The volume of real estate sales in Lee County, Florida which includes Fort Myers, Cape Coral and North Fort Myers declined substantially in the last year, according to a statistical analysis of sales. But market indicators show major signs that Fort Myers home prices may be leveling off.
Some 1282 properties, including homes and condos sold during the month of February, 2025 in Lee County. The figure represents a 14.65% decrease from February, 2024 or one year ago. Another 1502 properties sold in February, 2024. The drop is a result of higher mortgage interest rates and a market that saw housing price increases for more than a decade.
The average sales price for all forms of residential real estate, which includes homes, condos and townhouses fell 3.34% for the year to $510,751 in Lee County. The average sold price for a single family home in Fort Myers was $537,705 a slight 0.63% decline from a year earlier. The small decline indicates that a leveling off in prices may be starting to develop as consumers get more used to higher mortgage rates.
Mortgage interest rates fell to historic lows during the COVID pandemic, falling to below 3% in 2020 due to emergency actions by the Federal Reserve. As inflation surged in 2022, the Fed raised their discount cost of borrowing, pushing mortgage rates to their highest levels in 20 years.
Freddie Mac reported the average 30-year fixed rate climbing from 3.22% in January 2022 to a peak of 7.08% in October, 2024 marking a large shift in borrowing costs. The increase in rates is close to the average mortgage rate since 1971. Rates on the 30 year mortgage are currently lower.
Between April 1971 and March 2025, 30-year fixed-rate mortgages averaged 7.73%, according to Freddie Mac statistics, which have been the hallmark for mortgage lenders for decades.
As the spring homebuying season gets underway, many indications are showing Fort Myers home prices may be leveling off. The 30-year fixed-rate mortgage saw the largest weekly decline since mid-September. The decline in rates increases homebuyers purchasing power and should provide a strong incentive for home buyers to make a move.
The average 30-year fixed rate home mortgage dropped 0.13% last week, a quarter of one-percent decline from a year ago to an average of 6.63%. The busy start of the spring home buying market may also indicate the decline in home prices may be leveling off.
The median price for a single family home in Fort Myers was unchanged from a year ago at $459,900. However, condominium sales in Fort Myers continue to show a large drop in prices, falling an average of 15.26% in the last 12 months to $269,763. The drop is triggered by a combination of factors, including higher mortgage rates and higher condo association fees, which have seen monthly fees more than double in many cases.