March 2022 Real Estate Market Update

Southwest Florida Real Estate Market Update - MarchAre you ready for your Southwest Florida March real estate market update? If you're thinking about buying or selling, we've compiled a lot of data that you're going to want to see. Keep reading to see what's been happening in the SWFL real estate market this month.

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 March 2022

What percentage of homes are selling ABOVE asking price across Southwest Florida? And what are the 3 primary factors that impact affordability when it comes to purchasing a home?

Hi, it's Marcus Larrea, Team Lead at Palm Paradise Real Estate, and the market across Southwest Florida sees no signs of slowing trends as low inventory and price increases continue through February.

Palm Paradise Real Estate Logo

Single Family Stats for February 2022

Lee County
Feb 2021Feb 2022% (+-)
Closed Sales 1,314 1,220 -7.2%
Closed Sales YTD 2,536 2,314 -8.8%
Median Sale Price $332,418 $415,000 24.8%
Average Sale Price $468,465 $568,264 21.3%
(Inventory) Active Listings 5,063 4,377 -13.5%
Months Supply of Inventory 4 4 0%
Close Price to List Price Ratio 98.7% 100.0% 1.3%
Median Time to Contract 16 7 -56.3%
Collier County
Feb 2021Feb 2022% (+-)
Closed Sales 616 449 -27.1%
Closed Sales YTD 1,162 1,065 -8.3%
Median Sale Price $555,000 $695,000 25.2%
Average Sale Price $1,160,537 $1,275,299 9.9%
(Inventory) Active Listings 2,717 1,954 -28.1%
Months Supply of Inventory 4 4 0%
Close Price to List Price Ratio 97.9% 100.0% 2.1%
Median Time to Contract 28 7 -75%

Townhouses & Condo Sales in February 2022

Lee County
Feb 2021Feb 2022% (+-)
Closed Sales 779 545 -30%
Closed Sales YTD 1,407 1,056 -24.9%
Median Sale Price $225,000 $319,000 41.8%
Average Sale Price $298,348 $397,636 33.3%
(Inventory) Active Listings 2,874 1,652 -42.5%
Months Supply of Inventory 4 3 -25%
Close Price to List Price Ratio 97.3% 100.0% 2.8%
Median Time to Contract 31 4 -87.1%
Collier County
Feb 2021Feb 2022% (+-)
Closed Sales 857 422 -50.8%
Closed Sales YTD 1,579 917 -41.9%
Median Sale Price $320,000 $435,250 36%
Average Sale Price $568,536 $785,229 38.1%
(Inventory) Active Listings 3,199 1,778 -44.4%
Months Supply of Inventory 4 4 0%
Close Price to List Price Ratio 97.2% 100.0% 2.9%
Median Time to Contract 38 5 -86.8%

*Data pulled from Southwest Florida MLS on 3/7/2022

The median sale price for Single Family homes in both Lee County and Collier County is up 25% from February of 2021.

The median sale price for Condos and Townhomes is up 42% in Lee County and up 36% in Collier County from February of last year.

Inventory also continues to pose a problem across all property types continuing to push prices higher.

Inventory in Lee County for Single Family homes is down over 13% from 2021 and in Collier County, Single Family home inventory is down over 28%.

Inventory for Condos and Townhomes in Lee County is down over 42%, and in Collier County, it is down over 44%.

Lately, we have been seeing inventory decrease faster and prices increase faster for Condos and Townhomes than for Single Family homes.

Many people are being priced out of the market for single-family homes and are having to open up to the idea of Condos and Townhomes, which are oftentimes less expensive, as seen by the median sale price difference. You can take a look at the detailed market stats above.

Homes across all counties and for all property types continue to sell within days as the median time to contract remains between 4-7 days, just long enough for multiple offers to be accepted and reviewed by sellers.

Homes are also selling at record highs above list price. Out of 2,743 properties sold across the SWFL MLS in February, over 34% of properties sold anywhere from 1% to up to 52% above asking price! Another 32% sold at asking price. Approximately 66% of homes sold in February throughout Southwest Florida sold at or above asking price.

What are the 3 Primary Factors That Impact Affordability When Purchasing a New Home?

The first measure of affordability is home prices.

Home prices have increased by over 19% nationally and by about 30% locally from January 2021 to January 2022.

The second factor to take into consideration with affordability is mortgage rates.

While both global uncertainty and national economic conditions make it difficult to predict mortgage rates, we do know that rates have risen almost 1 full percentage point higher since February 2021.

As discussed in previous market updates, for every 1 percentage point increase in your interest rate, your purchasing power decreases by 9% to 11%.

The last factor in measuring affordability is wages. This is the one big positive right now for buyers.

Prices are up and mortgage rates are increasing, but so are wages.

According to ADP, incomes rose by 5.9% last year, and if you switched jobs, income rose an average of 8%.

So in effect, some of the higher costs of buying a home have been offset in part by more cash income.

Or in other words, buyer income is generally still greater than required.

What Does This Mean for Buyers and Sellers?

