Fort Myers, Cape Coral are the third most overvalued housing market in the nation

Right now, homes are selling for way over value, especially in Cape Coral.

This might lead prospective homeowners to put off buying a home until the market cools off.

Peter Davis, a broker associate with John Harwood Properties, said the days of people buying homes over market value are gone.

Davis, a broker based in Cape Coral, said he noticed a shift in the market this spring.

“Junk doesn’t sell and buyers aren’t willing to overpay for junk right now because the inventory is creeping up, the days on market is creeping up. So they have more options now,” David said.

During the pandemic, people flocking to Southwest Florida bought anything and everything.

Limited inventory and high demand drove some homes in Cape Coral to sell for as much as 50% over their value.

“We saw very low-interest rates that were the lowest for so long,” said Amir Neto, director of the Regional Economic Research Institute at FGCU. “So people were going above and beyond to try to get that first house.”

But Neto does not believe what is happening is overpricing.

“We haven’t seen those prices really correct yet,” Neto said. “What we’re seeing instead is appraisals, catching up with prices. So we’re seeing that they’re closing the gap.”

Davis disagrees as he saw firsthand buyers willing to put in higher offers to get into a specified zip code.

Now, he is advising clients to use more of their buying power.

“Although they’re going to be paying more for their mortgage and for that money, they’re, I think, in good shape to be able to go in under asking prices and pay, you know, even for quality homes that are new construction,” Davis said.

According to a study by FAU, Fort Myers and Cape Coral are the third most overvalued market in the nation.