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outhwest Florida's residential market experienced a modest decline in the first quarter of 2025, with closings falling by 8% compared to the same period last year. The barrier islands, still recovering from storm damage, saw sharper declines. Naples bucked the trend, posting a 9% increase in average sales prices, while island communities saw decreases.

    The overall regional drop remained modest at 7%, reflecting Southwest Florida's continued desirability despite environmental and economic challenges. Pricing expectations have been tricky this year, with sellers initially hoping for new highs but buyers being cautious. Properties priced realistically have seen steady interest and activity.

    Broader economic trends, including tariffs and stock market fluctuations, influenced the market. However, recent positive trends offer cautious optimism heading into the summer. The Gulfshore Boulevard condominium market faced unique challenges, including storm damage and new legislation on structural integrity and reserve funding.

    Beachfront condo sales declined, with average prices rising 6% while bayfront properties saw a 17% drop, likely due to ongoing repairs. Redevelopment is increasing, with new luxury construction pushing price points higher, particularly along Gulfshore Boulevard. Pending sales show strong activity in the $3 million and under market, suggesting a spring and summer market that may outperform expectations.

    The message for sellers remains consistent: price with the market, not against it. Buyers hoping for dramatic price drops may be disappointed, but Southwest Florida real estate continues to prove its resilience due to its enduring appeal as a desirable destination.