CAPE CORAL, Fla. — New data shows Southwest Florida home prices continue to cool from red-hot pandemic highs as inventory increases, insurance premiums stabilize, and fewer people move to the Sunshine State.
Watch as Fox 4's Hunter Walterman breaks down what's driving the dip:
Real estate data analytics firm Cotality published a report that finds U.S. home prices decreased as inventory reaches its highest level since 2019.
Four of the top ten coolest real estate markets in the country are in Southwest Florida, according to the report. The report compared September 2025 housing index data to September 2024.
TOP TEN COOLEST HOUSING MARKETS IN THE U.S.
- Champaign, Illinois: -7.9%
- Cape Coral, Florida: -7.1%
- Naples, Florida: -6.7%
- Punta Gorda, Florida: -6.2%
- Sebring, Florida: -5.2%
- North Port, Florida: -5.1%
- Brownsville, Florida: -4.8%
- Wichita Falls, Texas: -4.8%
- Kahului, Hawaii: -4.7%
- Sebastian, Florida: -4.6%
Florida home prices surged during the pandemic. In some areas of Southwest Florida, prices jumped as much as 70%, Cotality Chief Economist Selma Hepp said.
Hurricane Ian didn't help either. The federal National Oceanic and Atmospheric Administration said Ian caused more than $112 billion in damage, making it the costliest hurricane in Florida history. Insurance companies either increased premiums or left the state entirely.
Property taxes and homeowners association fees also increased, Hepp said, adding to the burden.
But now the market is shifting. New insurance providers entered the state. Less people are moving to Florida. New construction and a rise in foreclosures have put more houses on the market.
Cape Coral real estate broker, Adam Bartomeo, said supply is outpacing demand in Southwest Florida - especially in the Cape.
“As long as there’s enough buyers, then inventory is fine," Bartomeo said. "But there’s not. We need more buyers, or we need less inventory. One or the other.”
There are more than 6,500 homes for sale in Cape Coral, according to realtor.com. The data shows it's a buyers market.
The median Cape Coral home listed for $427,000 in September, according to realtor.com. But the median home sold for $350,000.
Bartomeo said that makes it a good time to buy.
Southwest Florida realtors told FOX 4 that Federal Reserve interest rate cuts sparked interest from buyers. Many people are still on the fence, Bartomeo said, waiting to see what happens. The Fed is scheduled to meet again in two weeks.
Hepp said Southwest Florida home prices are starting to line up with the rest of the country. She said the dip is a post-pandemic correction - not a collapse.
However, prices still remain above pre-pandemic levels.
"Affordability is a huge challenge in many areas," Hepp said. "Mortgage rates have gone up, homes prices have gone up, non-mortgage costs have gone up: insurance, property taxes. So we’re looking at a very challenging environment for potential home buyer[s]."
Bartomeo said he expects home sales to increase as snowbird season gets into full swing.
"We’re a little backwards than most of the country," Bartomeo said. "In the winter time, everybody’s dead in the country except for us. We’re booming January through March.”
