by Mike Colpitts 
Home prices decline during the first half of the year in the greater Fort Myers region as home sales increase, according to a survey of the Florida Gulf Coast Multiple Listing Service.
The median price of a home peaked at $446,450 in January in Lee County before falling to a median price of $400,000 in June. The decline in values was widely expected after the Federal Reserve increased its borrowing rate nearly three years ago.
The Fed has a two-fold mandate legislated by Congress to contain inflation and keep the nation’s employment rate at the highest level possible. The 2.9% monthly annual inflation rate reported this month does not include the cost of food or gasoline, two of the largest contributors to inflation.
Home Prices Decline as Inflation Accelerates
Inflation rates accelerated in June as President Trump’s tariffs started to leave a bigger impact on the economy, keeping the Federal Reserve on track to hold interest rates steady when policymakers meet in August.
“Core” inflation, which does not include food and energy prices and is seen as a reliable gauge for underlying price pressures, moved higher. Those prices were up 2.9 percent from the same time last year.
The economy in Florida is much stronger than in other areas of the country and was selected as the seventh top state economy in a U.S. News and World Report.
Increasing Sales Lead Fort Myers
Home prices decline in Fort Myers and surrounding communities as more purchasers enter the marketplace. The inventory of homes peaked in March at 30,412, which includes single family homes, condos and townhouses, according to the local MLS.
The inventory of homes, condos and townhouses fell more than 5,000 units by the end of June to 25,170 as more homes were sold and sellers took their homes off the market. Real estate markets either favor buyers or sellers at any time. The current market is fully considered to be a buyers’ market and is expected to stay that way for the foreseeable future.
Prices, however, are sliding but will not continue to decline forever as the pent up demand for homes increases along with local economic changes. The Fort Myers area has a strong local economy with high employment, attracting many newcomers to the region.