The August 2025 Southwest Florida housing market continues to adjust as higher inventory levels, slower pending sales, and elevated interest rates reshape the playing field for both buyers and sellers. In this month’s Future of Real Estate Update, Brett Ellis of the Ellis Team at Keller Williams breaks down what the numbers really mean for Fort Myers, Cape Coral, and Lee County homeowners.


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Key Market Insights – August 2025

  • Pending Sales: Down 9.6% year-over-year, showing softer buyer demand.

  • Inventory: Active listings remain 26% higher than last year, though some sellers are pulling homes off the market due to pricing.

  • Median Home Price: Now $375,000, down 5.1% from last year.

  • Average Home Price: $482,249, down 6.9% year-over-year.

  • Closed Sales: Down 2.4%, dipping below 2019 and 2024 levels.

  • New Pending Sales: Down 3%, reflecting the drag of higher interest rates.


What This Means for Sellers

If you’re considering selling, timing is everything. Many homeowners pulled listings when prices weren’t favorable. But as soon as interest rates ease—potentially this fall—those same sellers may flood back into the market.

Advice for Sellers: Beat the rush. Listing before October could help you avoid competing with 20–30% more homes later in the year.


What This Means for Buyers

Buyers currently hold strong negotiating power. Prices are softer, insurance costs are trending downward, and sellers are more open to concessions.

Advice for Buyers: Lock in today’s pricing and concessions. If rates drop, you can refinance later. If rates rise, you’ve secured today’s lower rate. It’s a no-lose scenario.


Bottom Line

  • Sellers: Act now before inventory surges again.

  • Buyers: Don’t wait for perfect conditions—leverage today’s market while you still can.

The Ellis Team has consistently outperformed the broader market by combining data-driven strategies with innovative marketing. Whether you’re buying or selling in Fort Myers, Cape Coral, or Lee County, our family team is here to help you succeed.


✅ Next Steps

What are the best SW Florida homeowner’s association values in 2025? We’re about to tell you, but first we must explain how we calculated the values.

This isn’t about neighborhoods with the best home values. We are analyzing neighborhoods by the amenities and maintenance items they provide against the fees they charge. That’s it. Home prices are a separate issue.

Many homebuyers ask us what the HOA fees are because they are concerned about the total cost of ownership on an ongoing basis.

How did we Calculate this?

We downloaded all the single-family home listings for sale in Lee County directly from the MLS. Next, we performed a sophisticated data analysis which analyses all the amenities and maintenance fee items for all the homes. Our system assigns value for what each item costs. For instance, in last week’s article we calculated cable tv added $35 to the cost of an HOA fee if the association provides cable. Similarly, lawn and landscape maintenance would add $131 if the association provided it. These numbers may be different than what you could negotiate on your own but rather the cost to the association HOA bill.

We specifically asked for associations that charge more than $2,500 for the year. Many small associations don’t offer many amenities and therefore don’t charge very much. We thought this list would be more meaningful analyzing those that provide more services.

Best SW Florida Homeowner’s Association List for 2025

Sandoval leads the list, followed by Pelican Landing and River Hall for providing outstanding value. Several notable neighborhoods made the list. Remember, this is the Top 20 list. Your neighborhood may provide excellent value too and may be just outside the Top 20. The system may not be perfect either. Many subdivisions include multiple listings. What happens when an agent lists the fees as x and another agent lists them as y? Additionally, HOA fees change throughout the year. Homes listed in January may have different fees than those listed later in the year. Our analysis does a pretty good job of averaging those fees when discrepancies occur in the same neighborhood. Our analysis is dependent on the data input to the MLS, which is better than sites like Zillow and Realtor.com However, it may not be perfect.

Best SW Florida Homeowner’s Association Values 2025

Think Like a SW Florida Home Buyer

If nothing else, this analysis may help you and your community think like a buyer. In doing so it may help you control costs. Your board should ask itself before every decision, does this thing we’re offering bring value for the amount we must charge? Are there ways to substitute amenities, or hire vendors at lower costs?

Brett and Sande Ellis are top agents in the SW Florida real estate market, and we hear buyers and sellers comment all the time how much they love or hate their HOA. Providing amenities people want at a cost people accept is key. Many neighborhoods inherit the amenities provided from the developer. Other communities cancel one type of amenity and add a newer one. Pickleball is a newer amenity that wasn’t prominent 10 years ago.

Our website www.LeeCountyOnline.com lets you see the HOA fee. Remember, there can be other fees like one-time fees or restaurant and clubhouse fees. Be sure to ask your agent for the total recurring fees on a property. Our agents can provide this information.

Find out Your SW Florida Home’s Value

Simply go to www.swflhomevalues.com and you’ll get an instant online analysis for Free. Or call Brett or Sande Ellis at 239-310-6500. We’ll help you make a good decision.

Good luck and Happy House Hunting!

