Fort Myers Housing Market: Trends and Forecast 2024-2025

Fort Myers, unlike many Florida cities, boasts a housing market with a distinct character. While sunshine and beaches remain a constant draw, Fort Myers offers a unique blend of affordability and a growing local economy, attracting both retirees and young professionals.

The Fort Myers housing market currently shows signs of a shift from the hyper-competitive seller's market we've seen in recent years. Home prices are still rising, but at a slower pace, and homes are taking longer to sell. This suggests a gradual transition toward a more balanced market, potentially favoring buyers to a certain extent. Let's delve deeper into the specific trends shaping the market.

Fort Myers Housing Market Trends in 2024: A Deep Dive

Home Sales

In October 2024, the number of homes sold in Fort Myers was down compared to the same period last year. Specifically, there were 93 homes sold (Redfin data), a decrease of 22.5% year-over-year from 120 homes sold in October 2023. This decline in sales volume indicates a cooling effect on the market.

While the decline in sales numbers might seem alarming, it's important to consider the broader context. The rapid rise in interest rates in the past couple of years and the impact of economic uncertainty have played a role. Many potential buyers have been sidelined due to higher mortgage rates, leading to reduced demand. This has directly impacted the number of homes changing hands.

Based on my own experience as a real estate investor and someone who's been observing the market trends in Fort Myers, this decline in sales is not necessarily a negative sign. It suggests that the market is stabilizing after a period of intense activity. We might have hit the peak of the frenzy we experienced in the previous couple of years and are slowly returning to a more normal pace.

Home Prices

Despite the slowdown in sales, Fort Myers home prices continue to climb, albeit at a more moderate rate. The median sale price in October 2024 was $373,000, up 2.9% compared to the same period last year. This signifies that although the market isn't experiencing the explosive price growth of the past, homes are still appreciating in value.

The median price per square foot also provides insights. It currently stands at $221, showing a modest 0.2% increase year-over-year. This trend reinforces the idea of a more balanced market where price appreciation isn't as aggressive.

My observation aligns with these statistics. While the days of bidding wars and significant price escalations might be somewhat behind us, there's still a strong underlying demand for homes in Fort Myers. The combination of its beautiful natural environment, growing economy, and desirable lifestyle attracts a wide range of buyers. This demand is keeping the upward pressure on prices, but at a more sustainable level.

Housing Supply

The housing supply situation in Fort Myers has also changed. While it's still a competitive market, it's not as intense as before. The number of days homes spend on the market has increased, indicating that buyers have a bit more time to make decisions.

In October 2024, homes were on the market for a median of 74 days, a substantial increase from 39 days in 2023. This suggests that sellers might need to adjust their expectations and be prepared for a slightly longer selling process.

Table 1: Key Fort Myers Housing Market Metrics

Metric	October 2024	Year-over-year Change
Median Sale Price	$372,500	+2.9%
Number of Homes Sold	93	-22.5%
Median Days on Market	74	+35%
Sale-to-List Price	95.2%	-0.69%
Homes Sold Above List Price	2.2%	-3.7%
Homes with Price Drops	27.3%	-1.7%

Market Trends

The Fort Myers housing market trends are pointing towards a more balanced market compared to the seller's market we witnessed in the past few years. Here are some key trends to be aware of:

• Slower Sales Pace: The number of homes sold is decreasing, indicating less frenzied activity.
• Moderate Price Appreciation: Home prices are still rising but at a slower rate, signaling a more stable market.
• Longer Time on Market: Homes are taking longer to sell, providing buyers with more time to consider their options.
• Reduced Bidding Wars: Multiple-offer situations are becoming less frequent, potentially giving buyers more leverage in negotiations.
• Increased Inventory: While inventory levels are still not at a point considered “balanced,” there is some increase in available homes, offering buyers more choices.

The current market conditions also appear to be influenced by factors beyond the local Fort Myers scene. The national economic outlook and interest rates play a major role in the housing market throughout the country. Any shifts in the national landscape will likely have an impact on the Fort Myers market too.

Is Fort Myers a Buyer's or Seller's Housing Market?

Based on the current trends, we can say that the Fort Myers housing market is gradually shifting toward a more balanced state. While it's not quite a buyer's market yet, buyers have gained some advantages they didn't have a couple of years ago. They have more time to make decisions, might encounter fewer bidding wars, and might be able to negotiate better prices.

Sellers, on the other hand, need to be realistic about the market conditions. They can expect the selling process to take longer than it did previously, and they might need to adjust their pricing expectations to reflect the current market. It's no longer a time when the first offer is always the best.

Are Home Prices Dropping?

While the rate of price appreciation has slowed, it's important to note that home prices in Fort Myers are not currently dropping. They are still rising, albeit at a slower pace. However, the possibility of a price correction can't be entirely ruled out. If interest rates rise further or the economy faces a downturn, there is a chance that price growth could stall or even reverse in certain segments of the market.

My belief is that even if there is some price correction, it will be a relatively moderate one. The underlying fundamentals of the Fort Myers market, including its strong job growth, tourism industry, and attractive lifestyle, should help to prevent a sharp decline.

Migration and Relocation Trends in Fort Myers

A key factor that influences the Fort Myers housing market is migration. People from various parts of the country are moving to Fort Myers, contributing to the demand for housing.

Table 2: Inbound and Outbound Migration for Fort Myers

Moving to Fort Myers from:	Number of People
Miami, FL	2,303
Chicago, IL	1,373
New York, NY	853
Boston, MA	656
Washington, DC	435
Orlando, FL	265

Moving from Fort Myers to:	Number of People
Sarasota, FL	383
Knoxville, TN	68
Greenville, SC	49
Chattanooga, TN	46
Ocala, FL	45

Source: Redfin

As you can see from the data, a significant number of people are moving into Fort Myers from large metropolitan areas such as Miami, Chicago, and New York. This migration is a testament to the growing desirability of Fort Myers as a place to live.

