Fort Myers, FL, March 31, 2025 –(PR.com)– Home prices are dropping drastically in one of the fastest growing cities in Florida, according to a new report on FortMyersAgent.com. Fort Myers has seen massive growth from new home construction and commercial building for more than 15 years. But the real estate market slowed like most other places in the U.S. and as a result home values stagnated.
More than two years after the slowdown, home prices are being cut by home sellers at the fastest clip since the 2007-2009 Great Recession. As a result, home sales are beginning to pick up and are expected to experience a healthier market this summer selling season.
“It’s probably been over a decade since we’ve seen a situation like this,” said Shelton Weeks, who teaches real estate at Florida Gulf Coast University. The Fort Myers housing market has gained a widespread reputation for being one of the more affordable in the state, less than other major cities like Miami and Naples.
As housing prices drop more and more consumers are considering the market for a home or condo. The greater Fort Myers area, which includes Fort Myers Beach, Cape Coral, Bonita Springs and North Fort Myers are growing with the addition of new residents.
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 developed and is now declining 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. The Fed has repeatedly stated that it is not on the course to reduce interest rates any further in the immediate future.
Inflation is pushing the Federal Reserve to keep interest rates higher in efforts to contain inflation, which has been out of control for years.
The Fed is attempting to stave off further inflationary pressures triggered by other government actions.
Homes that are selling in the Fort Myers area are generally being sold at much lower prices than two years ago as home sellers cut home prices in an effort to capture a buyer for their properties. The Fort Myers condo market is experiencing an even more rapid fall in prices.
FortMyersAgent.com is a real estate news driven website that offers consumers all sorts of news and information about buying and selling real estate in the Fort Myers area. Real estate agent Mike Colpitts keeps the site up to date with new updates regularly.
