April 2022 Real Estate Market Update

Southwest Florida Real Estate Market Update - AprilSpring 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.

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Single Family Stats for March 2022

Lee County
Mar 2021Mar 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%
Collier County
Mar 2021Mar 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

Lee County
Mar 2021Mar 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%
Collier County
Mar 2021Mar 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!


Your April 2021 SWFL Real Estate Market Update

A booming real estate market EVEN without this key demographic???

April's Southwest Florida real estate market update is here!

Hi, it's Marcus Larrea with Palm Paradise Real Estate in Southwest Florida. Home prices continue to increase and inventory continues to drop across Southwest Florida and across the nation.

In last month's market update, I talked about how for every month you wait to buy a home, you will likely pay about 2% more for the home. Well, that trend continues to increase as single-family home prices are now up over 30% in Lee County and a whopping 47% in Collier County year over year! That means we are seeing prices increase monthly 2 to 4.5 percent each month across Southwest Florida!

Condo and townhome prices continue to rise as well but at a slower pace than single-family homes. In Lee and Collier Counties, condo and townhome sale prices are up about 14% from 2020.

One key statistic we have been keeping an eye on under current market conditions is the close price to list price ratio. Homes across Southwest Florida are now selling at an average of 100% of asking price. We can expect this number to increase even more as inventory continues to shrink.

At Palm Paradise Real Estate, we have put together a marketing strategy that is sure to get you top dollar if you are looking to sell your home. If you are looking to cash out on massive equity gains on your property, contact one of our team members today.

What Are the Key Demographics That Are Missing in Our Market?

The real estate market across the nation and specifically in southwest Florida is seeing record prices and record low inventory all without buyers from Canada and Europe! Due to travel restrictions and mandatory quarantine periods of 2 weeks, Canadians specifically have held back on traveling to the United States.

Imagine what will happen when travel restrictions and quarantine periods are lifted and Canadians and Europeans enter the real estate market again!

There are now more real estate agents than homes available for sale nationally. If you are buying or selling, make sure you are working with an experienced team that is up to date on market statistics, listing strategies, and even purchasing strategies. An experienced team will help for a smoother transaction during what can be an already stressful time in this fast-paced market we are in.

As always, you can take a look at the detailed numbers for April below:

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Single Family Stats for April 2021

Lee County
Apr 2020Apr 2021% (+-)
Closed Sales 1,142 1,837 60.9%
Closed Sales YTD 4,527 6,177 36.4%
Median Sale Price $272,000 $355,000 30.5%
Average Sale Price $357,054 $504,088 41.2%
(Inventory) Active Listings 6,564 4,667 -28.9%
Months Supply of Inventory 6 3 -50%
Close Price to List Price Ratio 97.9% 100.0% 2.1%
Median Time to Contract 37 7 -81.1%
Collier County
Apr 2020Apr 2021% (+-)
Closed Sales 440 860 95.5%
Closed Sales YTD 1,875 2,922 55.8%
Median Sale Price $458,750 $677,000 47.6%
Average Sale Price $768,489 $1,215,163 58.1%
(Inventory) Active Listings 3,648 2,406 -34%
Months Supply of Inventory 8 3 -62.5%
Close Price to List Price Ratio 97.4% 100.0% 2.7%
Median Time to Contract 53 9 -83%

Townhouses & Condo Sales in April 2021

Lee County
Apr 2020Apr 2021% (+-)
Closed Sales 550 1,155 110.%
Closed Sales YTD 2,416 3,785 56.7%
Median Sale Price $218,280 $238,600 9.3%
Average Sale Price $286,616 $321,038 12%
(Inventory) Active Listings 3,549 2,212 -37.7%
Months Supply of Inventory 6 2 -66.7%
Close Price to List Price Ratio 96.5% 98.8% 2.4%
Median Time to Contract 34 11 -67.6%
Collier County
Apr 2020Apr 2021% (+-)
Closed Sales 481 1,211 151.8%
Closed Sales YTD 2,030 3,938 94%
Median Sale Price $285,000 $335,000 17.5%
Average Sale Price $417,733 $601,308 43.9%
(Inventory) Active Listings 3,860 2,548 -34%
Months Supply of Inventory 8 2 -75%
Close Price to List Price Ratio 96.0% 98.2% 2.3%
Median Time to Contract 55 17 -69.1%

*Data pulled from Southwest Florida MLS on 5/5/2021

If you have any questions about buying or selling, please don't hesitate to reach out to one of our team members

Thank you so much.


