Market Correction Drives Shifts Across Southwest Florida’s Real Estate Sector

Written by:

Rudi Davis

Date:

05 Nov 2025

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The residential market in Southwest Florida is undergoing what local expert Billee Silva describes as a necessary correction, following the extraordinary buying activity during the pandemic. In a recent interview, Silva shared her perspective on how this market adjustment is changing the real estate landscape and why many sellers are finding it difficult to adapt.

“We’re not crashing. We’re just correcting,” said Silva, who has 30 years of experience in the Fort Myers market and works with Jones & Co. Realty a boutique brokerage with over 200 realtors. “During the pandemic, everybody was flocking to Florida because we were open. We didn’t have a lot of inventory, and prices were just increasing exponentially. And if we had kept at that, nobody would have been able to afford the state.”

Over the past year, Southwest Florida has seen specific changes. Fort Myers has maintained a median home price of $355,000, while sales volume decreased from 4,275 to 4,084 homes sold. Cape Coral experienced a more noticeable shift, with median prices dropping from $389,700 to $365,000, and sales declining from 4,609 to 4,427 homes.

Silva pointed to several factors shaping the current market. The first is timing and market psychology. “Ian hit right after the pandemic. So we were coming off of the pandemic buying frenzy where everything was multiple offers and interest rates were low, and the real estate market nationwide was crazy.”

The second factor is that seller expectations have not caught up with market realities. “Sellers are still kind of living in 2022 when their neighbors got multiple offers within 48 hours, and they don’t understand why their home is staying on the market for maybe six months, nine months.”

A third factor involves buyer demographics. “We don’t have as many buyers in the market as we did pre Ian and during the pandemic. It’s kind of returning to the market that we had prior to the pandemic.”

Silva also explained the risks of overpricing in the current climate. “When you’re pricing it high, it benefits the competition, not your home. And then if you’re lucky enough to get an offer on an overpriced home, then you have appraisal issues and lender troubles. At the end of the day, you end up getting less proceeds than if you priced it right in the beginning.”

For those considering entering the Southwest Florida market, Silva offered straightforward advice. “It’s a great time to be a buyer, because there’s some fabulous deals out there. If you want to sell in this market, you have to have a strategic marketing plan, and you have to price accordingly.”

She emphasized the importance of realistic pricing, noting that experienced agents now turn down overpriced listings. “Once you become a seasoned realtor, you realize it’s not worth the aggravation, it’s not worth the money you end up putting into the marketing.”

Looking ahead, Silva expects the correction to continue until the market reaches more sustainable levels. “We were in desperate need of a correction, and that’s where we’re at,” she said, indicating that current conditions mark a return to normal rather than a crisis.

Silva’s analysis is informed by her extensive local experience, having witnessed multiple market cycles over her 30-year career in Fort Myers and specializing in waterfront properties, which provides her insight into both luxury and mainstream segments.