Southwest Florida Real Estate Market Update [New for January 2023]
Another year is behind us as 2022 is wrapped up. What does the real estate market look like heading into 2023?
Hello and Happy New Year, everyone! It's Marcus Larrea with Palm Paradise Real Estate. The real estate market in 2022 performed fairly well, considering that markets across the rest of the country saw averages fall. The Southwest Florida market performed better than national averages—even with the impacts felt from Hurricane Ian.
Single Family Stats for December 2022
| Dec 2021 | Dec 2022 | % (+-) | |
|---|---|---|---|
| Closed Sales | 1,445 | 935 | -35.3% |
| Closed Sales YTD | 18,395 | 14,722 | -20% |
| Median Sale Price | $405,000 | $410,000 | 1.2% |
| Average Sale Price | $571,133 | $549,083 | -3.9% |
| (Inventory) Active Listings | 3,830 | 4,827 | 26% |
| Months Supply of Inventory | 3 | 5 | 66.7% |
| Close Price to List Price Ratio | 100% | 98% | -1.7% |
| Median Time to Contract | 8 | 21 | 162.5% |
| Dec 2021 | Dec 2022 | % (+-) | |
|---|---|---|---|
| Closed Sales | 585 | 355 | -39.3% |
| Closed Sales YTD | 7,981 | 5,432 | -31.9% |
| Median Sale Price | $720,000 | $799,000 | 11% |
| Average Sale Price | $1,388,620 | $1,522,987 | 9.7% |
| (Inventory) Active Listings | 1,624 | 2,263 | 39.3% |
| Months Supply of Inventory | 3 | 6 | 100% |
| Close Price to List Price Ratio | 100% | 97% | -3.2% |
| Median Time to Contract | 11 | 29 | 163.6% |
Townhouses & Condo Sales in December 2022
| Dec 2021 | Dec 2022 | % (+-) | |
|---|---|---|---|
| Closed Sales | 699 | 389 | -44.3% |
| Closed Sales YTD | 9,549 | 6,553 | -31.4% |
| Median Sale Price | $292,500 | $326,000 | 11.5% |
| 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% | 98% | -2.3% |
| Median Time to Contract | 5 | 12 | 140% |
| Dec 2021 | Dec 2022 | % (+-) | |
|---|---|---|---|
| Closed Sales | 649 | 359 | -44.7% |
| Closed Sales YTD | 9,479 | 5,964 | -37.1% |
| Median Sale Price | $425,000 | $485,000 | 14.1% |
| Average Sale Price | $682,938 | $776,233 | 13.7% |
| (Inventory) Active Listings | 1,342 | 1,708 | 27.3% |
| Months Supply of Inventory | 2 | 5 | 150% |
| Close Price to List Price Ratio | 100% | 98% | -2.2% |
| Median Time to Contract | 7 | 18 | 157.1% |
*Data pulled from Southwest Florida MLS on 1/5/2023
The number of homes sold across the country through November of 2022 is down over 35% year over year, while the median sale price increased by 3.5%. Average months of inventory is up to 3.3 months across the country, which is up about one month from the year before. The National Association of Realtors will not release numbers for December until late January.
Southwest Florida's Current Market
Comparing these national numbers to the end-of-year numbers in the SWFL MLS, the total number of closed sales in 2022 is down 27% from 2021; the median sale price is up 5.3% year over year; and the months of inventory is up to 5 months.
Remember: months of inventory is how long it would take to sell all existing inventory on the market if no new homes became available. Six months of inventory is considered a balanced market, while under 6 months is a seller’s market, and above 6 months is considered a buyer’s market. It’s interesting to note that our numbers across the board are stronger than the national average—we are closer to a more balanced market (which is healthy) than the rest of the country.
What to Expect in SWFL in 2023
We should expect to see this number stay steady or even drop a little bit as we head into our selling season across Southwest Florida. For a look at the more dialed-in numbers for Lee County and Collier County, check out our January Market Update blog post.
2023 will be an interesting year for the real estate market. My predictions at a local level are that prices should stay fairly steady and even continue to climb but at a much healthier rate of approximately 3% year over year as inventory remains low and demand stays high. Top industry experts are forecasting average price increases across the country of .3%, with some parts of the country seeing small declines and other parts of the country seeing small increases.
Many experts believe that interest rates will climb slightly in the year's first quarter and then start to level off between 5% and 6%. Many buyers are beginning to realize this is the new norm, and we have seen an upward trend in closed transactions over the last two months.
Trust Your Team at Palm Paradise Real Estate
Our team at Palm Paradise Real Estate had an amazing year of growth, and we are thankful for all our current (and future) clients who have entrusted us with their real estate needs. We served over 535 families this year and closed over $205 Million in sales volume, leading us to be the #1 team across all of Southwest Florida in total number of transactions! Again, thank you for trusting our team of professionals.
If you or someone you know is looking to buy or sell in this everchanging market, it is most important to work with an experienced team, like the team at Palm Paradise Real Estate, that is in the trenches and knowledgeable of the up-to-date market conditions. Reach out to one of our professionals today at 239-349-2487 or visit us online at www.PalmParadiseRealEstate.com.
Thanks for watching and we’ll see you in the next video!
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