Steady As She Goes by Dick Dohack
Sometimes the best news is no news at all and that is how I would describe our current Real Estate market “Steady as she goes”. First let’s talk about the average number of days on the market. The average monthly number is 90 days with the high being 91 and the low being 88. We hear talk of shortage but the numbers say otherwise. Of course there is always the challenge of finding what you want at the price you want and that never changes.
So what about the number of sales? Again, the phrase “steady as she goes” rings true. In May of 2013 there were 3378 homes sold and in May of 2014 3264 were sold. See the monthly sales for the previous 3 years.
This leads us to the all important question. What about prices? The phrase “steady as she goes” applies here as well but in a different way. What we are seeing here are steady increases. This is perhaps the hardest number to pin down because many factors come in to play. Median price is a good indicator but can be misleading. The median price in January of 2013 was $160,000.00. By December it had risen to $186,000.00 and as of May 2014 it was sitting at $223,500.00. Clearly prices are rising but one must consider the mix of sales. The number of homes sold under $100,000.00 has dropped dramatically and the number of homes selling for over $1 Million has increased dramatically inflating this number by more than just the difference in square foot price. This chart illustrates these differences.
While we still hear the occasional cry that we are approaching another bubble the statistics do not support that. Southwest Florida has had one of the strongest recoveries in the nation but let’s not forget that we also suffered the most severe downturn as well. According to the National Association of Realtor Editors prices in Southwest Florida are still 40% below their peak. What I see is a healthy market. Boomers are moving to Florida, population is increasing, new construction while on the rise is well below historic levels, and homes of every kind are selling quickly. As always, Brad and I are eager to discuss the market and assist you in evaluating the information.