Report: four markets in region among top 10 nationally in home price cuts

Four markets along the Gulf Coast are among the 10 coolest markets for residential real estate in the U.S., according to a study by real estate analytics firm Cotality. The study found that Cape Coral, Naples, Punta Gorda and North Port all experienced price drops in September that put them among those with the greatest year-over-year decreases.

Leading the “Top 10 Coolest Markets” list was Champaign, Illinois, which saw a 7.9% year-over-year home price price drop. It was followed by Cape Coral, with a 7.1% decrease; Naples, with a 6.7% decrease; and Punta Gorda, with a 6.2% price drop. North Port was sixth on the list with a 5.1% year-over-year decrease in home prices. (The MSA for the North Port market is North Port-Sarasota-Bradenton.) 

Home inventory is at the highest level since 2019, according to the report, which attributes weaker demand to pressures on one segment of potential homebuyers.

“Lower-income potential homebuyers are facing challenges due to an uncertain job market, sluggish wage growth and worsening financial conditions,” Cotality’s Chief Economist Selma Hepp says in a statement. “This is leading to weaker demand for homes and downward pressure on prices.”

Cotality also listed five markets to watch with a “very high risk of price decline,” including two in the region: Cape Coral and Lakeland, where the median home prices in September were $360,000 and $310,000, respectively.