Gulf Coast housing market shows signs of stabilizing as homes for sale drop

The Gulf Coast housing market is showing signs of stabilization, with a new report from Florida Gulf Coast University revealing a 19% drop in homes on the market in coastal counties in May compared to the same time last year.

Local realtors said the decrease in available homes reflects steady buyer interest despite market uncertainty.

"We're not going to jump up like we did in 2022, but we are improving," said Sam Yaffey of Experience Real Estate Group. "The prices are leveling out, fewer homes on the market. Homes are selling fast, not flying off the market, but are selling faster."

Yaffey added that the drop in homes and condos for sale is one of many signs the housing market is stabilizing. Other brokers, including Mike Hollow of Blue Line Realty, agreed that fewer sellers do not mean buyers have stopped looking.

"There are people that are continuing to relocate here. The important part, though, is the price. The median price is actually up 4.3% for Cape Coral and for the county from the same time last year," Hollow said.

FGCU's Economic Indicators Report also shows that the number of home sales increased by 4% year over year in May. However, with prices coming down from their peak in 2022, FGCU experts said sellers have little incentive to list their homes.

"They are also not really interested in putting their houses on the market, if not for a specific reason, especially for those who purchased during the pandemic time that paid already a premium," said Amir Neto of FGCU's College of Business.

Both Yaffey and Hollow agreed that now is a good time for buyers to act, especially with property tax reform on the ballot.

"If you are a buyer, you should be committing to a home now as soon as you possibly can. With the property tax changes coming up, that's going to give people lower property taxes," Yaffey said.

"There are plenty of first-time homebuyer down payment assistance programs that are here to listen to Lee County specifically. Take advantage and do the homework," Hollow said.