Cape Coral, FL Housing Market Report

The Cape Coral housing market is currently experiencing a significant correction, firmly positioning the area as a buyer's market as of December 2025. With a median home value of $334,686, the market has seen a substantial 10.19% year-over-year decline. This downward pressure is further evidenced by a sale-to-list ratio of 0.96, indicating that buyers are successfully negotiating prices roughly 4% below the original asking price. The cooling trend is also reflected in the rental sector, where median rents have dipped nearly 5% to $1,871.

Price trends over the last six months show a consistent month-over-month slide, dropping from $346,167 in July to the current December low. This steady depreciation is largely driven by an increase in the time properties spend on the market, which has risen to 116 days—over two weeks longer than the previous year. While active inventory has actually decreased by 6.6% to 12,220 units, the sluggish pace of sales suggests that demand is not yet meeting the available supply at current interest rates and insurance costs, which remain pivotal factors in Southwest Florida.

Looking ahead, the outlook for Cape Coral suggests continued stabilization rather than a rapid rebound. For buyers, the current environment offers the best leverage seen in years, with more time to conduct inspections and negotiate concessions. Sellers, however, must be prepared for a longer waiting period and should price their homes aggressively to compete with the existing inventory. As the market works through this correction, the Cape Coral-Fort Myers metro area remains a critical region to watch for signs of a price floor as we head into 2026.