Cape Coral–Fort Myers home sellers notched another win in August, with the median sale price for single-family homes reaching $380,000, up 2.7% from a year ago, according to the latest data from Florida Realtors. That’s the third consecutive month of year-over-year price gains in our market, following increases in June and July, and it comes after prices were essentially flat or slightly negative for much of the spring.

Closed sales also ticked up, with 1,218 single-family homes changing hands in August, a 2.8% increase over last year. Homes are moving a little faster too: the median time to contract fell to 60 days, down 6.3% from a year ago, and sellers are netting more of their asking price, 94.7% of original list price, up from 93.3% last August.

A More Nuanced Supply Picture

The inventory story is where things get interesting. New listings rose 8.1% year-over-year, with 1,610 homes hitting the market in August, a healthy sign that more sellers are willing to test the waters. But despite that increase in new supply, total active inventory actually fell 15.5% from a year ago, down to 6,512 homes. That’s because homes are being absorbed faster than they’re being replaced. Or some sellers are taking their home off the market.

That absorption shows up clearly in month’s supply of inventory, which dropped to 5.2 months, a 24.6% decline from last August’s 6.9 months. For context, 5.5 months is generally considered the tipping point between a buyer’s market and a seller’s market, so we’re now sitting just below that balanced line, tilting back toward sellers after a stretch that favored buyers.

On the demand side, the picture is a bit more mixed. New pending sales, homes that went under contract during the month, actually declined 3.4% year-over-year, to 1,296. That’s a signal worth watching: fewer new contracts being written suggests some buyer hesitation even as prices rise. At the same time, total pending sales (the full pipeline of homes currently under contract) edged up 0.5% year-over-year, to 1,535, meaning the overall backlog of deals in progress is holding roughly steady even if the pace of new contracts has cooled slightly.

Headwinds to Watch

Put together, this is a market with genuinely positive momentum: rising prices, faster sales, stronger list-price recovery, and shrinking months of supply all point in a healthy direction. But a few forward-looking signals suggest caution is warranted heading into the fall and winter.

Mortgage rates have been drifting higher again this year, and that’s a real headwind for affordability, particularly for first-time and move-up buyers who are already stretched thin. Higher rates tend to cool buyer urgency even when local fundamentals are improving, and the dip in new pending sales this month may be an early hint of that dynamic playing out.

We’re also seeing our market’s Current Market Index tick upward, a forward-looking measure that tends to anticipate where prices are headed next. A rising CMI alongside a rising median price isn’t a red flag by itself, but it does suggest we should keep an eye on whether price growth is starting to outpace what current demand can comfortably support, especially if rates climb further.

Southwest Florida Home Prices Climb

Southwest Florida’s single-family market enters the fall in its strongest position in months: three straight months of year-over-year price growth, tighter inventory, and faster sales. But with new pending sales softening and interest rates creeping higher, this isn’t a market to price aggressively into blindly. Sellers have real leverage right now; buyers who’ve been waiting on the sidelines may want to consider that today’s rate environment, while not ideal, could still be more favorable than what’s ahead if rates continue to climb. As always, talk to a local agent who can walk you through what these numbers mean for your specific neighborhood and price point.

Track the Market

Visit www.Topagent.com and click on Buying or Selling. The first five pages are all indexes tracking the Southwest Florida Real Estate market. Or call Brett or Sande Ellis 239-489-4042. Or ask our AI assistant at www.Topagent.com a question. It’s Free, and Fun!

Southwest Home Prices Video Update

Southwest Florida just entered its most predictable seasonal shift, and it has nothing to do with mortgage rates or headlines. Snowbirds are coming back.

Every October, thousands of seasonal residents return to Fort Myers, Cape Coral, Sanibel and the surrounding communities. Many rent for years before deciding to buy. Some come back this time intending to make an offer. Either way, their return shifts the local market in a predictable pattern that both sellers and buyers should understand.

Why This Window Matters

The Ellis Team has tracked this pattern for years. New listings typically spike in October and November as sellers try to catch early arrivals before the market fills with competing homes in January. Buyer traffic rises too, but it is a different kind of traffic than peak season. Snowbirds house hunting in the fall tend to be serious. They are already in town, they can see the home in person, and many want to close before the holidays.

That combination, rising but manageable inventory paired with motivated buyers already on the ground, creates real opportunity for sellers who list now instead of waiting for January’s crowded market.

For Sellers: Beat the January Rush

If you are thinking about listing this fall, timing and preparation matter more than usual.

