Florida’s housing market is experiencing a significant downturn, with price declines and sales slowdowns becoming increasingly prevalent across the state. Cape Coral, in particular, has been identified as the market facing the most severe challenges, with home prices falling by 6.5% year-over-year. This shift marks a notable departure from the rapid appreciation seen in recent years.
Florida’s Housing Market Cools Down
After years of unprecedented growth fueled by high demand and low interest rates, Florida’s real estate market is now in a cooling-off period. The state as a whole reported negative home price growth of -0.8% in April 2025, with the median sales price dipping below the national median to $390,000. This indicates a significant market adjustment, as affordability concerns, rising inventory, and escalating insurance costs weigh heavily on buyer demand.
- Statewide Trends: Florida’s median home price is now $395,000, requiring an income of approximately $87,800 to afford. Eight out of eleven major markets in Florida recorded negative annual price changes in March 2025.
- Condo Market Pain: The condo market is experiencing particular distress, with double-digit drops in sales. Hillsborough County saw a 20% decline, Miami-Dade County 21%, Southwest Florida 15.5%, and Panama City 27% in April. High mortgage and insurance rates, coupled with rising association fees due to new reserve requirements, are significant factors.
Cape Coral Leads Price Declines
Cape Coral has emerged as the
Sources:
- Is Cape Coral the Next Florida Housing Market to Crash?, Norada Real Estate Investments.
- A look into Florida real estate market, home sales slowdown, WUSF.
- 5 Popular Florida Housing Markets Are at High Risk of Price Crash, Norada Real Estate Investments.
- 2 Florida Housing Markets Flagged for a Major Price Decline Risk, Norada Real Estate Investments.
- Median home prices Northeast Florida home prices off 3.9% from a year ago, Jacksonville Daily Record.