Impact of COVID-19 on SWFL Real Estate Market in April

The impact of COVID-19 on the Southwest Florida Real Estate Market was definitely felt in the month of April.

Hi, I'm Marcus Larrea with Palm Paradise Real Estate.

Considering the circumstances, April performed better than expected with the continuing theme of low interest rates and inventory greatly reduced as people become hesitant to list their homes during these challenging times.

The main stat that caught my attention this month was both median and average sale price. Sales prices took a substantial dip in Collier County but still increased slightly in Lee County. In my opinion, this seems to be due to the luxury market taking a bigger hit this month than homes priced under $500,000. Much of the luxury market is made up of second home buyers. They may be waiting to see how the market plays out, while many other people looking to buy may still need to move their primary residence during these times due to growing families, job relocation, leases expiring, along with many other reasons.

Active listings in Lee and Collier Counties took an even greater dip down a whopping 25% from April of last year. Because of the low inventory, it is still a great time to sell, and prices should still remain fairly steady in most markets. In the first weeks of May, we saw lots of pent-up buyer demand, and we are starting to see more homes go under contract as the economy begins to reopen.

As always, check out the stats below for a more detailed look at the numbers for April in both Lee and Collier counties.

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Single Family Stats for April 2020

Lee County
Apr 2019Apr 2020% (+-)
Closed Sales 1,362 1,115 -18.1%
Closed Sales YTD 4,189 4,471 6.7%
Median Sale Price $265,000 $270,000 1.9%
Average Sale Price $342,412 $357,330 4.4%
(Inventory) Active Listings 8,748 6,414 -26.7%
Months Supply of Inventory 6 6 0%
Close Price to List Price Ratio 97.3% 97.8% 0.5%
Median Time to Contract 49 37 -24.5%
Collier County
Apr 2019Apr 2020% (+-)
Closed Sales 541 423 -21.8%
Closed Sales YTD 1,669 1,820 9%
Median Sale Price $495,000 $460,000 -7.1%
Average Sale Price $985,470 $778,978 -21%
(Inventory) Active Listings 4,579 3,514 -23.3%
Months Supply of Inventory 8 8 0%
Close Price to List Price Ratio 96.2% 97.2% 1%
Median Time to Contract 63 54 -14.3%

Townhouses & Condo Sales in April 2020

Lee County
Apr 2019Apr 2020% (+-)
Closed Sales 816 538 -34.1%
Closed Sales YTD 2,393 2,392 0%
Median Sale Price $205,000 $219,000 6.8%
Average Sale Price $263,413 $286,803 8.9%
(Inventory) Active Listings 4,862 3,428 -29.5%
Months Supply of Inventory 6 6 0%
Close Price to List Price Ratio 96.2% 96.4% 0.2%
Median Time to Contract 53 35 -34%
Collier County
Apr 2019Apr 2020% (+-)
Closed Sales 728 474 -34.9%
Closed Sales YTD 1,943 2,013 3.6%
Median Sale Price $280,000 $283,250 1.2%
Average Sale Price $496,694 $414,896 -16.5%
(Inventory) Active Listings 4,809 3,726 -22.5%
Months Supply of Inventory 7 8 14.3%
Close Price to List Price Ratio 95.9% 96.1% 0.2%
Median Time to Contract 61 55 -9.8%

Ready to Buy or Sell a Home in Southwest Florida? Give Palm Paradise Real Estate a Call!

For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.

If you are looking to buy or sell, or have any questions about the Southwest Florida Real Estate Market, feel free to reach out to one of our real estate professionals to see how we can help you with your real estate needs.

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