Florida Condo Market Is Gaining Momentum: What Buyers and Sellers Need to Know in Southwest Florida

The Florida condominium market is showing renewed strength, and we're beginning to see encouraging signs here in Southwest Florida as well.

According to the latest Florida Realtors® Second Quarter 2026 data, statewide townhouse and condominium sales increased 9% year over year, with activity growing at both ends of the market. Affordable condos priced under $200,000 saw sales jump 18.4%, while luxury condos priced at $1 million and above surged an impressive 29.5%.

The trend tells an interesting story. First-time buyers, retirees, investors, and luxury buyers are all returning to the market—but for very different reasons.

Inventory Is Beginning to Tighten

One of the biggest changes I've noticed across Southwest Florida is that inventory is finally starting to decline.

Earlier this year, buyers had an abundance of choices as new listings continued to outpace demand. By June, however, fewer properties were hitting the market while buyer activity remained stronger than it was a year ago. As a result, available inventory has started to shrink.

This doesn't mean we're back to a seller's market overnight. Buyers are still taking their time and negotiating carefully, especially when evaluating insurance costs, flood zones, HOA fees, reserve funding, special assessments, and the overall financial health of condominium associations.

Southwest Florida Housing Market Update

Single-Family Homes

The single-family market continues to demonstrate stability.

• Median sale price: $369,000 (up 1.1% year over year)
• Pending sales: up 23.6%
• Active inventory: down 21.2%
• Months of supply: 5 months, down from 6.4 months last year

Inventory has dropped by more than 700 homes since April, signaling that buyers are steadily absorbing available listings.

Southwest Florida Condo Market

The condominium market is also becoming more active.

• Median sale price: $239,000 (down 2.4%)
• Closed sales: up nearly 30%
• Pending sales: up almost 36%
• Active inventory continues to decline
• Months of supply decreased from 11.4 months to 7 months

While sales activity is increasing, pricing remains extremely important. On average, condos sold for 88.1% of their original list price, compared to 93.1% for single-family homes.

Today's buyers are doing their homework. Beyond the unit itself, they're evaluating:

• HOA and condominium fees
• Insurance costs
• Reserve funding
• Special assessments
• Building maintenance
• Potential future expenses

Well-maintained communities with strong financials continue to stand out.

What This Means for Buyers

If you've been waiting for the "perfect" market, now may be an excellent time to explore your options.

There is still healthy inventory available, giving buyers room to compare communities and negotiate favorable terms. However, as inventory continues to decline, today's selection may not last indefinitely.

What This Means for Sellers

The market is becoming more balanced.

Homes and condos that are priced correctly, well-presented, and professionally marketed continue to attract buyers. Overpricing, however, can still lead to extended market time and price reductions.

As inventory continues to tighten, sellers who position their homes competitively are likely to benefit from improving market conditions.

Looking Ahead

Florida's condominium market is showing encouraging signs of recovery, and Southwest Florida is following that trend. Sales activity is increasing, inventory is shrinking, and buyer confidence continues to improve.

Whether you're considering buying, selling, or simply curious about your home's current value, understanding today's market conditions can help you make informed decisions.

If you'd like a personalized market analysis for your neighborhood or community, I'd be happy to help.

Shannon Thinnes, eXp Realty 🍊
941-232-6182