Q1 2016 Southwest Florida Real Estate Market Update

Divider Image

Season, as we know, is in full swing. Perfect 80 degree sunny days, spring training baseball underway, and jam packed roads and restaurants all mean good things for the Southwest Florida real estate market…or do they?
southwest florida real estate market
Many of you have been asking me lately what I think about the market. Let’s dig into the facts. First, I want to show you a few important stats then go into detail about how to interpret them. Since we service all of Southwest Florida, these stats will be based on all residential properties in our MLS which includes both the Greater Naples and Greater Fort Myers markets.

Current level of inventory: 7-8 months
Feb 2016 Median Price: $230k
Feb 2016 # Transactions: 1,859

The level of inventory simply tells us if new homes stopped coming on the market and we maintained our current pace of sales, we would run out of inventory in 7-8 months from now. The general rule of thumb in the real estate industry is that 6 months of inventory signifies a relatively healthy, balanced market not significantly favoring buyers or sellers. For the first time in many years our level of inventory has increased above the 6 month time frame, which signifies more options on the market for buyers and ultimately more of a buyer’s market.

That being said, let’s focus on the next number, MEDIAN PRICE. The median price of sold real estate in SWFL for February 2016 came in at $230k, which is significantly higher than February 2015 at just $205k. February over February, we experienced a 12% increase in median sales price. Still a far cry from the height of market 2005-2006 numbers which were over the $300k mark, but still a very strong increase from the previous year.

Finally, and in my opinion most importantly, the # of transactions. 2016 started off with major losses in the stock market and caused a major pause in the market and a bit of anxiety about the overall economy. These scenarios in the market always have a direct impact on confidence and ultimately translates to affecting sales in the real estate market. February 2016 transactions came in at just 1,859 while February 2015 totalled 2,412. The number of transactions plummeted by nearly 23%.buy? sell? rent? keep?

WHAT DOES ALL OF THIS MEAN?

The market speaks louder than anyone. If you are considering selling in the near future, selling sooner rather than later would likely be in your best interest. If inventory continues to grow, we could see a slow down and ultimate reversal on pricing, which would be the first downturn in nearly 7 years for our market. Let me know if you would like me to run a market analysis on your property to see what has happened to your property value.

Recent post

Divider Image

WARNING! Hurricane Ian will impact Florida real estate

https://www.youtube.com/watch?v=Uci3yW2U31w If you're watching this video just after release, you know hurricane Ian is getting ready to bear down on... read more

Hurricane Ian – How will the massive hurricane affect Florida real estate?

https://www.youtube.com/watch?v=-d7Tk3hO310 Hurricane Ian has Florida in its crosshairs. In this video, we'll talk about the impact of Hurricane Ian on... read more

7 hidden gems found in Bonita Springs, Florida

https://www.youtube.com/watch?v=pCcAidgtGC0 Bonita Springs, Florida is home to some of the best beaches in Florida as well as a mecca for... read more

3900 Fernwood Lane, Labelle, FL

3900 Fernwood Lane, Labelle, FL Click Here to Get Directions $59000 1.08 acres lot Property Video | Photos | Maps... read more

7896 2nd Ter, Labelle, FL

7896 2nd Ter, Labelle, FL Click Here to Get Directions $55000 1.25 acres lot Property Video | Photos | Maps... read more

10 little known facts you should know BEFORE moving to Fort Myers Florida

https://www.youtube.com/watch?v=6pTkYw8CWFU Hi! Thanks for watching our video about moving to Fort Myers, Florida. After moving to Ft Myers over 16... read more

2302 Lakeville Drive, North Fort Myers, FL

2302 Lakeville Drive, North Fort Myers, FL Click Here to Get Directions $270000 3bed - 2bath - 0.25 acres... read more

“Gulf Pointe Properties is a truly professional real estate management company.”