During the pandemic housing boom, coastal Southwest Florida experienced extraordinary price growth. From early 2020 to mid‑2022, home values in Cape Coral and Fort Myers jumped about 76%, Punta Gorda surged 73%, and Fort Myers Beach climbed nearly 70%. Since the July 2022 peak, the market has corrected. Cape Coral and Fort Myers’ values are down 13.7%, Punta Gorda has dropped 18.6%, and Fort Myers Beach has declined about 15%. This correction reflects the broader cooling of Florida’s housing market after unprecedented pandemic‑era gains.
This shift reflects a combination of factors including rising mortgage rates, higher insurance premiums, and a cooling of the frenzied demand that defined the post-pandemic market. Yet, while the numbers sound dramatic, it’s important to remember that prices remain well above pre-pandemic levels, and the region continues to attract buyers drawn to its lifestyle and waterfront opportunities.
For some buyers, this correction may represent a window of opportunity. Homes that were out of reach just a few years ago may now be more attainable. Homes listed today are sitting on market roughly three times longer (almost 90 days) than homes in mid-2022. This too can give buyers greater leverage in negotiations. Beyond price, savvy buyers must weigh long-term considerations such as flood zone designations and related insurance costs, and the potential for appreciation as the area continues to rebuild and grow.
For sellers, the numbers tell the story. Homes priced more than 10% above market value in Florida average 30–60 additional days on market compared to accurately priced listings. According to Redfin and Zillow research, overpriced homes also see 25-35% fewer showings in the first two weeks; the critical window when buyer interest is highest. National Association of Realtors data shows that once a listing sits beyond 60 days, the eventual sale price is typically 5-7% below original list, meaning overpricing not only delays the sale but often reduces net proceeds. In today’s market, realistic pricing is the difference between a fast, competitive sale and a stagnant listing that erodes buyer confidence.
Presentation is equally critical; professional staging, photography, and a strong online presence can make the difference in attracting serious buyers. Sellers may also consider offering concessions, such as closing cost credits or mortgage rate buydowns, to stand out in a more competitive environment.
Ultimately, this correction is less a cause for alarm than a reminder of the cyclical nature of real estate. Buyers and sellers who adapt to current conditions, focusing on value, presentation, and long-term potential will continue to find success in Southwest Florida’s evolving market.