The Southwest Florida housing market is transitioning from a hot seller’s market to a more balanced one. Here’s a breakdown:

Sales: Compared to the crazy years of 2020-2022, sales are down a bit, but they’re catching up to the pre-boom levels. Think of it as a cool down, not a freeze. February sales were just 2% lower than the average February sales from 2017-2019.
Inventory: More houses are coming onto the market (new listings), but not as quickly as sales are happening. This means there aren’t too many houses sitting unsold for long periods.
Supply and Demand: In most areas, things are pretty balanced between buyers and sellers. It’s not a free-for-all for sellers anymore, but there’s still healthy interest.
Price Watch: The good news for buyers is that the rapid price increases have stopped. The average sales price has been stable over the past year.
Exceptions: There are a few neighborhoods where there are more houses for sale than interested buyers. In these areas, sellers might need to be more flexible with their asking price to attract buyers.

Getting Help: A local real estate agent can be your secret weapon in this market shift. They can give you the inside scoop on specific neighborhoods, including how supply and demand affect prices in your target area. Their expertise can help you buy or sell your house with the best possible outcome, whether you’re a buyer navigating a more balanced market or a seller in a neighborhood with higher inventory.

Quick Market Overview: What’s Happening in Southwest Florida?

As of early February 2024, a whopping 16,078 properties are up for grabs in Southwest Florida, offering a diverse range for potential buyers. Fort Myers, in particular, leans toward a buyer’s market. This means there’s an abundance of homes available relative to the number of buyers. For savvy buyers, this situation presents an opportunity to negotiate favorable terms and prices.

Spotlight on Fort Myers: High Demand with a Twist

Fort Myers and Naples are buzzing with activity as people from the Midwest and Northeast flock to these sunny havens. As of early March 2024, the housing stock has reached an 8-month supply, signaling a buyer’s market. However, there’s a subtle twist: buyer interest has slightly waned due to rising interest rates (although they’ve recently eased from their peak).

Looking Ahead: Prices and Predictions for 2024

In February 2024, the median home sold price in Fort Myers stood at $369,734, marking a 3.8% increase from the previous year. Additionally, the median price per square foot was $243. The outlook for 2024 remains positive, driven by strong demand from seasonal visitors and cash buyers seeking their slice of paradise. Despite a slight dip in buying activity, the market’s foundation remains solid.

Advice for Buyers: Why Waiting Might Not Be Wise

If you’re contemplating a purchase, seize the moment! Get your finances in order and present a compelling offer. Remember the golden rule: “Marry the house, date the rate.” Buying now and potentially refinancing later can pay off handsomely. So, let’s navigate this exciting real estate landscape together! 🏡🌴

The highlights for November were inventory and the median price. Inventory ended the month at 1,038, the first time it’s been above 1,000 units since November of 2020. As for the median price, it’s still holding in pretty much the same range since April of 2022. While showing an increase from last November, new listings, pending sales and average days on market all declined from the previous month. New listings were down 12%, pending sales were down 4.3% and average days on market were down 19%. Closed sales, however, were up 1.4% from a year ago and 16% from this October.

“I think the slowdown in new listings and pending sales from October are another indication of the market returning to pre-pandemic behavior as both buyers and seller shift their focus to the holiday season,” said Adam Ruud, managing broker and owner of Domain Realty.

“Overall the market feels much healthier now than where it was a year ago,” said Steve Kolenda, managing broker for Berkshire Hathaway Florida Realty’s Bonita Springs office. “It’s great to see a larger selection for buyers while maintaining strong price points. In many ways it’s a win-win scenario.”

Looking at November of 2022 compared to November 2023, the market showed positive gains for new listings increasing 21.9%, pending sales units increasing 4.7%, closed sales units increasing 1.4% and median closed price increasing by 12.2%. Despite the many positive increases, days on market also increased from 32 days to 51 days. This figure, historically, is still not bad. Sales price as a percentage of listing price decreased by 1.1% and the percentage of cash sales decreased by 7.6%.

There is a lot of speculation regarding 2024 and where the market will go. Many local brokers and realtors applaud NAR Chief Economist Lawrence Yun and other leading housing analysts that better days are ahead for the real estate market nationwide.

According to the National Association of Realtors (NAR), “Mortgage rates likely have peaked and are now falling from their recent high of nearly 8%. NAR predicts the 30-year fixed-rate mortgage to average 6.3% in 2024; realtor.com projects 6.5%. This likely will improve housing affordability and entice more home buyers to return to the market, Yun says. NAR’s data shows that rates near 6.6% enable the average American family to afford a median-priced home without devoting more than 30% of their income to housing, the threshold commonly used to measure affordability.

