Southwest Florida Real Estate Market Update [New for April 2022]
Spring is well underway here in Southwest Florida, and so is our local real estate market. We're at the tail end of Florida's usual busy season that started back in January, but there's still plenty of activity going on. Thinking about buying or selling your home this spring? You're going to want to keep reading for the latest update on the Southwest Florida real estate market for April.
For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.
The Status of the SWFL Real Estate Market Headed into April 2022
For the first time ever, what may have made more money than your job last year? How quickly are interest rates expected to rise?
Hi, it's Marcus Larrea with Palm Paradise Real Estate, and the numbers on how the real estate market in Southwest Florida performed in March are in.
The housing market is still hot with many buyers competing for a limited number of properties.
Single Family Stats for March 2022
| Mar 2021 | Mar 2022 | % (+-) | |
|---|---|---|---|
| Closed Sales | 1,861 | 1,623 | -12.8% |
| Closed Sales YTD | 4,397 | 4,036 | -8.2% |
| Median Sale Price | $344,000 | $425,000 | 23.5% |
| Average Sale Price | $478,639 | $596,197 | 24.6% |
| (Inventory) Active Listings | 4,972 | 4,588 | -7.7% |
| Months Supply of Inventory | 3 | 3 | 0% |
| Close Price to List Price Ratio | 100.0% | 100.0% | 0% |
| Median Time to Contract | 11 | 6 | -45.5% |
| Mar 2021 | Mar 2022 | % (+-) | |
|---|---|---|---|
| Closed Sales | 948 | 642 | -32.3% |
| Closed Sales YTD | 2,110 | 1,550 | -26.5% |
| Median Sale Price | $628,500 | $800,000 | 27.3% |
| Average Sale Price | $1,270,382 | $1,456,140 | 14.6% |
| (Inventory) Active Listings | 2,695 | 2,057 | -23.7% |
| Months Supply of Inventory | 3 | 3 | 0% |
| Close Price to List Price Ratio | 98.9% | 100.0% | 1.1% |
| Median Time to Contract | 16 | 7 | -56.3% |
Townhouses & Condo Sales in March 2022
| Mar 2021 | Mar 2022 | % (+-) | |
|---|---|---|---|
| Closed Sales | 1,238 | 763 | -38.4% |
| Closed Sales YTD | 2,645 | 1,837 | -30.5% |
| Median Sale Price | $229,000 | $316,000 | 38% |
| Average Sale Price | $307,717 | $395,297 | 28.5% |
| (Inventory) Active Listings | 2,644 | 1,801 | -31.9% |
| Months Supply of Inventory | 2 | 2 | 0% |
| Close Price to List Price Ratio | 98.0% | 100.0% | 2% |
| Median Time to Contract | 22 | 4 | -81.8% |
| Mar 2021 | Mar 2022 | % (+-) | |
|---|---|---|---|
| Closed Sales | 1,174 | 698 | -40.5% |
| Closed Sales YTD | 2,753 | 1,632 | -40.7% |
| Median Sale Price | $329,000 | $480,000 | 45.9% |
| Average Sale Price | $555,103 | $763,093 | 37.5% |
| (Inventory) Active Listings | 3,056 | 1,987 | -35% |
| Months Supply of Inventory | 3 | 3 | 0% |
| Close Price to List Price Ratio | 97.8% | 100.0% | 2.2% |
| Median Time to Contract | 30 | 4 | -86.7% |
*Data pulled from Southwest Florida MLS on 4/5/2022
Inventory for March in Lee County is down almost 8% for single-family homes and down 32% for condos and townhomes. Compare that to year-over-year numbers for January and inventory was down 17% for single-family homes and 51% for condos and townhomes.
In Collier County, inventory for single-family homes is down about 24%, and for townhomes and condos, there is a decrease of 35% from March of last year. Compare that to January's year-over-year numbers and those numbers were down 33% for single-family homes and down 54% for condos and townhomes.
As you can see, the numbers for inventory are starting to improve, but demand still remains high as the median days to contract remains very low for our market at 4-7 days… just enough time for sellers to allow a day or 2 of showings, receive multiple offers, review them all, and accept the best offer.
Months supply of inventory (which is how long it would take to sell all of the inventory currently on the market if no new properties were listed) still remains at 2-3 months. This means we are still very deep in a sellers' market.
To top it all off, price increases have not slowed across Southwest Florida. The median sale price in Lee County from March 2021 to March 2022 is up over 23% for single-family homes and is up 38% for condos and townhomes.
In Collier County, the price increases are even more dramatic year-over-year with prices up over 27% for single-family homes and up 46% for condos and townhomes!
Should You Be Worried About a Market Crash?
Some people may say that we are heading towards a crash across the U.S. However, based on the numbers, the amount of cash buyers we are seeing, the large amount of equity homeowners have, and the law of supply and demand, we still do not see any reason for concern that a crash is coming.
Rising interest rates may slow the market a bit, which would actually be healthy for the market. Speaking of interest rates…
The Fed is expected to raise rates again 6 more times this year! That would most likely push mortgage rates up over 6% by the end of the year. We strongly advise buying sooner than later, especially if financing, to avoid decreasing your purchasing power and increasing your monthly payment. Check out last month's market update to learn more about this.
To Answer Our Question in the Beginning...
So, what may have made more money than your job last year? Your house! According to Zillow, the value of the average home in the U.S. rose by $52,667 to $321,634. If you compare that to the average pre-tax wages of approximately $50,000 for a full-time employee, home values across the U.S., for the first time ever, made more than our jobs.
If you are thinking about buying a home in this competitive market or selling to cash in on this unprecedented equity increase, or if you have any questions about market conditions, please get in touch with us online or give us a call at 239-349-2487.
Thanks for watching!
Post a Comment