While a majority of homebuyers in Fort Myers are looking to stay within the area, a significant number are also relocating to other parts of Florida like Sarasota. Other destinations include Knoxville and Greenville, suggesting that some people are also considering moving out of the state.

This migration pattern impacts the Fort Myers housing market in a few ways. It creates sustained demand, which contributes to the price appreciation we've seen. It also puts a strain on available housing, especially in areas that are particularly attractive to new residents.

Summary of Latest Trends

The Fort Myers housing market in 2024 appears to be transitioning towards a more balanced state after a period of rapid growth. Home prices are still rising, but at a slower pace, and homes are taking longer to sell. This change provides opportunities for buyers who have more time and potentially more leverage in negotiations. For sellers, it's a reminder that the market is no longer quite as favorable, and they need to adapt their strategies accordingly.

Fort Myers Housing Market Predictions 2024-2025

Currently, the average home value in Fort Myers is $353,983, showing a slight decrease of 4.8% over the past year. Homes are also taking a little longer to sell, with properties going to pending in around 65 days (Zillow).

In my opinion, the Fort Myers housing market, like many others across the nation, is experiencing a shift after a period of rapid growth. While we've seen a slight dip in home values, the market is still active and considered healthy. Interest rates have been a major factor, influencing affordability and buyer behavior. Factors like job growth and population increase still impact housing demand in Fort Myers. The market is definitely not as feverish as it was a couple of years ago, which might be good news for buyers.

What Influences the Fort Myers Housing Market Forecast?

Several factors will likely shape the Fort Myers housing market forecast going forward.

• Interest Rates: The Federal Reserve's decisions on interest rates will play a significant role. Higher rates can impact affordability, potentially leading to slower growth.
• Inventory Levels: The current inventory of homes available for sale will also be a key driver. More inventory might lead to more buyer choices and price stability.
• Economic Conditions: The broader economic climate, including job growth and inflation, will also influence demand for housing in Fort Myers.
• Seasonal Trends: The Fort Myers market is also influenced by seasonal trends, with the peak season for buying and selling in the fall and winter.

My Outlook for the Fort Myers Housing Market

I expect the Fort Myers housing market to continue to experience moderate growth in the coming year. The market may not see the rapid price increases we saw in the past, but I think it will remain a desirable location for those looking to relocate to the Sunshine State. It seems like a good time for buyers to take advantage of more balanced conditions and potentially negotiate better deals. If you are thinking of selling, it's wise to consult with a real estate professional to price your property appropriately in the current market.

I believe Fort Myers is a resilient market with several positive indicators. While I do not see a huge boom, it does appear to be a good time to buy or sell with good opportunities for both buyers and sellers to negotiate and potentially benefit in this market.

So, Should You Invest in the Fort Myers Real Estate Market?

Real estate investing in Fort Myers, FL can be a lucrative opportunity for investors, but like any investment, it also comes with potential risks and drawbacks. Potentially lower home prices and cost of living compared to Miami may attract investors and homebuyers looking for a more affordable option with similar climate and lifestyle features as Miami. Here are some of the top reasons to consider investing in Fort Myers real estate, as well as some potential cons to keep in mind:

Pros:

• Strong Housing Market: As discussed earlier, Fort Myers has experienced a significant increase in home values over the past year, with a healthy upward trend predicted to continue. This makes Fort Myers a great place for real estate investors to buy and hold properties for long-term appreciation.
• Growing Population: Fort Myers is experiencing steady population growth, with many people attracted to the area's warm climate, beaches, and outdoor activities. In 2022, Fort Myers, FL had a population of 88.7k people with a median age of 40.6 and a median household income of $57,403. Between 2021 and 2022 the population of Fort Myers, FL grew from 84,694 to 88,699, a 4.73% increase and its median household income grew from $51,682 to $57,403, a 11.1% increase. This population growth creates a strong demand for housing, making it easier for real estate investors to find tenants and keep their properties occupied.
• Low Taxes: Florida has no state income tax, and Fort Myers has some of the lowest property taxes in the state. This can make it easier for investors to generate positive cash flow on their properties.
• The Fort Myers multifamily real estate sector: It has experienced growth in recent years, with an increasing demand for rental properties in the area. The growth in the rental market can be attributed to several factors, including a growing population, a strong job market, and an increase in the number of retirees moving to the area. Investing in large multifamily properties in Fort Myers can offer several advantages, such as stable cash flow from rental income, long-term appreciation potential, and diversification of investment portfolio. Additionally, owning a multifamily property in Fort Myers can provide economies of scale in terms of property management, maintenance, and tenant acquisition.

Cons:

• Interest Rates: High-interest rates can make it more expensive for investors to finance their properties, which can reduce their overall return on investment.
• Natural Disasters: Fort Myers is located in a region of Florida that is prone to hurricanes and other natural disasters. This can create additional risks for real estate investors, who may need to pay higher insurance premiums and take extra steps to protect their properties from damage.
• Seasonal Rental Demand: Fort Myers is a popular destination for snowbirds and other seasonal residents, which can create fluctuations in rental demand throughout the year. Investors may need to adjust their rental rates or marketing strategies to account for these seasonal variations.

In conclusion, real estate investing in Fort Myers, FL has the potential to be a profitable opportunity for investors, but it also comes with some potential drawbacks and risks that need to be carefully considered. Investors should conduct thorough research and analysis before making any investment decisions and should work with experienced professionals to help mitigate risks and maximize returns.