Cape Coral’s housing market is currently undergoing a significant correction, not a crash, according to local real estate experts. Recent reports, particularly from The Wall Street Journal, have painted a grim picture, but realtors emphasize that the market is stabilizing after an unsustainable pandemic-era boom, moving towards a more balanced environment for buyers and sellers.
Cape Coral’s Housing Market: Correction, Not Collapse
Local real estate agents and associations are pushing back against sensational headlines, asserting that Cape Coral’s housing market is experiencing a natural correction rather than a collapse. While The Wall Street Journal highlighted falling prices and increased inventory, industry professionals argue that this is a necessary adjustment from the unprecedented growth seen during the COVID-19 pandemic.
Understanding the Market Dynamics
- Pandemic-Era Surge: From early 2020 to mid-2022, Cape Coral-Fort Myers metro area saw a nearly 75% increase in median home sale prices, peaking at $441,000 in April 2022. This rapid appreciation was fueled by remote work, low mortgage rates, and a migration wave.
- Expected Pullback: Experts like Yisbel Bera of eXp Realty-affiliated Kingdom Group and Christine Blasses of Century 21 Selling Paradise, state that a market adjustment was inevitable given the unsustainable price levels.
- Realistic Baseline: Realtors suggest using 2018 or 2019 as a more realistic baseline for market growth, which typically saw annual increases of 5% to 8%, indicating a normal market.
Inventory and Pricing Trends
| Metric | October 2021 | June 2025 |
|---|---|---|
| Median Home Sale Price | $369,000 | $371,850 |
| Homes for Sale | 773 | 3,046 |
| Months Supply of Inventory | 1.3 | 7.3 |
| Sale-to-List Price Ratio | 100% | 97.7% |
- Inventory Increase: The significant rise in available homes indicates a shift towards a buyer’s market. A balanced market typically has 4 to 6 months of inventory; Cape Coral’s 7.3 months suggests more buyer options but not distress.
- Stable Median Prices: Despite increased inventory, the median sale price has remained relatively stable, even showing a slight increase from October 2021 to June 2025.
Dispelling 2008 Comparisons
Realtors firmly reject comparisons to the 2008 housing market crash. They highlight fundamental differences:
- Tighter Regulations: Post-2008, numerous regulations were implemented to prevent the risky lending practices that contributed to the crisis.
- Reduced Speculative Buying: The current market lacks the widespread speculative buying seen in 2008.
- Minimal Foreclosures: Foreclosure activity in Cape Coral remains minimal, unlike the subprime mortgage crisis.
Addressing Affordability and Natural Disaster Concerns
Rising insurance premiums and hurricane risks are legitimate challenges in coastal Florida. However, new construction built to updated codes and the entry of new insurers are helping to mitigate high insurance costs. While natural disasters are a risk, buyers are generally aware and accept these conditions for the benefits of living in a waterfront community.
Sources
- Agents say Cape Coral’s housing market is correcting, not crashing, HousingWire.
- Cape Coral Realtors push back on WSJ’s housing market label, Gulfshore Business.
- Royal Palm Coast Realtor Association responds to Wall Street Journal’s portrayal of Cape Coral Housing
market – FORT MYERS, FORT MYERS – Beach Observer and Beach Bulletin.