Southwest Florida Real Estate Market Update [New for December 2021]

Southwest Florida Real Estate Market Update - DecemberAs we near the end of the year, it's time for the last market update before we head into 2022. If you're thinking of buying or selling this holiday season—particularly if you want to avoid the busy season in Florida as more homes start listing in January—you'll want the most up-to-date information on the Southwest Florida real estate market. We've got you covered. Here's your real estate market update for December.

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

Your SWFL Real Estate Market Update Going Into December 2021

The Southwest Florida Real Estate Market continues to outpace the rest of the country...

...and how will our local real estate market perform in 2022?

Hi, it's Marcus Larrea with Palm Paradise Real Estate, and I'll give you those answers shortly, but first, let's check out how the month of November performed across Southwest Florida.

November's numbers come in across the board fairly flat from September. Single-family homes, townhomes, and condos all continue to sell very quickly with limited inventory as we remain in a sellers' market.

Inventory has stayed even at a time when we have historically seen inventory increase from October to November each year over the last decade with the exception of 2020. This is interesting to note, as some people selling choose to list prior to the holidays to avoid competition from other sellers during our seasonal months of January to April when inventory for the year typically peaks.

Due to the supply issues that we continue to face across the country and especially in our local market, we have yet another month-to-month increase in both median and average sale prices for single-family homes in both Lee and Collier Counties.

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Single Family Stats for November 2021

Lee County
Nov 2020Nov 2021% (+-)
Closed Sales 1,389 1,361 -2%
Closed Sales YTD 14,165 16,815 18.7%
Median Sale Price $320,000 $377,250 17.9%
Average Sale Price $420,548 $533,724 26.9%
(Inventory) Active Listings 5,465 4,246 -22.3%
Months Supply of Inventory 4 3 -25%
Close Price to List Price Ratio 98.5% 100.0% 1.5%
Median Time to Contract 15 7 -53.3%
Collier County
Nov 2020Nov 2021% (+-)
Closed Sales 649 493 -24%
Closed Sales YTD 6,129 7,299 19.1%
Median Sale Price $550,000 $675,000 22.7%
Average Sale Price $988,432 $1,113,726 12.7%
(Inventory) Active Listings 2,846 1,837 -35.5%
Months Supply of Inventory 4 4 0%
Close Price to List Price Ratio 97.6% 100.0% 2.5%
Median Time to Contract 28 9 -67.9%

Townhouses & Condo Sales in November 2021

Lee County
Nov 2020Nov 2021% (+-)
Closed Sales 728 573 -21.3%
Closed Sales YTD 6,732 8,800 30.7%
Median Sale Price $216,500 $275,000 27%
Average Sale Price $282,907 $336,840 19.1%
(Inventory) Active Listings 3,237 1,397 -56.8%
Months Supply of Inventory 4 2 -50%
Close Price to List Price Ratio 97.0% 100.0% 3.1%
Median Time to Contract 38 4 -89.5%
Collier County
Nov 2020Nov 2021% (+-)
Closed Sales 646 506 -21.7%
Closed Sales YTD 5,897 8,763 48.6%
Median Sale Price $295,000 $380,000 28.8%
Average Sale Price $467,069 $601,974 28.9%
(Inventory) Active Listings 3,636 1,513 -58.4%
Months Supply of Inventory 6 3 -50%
Close Price to List Price Ratio 96.3% 100.0% 3.8%
Median Time to Contract 44 6 -86.4%

*Data pulled from Southwest Florida MLS on 12/6/2021

The price increases in Southwest Florida are amongst the top in the country. According to the Federal Housing Finance Agency Price Index which released its Q3 top 100 price study, U.S. home prices rose an average of 18.5% year over year in the third quarter. Florida had 8 metro areas come in above the national average in the top 100 ranking.

  • The Cape Coral - Fort Myers market, which also includes Naples, came in at #2 in the country with an astounding 34.7% year-over-year price increase.
  • The Tampa – St. Petersburg – Clearwater market came in at #10 with a 25.2% year-over-year increase.

You can view where the other top Florida markets finished below:

Florida Metros Ranked in FHFA's Q3 Top 100 Price Study

2. Cape Coral-Fort Myers: 34.7% year-over-year; 9.8% quarter-over-quarter

8. North Port-Sarasota-Bradenton: 25.6% year-over-year; 6.6% quarter-over-quarter

9. West Palm Beach-Boca Raton-Boynton Beach: 25.5% year-over-year; 5.7% quarter-over-quarter

10. Tampa-St. Petersburg-Clearwater: 25.2% year-over-year; 6.5% quarter-over-quarter

15. Jacksonville: 23.3% year-over-year; 9.1% quarter-over-quarter

17. Fort Lauderdale-Pompano Beach-Sunrise: 22.4% year-over-year; 6.5% quarter-over-quarter

24. Miami-Miami Beach-Kendall: 21.2% year-over-year; 5.4% quarter-over-quarter

28. Orlando-Kissimmee-Sanford: 20.5% year-over-year; 6.3% quarter-over-quarter

*FHFA calculates housing prices using seasonally adjusted, purchase-only data from Fannie Mae and Freddie Mac.

Our Market Predictions Going Into 2022

2021 has turned out to be a hot year for the real estate market across the country, in Florida, and especially in Southwest Florida. Will we see these trends carry over into 2022 locally as many other parts of the country have begun to see a slowdown?

My prediction for 2022 is that we will begin to see the market normalize a bit more towards pre-pandemic conditions. It will not be a record year like 2021. However, it will still be an excellent year for property values as prices will continue to increase across Southwest Florida while inventory and supply chain issues still pose a problem. Many experts expect interest rates to climb above 4% in 2022, but this will not be enough to bring prices down.

Palm Paradise Real Estate is Ready to Help You Buy or Sell Your Florida Home

The outlook for 2022 will continue to give us a competitive market in which both buyers and sellers will want to work with an experienced, innovative team equipped with the latest market data to give them an advantage.

The Palm Paradise Real Estate Team will have closed over 440 transactions in 2021 in markets across Southwest Florida, including Marco Island, the city of Naples, the Bonita Springs community, the Estero community, Fort Myers and the surrounding beaches, the city of Cape Coral, the Clearwater community, the city of St. Petersburg, and the Tampa area.

Our team is prepared and ready for you when you need us. If we can be of any service to you and your real estate needs, please reach out to one of our team members online or give us a call at 239-349-2487.

From our family at Palm Paradise Real Estate to yours, we wish you a happy holiday season and may you have a joyful and healthy New Year as we head into 2022.

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