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Cape Coral, FL - According to a report from The Wall Street Journal, Cape Coral is experiencing a significant downturn in its housing market.
The Wall Street Journal reports foreclosures are rising, and many open houses are seeing no visitors.
The city, located in Lee County, is now facing what is described as the "worst housing market in America."
In recent years, the number of homes available for sale in Lee County has increased dramatically.
A few years ago, there were around 3,500 homes listed, but a recent analysis found that number has grown to 12,000 homes.
During the same period, home prices in Cape Coral have fallen by 11%, marking the largest drop of any major metropolitan area in the country.
The city also has one of the highest rates of homeowners with negative equity.
Nearly 8% of homeowners in Cape Coral owe more on their mortgages than their properties are worth.
Several factors are contributing to the downturn, including inflated home prices from previous years, rising property insurance and tax rates, overbuilding, and the return of remote workers to in-office jobs.
Natural disasters, such as hurricanes, have also affected the housing market in the area.
Jason Lewris, co-founder of Parcl Labs, noted that with a surplus of homes, low demand, and a significant number of sellers lowering prices, the current market trend is expected to continue.
The ongoing challenges highlight the ongoing struggle of the local housing market.