Southwest Florida Real Estate Market Update [New for September 2023]
Signs of the real estate market rebounding? And some good news for homebuyers?
Hi it’s Marcus Larrea, Team Lead at Palm Paradise Real Estate and the numbers for the month of August are in.
The trends we have seen most of the year remain in place due to a lack of inventory and steady increase in prices depending on property category and location. As I recently mentioned on NBC 2 News, you would think that with interest rates increasing, prices would drop, but lack of inventory and continuous high demand are keeping prices up.
Single Family Stats for August 2023
| Aug 2022 | Aug 2023 | % (+-) | |
|---|---|---|---|
| Closed Sales | 1,204 | 1,169 | -2.9% |
| Closed Sales YTD | 11,359 | 9,635 | -15.2% |
| Median Sale Price | $425,000 | $407,500 | -4.1% |
| Average Sale Price | $572,175 | $533,737 | -6.7% |
| (Inventory) Active Listings | 5,519 | 6,323 | 14.6% |
| Months Supply of Inventory | 5 | 5 | 0% |
| Close Price to List Price Ratio | 99.00% | 98% | -0.8% |
| Median Time to Contract | 13 | 32 | 146.2% |
| Aug 2022 | Aug 2023 | % (+-) | |
|---|---|---|---|
| Closed Sales | 399 | 393 | -1.5% |
| Closed Sales YTD | 4,140 | 3,500 | -15.5% |
| Median Sale Price | $755,000 | $755,000 | 0% |
| Average Sale Price | $1,372,305 | $1,259,128 | -8.2% |
| (Inventory) Active Listings | 2,326 | 2,233 | -4% |
| Months Supply of Inventory | 6 | 6 | 0% |
| Close Price to List Price Ratio | 98% | 97% | -1.1% |
| Median Time to Contract | 24 | 35 | 45.8% |
Townhouses & Condo Sales in August 2023
| Aug 2022 | Aug 2023 | % (+-) | |
|---|---|---|---|
| Closed Sales | 482 | 455 | -5.6% |
| Closed Sales YTD | 5,115 | 4,052 | -20.8% |
| Median Sale Price | $319,500 | $345,000 | 8% |
| Average Sale Price | $399,812 | $494,878 | 23.8% |
| (Inventory) Active Listings | 1,868 | 2,631 | 40.8% |
| Months Supply of Inventory | 4 | 6 | 50% |
| Close Price to List Price Ratio | 99% | 97% | -1.2% |
| Median Time to Contract | 11 | 35 | 218.2% |
| Aug 2022 | Aug 2023 | % (+-) | |
|---|---|---|---|
| Closed Sales | 390 | 379 | -2.8% |
| Closed Sales YTD | 4,624 | 3,746 | -19% |
| Median Sale Price | $460,000 | $500,000 | 8.7% |
| Average Sale Price | $646,966 | $771,037 | 19.2% |
| (Inventory) Active Listings | 1,774 | 2,007 | 13.1% |
| Months Supply of Inventory | 5 | 5 | 0% |
| Close Price to List Price Ratio | 97.2 | 97% | -99% |
| Median Time to Contract | 15 | 35 | 133.3% |
*Data pulled from Southwest Florida MLS on 9/13/2023
Across Southwest Florida, the number of closed sales through August are down about 15% from last year for single family homes and down about 20% for townhomes and condos.
The median sale price is down 4.1% from last year for single family homes in Lee County and median price remained flat from last year for single family homes in Collier County.
Year over year inventory increases are stronger in Lee County versus Collier County, while single family homes in Collier County actually saw an inventory drop of 4% from August of last year.
Months supply of inventory continues to be right around 5-6 months, meaning we are in a balanced market. Sellers are still getting good money for their homes but buyers definitely have room to negotiate as the average close price to list price ration ranges from 96% to 98% depending on the area and property type.
Effects from Hurricane Ian are still impacting the real estate market, especially in Lee County where inventory levels are up more so than in Collier County. As mentioned in previous updates, many homes on the market are still in need of repair or have open insurance claims on them thus inflating inventory numbers.
Both locally and nationally, are we starting to see signs of a market rebound? According to a report from CoreLogic, homeowners with mortgages (roughly 63% of all properties) are in a better position today than they were towards the beginning of the year, seeing their equity increase by an average of $13,900 between the 1st and 2nd quarters this year. Homeowners with mortgages in Florida saw an average gain in equity of $3,000.
And the good news for home buyers… according to Zillow’s most recent housing report, sellers listed about 4% more homes nationally in August than in July, which is not typical for this time of year. Inventory is still down 13% nationally from August of last year but this is still a big improvement from July’s numbers which saw inventory down 27% year over year. While inventory is still very low nationally, this is a welcome sign to see things trending in the right direction.
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 watching, and see you in the next update!
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