The Cape Coral and Fort Myers housing markets are showing clear signs of a correction in 2025. After several years of rising home values and tight inventory, prices are now declining while the number of homes for sale is climbing. This shift marks a turning point for buyers, sellers, and investors across Southwest Florida.
With more listings available and prices trending downward, many are wondering whether this is the right time to make a move or if waiting could lead to better deals in the future. So, in this update, we will break down the latest data and trends to help you understand what’s really happening in Cape Coral and Fort Myers, and what it means for your next real estate decision.
Inventory Hits Highest Level in Over a Decade, Indicating a Turning Point
Cape Coral’s housing market is undergoing a dramatic inventory surge in 2025. According to data available on Reventure App, the number of homes listed for sale has skyrocketed to 14,580. That’s a sharp increase from 10,314 in 2024 and just 5,586 in 2023. This is the highest inventory level Cape Coral has seen in over a decade, far surpassing pre-pandemic averages.
Inventory in Cape Coral surged to 14,580 in 2025, the highest level in over a decade. Access the above graph here. [Link]
This sharp rise marks a dramatic reversal from the post-pandemic housing squeeze. Inventory has been steadily climbing since 2023, when listings began to rebound from suppressed levels. The current figure even exceeds the pre-COVID peak of 10,326 recorded in 2019.
Several factors are fueling this jump. Sellers are re-entering the market, migration has slowed, and insurance and ownership costs have risen across Florida. Meanwhile, many buyers are holding back due to affordability challenges and rising interest rates.
The result is a market that’s rapidly tilting in favor of buyers. With more homes on the market than at any point in the past decade, the Cape Coral housing market is clearly entering a new phase, one defined by increased supply and softening prices.
Cape Coral Home Prices Drop After Pandemic Peak in 2025
Home prices in Cape Coral/Fort Myers are now firmly in decline. As of April 2025, year-over-year home values are down by -7.8%, according to data available on Reventure App. This marks one of the sharpest declines in the nation and a dramatic reversal from the 38.3% surge recorded in 2022 during the peak of the post-pandemic housing boom.
Cape Coral home prices plunged by -7.8% YoY in 2025 after a record 38.3% surge in 2022. Access the above graph here. [Link]
But it’s not just the yearly data painting a bleak picture. Month-over-month trends show a continuous drop as well. In February, prices fell by -6.5%, followed by a -7.1% drop in March, and another -7.8% decline in April. These back-to-back contractions confirm that the correction is not easing; it’s intensifying.
This kind of consistent, multi-month decline hasn’t been seen since the 2008 housing crash, when Cape Coral led the nation in price collapses. Today, high home insurance costs, fewer out-of-state buyers, and a surge in available inventory are combining to drive prices down.
With demand cooling and supply ballooning, sellers are being forced to cut prices more aggressively. If these MoM declines persist, Cape Coral may be on track for one of the steepest housing corrections in the country by the end of 2025.
What’s Causing the Cape Coral Market to Decline?
One of the biggest reasons behind the Cape Coral housing slowdown is the sharp drop in domestic migration. After peaking at 3.5% in 2022, migration into the area collapsed to just 0.5% in 2024, according to data available on Reventure data. This dramatic decline means fewer out-of-state buyers are entering the market to absorb rising inventory.
At the same time, homeowners are rushing to list, many hoping to cash out before prices fall further. Investor activity is also cooling, with some choosing to sell off properties amid falling rents and tighter margins.
Domestic migration into Cape Coral fell to just 0.5% in 2024. Access the above graph here. [Link]
Another major factor is the surge in home insurance costs across Florida. With premiums rising and coverage harder to obtain, affordability has become a serious concern, even for local buyers.
All these pressures are adding up. With demand shrinking and supply surging, prices are dropping fast. Unless migration and affordability improve, Cape Coral’s housing market may continue to slide deeper into correction territory.
If you are confused about whether to buy or not to buy a property in Cape Coral, you don’t have to guess anymore. That’s because by signing up for Reventure’s premium plan at just $39 per month, you can access detailed home price forecasts for your ZIP codes of choice. Know exactly where values are heading over the next 12 months so you can buy smart, sell right, or simply stay informed with data that gives you a real edge.