List before Thanksgiving if possible. Homes that hit the market in October and November are seen by early arrivals before hundreds of additional listings appear in January.

Have your documentation ready. Snowbirds shopping in the fall want fast answers. Permits, roof age, wind mitigation reports and, for condos, the latest reserve study and any pending special assessments should be organized before the first showing.

Price to the buyer in front of you, not the one you hope shows up in February. A well-priced home in November can outsell an overpriced one that sits through the holidays. Free Online Home Value Tool

For Snowbirds Ready to Buy

If you are one of the seasonal residents heading south this fall and thinking about making Southwest Florida permanent, a few steps now can save real headaches later.

Get insurance quotes before you fall in love with a house. Florida property insurance is condition and location specific. A four-point inspection, roof age and wind mitigation features can all affect what you pay, and sometimes whether you can get coverage at all.

Ask about the association before you ask about the amenities. If you are considering a condo, request the latest Structural Integrity Reserve Study and reserve funding schedule. Florida’s reserve rules changed in 2026, and buildings that underfunded reserves for years are now passing that cost to owners through special assessments that can reach thousands of dollars or more.

Get pre-approved, not just pre-qualified. Serious sellers and agents can tell the difference, and a real pre-approval moves faster when the right home appears during a short visit.

Renting First Is Still a Reasonable Plan

 Not every snowbird is ready to buy the first season back, and that is fine. Many of our long-term clients rented for one or two winters before purchasing. What changes this year is the cost of waiting. Inventory has been tightening across Lee County, and the homes that check every box, updated, well located, correctly priced, tend to sell quickly once the season gets underway.

Bottom Line

Snowbird season is not just a lifestyle story. It is a measurable shift in local buyer activity, and both sides of a transaction benefit from planning around it instead of reacting to it. Sellers who prepare now can meet serious buyers before the market gets crowded. Buyers who do their homework on insurance and, if applicable, condo finances, can move quickly and confidently once they find the right home.

Always call the Ellis Team at KW Florida Living at 239-489-4042 to buy or sell in Southwest Florida this season. Or visit https://www.LeeCountyOnline.com to search for your piece of paradise.

76% Say Real Estate is a Hassle Video

Southwest Florida home sellers need to know about an appraisal change coming this fall. Beginning November 2, 2026, new 2026 appraisal rules go into effect. Fannie Mae and Freddie Mac will require all new appraisal reports submitted through the Uniform Collateral Data Portal to use the new Uniform Appraisal Dataset 3.6, commonly called UAD 3.6.

This is not a new formula for determining what a home is worth. It is a new, more detailed reporting standard that changes how appraisers document the property, its condition, features, improvements and market influences.

That distinction matters.

Listing Agent Should Collect More Data at Listing

The old appraisal forms are being replaced by a dynamic Uniform Residential Appraisal Report. The new system captures more standardized information and reduces reliance on broad free-form comments.

For Southwest Florida sellers, more details of the home may become visible in the appraisal process.

Appraisers can report more specific information about kitchens, bathrooms, flooring, condition, quality, updates and other features. They can also separately describe interior and exterior condition when the differences are meaningful.

That matters here because two homes with similar square footage can have very different market appeal. A newer roof, impact windows, remodeled kitchen, updated bathrooms, resurfaced pool, seawall work or newer mechanical systems may matter to buyers, but those features need to be accurately documented.

Views and site influences can also be reported in greater detail. That can be significant in Southwest Florida, where lake, canal, golf course, preserve and views may affect marketability and value.

Photography requirements are also more specific. Depending on the appraisal type, reports may include photos of kitchens, bathrooms, main living areas, updates, views, water frontage and physical defects.

Locate Your Permits

There is a misconception that under the new rules an appraiser can no longer give value to an improvement if a required permit was never pulled.

That is not accurate.

Fannie Mae’s UAD 3.6 policy says that if an appraiser identifies an addition that does not have a required permit, the appraiser must comment on the quality and appearance of the work and its impact, if any, on market value. It does not say the improvement must automatically receive zero value.

In fact, that policy existed before UAD 3.6. Fannie Mae’s previous appraisal guidance contained essentially the same requirement for additions without permits.

However, sellers should not ignore permit issues. An unpermitted addition can still create questions about square footage, zoning, safety, insurance, marketability and lender acceptance. The bigger change is that discrepancies and property characteristics may be documented more systematically.

What Should Sellers Do Now?

