By: Melissa Flexsenhar
Lee County’s real estate market is entering a new phase, and it is one that increasingly favors buyers.
After several years of a strong seller’s market that peaked in 2022, conditions are beginning to shift. Year-over-year sales have actually increased from 2024 to 2025 by roughly 450 transactions, which suggests buyers are returning to the market. At the same time, prices are facing downward pressure as inventory rises and homes spend more time on the market.
For much of the past several years, affordability had nearly disappeared for buyers who live and work full time in Lee County. This recent change reflects a broader rebalancing across Southwest Florida. Rising costs, higher interest rates, and a wider selection of homes are giving buyers more negotiating power and pushing sellers to adjust expectations in a more competitive environment.
During the work-from-home boom of the COVID era, Florida experienced a major wave of migration. Demand surged, and home prices climbed rapidly across Lee County. That sharp appreciation, driven largely by out-of-state buyers and limited inventory, pushed values beyond what local fundamentals could reasonably support.
As the market begins to normalize, those elevated price levels are being tested. This is not a collapse, but it does appear to be a measured correction that is bringing prices more in line with long-term market realities.
Several factors are likely to keep pressure on prices in the near term.
One is the growing presence of what is often called shadow inventory. This includes homes that did not sell at higher price points, properties likely to return to the market at adjusted prices, and potential distressed inventory such as short sales or foreclosures as pandemic-era mortgage relief programs continue to wind down.
New construction is also adding significant supply across Southwest Florida. Entire communities continue to expand in East Lee County and along the Corkscrew Corridor. One major example is Kingston, a large-scale development expected to introduce approximately 10,000 residential units along with hotels, retail, and dining. The project is also expected to connect Corkscrew Road to State Road 82, creating another route between Estero and Lehigh Acres.
Builders are attempting to maintain pricing by offering incentives and mortgage rate buy-down programs, often using direct price reductions only as a last resort. These strategies may help support price points in the short term, but they also contribute to the larger inventory landscape buyers are navigating.
Even with these headwinds, there are still opportunities for sellers. Homes are continuing to sell, but they now require more strategic pricing and more realistic expectations than in recent years.
As Lee County’s housing market continues to evolve, it remains to be seen exactly where prices will stabilize. What does seem clear is that widespread price appreciation is unlikely in the near term.
That is not necessarily bad news. A more balanced market creates new opportunities for buyers who have been waiting on the sidelines, while still allowing well-prepared sellers to succeed in this next chapter of Southwest Florida real estate.
About the Author
Melissa Flexsenhar is a Realtor with CornerStone Coastal Properties and has been advising buyers and sellers in Southwest Florida real estate since 2002. She works with residential, investment, and waterfront properties throughout Fort Myers, Cape Coral, Estero, Bonita Springs, Naples, and surrounding communities.
Flexsenhar has built her career helping both buyers and sellers navigate changing market conditions and is known for her work with investment properties, relocation clients, and complex transactions such as short sales.Contact:
CornerStone Coastal Properties
239-839-2690
MFlexsenhar@CornerStoneCoastal.com
