Official numbers were just released, and Fort Myers Cape Coral home prices were down 4.9% from last year. Since the peak in 2022, year-end median prices are down 10.47%. Lee County median home prices were down 3.8% in December 2025 vs. December 2024, which signifies that home prices are not declining at the rate they were in all of 2025. Remember, the year-end price is the average for the year, not the spot they ended up at. Ironically, this year that number is the same, but not by design.

Fort Myers Cape Coral Home Prices

The Ellis Team Current Market Index has been predicting less pressure on home prices than last year. Those numbers are still holding true. We are not saying homes will appreciate anytime soon. We are saying there is less pressure to depreciate, which is a precursor to the market turning someday, assuming nothing changes to interrupt the pattern. Median home prices rose $5,000 in December from November. This too does not mean home prices are rising, as we generally have seasonality in home prices heading into season.

Good News on Inventory

Months supply of inventory ended the year at 6.8 months. That is down from 7.3 months in December 2024. Pending sales also increased in December 14.8%. As you know, pending sales lead to closed sales, which is a good sign moving forward. Speaking of closed sales, we can confirm that 2025 was the 4th best year on record for closed sales, as we predicted a while back. For a deeper look at specific areas like Iona or the McGregor corridor, the inventory levels are telling slightly different stories.

Dollar volume was down in 2025 1.5%. You might ask what dollar volume is. Dollar volume is the number of sales multiplied by the average sales price. It is the total amount of money exchanging hands between buyers and sellers. For dollar volume to be down while sales were up 4.3% means only one thing: home prices helped bring that number down.

Affordability

Home prices are now more affordable for home buyers. Combine lower home prices with lower insurance and lower interest rates, and you’ve got a recipe for buyers motivated to purchase a home, assuming they are confident in their job situation.

SW Florida is beginning to see the signs of positive consumer sentiment as it relates to housing. Buyers are feeling more confident that now is the time to buy. Home buyers still have fear about the market, and that is reflected in some of their offers. They know they want to buy, but they don’t want to overpay if the market isn’t done going down yet.

As paychecks become larger due to the tax cut, and income tax rebate checks hit the mail, we’ll be watching to see if homebuyers continue with their shopping.

Real Estate Resources

We have some resources that may help you out. If you are a seller, you might want to check out our Free Home Value Site.

We’ve also completely updated our Fort Myers Real Estate Hub, which serves as a comprehensive guide for both buyers and sellers in the current “2026 Reset” market.

Of course, Brett and Sande Ellis are available to answer your questions at 239-489-4042. Lastly, if you’d like to search the MLS like a pro, check out LeeCountyOnline.com. You’ll see the latest listings the minute they hit the market, and we have lots of neighborhood market data there too.

Good luck, and Happy House Hunting!