Southwest Florida Real Estate Market in Price Correction Mode: What It Means for Buyers & Sellers
The Southwest Florida real estate market — especially in areas like Cape Coral and North Port — is still experiencing a home price correction, according to a new report from ResiClub Analytics.
While much of the U.S. housing market has stabilized or seen renewed growth, the Southwest Florida housing market stands out as one of the few regions where home prices are still trending downward. For buyers, sellers, and investors, these changes present both opportunities and challenges.
What’s Driving the Price Correction in the Southwest Florida Real Estate Market?
Post-Boom Adjustment
During the pandemic, the Southwest Florida housing market became a hotspot for migration and investment, with prices jumping over 60% from March 2020 to May 2022. That kind of growth wasn’t sustainable forever — and a price reset was inevitable.
Rising Inventory
Markets like Cape Coral and North Port real estate have seen a significant rebound in inventory. More listings mean less urgency and more negotiating room for buyers, contributing to the ongoing price correction.
Demand Normalization
With remote work trends leveling off and mortgage rates still high, buyer demand — particularly from out-of-state buyers — has cooled across the Southwest Florida real estate market. This drop in demand is further easing upward pressure on prices.
By the Numbers
According to ResiClub’s report:
- Cape Coral home prices are down 11.6% from their 2022 peak.
- North Port has seen a 10.4% decline from its high.
Both cities rank among the top 10 markets with the largest price corrections nationwide.
What This Market Shift Means for You
Buyers:
This could be your opportunity to buy in high-demand locations like Cape Coral or North Port at lower prices. With longer days on market, more listings, and falling prices, the Southwest Florida housing market now favors strategic buyers.
Sellers:
Set realistic expectations. Pricing your property based on past highs won’t work in today’s climate. To compete, you’ll need strong marketing, accurate pricing, and professional staging to attract qualified buyers.
Investors:
The current Southwest Florida real estate market presents a window to monitor or enter. Historically, price corrections are followed by rebounds — and long-term fundamentals like climate, lifestyle, and tax advantages still make this area attractive.
Want to explore market trends across Florida?
- Dive into our June 2025 Real Estate Market Report for Sarasota and Manatee Counties for more regional insights.
- Read ResiClub’s full article on states nearing pre-pandemic inventory levels for national context on housing trends.