In summary, the unique market conditions across Southwest Florida are still prime for both buyers and sellers even though we are still deep in a seller's market.

If buying, you want to take advantage and buy before both prices and interest rates increase even further.

If selling, it is a great time to capitalize on massive equity gains that property owners have seen, especially over the last 2 years.

If you'd like to discuss your upcoming real estate needs, whether you are considering buying or selling, you can reach any of our experienced team members online through our contact page or give us a call at 239-349-2487.


March 2021 SWFL Real Estate Market Update

What is a key factor driving the real estate market nationally that not many people are discussing? Plus a shocking statistic for buyers. The Southwest Florida MLS data from March is in, and you do not want to miss this month's market update.

Hi, it's Marcus Larrea with Palm Paradise Real Estate in Southwest Florida.

Trends of low inventory and increasing prices continue into March with no signs of slowing for the foreseeable future.

Closed sales year-to-date across all of SWFL are up over 40% from last year. Couple this with inventory down over 30% year over year and this is why we are seeing prices increase so rapidly as the lack of inventory will continue to get worse both nationally and locally.

Homes are selling at a rapid pace as we are seeing months supply of inventory drop even further to 2-3 months, going even deeper into a seller's market. Average days on market in Lee County and Collier County are down almost 75% from last year and close price to list price ratio is creeping closer and closer to 100% as we see many homes selling at or above list price.

As interest rates continue to increase, many buyers are feeling the urgency to buy sooner over the next 1-2 years while interest rates remain relatively low.

Here at Palm Paradise Real Estate, we are feeling the hot market. We have never been more productive as our total closed sales in the first quarter are already at 50% of ALL of our closed sales for 2020. We have helped 76 families buy or sell their homes in Southwest Florida through March.

Whether buying or selling, now more than ever, it is important to work with an experienced team with current market knowledge to help your transaction go as smoothly as possible while navigating this rapidly moving market.

Our Advice to Sellers

If selling, to get top dollar for your home, your listing agent will need to have a strategy in place PRIOR to listing to get you top dollar while at the same time planning for your move after your sale. We have negotiated many post-occupancy arrangements for sellers to help put them in the best possible position to buy a new home and not have to worry about where they will be living during their transition period. This helps greatly to take pressure off of sellers needing to buy another home after selling.

Our Advice to Buyers

Now for the shocking statistic for buyers… Did you know that every month you wait to buy you can expect to pay about 2% more for the home? The median sale price for single-family homes in Lee and Collier County is up over 25% from 2020. Waiting for the market to cool down may not be the best strategy as the market shows no sign of slowing. Why do we say this?

Well, the key factor driving the market that many people are not yet talking about is the Millennial homebuying demographic. Everyone, including Palm Paradise Real Estate, has talked about low interest rates and factors related to COVID-19, among other things. But these are all accelerators. Let me share with you some key statistics about Millennials.

  • Millennials make up 78 million people in the US population. That's 31% of the US population.
  • To put that into perspective, at the peak of the baby boomer generation, they made up 27%.
  • 70% plus of Millennials have stated a desire to buy a home in the next 3 years.
  • The National Association of Realtors has stated that the next 2 years will be the peak home buying years for Millennials.
  • The National Association of Mortgage Bankers has stated that 45% of all mortgage applications are from Millennials.
  • Monster.com has stated that only 2 out of the 9 primary professions for Millennials were adversely affected by the pandemic.

So based on all of this data on Millennials along with all of the other accelerators we have been discussing over the last year, we see no sign of market conditions changing in the next 1-2 years.

Palm Paradise Real Estate Logo

Single Family Stats for March 2021

Lee County
Mar 2020Mar 2021% (+-)
Closed Sales 1,424 1,763 23.8%
Closed Sales YTD 3,384 4,262 25.9%
Median Sale Price $278,000 $345,000 24.1%
Average Sale Price $368,541 $482,355 30.9%
(Inventory) Active Listings 7,312 4,875 -33.3%
Months Supply of Inventory 5 3 -40%
Close Price to List Price Ratio 97.8% 99.8% 2%
Median Time to Contract 41 11 -73.2%
Collier County
Mar 2020Mar 2021% (+-)
Closed Sales 639 890 39.3%
Closed Sales YTD 1,434 2,024 41.1%
Median Sale Price $490,000 $629,500 28.5%
Average Sale Price $955,818 $1,292,879 35.3%
(Inventory) Active Listings 3,974 2,622 -34%
Months Supply of Inventory 6 3 -50%
Close Price to List Price Ratio 96.9% 98.7% 1.9%
Median Time to Contract 67 17 -74.6%

