable market in Southwest Florida.

5. How quickly are homes selling in Naples?

Homes in Naples are selling relatively quickly, with a median of 45 days on the market.

6. What is the significance of the List to Sold Price Percentage in these markets?

The List to Sold Price Percentage indicates how close homes are selling to their asking prices, reflecting strong buyer demand and accurate pricing strategies by sellers.

7. Which city has the highest List to Sold Price Percentage?

Cape Coral has the highest List to Sold Price Percentage at 96.8%, indicating homes are selling very close to their listing prices.

8. How does the market in Marco Island cater to luxury buyers?

Marco Island’s high median sold price and balanced MSI suggest a market with premium properties that attract luxury buyers.

9. What is the Months Supply of Inventory (MSI) in Fort Myers?

The MSI in Fort Myers is 6.36, indicating a balanced market with a significant increase in inventory over the past year.

10. How do rising inventory levels impact buyers in Southwest Florida?

Rising inventory levels offer buyers more options and potentially better negotiating power, especially in cities like Fort Myers and Bonita Springs.

11. What trend is emerging in Bonita Springs regarding inventory?

Bonita Springs has seen a significant increase in inventory by 114.71%, indicating more options for buyers and a potential shift toward a buyer-friendly market.

12. How does the market stability in Naples benefit buyers and sellers?

Market stability in Naples, indicated by a balanced MSI and stable median sold prices, provides a predictable environment for buyers and sellers to make informed decisions.

13. Why should investors consider the 12-month change in inventory?

The 12-month change in inventory can signal shifts in market dynamics, such as increased supply or decreased demand, impacting pricing and investment opportunities.

14. What is the median sold price in Cape Coral?

The median sold price in Cape Coral is $399,999, making it one of the more affordable markets in Southwest Florida.

15. How do economic factors influence the real estate market in Southwest Florida?

Economic factors such as interest rates, employment levels, and economic growth impact purchasing power and market dynamics, influencing buyer behavior and market trends.