04/25/2026
Brian's brain is amazing. So lucky to work with this broker.
Check out our latest blog post from one of our brokers:
https://www.paradiseexclusive.com/blog/105/What's+Next+Market+Update
Well, it's been a challenging two years for buyers and sellers, but the stars are realigning and it's becoming a much more balanced market.
Let's take a quick look back and revisit what the challenges were. Our first big adjustment was COVID. Although this did spike the market and cause a feeding frenzy, the falsely inflated prices really put a damper on the market after the pandemic settled down and disappeared. Buyers paid overly inflated prices, which causes selling challenges today. Those who didn't sell during that peak have had a hard time adjusting their minds to where the prices have settled, because they still remember that peak they missed.
The pandemic also drove up supply and labor costs, which caused many homeowners and homeowner associations to be short on funds they had been saving or accruing for replacement items, like roofs, A/C, exterior maintenance, plumbing needs, electrical, etc. Those costs have not settled much and are still keeping construction costs up.
Just as we thought things would level out, we were hit with a few historic storms, which caused a lot of delays in the market. Tourism slowed in Southwest Florida, which is a big part of our seasonal income and future homebuyer activity.
Due to the large number of claims from storms, and some fraudulent claims that led to excessive litigation, the insurance market in Florida lost a ton of carriers and rates spiked.
And since that wasn't enough, the Feds jacked up the interest rates to get control of inflation, which was an added stress on the housing market.
So all of these factors, as well as a variation of other factors, caused a two-year market correction and had a major focus on insurance reform at a state level.
Enough with the doom and gloom. Where are we today? The market has corrected itself significantly from a pricing factor. Interest rates settled some and have become the norm for consumers. Insurance reform has brought back more carriers to Florida and rates have come down significantly. For the most part, our communities are back up and running, with accessibility to the amenities that drive people to the area for vacation or for permanent residence.
So today we sit in a much more comfortable spot. Buyers are back out in full force and enjoying the options they have. They like not having to compete against a large buyer pool, which gives them time to relax and find the perfect fit. Builders have excess inventory, so incentives are plentiful. As for sellers, most have come to terms with the current reality. If they need to sell, they have adjusted appropriately and are willing to work with buyers to ensure a smooth transaction. If they don't need to sell, they have been coming off the market to wait until the timing is right for them. That has caused inventory levels to come down to be more balanced, but still slightly leaning toward a buyer's market advantage.
The moral of the story for buyers is: get with your lender, get with your real estate agent, and discuss what things look like for you today. Is this your time to buy? If so, saddle up and let's go make it happen. If it's not, then what does the game plan look like for you? Don't force yourself down an uncomfortable road. Understand all aspects, seek honest professional advice, and do what's right for you.
As for sellers, you need to decide what your urgency and goals are. Our two favorite words are price or patience. If you don't have patience to allow your real estate agent to find the right buyer, then you need to add some incentives to drive up buyer activity. Lower your price, offer a rate buydown or closing cost assistance, repair/replace any major items that might need it. Get your house in the best shape of its life. Be ready and available for all showing requests. Allow some open houses, if you're able to.
The next two months have historically been busy, pre-pandemic, and it's feeling like we are back to that same pattern. Let's work together to get your home sold and find the perfect home for you. We are here to answer any and all questions you might have. Looking forward to an amazing summer here in Southwest Florida!
