Cape Coral has been consistently ranked among the top 10 most overpriced housing markets in the U.S. over the last few years, according to data from researchers at Florida Atlantic University and Florida International University. However, despite being the second most overpriced housing market in January, the housing premium in Southwest Florida’s most populated city has started to return toward its long-term pricing trend. A premium is measured by the degree of overpricing in terms of a percentage difference between actual and statistically modeled home prices. Over the past month, Cape Coral had a 62-basis point decline. In January, the average/Zillow Home Value Index price of a home was $393,976 and was compared to its expected price of $278,492, showing buyers are paying a 41.47% premium.