by Mike Colpitts 
Home prices peaked in the Fort Myers area five months before Hurricane Ian hit the region in September 2022. Home prices have been falling ever since, marking almost three years that the housing market has been declining.
Home prices peaked before Hurricane Ian. The median price of a home in Lee County peaked at $405,00 in June 2022, according to data from the Royal Palm Coast Realtor Association. Sold home prices have declined since then in most areas of the county, hitting a median sales price of $370,00 in April.
The decline in Fort Myers housing prices has triggered a return to a more active level of home sales in the area, with nearly a 50% increase in single family home, manufactured home and townhouse sales since February.
However, condo sales still fall short of a healthy level of sales, with a significant increase in condominium fees implemented in condo owner associations in Southwest Florida since new legislation was enacted to force condo associations to make corrections to aging infrastructure.
Home Prices Peaked
Driven by record low mortgage rates, Fort Myers median home prices have more than doubled in the past decade. The median price of a home was $155,750 in February 2015. Fort Myers home values peaked in October 2022 when the median price reached $359,500, according to MLS data. The increase is like many other areas of the country, especially warmer coastal climates where the demand for housing is high.
However, home prices are lower in Fort Myers than in many other areas of Florida, making it more affordable for prospective buyers. Last month the median price declined to $339,00 in Fort Myers. Higher priced areas in Lee County have seen even larger price drops, including Fort Myers Beach, where some homes have sold for 40 to 50% less than their original asking prices.
Peaked Before Hurricane Ian
Hurricane Ian hit the region, devastating Fort Myers Beach on Sept. 28, 2022. Since then a series of hurricanes have also damaged the area. But rebuilding and new construction, with modern day building codes is turning Fort Myers Beach into a new community.
The shift in housing prices had been expected for some time after the Federal Reserve embarked on its interest rate raising wave. Mortgage rates began to stabilize somewhat recently after the Fed halted hiking rates for three successive sessions.
The rate on a standard 30-year fixed rate mortgage averaged 6.76% in Freddie Mac’s latest survey of mortgage lenders, down from when it was 6.81% a week earlier. The rate is similar to the average rate on the same mortgage for almost 30 years, despite rates hitting all time record lows three years ago.
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