Oakland, Cape Coral Post 11.4% Home-Price Drops as 6.4% Mortgage Rates Deepen US Housing Split
Updated
Updated · Mortgage Professional · May 12
Oakland, Cape Coral Post 11.4% Home-Price Drops as 6.4% Mortgage Rates Deepen US Housing Split
5 articles · Updated · Mortgage Professional · May 12
Oakland and Cape Coral led Zillow’s 894-market ranking of the weakest US housing markets, each posting an inflation-adjusted 11.4% year-over-year home-price decline among cities above 100,000 people.
Mortgage rates near 6.4% by late March helped choke off demand after a brief dip below 6%, extending a reversal from pandemic-era highs and widening the gap between stronger and weaker local markets.
Oakland’s average home value fell to about $716,000, down more than $90,000 in real terms from a year earlier and 28% since 2019, with typical monthly payments around $3,680 still outpacing many rents.
Cape Coral’s average home price sits near $338,000 after an 11.4% annual drop, unwinding a pandemic migration boom; FHFA data also showed a 9.1% decline for Cape Coral-Fort Myers over four quarters.
The weakness is concentrated in Florida and California, with brokers seeing more inventory but slower demand recovery, reinforcing a buyer-friendly market and spillover concerns across Southwest Florida.
Are falling home prices in Florida and California the first signs of a nationwide climate-driven real estate correction?
As Sun Belt markets falter, are Rust Belt cities becoming the new frontier for affordable American homeownership?
Is the American dream of homeownership a failing model engineered by financial 'game masters' for their own profit?