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

Southwest Florida Real Estate Market Update - JulySeptember is here, which means the kids are back in school, and we can expect the weather to cool off ever-so-slightly. But what does September mean for the housing market? If you're thinking about buying or selling, you won't want to miss this real estate market update from Palm Paradise Real Estate.

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

Are home prices across Southwest Florida finally dropping? And what's the top state to retire in as of 2022?

Hi, it's Marcus Larrea with Palm Paradise Real Estate, and the stats for the month of August are in.

Your September 2022 Southwest Florida Reale State Market Update

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Single Family Stats for August 2022

Lee County
Aug 2021Aug 2022% (+-)
Closed Sales 1,387 1,137 -18%
Closed Sales YTD 12,715 11,203 -11.9%
Median Sale Price $365,000 $425,000 16.4%
Average Sale Price $467,159 $568,541 21.7%
(Inventory) Active Listings 4,394 5,425 23.5%
Months Supply of Inventory 3 5 66.7%
Close Price to List Price Ratio 100% 99% -1.1%
Median Time to Contract 6 14 133.3%
Collier County
Aug 2021Aug 2022% (+-)
Closed Sales 574 374 -34.8%
Closed Sales YTD 5,906 4,075 -31%
Median Sale Price $611,088 $759,000 24.2%
Average Sale Price $989,279 $1,402,981 41.8%
(Inventory) Active Listings 1,872 2,228 19%
Months Supply of Inventory 3 6 100%
Close Price to List Price Ratio 100% 98% -2.3%
Median Time to Contract 9 24 166.7%

Townhouses & Condo Sales in August 2022

Lee County
Aug 2021Aug 2022% (+-)
Closed Sales 644 465 -27.8%
Closed Sales YTD 7,075 5,080 -28.2%
Median Sale Price $259,900 $320,000 23.1%
Average Sale Price $321,761 $403,592 25.4%
(Inventory) Active Listings 1,463 1,825 24.7%
Months Supply of Inventory 2 4 100%
Close Price to List Price Ratio 100% 99% -1.4%
Median Time to Contract 5 11 120%
Collier County
Aug 2021Aug 2022% (+-)
Closed Sales 586 365 -37.7%
Closed Sales YTD 7,261 4,568 -37.1%
Median Sale Price $350,000 $468,000 33.7%
Average Sale Price $548,234 $655,708 19.6%
(Inventory) Active Listings 1,608 1,692 5.2%
Months Supply of Inventory 3 5 66.7%
Close Price to List Price Ratio 100% 97% -2.7%
Median Time to Contract 5 18 260%

*Data pulled from Southwest Florida MLS on 9/7/2022

The month's supply of inventory did not move much from July, and slightly increasing prices from July to August again leave us in a fairly balanced market between buyers and sellers. However, this month's two most interesting stats point to a buyers' market gaining momentum. The stats that stick out the most are the increase in the number of price decreases on the MLS in addition to the close price-to-list-price ratio.

Recently, we are consistently seeing more price decreases than new listings on the market daily. The close price-to-list-price ratio also continues to decline significantly from July to August, ranging from an average of 97% to 99% across Lee County and Collier CountyTo put this in perspective, we have been at or above a ratio of 100% for over a year. In addition, the average number of days properties remain on the market also continues to increase from July to August across Southwest Florida.

These stats show that buyers are gaining more negotiating power as the market shifts and that many sellers are still trying to chase the top of the market, which has already passed.

So does this mean home prices are dropping? As the year-over-year numbers show, prices are not dropping, but as we predicted earlier this year, the growth rate has slowed and will continue to slow into next year.

Remember, whether you list low or you list high, the market will always dictate your price. If you list low, you will be more likely to receive more offers sooner that could get you a contract over list price. And if you list high, your property is more likely to sit on the market longer, and you may end up with multiple price reductions.

Buyers, you now have more negotiating power, and this trend will continue. If you are working with a budget of $500,000, you can try looking at properties up to around $525,000 and negotiate downward. This is an improvement compared to six months ago when you may have had to look at homes priced at $475,000 and have to offer $25,000 over the asking price.

For this reason, it is important to work with an experienced team, such as Palm Paradise Real Estate, that can negotiate the best price possible on your behalf.

Retirement in 2022: Where Should You Live?

So what is the top state to retire to in 2022? You guessed it! According to a recent study performed by Bankrate, Florida topped the list at #1. The study was based on five categories: affordability, wellness, culture, weather, and crime.

It's no surprise that Florida finished #1 with all it has to offer, such as its beaches, boating, golf, diverse culture, tax advantages, and of course, the sunny weather, among many other things. There is something for everyone in Florida, and we would love to help you, your family, and your friends discover the unique Florida lifestyle.

Ready to Take Advantage of Increasing Negotiating Power? We're Here to Help

Whether you are looking to buy or sell, 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 www.PalmParadiseRealEstate.com today to see how we can help!

Thanks for reading, and see you in the next update!

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

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