NAR is projecting that existing-home sales will rise 13.5% and new-home sales — which are up about 5% this year, defying market trends — could increase another 19% by the end of next year.” ¦

Courtesy of NAR

The average selling price for the 12 months leading up to March 31, 2023, was $801,702, up 20% from the previous 12-month period when the average selling price was $670,142. In the 12 months leading up to March 31, 2023, closed sales decreased by 30% from the previous year, dropping from 36,886 to 25,837. Meanwhile, in March, 2,644 sales were recorded, marking a 20% decline compared to March of 2022. Nevertheless, closed sales in March were consistent with pre-pandemic levels.

As of March 31, 2023, there were 7,322 properties listed for sale, a 193% increase from one year prior and an 8% increase from the previous month. New listings for the 12-month period ending March 31, 2023, decreased by 3% from the preceding 12 months, from 36,089 to 35,112. However, new listings for March saw a 4% increase from the same period in 2022, but fell 7% short of pre-pandemic levels. The supply of properties available as of March 31, 2023, was 3.40 months, a 319% increase from March 2022, when supply was at .81 months, and up from February’s 3.07 months of supply.

The average selling price for the 12 months leading up to March 31, 2023, was $801,702, up 20% from the previous 12-month period when the average selling price was $670,142.

Year-to-date figures show that closed sales in Southwest Florida are slightly up compared to pre-pandemic trends, although they have decreased from the peak of the market. Monthly sales have been variable compared to pre-pandemic levels, with January down 2%, February up 5%, and March unchanged. However, the pace of sales for each of these months was better than the second half of 2022, when monthly sales were 8% to 19% below pre-pandemic levels. New listings have been slow to enter the market for 12 of the past 15 months, with March’s new listings showing a 4% decline from the previous year and a 7% decline from pre-pandemic levels. These declines are modest compared to the last five months of 2022 when monthly new listings were between 14% and 49% below pre-pandemic levels. Overall, new listings and closed sales are currently trending closer to normal than in the second half of 2022, which is a positive trend. Inventory is slowly increasing, offering buyers more options but not yet indicating an oversupply. It’s important to remember that market conditions vary by location, so buyers and sellers should consult their Realtor® to assess their local market.

Call with All Real Estate Questions
Phone: (239) 822-5763/Text Stephanie Wilfong
Bestfortmyersrealestate.com
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John Castilone
P: (239) 900-5209 E: jcastilone@bayeq.com

Selling your home in a post-pandemic world

Higher home prices combined with ballooning mortgage rates have made home selling a greater challenge in the post-pandemic era.

As always, capturing buyers’ interest is the first step to landing a sale. With housing so uncertain right now, adding a layer of predictability can be a valuable advantage.

Sometimes, it may be as easy as offering and highlighting included appliances. If not, there are other ways to catch a buyer’s eye.

In a high-mortgage environment, one might offer an interest rate buy down. Though typically negotiated between the buyer and the buyer’s lender, there’s no rule against the seller ponying up the dough to lower the interest rate, making future mortgage payments more manageable.

The “rate buy down” can also come in the form of a specific amount of money credited at closing. That way, the buyer can choose to use the cash toward points on their mortgage, or they can cover their closing costs.

Not only do mortgage rate buy downs directly address a pain point most buyers are facing, they also usually make less of an impact than significantly slashing the price.

A seller might also offer to pay for a big-ticket item. The average age of homes in America is 40 years. Therefore, there is probably a major detail – the hot water heater, the roof, or HVAC – due for replacement. Buyers love new systems and appliances. Either do it before the sale or offer to cover the cost from sale proceeds.

Consider a home warranty, as well. Homes with a warranty sell significantly faster and for more money. And sellers with existing home warranties can transfer the contract to the buyer!

Those with VA loans may be unaware they can be assumed, or taken on, by buyers. The new borrower will not need to meet any military service requirements – but will need to prove their financial qualifications to the lender.

Some sellers use “micro” price drops to trigger interest. But be cautious. Pricing a home too high can make it harder to sell. Many serious buyers get turned off by inflated prices and may not come back when the price gets slashed.

Pick a real estate agent with a proven sales record, great marketing strategies and outstanding references or reviews. Setting the right price is crucial to selling a home promptly.

During the pandemic, demand for larger homes with outdoor spaces and home offices surged and remain very desirable. Highlighting these features attracts buyers to maximize the selling price.

Real Estate

Fort Myers is a popular destination for those looking to purchase a home, whether as a permanent residence or as a vacation property. Located on the Gulf Coast of Florida, Fort Myers offers beautiful beaches, a thriving arts scene, and a variety of outdoor activities. If you’re considering buying a house in Fort Myers, there are several neighborhoods and areas that stand out as particularly desirable places to call home.

One of the best places to buy a house in Fort Myers is the historic downtown district. This area is home to a number of charming, older homes that have been beautifully restored, as well as newer construction that blends in with the historic architecture. Downtown Fort Myers is walk-able and bike-able, with a number of restaurants, coffee shops, and boutiques within easy reach. It’s also close to the Caloosahatchee River, which offers plenty of opportunities for boating and fishing.