Townhouses & Condo Sales in March 2021

Lee County
Mar 2020Mar 2021% (+-)
Closed Sales 769 1,194 55.3%
Closed Sales YTD 1,866 2,594 39%
Median Sale Price $205,000 $229,000 11.7%
Average Sale Price $261,832 $308,256 17.7%
(Inventory) Active Listings 3,954 2,570 -35%
Months Supply of Inventory 5 2 -60%
Close Price to List Price Ratio 96.7% 98.0% 1.3%
Median Time to Contract 47 22 -53.2%
Collier County
Mar 2020Mar 2021% (+-)
Closed Sales 669 1,134 69.5%
Closed Sales YTD 1,549 2,702 74.4%
Median Sale Price $292,000 $330,000 13%
Average Sale Price $545,643 $555,219 1.8%
(Inventory) Active Listings 4,312 2,970 -31.1%
Months Supply of Inventory 6 3 -50%
Close Price to List Price Ratio 96.1% 97.7% 1.7%
Median Time to Contract 65 31 -52.3%

*Data pulled from Southwest Florida MLS on 4/5/2021

If you have any questions about buying or selling in this constantly evolving market, please don't hesitate to reach out to one of our team members at any time.

Thank you so much.


March 2020 SWFL Real Estate Market Update

In the changing times we are all traveling through together, one question I am constantly asked is “What is the real estate market going to do?”

Hi, I'm Marcus Larrea with Palm Paradise Real Estate, and while I can't predict what the real estate market will do, I can share how the real estate market has performed in the last 30 days.

Personally, our sales at Palm Paradise Real Estate are up 122% from March of 2019 to March of 2020. Here is how the rest of the real estate market is doing through the first month of the COVID-19 Pandemic in Southwest Florida.

March was a fairly strong month for both Lee and Collier County markets. Low interest rates and inventory at near all-time lows keep prices up and buyer demand strong. View here for a look at the detailed numbers:

Palm Paradise Real Estate Logo

Single Family Stats for March 2020

Lee County
Mar 2019Mar 2020% (+-)
Closed Sales 1,225 1,372 12%
Closed Sales YTD 2,827 3,318 17.4%
Median Sale Price $249,950 $279,000 11.6%
Average Sale Price $331,376 $369,316 11.4%
(Inventory) Active Listings 8,847 7,186 -18.8%
Months Supply of Inventory 7 5 -28.6%
Close Price to List Price Ratio 97.6% 97.7% 0.1%
Median Time to Contract 48 42 -12.5%
Collier County
Mar 2019Mar 2020% (+-)
Closed Sales 490 604 23.3%
Closed Sales YTD 1,128 1,374 21.8%
Median Sale Price $427,000 $490,000 14.8%
Average Sale Price $767,419 $975,684 27.1%
(Inventory) Active Listings 4,719 3,867 -18.1%
Months Supply of Inventory 10 6 -40%
Close Price to List Price Ratio 96.4% 96.8% 0.4%
Median Time to Contract 69 69 0%

Townhouses & Condo Sales in March 2020

Lee County
Mar 2019Mar 2020% (+-)
Closed Sales 652 750 15%
Closed Sales YTD 1,577 1,838 16.6%
Median Sale Price $194,125 $205,000 5.6%
Average Sale Price $256,349 $262,565 2.4%
(Inventory) Active Listings 5,038 3,858 -23.4%
Months Supply of Inventory 8 5 -37.5%
Close Price to List Price Ratio 96.0% 96.7% 0.7%
Median Time to Contract 47 47 0%
Collier County
Mar 2019Mar 2020% (+-)
Closed Sales 566 648 14.5%
Closed Sales YTD 1,215 1,521 25.2%
Median Sale Price $290,000 $291,311 0.5%
Average Sale Price $464,988 $538,085 15.7%
(Inventory) Active Listings 4,924 4,150 -15.7%
Months Supply of Inventory 9 6 -33.3%
Close Price to List Price Ratio 95.6% 95.9% 0.3%
Median Time to Contract 72 67 -6.9%

One thing we noticed is months supply of inventory has dropped considerably compared to March of last year and even compared to February. Months supply of inventory is how long it would take to sell all of the current inventory given the current pace of home sales. The general rule of thumb is: If months supply of inventory is below 6 months, you are in a sellers' market, if months supply of inventory is above 6 months, you are in a buyers' market. Currently, we have 5–6 months supply of inventory across Lee and Collier counties down an average of 34% from March 2019. The reason for this could be that many sellers are hesitating to put their homes on the market due to the pandemic.

However, based on the numbers and the law of supply and demand, now is actually a great time to list with inventory so low and buyer demand still steady.

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

Thinking of Buying or Selling? Palm Paradise Real Estate Is Ready to Help

What is Palm Paradise Real Estate doing to accommodate buyers and sellers that still have a need during these changing times? Buyers and sellers can utilize our real estate services from the comfort of their own homes.

For Buyers, we offer virtual tours, electronic signing, and can even connect you with a title company that can perform remote closings. For Sellers, we offer Facetime or Zoom seller consultations, virtual staging services, and 3D virtual tours. Reach out to us and see how we can help you with your real estate needs without leaving the comfort of your own home.

If there is anything we can do to support you personally or if you have any questions about the market, do not hesitate to reach out to one of our team members at Palm Paradise Real Estate.

Post a Comment