Cape Coral’s housing market entered the winter of 2025 in a distinctly buyer-leaning position, with key indicators showing softening prices, elevated inventory, and slower transaction dynamicscompared with previous years. Data from multiple real-estate sources confirms that the market continued to diverge from the rapid post-pandemic growth seen earlier in the decade.
Median Home Prices and Sales Trends
According to Redfin’s December 2025 market snapshot, Cape Coral’s median sale price edged down to about $365,000, representing a 3.9 % decline year-over-year. Homes in the city took roughly 67 days to sell, up from 79 days last December, indicating a less frenetic pace than during the recent boom. There were approximately 483 closed sales in December, an increase from 410 homes sold in December 2024 — a modest sign of buyer activity.
Local market reports from the Royal Palm Coast REALTOR® Association and Florida Gulf Coast MLS reinforce this picture: pricing in many segments has stabilized after mid-year declines, with the median sale price near $384,000 in late 2025 — up from seasonal lows but still below earlier peak levels.
Inventory and Buyer Conditions
Cape Coral’s housing inventory remains above typical seasonal norms, providing buyers with more choices than in prior tight markets. In November, about 3,000 active listings were available, with a significant share (over 25 %) consisting of returning listings — homes previously listed and re-entered at adjusted prices.
This returning inventory and broader supply have contributed to longer sell-through times and many price adjustments— particularly for homes priced above the prevailing market levels. Sellers who reduced their prices often moved homes faster, while those who did not saw longer days on market.
Market Character: Buyer’s Edge With Nuance
Most analysis indicates Cape Coral is trending toward a balanced to buyer-leaning market:
- Months of supply in many segments exceeded historical norms, particularly in higher-priced tiers, suggesting more negotiation leverage for buyers. (
- Lower-priced homes (particularly under $400,000) continued to show stronger sales activity relative to luxury tiers.
- Comparisons with broader Southwest Florida show Cape Coral’s buyer engagement improving, but inventory staying unusually high compared to recent years.
In broader national housing data, the South — including Florida markets like Cape Coral — saw increased inventory in late 2025, aligning with the trend of more sellers than buyers in many markets.
Comparative Context and Outlook to 2026
Local and third-party forecasts suggest the market is stabilizing after a period of correction:
- Some services project that affordability gains and greater supply will continue easing pressure on buyers into 2026, even as mortgage rates remain relatively elevated.
- Other data sources, such as Zillow, show home value metrics declining over the last year, with average values down more sharply on a broader metro basis.
Looking forward, indicators point to a long, gradual recovery rather than a rapid rebound. Increased buyer activity in core pricing bands and a more balanced inventory suggest less volatility than in the prior overheated market, but sellers may still face negotiation pressure without competitive pricing strategies.
Bottom Line for Movers and Investors
For out-of-state buyers or relocators considering Cape Coral in early 2026:
- Prices are softer than last year and homes linger longer on market, offering leverage in negotiations.
- Inventory remains relatively high, especially outside the most affordable tiers.
- Affordability is improving, though local conditions vary significantly by price range and neighborhood.
This environment makes Cape Coral more approachable for buyers than it has been in recent cycles, though informed pricing and market timing remain critical to securing favorable terms.