McGregor Boulevard Corridor

Another popular area for home buyers in Fort Myers is the McGregor Boulevard corridor. This area is known for its large, well-maintained homes that often feature lush landscaping and swimming pools. McGregor Boulevard is a major corridor in the city of Fort Myers, Florida. McGregor Boulevard runs parallel to the Caloosahatchee River and is a main thoroughfare for both tourists and locals alike. One of the main attractions along McGregor Boulevard is the Edison and Ford Winter Estates, a 20-acre property that was home to inventor Thomas Edison and his friend, Henry Ford. The estates feature a variety of historical buildings, including Edison’s laboratory, where he conducted many of his famous experiments, and the Edison Botanic Research Laboratory, where he developed rubber from local plants. The property also includes the Edison Ford Museum, which displays a collection of artifacts and memorabilia from the lives of Edison and Ford.

Caloosahatchee River

Another notable attraction along McGregor Boulevard is the Caloosahatchee River, which runs parallel to the boulevard. The river is a popular spot for boating, fishing, and other water sports. There are several marinas and boat ramps located along McGregor Boulevard, as well as several parks and nature preserves areas.

In addition to its historical and recreational attractions, McGregor Boulevard is also home to a variety of shops, restaurants, and businesses. From quaint antique shops to modern chain stores, there is something for everyone along McGregor Boulevard. The boulevard is also home to several art galleries and studios, as well as a number of local cafes and restaurants. View Fort Myers Real Estate

In short, McGregor Boulevard is a vibrant and diverse corridor that offers something for everyone. Its mix of history, recreation, and commerce make it a must-see destination for anyone visiting the Fort Myers area.

Southeast part of Fort Myers

For those who prefer a more suburban feel, the neighborhoods in the southeast part of Fort Myers may be a good option.

The southeast part of Fort Myers, Florida is a vibrant and diverse area that offers something for everyone. Located in Lee County, this part of the city is home to a variety of recreational activities, cultural attractions, and natural beauty. River District High-Rises.

One of the main attractions of the southeast part of Fort Myers is the Caloosahatchee River, which runs through the area. The river is a popular spot for boating, fishing, and other water sports, and is home to a number of marinas and boat ramps. The southeast part of the city is also home to a number of parks and nature preserve areas, including the Caloosahatchee Creeks Preserve and the Six Mile Cypress Slough Preserve.

In addition to its natural beauty, the southeast part of Fort Myers is home to a variety of cultural attractions. The area is home to the Edison and Ford Winter Estates, which were home to inventor Thomas Edison and his friend, Henry Ford. The estates feature a variety of historical buildings, including Edison’s laboratory, where he conducted many of his famous experiments, and the Edison Ford Museum, which displays a collection of artifacts and memorabilia from the lives of Edison and Ford. Homes nearby are Edison Park and Allen Park.

The southeast part of Fort Myers is also home to a number of shops, restaurants, and businesses. From quaint antique shops to modern chain stores, there is something for everyone in this part of the city. The area is also home to a number of local cafes and restaurants, which serve up a variety of fresh seafood and other local specialties.

This area is known for its large, newer homes on spacious lots, as well as its convenient location near shopping centers and schools.

With its beautiful natural surroundings, cultural attractions, and variety of recreational activities and amenities, it is a must-visit destination for anyone visiting the city.

Edison and Ford Winter Estates

Finally, the area around the Edison and Ford Winter Estates is a desirable place to buy a house in Fort Myers. This historic neighborhood is home to the winter homes of inventor Thomas Edison and industrialist Henry Ford, as well as a number of other historic houses. The homes in this area range from small cottages to large estates and many of them feature charming architectural details and mature trees. The area around the Edison and Ford Winter Estates is home to a number of recreational activities and attractions. The Caloosahatchee River, which runs along the estates, is a popular spot for boating, fishing, and other water sports. The area is also home to a number of parks and nature preserve areas, including the Caloosahatchee Creeks Preserve and the Six Mile Cypress Slough Preserve.

Overall, there are many great places to buy a house in Fort Myers, each with its own unique character and amenities. Whether you’re looking for a historic downtown home, a beachfront retreat, or a suburban oasis, you’ll find plenty of options to choose from in this vibrant and diverse city.

August 2022 Market Report

What is Going to Happen 2nd Half 2022 Real Estate Market?

Here is what the experts say about the 2022 real estate market.

The number of homes for sale is increasing.

That’s partly due to more homeowners listing their homes, but also because higher mortgage rates have helped ease the intensity of buyer demand.

Moderating buyer demand slows down the pace of home sales, which in turn helps inventory rise.

According to Coreloqic, homes appreciated 15% in 2021, and they’ve continued to rise this year. On average, homes are forecast to appreciate by about 8.5% in 2022

Even though housing supply is increasing today, there are still more buyers than there are homes for sale. This is maintaining the upward pressure on home prices. This is why experts are not calling for prices to decline. Just a moderate price increase pace this year.