SWFL real estate prices ease, experts advise cautious optimism

Home prices in Southwest Florida are starting to come down, but experts say it doesn’t mean the real estate bubble is about to burst.

Jillian Young, president of Premier Plus Realty, told WINK News she doesn’t like the term “bubble.”

“When we say bubble, we think 2007 and 2008, the great financial crisis, well, the mortgage situation and the inventory situation and the home price situation is not what it was,” explained Young. “Less than 2% of mortgage holders in Florida actually are at risk of foreclosure.”

With the current high interest rates and recent hurricanes, instead what we’re seeing is buyers need a little bit of a push.

“We just went on this roller coaster of 75% to 80% price increases,” said Young. “And now buyers are going, ‘Wait a minute. Wait a minute. Affordability is an issue because my income is not increasing at the rate that home prices, property taxes and interest rates are.'”

Young explained that the pandemic significantly changed the real estate market dynamics, referring to those years as the “unicorn years.”

“We sold almost 8,000 homes in the Naples area in 2024,” explained Young. “Where Naples is comfortable historically is 8,000 to 10,000 homes per year. In the pandemic years, we saw 15,000, 12,000 homes for sale.”

According to Young, sellers are currently decreasing prices by around 1% to 5%, particularly at the end of January going into February, which she describes as signs of a corrective market rather than a bursting bubble. It’s a way of motivating buyers.

“We’re in a corrective market where we’re not in a seller’s market anymore,” said Young. “We’re not totally in a buyers market right now. So we’re at this stall point where most Florida homeowners have an interest rate at or below 5% right now.”

George Astrauckus, a Naples resident who recently bought and sold a home in the area, agrees with Young’s assessment.

“From my perspective, I don’t think it’s popped at all. I think it’s about the same as it was when we were looking a year ago,” Astrauckus said.

Astrauckus advises those worried about buying or selling in the current market to get help from a knowledgeable realtor.

“He sold us this (new) house. He sold us the veranda originally that we lived in,” said Astrauckus. “He listed that. He sold that. You know, not everybody gets what they want, so they didn’t quite get what they wanted. I didn’t quite get what I wanted when I sold it, but we put a package together, and Michael (our realtor) handled it all, and it was easy-peasy.”

And Young echoes his advice.

“I would say working with a local expert that’s in-the-know with the neighborhoods, the streets, the little micro markets within southwest Florida, and really telling the story of what’s going on there is what’s going to be key,” said Young.

For those considering purchasing a home, Young recommends looking at East Naples, where prices are decreasing slightly, and homes are expected to appreciate over time.

“The East Naples area is experiencing a transformation of development,” explained Young. “A lot of infrastructure is being put in there by the county, and it’s just a beautiful place to live.”

For more information on the real estate market in Southwest Florida, stay tuned to WINK News.