Cape Coral, FL Home Values Decline by 5.6% While Homes for Sale Rise by 37.7% in 2025

Cape Coral, FL is experiencing a decline in its housing market as it enters 2025. For instance, Home values have declined by -5.6%, dropping from $394,744 in December 2023 to $372,481 in December 2024. Meanwhile, for-sale inventory has surged by 37.7%, increasing from 8,449 to 11,639 homes for sale according to the data available on Reventure App. This trend suggests a growing supply amid cooling demand, potentially leading to further price adjustments. That means buyers have more options, while sellers face increased competition in a changing real estate landscape.

Cape Coral, FL’s Home Value Growth YoY Analysis

Cape Coral, FL’s home value growth has seen dramatic shifts over the years. Before the financial crisis of 2007-2009, the market peaked with a staggering 33.9% increase in 2005. However, the housing crash led to steep declines, with home values dropping by over 20% annually from 2007 to 2009. Between 2010 and 2014, the market showed a slow but steady recovery.  By 2015-2019, Cape Coral’s home value growth stabilized, with annual increases ranging from 3.4% to 14.6%. The economic recovery, low interest rates, and increased demand helped home values rise gradually, reaching $232,900 by 2019.

Cape Coral, FL’s Home Value Growth YoY fell to -5.6% entering 2025. Access the Home Value Growth chart of Cape Coral, FL here[Link]

During the pandemic (2020-2021), Cape Coral experienced a housing boom, with home value growth soaring to 30.3% in 2021 due to increased demand, low mortgage rates, and migration trends. This surge pushed home values to record highs, peaking at $397,000 in 2023. Post-pandemic, the market has cooled, with home value growth turning negative. By late 2024, the year-over-year (YoY) home value growth fell to -5.6%, bringing median home prices down to $372,481. Rising mortgage rates, increasing inventory, and affordability concerns have contributed to this decline.

Home Value Growth Trend in Counties of Cape Coral, FL

Lee County is the only county in Cape Coral, FL. It has experienced similar shifts in home value growth over the years. Lee County’s five-year home value growth stands at 58.1% entering 2025, showing a strong figure despite recent market cooling. In 2019, the median home value was $235,499, which has risen sharply to $372,483 in 2024. However, there are about 11,639 homes for sale in the county out of which 2,802 are experiencing price cuts due to low buyer activity.

Lee County’s five-year home value growth stands at 58.1% entering 2025. Access the home value map of the county here. [Link]

Lee County’s price cuts peaked at 23.7% in 2017 before declining to 8.7% in 2021 amid the housing boom. Post-pandemic cooling saw price reductions rise to 23% in 2023 and 20.8% in 2024. With increasing inventory and weaker demand, price cuts are likely to remain high throughout the year.

Cape Coral, FL’s Housing Market Predictions in 2025

Cape Coral, FL’s housing market is projected to continue declining in 2025, following a significant shift from the pandemic-driven boom. The Home Price Forecast score has dropped to 31 out of 100, well below the stability threshold of 45, indicating reduced buyer demand, longer days on the market, and increased price cuts. It is important to note that a score below the range of 45 to 51 on Revenure App indicates a decline.

Cape Coral, FL Home price forecast score reached 31/ 100 entering 2025. Access the home price forecast score chart here. [Link]

With rising inventory and affordability concerns, sellers will struggle to attract buyers, leading to further home price declines. Buyers will benefit from greater negotiating power, while sellers need to adjust pricing strategies to compete. Unless economic conditions improve or demand rebounds, Cape Coral’s housing market is expected to remain in a correction phase for the foreseeable future. If you want a detailed analysis of the Cape Coral, FL metro area, explore the housing market data at the ZIP-code level on Reventure App.

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