Introducing our Gulf Coast Real Estate Insider Podcast

Brett and Sande Ellis are top agents and real estate insiders with over 37 years of experience in the industry. Having sold over 5,000 homes in Lee County Florida brings us a wealth of experieince. We’ve been fortunate to meet a lot of top agents throughout the country, and we look forward to sharing our knowledge and that of other Top Agents and industry insiders on our new podcast Gulf Coast Real Estate Insider.

Buyers consider total cost of ownership when making real estate purchasing decisions. High mandatory fees repel buyers in today’s market unless true value is present. Buyers today are concerned about affordability and what their property is going to cost on a yearly basis.

It’s not just the purchase price that’s on the buyer’s mind. They want to know what it’s going to cost to hold the property. This includes insurance, homeowner’s fees, maintenance, taxes, and financing if applicable. Interest rates have obviously affected total cost of ownership, but it seems like everything has risen all at once.

Buyers Consider Total Cost

The first questions buyers ask are what are the age of the roof, air conditioner, and water heater. The next questions they ask are what the taxes and flood insurance are, and what are the ongoing association fees. In fact, some buyers start with the ongoing fees first and eliminate neighborhoods where the fees are higher than they like.

Condo and homeowners’ associations are faced with the difficult task of making hard choices. The higher the rate, the less desirable their neighborhood will be in some buyer’s eyes. Some associations pay for items like lawn maintenance while others let the homeowner themselves pay for it. We see group contracts for cable TV or internet which can lower the cost if everyone is included in the contract, while not everyone may want that. 2nd homeowners may object because they do not use the service year-round and don’t wish to pay for cable TV or Internet for 12 months.

Back in College

 When I studied Finance back in college, we studied the correlation between multi variable equations. This was helpful in assigning a value to a variable, if there was a correlation. I used that equation to study all the sales in SW Florida in 2024. I was able to isolate each amenity or maintenance fee cost and assign a value to each item that had a high correlation. The reason I did this was because I wanted to know if a neighborhood includes certain amenities, is it good value. Because each neighborhood offers different things and has different fees, I had to use this advanced equation to solve for the standard values.

The results are in. We isolated how much an amenity or maintenance fee item adds to the average cost of a HOA or condo bill per month. For instance, lawn/land maintenance averages $131.97 per home in 2024 if it’s included in the HOA fee. Cable TV added $35.15. A community pool added $67.38

Comparison Shopping

A buyer generally adds up the amenities that are important to them and looks at the HOA fee and decides if the community is a good value to them. It’s almost impossible to calculate for a buyer because it’s not always apples and apples. Each community includes different things, so a buyer goes by feeling and total cost. They want certain things, but there is a limit to how much they want to pay to receive them.

Buyers Consider Total Cost of Ownsership

Because the Ellis Team has all this data, we can now ask if a certain subdivision is a good value relative to the amenities it offers and what the maintenance fee covers. Buyers consider total cost of ownership for the amenities they prefer.

Neighborhood Query

For fun, I asked if Reflection Lakes was a good value for the amenities it offers and what the HOA charges.  Here is the result: “Based on the data, Reflection Lakes rates as a good value.

The average cost per amenity/maintenance item for Reflection Lakes is $212.47, which is lower than the overall average of $319.11 for all other properties in the dataset. This suggests that you get more amenities and maintenance services for your recurring fees compared to the average property.”

We can ask neighborhood by neighborhood if the amenities they offer compared to what the HOA charges are a good value. The results might surprise you.

Next week we’ll publish the top HOA values in Lee County based upon the monthly HOA cost versus amenities provided. If you’d like us to lookup your neighborhood, simply comment on this article over on our Blog at https://blog.topagent.com

We hope you enjoy this analysis. To search homes on the MLS, check out www.LeeCountyOnline.com or get your home’s property value at www.SWFLhomevalues.com

 

HOA Fees Video Analysis

Today we are debunking real estate myths and discussing what buyers and sellers need to know.

Debunking Real Estate Myths

Debunking Real Estate Myths in Fort Myers/Cape Coral 

The Southwest Florida real estate market, particularly in the Fort Myers and Cape Coral areas, is a unique and dynamic landscape. While the sun shines brightly, a few persistent real estate myths can cast shadows on what can be a smooth and successful transaction. Let’s shine a light on the truth and debunk some of the most common myths specific to our beautiful Gulf Coast.

 

Myth #1: Property Insurance in Florida is Impossible to Get and Unaffordable

 

For anyone considering a move to Southwest Florida, the topic of property insurance often comes with anxiety. The myth is that due to past storms and market volatility, securing affordable and comprehensive coverage is a nearly insurmountable hurdle for homebuyers.

 

The Reality: While property insurance has faced challenges, the situation is far from hopeless. Recent legislative reforms and the entry of new carriers have begun to stabilize the landscape, leading to more competitive rates and greater availability. The key is to be proactive. Buyers should work closely with a knowledgeable local agent and an experienced insurance broker. They can help you navigate options and find coverage that meets your needs. Newer homes built to stronger codes also often qualify for more favorable rates. By doing your due diligence and relying on local expertise, you can secure the necessary coverage without breaking the bank.

