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

Southwest Florida Real Estate Market Update - MayYou may be ready for a real estate market update, but are you ready for the May real estate market update? The latest data for Southwest Florida's real estate market is in, and we've got a lot of insights to share with you. Read on for your SWFL real estate market update for the month of May, and let us know if any of the statistics surprised you!

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

How's the Southwest Florida Real Estate Market Doing Going Into May 2022?

The real estate market across Southwest Florida has to be starting to show signs of a slowdown, right?

What does the Chief Economist at the National Association of Realtors say about the market and this “most unique” recession we may be in for?

Hi, it's Marcus Larrea, Team Lead at Palm Paradise Real Estate, and we have the latest market data from April to show you where we stand going into May.

Think the market in Southwest Florida is seeing signs of a slowdown along with many parts of the rest of the country? The data shows otherwise.

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Single Family Stats for April 2022

Lee County
Apr 2021Apr 2022% (+-)
Closed Sales 1,911 1,582 -17.2%
Closed Sales YTD 6,308 5,676 -10%
Median Sale Price $335,000 $467,000 39.4%
Average Sale Price $503,450 $613,785 21.9%
(Inventory) Active Listings 4,795 4,515 -5.8%
Months Supply of Inventory 3 3 0%
Close Price to List Price Ratio 100.0% 100.0% 0%
Median Time to Contract 7 6 -14.3%
Collier County
Apr 2021Apr 2022% (+-)
Closed Sales 908 609 -32.9%
Closed Sales YTD 3,018 2,189 -27.5%
Median Sale Price $665,000 $895,000 34.6%
Average Sale Price $1,200,906 $1,643,848 36.9%
(Inventory) Active Listings 2,478 2,122 -14.4%
Months Supply of Inventory 3 3 0%
Close Price to List Price Ratio 100.0% 100.0% 0%
Median Time to Contract 9 6 -33.3%

Townhouses & Condo Sales in April 2022

Lee County
Apr 2021Apr 2022% (+-)
Closed Sales 1,198 821 -31.5%
Closed Sales YTD 3,843 2,677 -30.3%
Median Sale Price $238,550 $346,900 45.4%
Average Sale Price $320,131 $432,412 35.1%
(Inventory) Active Listings 2,273 1,791 -21.2%
Months Supply of Inventory 2 2 0%
Close Price to List Price Ratio 98.9% 100.0% 1.1%
Median Time to Contract 11 4 -63.6%
Collier County
Apr 2021Apr 2022% (+-)
Closed Sales 1,260 741 -41.2%
Closed Sales YTD 4,013 2,392 -40.4%
Median Sale Price $338,995 $485,000 43.1%
Average Sale Price $595,468 $768,011 29.%
(Inventory) Active Listings 2,614 1,930 -26.2%
Months Supply of Inventory 2 3 50%
Close Price to List Price Ratio 98.3% 100.0% 1.7%
Median Time to Contract 17 5 -70.6%

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

In April, we saw the median sale price for single-family homes increase by almost 10% in one month from March to April in Lee County… and in Collier County that month-to-month median price increase for single-family homes was about 11%!

Inventory remains a problem as we continue to see more homes being sold than new homes being listed or built across Southwest Florida. The median time to contract remains steady at 4–6 days, just enough time for sellers to show the property, review, and accept offers.

Why the Real Estate Market Is Staying Red-Hot

A few studies performed recently by Florida Gulf Coast University, Florida Atlantic University, and the University of Alabama revealed that Florida can expect to see a prolonged hot real estate market even as other parts of the country continue to cool.

As I have been mentioning for the last several months, all three studies cited high demand and low inventory across Florida as the primary reason why Florida's real estate prices will continue to increase while other parts of the country begin to cool off. The research also pointed to future population growth as additional fuel to the supply and demand issue.

So even with rising interest rates reducing the number of home buyers in the market, it will not be enough to reverse the trend of rising home prices across Florida.

As for the country as a whole, we are not headed towards a market crash as we saw in 2008. The Chief Economist of the National Realtor Association, Lawrence Yun, stated that “It's a highly unusual recession in the sense that job openings are sky-high. So even if there's a recession, it looks like job creation will continue, which is important for the healthy market.” He predicted that the number of home sales nationally will fall by 9% this year and that the national average for home prices will rise 8%. But again, Florida is expected above those averages.

Wondering If It's The Right Time to Buy or Sell? Let Palm Paradise Real Estate Be Your Guide to the Market

With all of this being said, the best time to buy or sell is when YOU feel it is the right time. We are here to inform you with the data, support you, and help you through the process when that time comes.

If there is anything we can do to support you with buying or selling a home, or if you have any questions about the market in general, please reach out to one of our amazing team members online or give us a call at 239-349-2487.

Thanks for watching!

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