First, prepare a detailed improvement list. Include approximate dates and supporting invoices for major items such as the roof, HVAC, water heater, impact windows and doors, kitchen and bathroom renovations, pool resurfacing, seawall, dock, boat lift, plumbing and electrical work.

Second, locate permits when they exist. If you discover an improvement that may have required a permit, investigate it before the home goes under contract rather than waiting for the appraisal or underwriting process to uncover the issue.

Third, fix obvious deferred maintenance. Appraisers are not home inspectors, but visible defects can be photographed and documented. Small repairs handled before listing may prevent larger questions later.

Fourth, make sure property records match the home. Enclosed lanais, converted garages, additions and other changes can create problems when public records and the actual property do not line up.

Proper Pricing

Finally, price the home based on current market evidence. UAD 3.6 does not create automatic dollar adjustments for renovations or upgrades. Appraisers still need market support from comparable sales and buyer behavior.

The new system is already available to lenders and appraisers, but November 2 is the mandatory date for new Fannie Mae and Freddie Mac appraisal submissions.

For Southwest Florida sellers, preparation is the key. The goal is not to influence the appraiser. It is to make sure the home’s condition, improvements and important features can be accurately understood and documented.

Always Call the Ellis Team at KW Florida Living at 239-489-4042 to buy or sell in Southwest Florida today.

September Real Estate market Update Video

Change in Inventory Video

 

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For much of the past two years, Southwest Florida home buyers have had something they rarely enjoyed during the buying frenzy of 2020 through 2022: time. Inventory increased, sellers became more negotiable, and buyers could often look at several homes before deciding what to do.

Window May be Closing

Lee County single-family home inventory has now fallen below 6,000 homes, a level we have not seen since January 2024. At the same time, we are seeing more well-priced homes sell quickly, and some are receiving multiple offers.

Not every home is flying off the market, and buyers should not panic. But the better listings, especially homes that are updated, well located, priced correctly, or difficult to replace, may not sit around while a buyer thinks about them for a week.

Another signal is our Market Spread Index™, which continues to decline. A declining Market Spread Index indicates the spread between supply and demand is tightening. That is generally good news for sellers, but it means buyers are losing some of the negotiating leverage they enjoyed when more homes were available.

Financing Another Challenge

The Federal Reserve meets September 15 and 16, and financial markets are now leaning toward another interest rate increase. The bond market has already been moving higher as investors react to persistent inflation concerns and a more aggressive tone from the Federal Reserve.

Mortgage rates do not move directly with the federal funds rate, but they are heavily influenced by the bond market. When Treasury yields move higher, mortgage rates frequently feel the pressure as well.

That means buyers could be getting squeezed from both directions at once.

They may have fewer homes to choose from while the cost of financing those homes is moving higher.

Buyers tend to focus heavily on purchase price, but for most financed buyers, the monthly payment matters just as much. A buyer waiting for a seller to reduce a price by $5,000 or $10,000 could lose that savings quickly if mortgage rates rise while they wait.

For example, a half-point increase in the interest rate on a $400,000, 30-year mortgage adds roughly $130 per month to principal and interest. That is more than $1,500 per year and more than $15,000 over the first 10 years, assuming the loan remains in place.

Urgency Versus Panic

This is why buyers need to understand the difference between urgency and panic.

We are not suggesting buyers rush into the wrong home, waive important protections, or overpay simply because another buyer is interested. Buyers still need strong representation, good comparable sales, an understanding of property condition, and a clear idea of what a home is worth.

But when the right home appears and the price is supported by the market, hesitation may now carry a cost.

Buyers who are financing should also talk with their lender about rate-lock options. Locking an attractive rate can protect purchasing power if rates move higher before closing.

Real estate statistics are also backward-looking. By the time monthly reports clearly show declining inventory and increasing buyer competition, buyers in the market may have already been experiencing those changes for weeks.

We are seeing those signals now in Southwest Florida.

Market Spread Index Agrees

Inventory is tightening. Our Market Spread Index is declining. More desirable homes are selling quickly. Multiple offers are appearing again. At the same time, the bond market is putting upward pressure on borrowing costs.

Southwest Florida is not back to the extreme market of several years ago, but buyers who assume they still have unlimited time may be surprised.

Know what you want. Know what you can afford. Have financing lined up. Watch new listings closely. When the right property comes on the market at a price that makes sense, be prepared to act.

Southwest Florida Buyers Need Urgency in Today’s Market

Always Call the Ellis Team at KW Florida Living at 239-489-4042 to buy or sell in Southwest Florida today.

September 2026 Southwest Florida Real Estate Market Video Update

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