Lee home prices dip in August as sales activity ticks up

Lee County residential real estate prices continued to tick downward in August, the latest report from the Royal Palm Coast Realtor Association found. The market for single-family homes remains in correction territory after a post-pandemic price surge that peaked in 2022.  

In August there was a 6.7-month supply of single homes across Fort Myers, Cape Coral, Lehigh Acres, Pine Island, North Fort Myers, Sanibel Island and Fort Myers Beach. A neutral market typically means that there is a supply of four to six months of inventory at current sales rates. 

Lee County’s August supply rose sharply by 21.4% year over year but ticked down 6% since last month. Pending sales also jumped by 22% since August 2024 suggesting that more buyers may be entering the market as prices dip. 

“It’s a slight buyer’s market,” said Karen Borrelli, the RPCRA’s president and a Realtor with John R. Wood Christie's International Real Estate. “Buyers definitely have somewhat of an advantage.” 

The RPCRA report analyzes MLS data in Lee and Hendry counties, excluding the cities of Bonita Springs and Estero. The report showed that single-family homes sold for a median price of $353,238 in August, down 4.7% since the beginning of the year and 5.8% compared to August 2024. 

Realtors also are keeping an eye on larger trends that may impact sales, including the possibility that the Federal Reserve may decide to lower interest rates.  

“If they lowered the interest rates, [residential real estate] is probably going to boom again,” Borrelli said. “That’s my opinion.” 

The uncertainty surrounding the status of international tariff negotiations, a recent weak national jobs report and the Southwest Florida summer doldrums also may be contributing to an overall August slowdown.  

August and September are typically the area’s slowest sales months, said James Sommers, a Cape Coral-based Realtor with RE/MAX Trend. Tourist visitation is down, and many locals are busy with school restarting. Sommers finds no reason to complain, shrugging off the market correction and seasonal slowdown as part of the boom-and-bust cycle he has been familiar with since starting as a Realtor in 2003. 

“Extra inventory is getting down to kind of normal,” Sommers said. “In the industry, it’s not bad. And also, everyone who is selling, if they bought before 2020, they’re still in a good position. They’re still making money. … Things are still moving. It may not be perfect for everyone, but it’s close enough for a lot of people to do what they have to do to get to their next stage of life.” 

Homes in August sat on the market for a median 51 days or 15.7% longer this August compared to last year. Buyers received 91.4% of their original asking price. 

There were 1,072 closed sales in August, down 8.8% year over year but off only 2.2% since the beginning of 2025 with a total of 9,056 sales. New listings dropped by 10.8% year over year but rose 6.5% since January.  

The slowdown in sales and a glut of inventory is far more pronounced in the condo market. The median sales price fell by 11.3% year over year to $248,000 in August with 11.1 months of inventory on sale.      

Condos that sold across Lee and Hendry counties sat on the market for an average of 105 days, up 36.4% year over year. Buyers received 85.6% of their original asking price.  

Hurricanes contributed to rising insurance premiums and homeowner association fees, and in recent years a surge in multifamily housing construction in Cape Coral have all impacted the market. 

“Our condo market has been struggling and is still struggling,” Borrelli said.