Real Estate Shifts in Estero

What the latest numbers mean to you.

 

If you’ve been watching the local housing market, you’ve noticed some changes, and the latest report from FGCU’s Regional Economic Research Institute confirms it: The real estate “winds” are shifting in Southwest Florida, and Estero is no exception.

Prices Are Dropping, Listings Are Climbing

Over the past year (from May 2024 to May 2025), single-family home prices have fallen between 10% and 19%. This marks a significant correction after years of rising values. Meanwhile, residential listings have increased by 33%, giving buyers more options than they’ve had in some time.

If you’re looking to buy, this is good news. There’s more room to negotiate, and you might finally find that perfect home within your budget. If you’re selling, however, you may need to adjust your expectations — homes are staying on the market longer, and competitive pricing is more critical than ever.

Terry Flanagan

Terry Flanagan

Vice President of Administration

New Construction Slows Down

Permits for new single-family homes have fallen 23%, and overall home sales are down 4%. This indicates a slowdown in demand and a cautious stance from builders who see the market adjusting.

What Does This Mean for You

For homeowners, this isn’t a time for panic. If you’ve owned your home for a few years, you’re still ahead. But if you bought recently at peak prices, you may want to hold off on selling unless you need to move. For buyers, you finally have some breathing room. Prices are down, there’s more inventory, and fewer bidding wars. This could be your window of opportunity, especially if interest rates stay stable.

Estero: A Broader Perspective

Across the region, the economy remains strong: tourism is booming, airport traffic is up 9%, and people are spending—taxable sales are up 7%. However, we’re also seeing a softening job market, with unemployment increasing by 1% year-over-year. So, what’s the takeaway? Estero’s real estate market is cooling but stable. It’s a time of transition—from a seller’s market to a more balanced one. Whether you’re planning to buy, sell, or stay put, it’s worth paying attention to these trends.

If you would like to dive deeper into neighborhood-level trends or future projections? Let us know. We are closely following the data and will continue to share its implications for residents in Estero.

Source: FGCU Regional Economic Research Institute, July 2025 Report.
Read the full report here: FGCU RERI Monthly Report.

  Be Informed,
Get Engaged,
and Make an Impact!

At Engage Estero, we believe in the strength of the community. As a nonpartisan, nonpolitical nonprofit, we utilize evidence-based research to provide nonbiased information about community issues, empowering you to improve your quality of life.