Cape Coral Housing Market Shows Stability Despite National Crisis Narrative

Written by:

Steve Marcinuk

Date:

31 Oct 2025

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The national media’s portrayal of Cape Coral as one of America’s most distressed housing markets is inaccurate, according to local real estate expert Carleen Murone. In a recent interview, Murone disputed the widespread characterization of the market as underwater and struggling, arguing that outdated reporting has created a misleading picture of the Southwest Florida city’s recovery.

“It’s not as accurate as what a lot of what’s being published. And I’m so happy to have the opportunity to set the record straight,” said Murone, a Realtor with eXp Realty who has worked in the market since March 2022. “The people underwater are the people who bought during covid, they bought in the frenzy. They bought sight unseen, and they just came because they were afraid that they were never going to be out of lockdown.”

Murone, who began her real estate career at the height of market volatility, points to a disconnect between national reporting and local conditions. The Cape Coral market currently has 6.6 months of inventory, which is considered balanced by industry standards that define four to six months as optimal.

According to Murone, most Cape Coral homeowners retain considerable equity in their properties. “Most people have a lot of equity in our homes here, still, anything that was purchased prior to 2022 which is most of the homes, people have a lot of equity,” she said. Murone believes Cape Coral was undervalued before the pandemic surge, and that current pricing is now more in line with regional medians rather than being artificially inflated.

The market has shown signs of stabilization, with data from Altos Research indicating the market needle hovering between 27 and 29, and recently climbing to nearly 31, suggesting sellers are gaining a slight advantage as inventory levels normalize.

Murone pointed out a timing issue with national coverage. “The numbers that were published, and there was a particular article I saw from the Wall Street Journal. They were about six months late in the reporting, and we’ve already shifted,” she said. This lag in reporting has perpetuated an outdated narrative about conditions that have already begun to improve.

Murone observed that Cape Coral may have been ahead of national trends, experiencing inventory spikes and buyer hesitation before similar patterns appeared in other markets. “I kind of felt like Cape Coral led the market in that all of a sudden, the spike in inventory and nobody buying, or less people buying, and we’re starting to see the shift in the rest of the nation.”

Current market activity reveals specific segments performing well. “We’re seeing homes under 400,000 are moving very quickly, and luxury houses are still moving, as long as they’re priced right,” Murone reported. This indicates demand exists across price points when properties are positioned correctly.

Murone also noted increased activity at open houses and renewed interest from buyers who previously left the market. “It’s funny, people have left, and they’re wanting to come back now too. And I’m seeing it all over and in the different forums,” she said, referencing social media discussions where former residents express regret about moving away.

Murone’s assessment suggests Cape Coral’s challenges have been overstated and that recovery is already underway. The combination of balanced inventory, sustained demand in key price segments, and stabilizing market conditions contradicts the crisis narrative that has dominated national coverage.

For those participating in the market, this gap between perception and reality presents both challenges and opportunities, especially as national coverage continues to influence buyer and seller psychology despite improving local fundamentals.