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 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 are we are starting to see more homes go under contract as the economy begins to reopen.
As always, check out the image below for a more detailed look at the numbers for April in both Lee and Collier counties.
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.