The Cape Coral, Florida real estate market has cooled considerably over the past two years. As of Fall 2025, it’s one of America’s weakest markets in terms of home prices.
In this report, we take an in-depth look at current housing market conditions in the Cape Coral-Fort Myers metro area, with a forecast stretching into 2026.
The 5 most important points covered in this guide:
- Price declines: Home prices in the Cape Coral area dropped by about 10% over the past year and could fall further before stabilizing.
- Cooling factors: The market cooled due to overinflated pandemic gains, high mortgage rates, rising inventory, and soaring insurance costs.
- Slower pace: Homes are taking much longer to sell compared to the pandemic years, showing a clear slowdown in market activity.
- Supply surplus: Buyers now have more options and leverage, with inventory levels above six months—a clear sign of a buyer’s market.
- Future outlook: Current trends are expected to continue into 2026, with prices likely to decline further before leveling off later in the year.
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Cape Coral Home Prices Still Falling in 2025
Home prices in the Cape Coral area have declined over the past year and they probably have further to fall before hitting bottom.
According to Zillow, the median home value for the Cape Coral-Fort Myers metro area declined by 10% over the past year (as of Oct. 2025).
Prices are declining for a number of reasons including:
- Overinflated pandemic-era gains. Home values in Cape Coral soared by more than 60% from 2020 to 2022, creating an unsustainable price level that’s now correcting.
- Reduced buyer demand. Higher mortgage rates have pushed many would-be buyers to the sidelines, shrinking the local pool of active shoppers.
- Rising inventory. The number of homes for sale has climbed sharply, giving buyers more leverage and forcing sellers to lower prices.
- Outmigration and investor pullback. Many pandemic-era remote workers and investors who flocked to Cape Coral have since left or sold off properties.
- Insurance costs and climate risks. Florida’s rising homeowners insurance premiums and hurricane exposure continue to discourage new buyers.
Falling prices have also made buyers more cautious. Cape Coral-area home sales have declined over the past year, as many buyers take a “wait and see” approach.
A Slower Housing Market Than Previous Years
For the reasons listed above, the Cape Coral-Fort Myers real estate market has also slowed down considerably over the past couple of years.
The following chart shows the median days on market (DOM) for the Cape Coral metro area. It shows how long a typical home stays on the market, before going under contract.
Two things will jump out at you when looking at this chart:
- Speeding up: First, you can see how the market accelerated during the pandemic years 2021 to 2022, with the median days on market dropping.
- Slowing down: You can also see how the market has slowed considerably in recent years, with the median DOM line climbing steadily.
Takeaway: The Cape Coral-Fort Myers real estate market is moving at a snail’s pace in fall 2025, when it comes to the typical selling time.
Home Buyers Have More Options
Aside from price weakness, this housing market offers a lot of benefits for home buyers.
We already talked about the slower pace of sales, which gives buyers more time to consider their options. But that’s not the only benefit.
Cape Coral home buyers also have a lot more properties to choose from these days, thanks to steady supply growth over the past two years.
According to MLS data and other sources, the Cape Coral-Fort Myers Metropolitan area currently has more than a six month supply of homes for sale. That’s well above the national average of 3.3 months and also indicates a buyer’s market.
With prices declining and inventory levels growing, Cape Coral home buyers now have a better chance of finding a suitable property within their budgets.
Real Estate Forecast for 2026
With the real estate market cooling and home prices falling, a lot of people are now wondering what the next year will bring.
What will the Cape Coral real estate market be like in 2026? Will next year be a good time to buy a home in this area?
While no one can predict future conditions with 100% accuracy, it seems likely that these buyer-market conditions will continue well into 2026.
It would take a major stimulus to heat up the Cape Coral real estate market, like a sudden and significant drop in mortgage rates. And that doesn’t appear to be on the horizon.
The Cape Coral real estate market is currently experiencing a significant imbalance between supply and demand. There are plenty of homes listed for sale but not enough buyers to absorb them all. This puts downward pressure on prices and gives buyers more negotiating leverage.
We expect these trends to continue as we move into 2026.
As far as home prices go, they will probably continue dropping for a while longer before hitting a bottom and rebounding. When that bottom comes is hard to predict.
Zillow recently predicted that the median home price for the Cape Coral-Fort Myers metro area would drop by about 1% over the next year. That’s a much slower rate of depreciation compared to the 10% decline over the past 12 months.
This indicates that they expect the current price decline to ease over the next year. So perhaps during the latter half of 2026, we will see prices level off and remain flat for a while.
Beyond that it’s difficult to predict. But eventually, demand will return and prices will begin to rise again, but at a much slower pace than in previous years.
Bottom line: The Cape Coral Metro area is currently a buyer’s real estate market and will probably continue to lean that way for a while longer.
Advice for Home Buyers and Sellers in 2026
We end this report with some timely advice for home buyers and sellers in the Cape Coral metro area. Here’s what it takes to succeed in the current real estate market.
Tips for Home Buyers
- Take your time. With inventory high and prices softening, there’s no need to rush into a decision. The fear of missing out (FOMO) is gone. View multiple properties and wait for the one that truly fits your needs and budget.
- Negotiate accordingly. Don’t be afraid to submit an offer below the asking price. Most sellers in this market expect to negotiate. Consider asking for seller concessions to help cover your closing costs or to “buy down” your mortgage rate.
- Get insurance quotes upfront. Don’t wait until you are under contract. The cost and availability of homeowners and flood insurance can make or break your budget. Get quotes for any property you are seriously considering before making an offer.
- Target “stale” listings. Homes that have been on the market for 60, 90, or more days often belong to more motivated sellers. These are the properties where you’ll probably find the most pricing flexibility.
Tips for Home Sellers
- Price realistically from day one. This is the single most important factor. Overpricing your home will cause it to sit on the market for longer, possibly for months. Price your home based on the most recent comparable sales, not what your neighbor is listing their home for.
- Address insurance hurdles. Have key information available for potential buyers. Provide the age of your roof and documentation for any hurricane mitigation features (impact windows, hurricane shutters, etc.). A clean wind mitigation report can be a powerful marketing tool.
- Be willing to negotiate. Understand that you’ll probably have to be flexible on price, closing costs, or repair requests to get a deal done. Offering to cover part of closing costs or include a home warranty can help seal the deal.
- Invest in your marketing. In a sluggish real estate market, your online listing is critical. Use professional photography if possible. Consider video tours or drone shots, especially for waterfront properties, to make your home stand out from the competition.
Sign Up for Florida Housing Weekly
The Cape Coral real estate market has changed dramatically over the past few years and will continue to evolve in 2026. Buyers, sellers, and agents need to monitor these changes.
And there’s a newsletter for that. It’s called Florida Housing Weekly.
Florida Housing Weekly was created by Brandon Cornett, a real estate market analyst with more than 20 years of research and reporting experience.
As a subscriber, you will receive weekly news, updates, and insights pertaining to the Florida real estate market and major metros like Cape Coral-Fort Myers.
Disclaimer: This report contains forecasts and predictions based on current market trends. These should be viewed as an educated guess rather than a guarantee. The publisher makes no claims about future real estate conditions.