Is the Southwest Florida Real Estate Market Finally Stabilizing? Here’s What the Data Says

The Big Question on Everyone’s Mind

After two years of wild swings — from record price growth to sharp corrections — many buyers and sellers in Cape Coral, Fort Myers, and across Southwest Florida are asking the same thing:
👉 Has the market finally stabilized?

The short answer is yes — but let’s break down the numbers and what they mean for you.

Home Prices: Leveling Out After the Correction

According to the latest Zillow and Redfin data, the average home value in the Cape Coral–Fort Myers metro area sits around $343,000, roughly 10% lower than the 2022 peak.

That might sound negative, but in reality, it’s healthy. Prices have stopped sliding and are now holding steady month-over-month, a clear indicator that the market has found balance.

📊 What this means:

• Sellers can once again price with confidence instead of chasing the market downward.

• Buyers finally have breathing room to negotiate — without facing the bidding wars of 2021–2022.

• The odds of another big price drop are slim, as inventory and demand are now evenly matched.

Inventory and Demand: Returning to Normal

During the boom, inventory in Cape Coral dropped below 1 month’s supply — creating chaos for buyers.
Today, it’s hovering around 4 to 5 months, right in line with a balanced market.

That means:
✅ Buyers have options again.
✅ Sellers aren’t desperate.
✅ The market isn’t tilted — it’s finally normal.

And as population growth continues — with new residents moving from states like Illinois, New York, and California — demand for Southwest Florida housing isn’t going away anytime soon.

Mortgage Rates: The X-Factor

Yes, interest rates are higher than we’ve been used to — hovering in the 6.8–7.2% range for a 30-year fixed loan — but they’re no longer climbing at the same pace.

When the Fed eventually begins rate cuts, history tells us two things happen:
1️⃣ Buyer activity increases.
2️⃣ Prices rise again.

That’s why 2025 is a rare window of opportunity — you’re buying during the calm, before the next wave of competition hits.

Local Insight: Cape Coral Leads the Trend

The Cape Coral–Fort Myers market has always been a leading indicator for Florida housing.
It’s one of the first regions to decline in a correction — and the first to recover when confidence returns.

That’s exactly what we’re seeing now. Pending sales are increasing, new listings are being absorbed faster, and price reductions are slowing down.

This combination points to stability — not another drop.

Bottom Line

The Southwest Florida housing market is stabilizing — and that’s good news for everyone.

Buyers are regaining confidence, sellers are seeing consistent offers again, and the frenzy has cooled into something far more sustainable.

If you’ve been waiting for the market to “bottom out,” it probably already has.
Now is the time to position yourself ahead of the next cycle — because once rates ease, this market moves fast.

🔗 Ready to Explore Your Options?

Whether you’re buying your first home or your next investment property, I can help you navigate today’s market and identify where the best opportunities still exist in Cape Coral, Fort Myers, and the surrounding Southwest Florida areas.