Cape Coral Realtors Challenge WSJ's Claims on Housing Market Stability

Cape Coral, Florida, USA - The housing market in Cape Coral is stirring up quite a buzz lately, particularly following a critical article published by the Wall Street Journal. On June 30, 2025, the WSJ’s headline boldly proclaimed, “The Worst Housing Market in America Is Now Florida’s Cape Coral.” In response, the Royal Palm Coast Realtor Association (RPCRA) and Florida Gulf Coast Multiple Listing Service, Inc. swiftly moved to set the record straight.

RPCRA President Karen Borrelli and the Florida Gulf Coast MLS penned a letter to the WSJ, highlighting that their description of Cape Coral lacked crucial context and overlooked broader market dynamics. As of June 2025, the median sale price in Cape Coral stood at $361,975, a modest increase from $355,000 in October 2021. This shows a degree of stability rather than the dramatic downturn suggested in the article. Furthermore, inventory dynamics play a critical role in evaluating market health. As stated in RPCRA’s letter, Cape Coral had 7.3 months of supply as of June 2025, indicating a slight tilt toward buyers, yet well within a normal range for real estate.

Market Trends and Stability

In terms of numbers, the Florida Gulf Coast MLS offered an enlightening glimpse into the region. The median sale price across Southwest Florida was reported as $400,000, unchanged since December 2021—a sign of what many are calling market normalization. In comparison, Lee County demonstrated a lively snapshot of the market with 8,204 homes for sale and a median sale price of $380,000, representing a significant rise from $365,000 in October 2021.

But let’s dig deeper. Looking at Cape Coral specifically, the market is showing signs of transitioning from a seller’s market to one offering a bit more for buyers. In May 2025, 608 homes were sold, a drop from 645 the previous year, while 36.7% of homes experienced price drops, illustrating that not everything is as dire as the WSJ implied. In fact, with an average home receiving just one offer and selling in around 76 days, the pressure has eased somewhat for potential homeowners.

The Bigger Picture

Digging into the numbers further, we see that Cape Coral’s median sale price has dipped about 7.7% from last year, while the average sale-to-list price ratio is at 96.7%. Interestingly, Miami remains the top city for those looking to move to Cape Coral, with Chicago and New York following closely behind. Despite these challenges, people are still drawn to the charm of the area, as evidenced by the influx of over 13,000 newcomers between February and April 2025, even as approximately 22,000 residents have left during the same timeframe.

Yet, let’s not ignore the environmental risks that come with living in this sunny paradise. A staggering 89% of properties in Cape Coral face severe flooding risks over the next 30 years, while every property is at extreme risk of severe wind events and extreme heat. The average temperature is projected to soar, with days exceeding 107°F projected to increase by a whopping 314%. These risks can influence buyer decisions, suggesting a more cautious approach is necessary.

Community Responses and Future Insights

Despite the adversity portrayed by external narratives, the RPCRA and Florida Gulf Coast MLS encourage locals to seek insights from the experts—Realtors® in the area. They assert that housing dynamics, while ever-changing, do not necessarily indicate a market collapse but rather a correction towards equilibrium. In an effort to engage with the WSJ for more robust discussions, these organizations reached out for further dialogue, although no response has been received as of now.

As Cape Coral navigates through these shifting tides, one thing is clear: there’s still a good deal of interest in the region. With its unique climatic challenges and shifting market conditions, both buyers and sellers must remain informed and agile to secure their place in this bustling market.