 

Myth #2: After a Hurricane, Property Values Plummet

 

In a region that has faced the power of nature, it’s understandable that some people fear a long-term negative impact on property values. The myth suggests that after a major storm, the market will collapse.

 

The Reality: History shows that the Fort Myers and Cape Coral real estate market is remarkably resilient. While there may be a temporary slowdown as the community recovers, property values tend to rebound strongly. Our region’s desirability remains a powerful draw. Furthermore, rebuilding efforts often result in newer, more resilient homes, which can actually increase a neighborhood’s overall value. For buyers, the post-storm period can be an opportunity to invest in a revitalized area. For sellers, it’s about showcasing the improvements and resilience of their property and community.

 

Myth #3: All Real Estate Agents Offer the Same Services

 

With countless agents in the area, it’s tempting to think they are all interchangeable. The myth is that an agent’s main job is just to list a property or show a house.

 

The Reality: Not all agents are created equal. A top agent in the Fort Myers and Cape Coral market is a local expert, a skilled negotiator, and a trusted advisor. Their value lies in their deep understanding of local nuances, from flood zones and insurance changes to neighborhood-specific market trends. They have a network of reliable professionals, from inspectors to contractors, and a proven marketing strategy that gets your home in front of the right buyers. Choosing an agent based on experience and local expertise can make the difference between a frustrating transaction and a seamless, profitable one.

 

Myth #4: Cape Coral’s Canal System Means Every Home is a Boater’s Paradise

 

Cape Coral is famous for its extensive canal system, leading many to assume that any home on a canal is a prime spot for a boat.

 

The Reality: While the canals are a major selling point, not all canal homes are created equal. Boaters need to consider several factors, including whether the canal provides direct gulf access. Some canals are freshwater, while others are saltwater with bridges that may be too low for larger boats. It’s crucial for buyers to work with an agent who understands these distinctions and can help them find a property that truly meets their specific boating needs.

Conclusion

Navigating the Fort Myers and Cape Coral real estate market requires more than just a passing knowledge of local trends. By debunking real estate myths, you can approach your real estate journey with confidence and clarity. With the right information and a skilled professional by your side, you can make informed decisions that lead to your real estate success.

Visit www.LeeCountyOnline.com to see all homes in MLS or call us at 239-489-4042

Median Southwest Florida home prices fell 5% in June this year versus last year. Average home prices fell 4.1% year over year.

Southwest Florida Home Prices

Good News? 

Is there any good news with Southwest Florida home prices falling? The answer is yes. This is good news for home buyers. Secondly, we are seeing fewer listings on the market. The gap between the available listings on the market and pending sales has lessened, which creates less inventory. The other piece of good news is pending sales increased last week on single family homes. We saw inventory decrease for single family homes, condos, and manufactured homes across the board.  The real question is what will happen with listing inventory heading into season?

Insurance

We just got word last week that two more carriers entered the Florida market. That’s 14 new carriers that have entered since 2023. Consequently, rates are dropping. 27 companies have requested a rate decrease for policies in effect in 2024 or later. 41 companies have requested no rate hike. Citizens Property Insurance multi-peril policies are down to 9% of all policies in Florida from 16.7% last September. Currently Citizens carries 74.5% of the wind-only policies, down from 80%. Insurance reforms are working, which is driving down rates.

Property insurance lawsuits were down 23% in 2024, and so far, this year they’re down another 25%.

Southwest Florida Home Prices

So, what is the future of Southwest Florida home prices? Prices are still declining. Interest rates haven’t changed much yet, and insurance costs are decreasing. This all helps affordability. As the economy improves it should lead to more home sales.  Last week we wrote about shadow inventory and what that could mean for the future direction of home prices. A lot of variables are working together to influence home prices. These variables are not all working in the same direction, which is typical. When they all work in one direction, we typically see a shift in the market approaching down the road.

Timing the Market

We’ve written in the past about timing the market. (See May 15th article at https://blog.topagent.com)  It’s almost impossible to do this, and anyone who did has had some luck on their side. The May 15th article offers some strategies for those wondering if now is the time to buy or sell.  We might see Southwest Florida home prices decline further, then flatten out until inventory and shadow inventory are depleted.

Buyers are in a strong position here and these positions don’t last forever. Just ask those that wish they would have sold back in 2022. The bottom of the market may be in the next 6-12 months, or not. It’s always better to buy 1-2% before the bottom than 1-2% after the bottom. Prices are the same, but when the market begins to rise buyers get panicked and start buying. This creates competition for the best listings amongst all the buyers now getting off the fence. Additionally, buyers have less leverage with sellers because everybody knows the bottom has passed.

Prices may not rise wildly like they did in Covid, and we had less than 3% interest rates. If you see a home that meets your needs, consider buying it. This market will stop declining and level out until economic forces align to push it. It takes time for economic forces to gather momentum, and we’ll report when we see the first signs of momentum change.

Check out www.SWFLhomevalues.com to track the momentum of the price of your home. If you have real estate questions, reach out to Brett Ellis or Sande Ellis 239-310-6500.

Good luck, and Happy Selling!

Southwest Florida Home Prices Market Update