Southwest Florida Real Estate Market Update [New for December 2022]

Did you know that a Florida Metro area has overtaken Miami as the rental market with the highest annual growth in the country? How about the Florida Metros that are in the top 10 move-to areas in the US? And how did Southwest Florida's real estate market perform in November?

Hi, its Marcus Larrea, and the market stats for November are in. 

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Single Family Stats for November 2022

Lee County
Nov 2021Nov 2022% (+-)
Closed Sales 1,399 777 -44.5%
Closed Sales YTD 16,950 13,699 -19.2%
Median Sale Price $379,900 $400,000 5.3%
Average Sale Price $532,400 $549,789 3.3%
(Inventory) Active Listings 4,326 4,977 15%
Months Supply of Inventory 3 6 100%
Close Price to List Price Ratio 100% 99% -1.3%
Median Time to Contract 7 24 242.9%
Collier County
Nov 2021Nov 2022% (+-)
Closed Sales 520 286 -45%
Closed Sales YTD 7,395 5,040 -31.8%
Median Sale Price $669,500 $850,000 27%
Average Sale Price $1,118,637 $1,522,938 36.1%
(Inventory) Active Listings 1,884 2,369 25.7%
Months Supply of Inventory 4 8 100%
Close Price to List Price Ratio 100% 97% -3.3%
Median Time to Contract 9 35 288.9%

Townhouses & Condo Sales in November 2022

Lee County
Nov 2021Nov 2022% (+-)
Closed Sales 592 372 -37.2%
Closed Sales YTD 8,850 6,149 -30.5%
Median Sale Price $275,000 $325,000 18.2%
Average Sale Price $337,077 $406,195 20.5%
(Inventory) Active Listings 1,455 1,744 19.9%
Months Supply of Inventory 2 5 150%
Close Price to List Price Ratio 100% 99% -1.5%
Median Time to Contract 5 12 140%
Collier County
Nov 2021Nov 2022% (+-)
Closed Sales 532 302 -43.2%
Closed Sales YTD 8,830 5,580 -36.8%
Median Sale Price $380,000 $475,000 25%
Average Sale Price $599,899 $771,381 28.6%
(Inventory) Active Listings 1,554 1,742 12.1%
Months Supply of Inventory 3 6 100%
Close Price to List Price Ratio 100% 97% -2.5%
Median Time to Contract 6 22 266.7%

*Data pulled from Southwest Florida MLS on 12/5/2022

The Markets in Lee & Collier Counties

The total number of closed sales year-to-date across Lee County and Collier County remains down significantly—from 19%–37%—depending on location and property type. Comparing November of this year to November 2021, sales were down between 37% and 45%.

Following Hurricane Ian, Lee County prices have remained fairly steady across all property types. Collier County has seen the highest Median and Average prices since the market's peak in May and June 2022.

Why Is Inventory Up?

Inventory across Lee and Collier Counties is up between 12% and 25%, depending on location and property type, but a significant portion of the new inventory may still have hurricane damage or open insurance claims. Closing and securing financing on such homes typically can't be done until the damage is repaired or the insurance claims are closed.

If you're in the market to buy or sell a home in a hurricane-damaged area, be sure to work with an agent who is well-versed in navigating the challenges of doing so. If you're thinking of buying in a condo community or one under the purview of an HOA, there are some extra steps to take. Since you'll be paying monthly community fees, you'll want to ensure the amenities you're paying for—the pool area, clubhouse, recreation facilities, and common areas—are in working order or else being brought back into working order. 

Surging Rental Prices

While the rest of the nation's rental markets are slowing down, the Fort Myers-Cape Coral market has seen the highest annual increase in rental rates in the US. As of October, the area of Fort Myers and Cape Coral overtook Miami's number-one ranking in annual rental increases. 

The Waller, Weeks, and Johnson Rental Index is compiled by a team of researchers from Florida Atlantic University, Florida Gulf Coast University, and the University of Alabama. According to the Index, renters paid 17.37% more in October 2022 in the Fort Myers-Cape Coral area than in 2021. Lee County officials reported that more than 5,000 homes were lost during Hurricane Ian, while 13,000 homes saw major damage.

People are Flocking to Southwest Florida!

Fortunately, there is some great news for homebuyers, sellers, and those considering a move to Southwest Florida. A November report by Redfin ranked Cape Coral as the #7 move-to metro area in the US, with the highest number of out-of-state homebuyers coming from the Chicago area. Four other Florida metro areas making the top 10 include Miami (#3), Tampa (#5), North Port-Sarasota (#8), and Orlando (#10).

Whether you are looking to buy or sell in this challenging market, if you have any questions or want a free home valuation, our experienced agents at Palm Paradise Real Estate are here for you. Visit us at today to see how we can help!

Thanks for reading and we’ll see you in the next update!

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