by Mike Colpitts 
The housing inventory drops for the first time in three years in April as the sale of homes and townhouses picked up in Lee and Collier counties. The reduction of properties listed for sale on the market dropped for the first time since the inventory started to increase in mid-2022.
There were 29,353 properties on the market as of late April compared to 30,312 in March 2025, according to statistics compiled from the Royal Palm Coast Realtor Association. Some 8,715 residential properties were on the market for sale in December 2021 when sales were at a fever pitch during the Covid pandemic.
Many newcomers to the Fort Myers area have moved to the region for its warmer weather and outdoor activities from cooler northern states.
However, with its bloated housing inventory, days on the market have increased for the average home to sell from 42 days in April 20024 in Lee and Collier County to 52 days this April, according to statistics compiled from the local MLS. The dynamics have increased market time with pent up buyer demand contributing to major price reductions.
Housing Inventory Slides with Prices
The median sale price in Fort Myers was $385,000 in February 2025. The median price of a home peaked at $405,00 in June 2022. Sold home prices have declined since then in most areas of the county as sales increase, hitting a median sales price of $370,00 in April.
While the decline reflects a broader trend of price stabilization following years of rapid appreciation in Southwest Florida, including areas like Fort Myers, Cape Coral, and Naples the adjustments are due to higher mortgage rates, a bloated housing inventory and rising home insurance premiums.
Local leaders are actively addressing these challenges. Cape Coral Councilwoman Gloria Tate emphasized the importance of initiatives like the Madison Square senior affordable housing project. The need for government support to build affordable housing to alleviate the crisis is crucial.
Rising insurance rates, exacerbated by events like Hurricane Ian, have significantly increased homeowners’ expenses. In Florida, average homeowners’ insurance premiums have tripled since 2019.
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- Inventory Levels: An increase in housing inventory, with areas like Cape Coral-Fort Myers seeing listings rise to levels comparable to 2019, indicates a shift towards a more balanced market.
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- Economic Uncertainty: Factors such as high mortgage rates and inflation have made potential buyers more cautious, impacting demand and home prices.
Housing Inventory Drops with Sales Increase
Fort Myers and nearby Cape Coral were identified among the most overvalued housing markets in the nation. A study by Florida Atlantic University ranked them third in overvaluation but with recent price declines the market is in the process of stabilizing. The overvaluation is attributed to pandemic-era demand and limited inventory, leading to homes selling for prices significantly above their market value.
Cape Coral mirrored Fort Myers’ trend, with a 37.7% rise in homes for sale in 2025. This increase has led to a 5.6% decline in home values, signaling a cooling in the previously hot market. The influx of new listings, coupled with higher insurance premiums and reduced migration, has contributed to the shift.
Naples has also witnessed a rise in housing inventory. The increase reflects a broader trend across Southwest Florida, where increased construction and a slowdown in migration have led to more homes entering the market.
Rick Harrison, a real estate adviser in Fort Myers, said prospective buyers are now more cautious, with many hesitant to purchase properties along the coast due to these concerns. This cautious approach, combined with a higher number of listings, is contributing to a stabilization of the market as housing prices drop.
The bloated housing inventory in Fort Myers, Cape Coral, and Naples is reshaping the real estate landscape. Buyers benefit from increased choices and negotiating power, while sellers must adapt to a more competitive environment.