2022 Florida Housing Market Review and 2023 Predictions

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2022 Florida Housing Market Review and 2023 Predictions

Edited by Ashley McCrea

Welcome to the end-of-year real estate market update! 2022 has been an interesting year to say the least,
and the way we started the year compared to the way we ended it is drastically different.

There were 301 single-family homes that sold throughout the month of November in the Naples and Fort
Myers areas, which was down a whopping 40% compared to last year. In Lee County in particular, there
were 816 closed sales, which was down 41%. This means that nearly all of Southwest Florida is
experiencing about half the number of transactions compared to the end of 2021. When it comes to the
median price of homes, Collier County was at $850,000, up 29% year over year. Lee County, however,
was at $400,000, which is only up 6% and is the lowest appreciation that we’ve seen in this area in a very
long time. The difference in these appreciations could have to do with the fact that a lot more homes were
damaged by Hurricane Ian in Lee County compared to Collier County. As a result, we’re seeing homes
that are being sold for land value due to their severe damage.

Days on the Market
In Collier County, houses stayed on the market for an average of 49 days before receiving an offer, which
is up 158% compared to years past. In Lee County houses stayed on the market for an average of 34 days,
162% more than last year. This means that in Southwest Florida homes take around a month to get a
contract. Closing these sales take between 90 to 100 days from the date that the property is listed, a bit
longer than what is historically normal. It’s safe to say that the days of having an immediate contract on
your property that closes within a month are mostly gone unless you price accordingly.

New Listings
There were 531 new listings that came on the market in Collier County, which is up 4%. However, in Lee
County, there were 309 new listings, a decrease of 5%. We’re predicting that 633 properties will close in
Collier County, which is down 37% year over year, and that 683 properties will close in Lee County,
which is down 33%. These numbers tell us that there will be fewer future closings compared to the past
couple of months.

If no new homes come on the market, given the current pace of sales we have 4.1 months’ worth of
inventory in Collier County, which is up 115%. We’re at 2.8 months’ worth in Lee County, which is up
155%. As we get to the four-month and three-month time frame, this means that our market is continuing
to shift in favor of buyers, which is supported by retracting prices and similar factors.

Overall Dollar Value
$432 million in Collier County and $447 million in Lee County was dumped into the marketplace for
single-family homes. This means that there are a lot more homes that sell in Lee County compared to
Collier County, but the median price in Lee County is more than double the median price in Collier
County. We know that there have been a lot of macroeconomic factors that play into the market shift
we’ve seen recently, including inflation and rising interest rates. There’s been a little pause around the

increase in interest rates, which are hovering a little over around 6% at this time, that could continue into
the future.

2023 Predictions
In 2023, we predict that we’re going to continue to see longer time frames in selling properties, but we
won’t have as many multiple-offer situations as we did at the beginning of 2022. We’re also going to see
pricing stabilize quite a bit due to the slower pace of sales. We don’t see any significant decreases in price
based on what we’re looking at right now, but this could change as the year progresses. We’re currently
seeing a lot of contingent offers or offers that are contingent upon another home selling or the inspection
period. In early 2022, many people were willing to let go of all contingencies, but sellers have to be more
understanding of buyers that need to sell properties prior to them closing on new properties today. The
market will continue to be great for buyers, with houses selling for under the list price and fewer bidding
wars than we’ve seen in the past.

If you are considering selling and want to get an idea of what your Florida home is worth, send an email to info@gulfpointeproperties.com. If you’re looking to purchase in the area, you can get a jumpstart by filling out your home wish list here: https://forms.gle/B91pjBStQbEnUCBPA

📲 Thank you for your support! We have so many people contacting us who are moving here to Naples & Fort Myers, and we ABSOLUTELY love it! If you are moving or relocating here to Southwest Florida, my team and I can make that transition so much easier on you.

Reach out…we’re here for you!

Brad Dohack, Broker/Owner at Gulf Pointe Properties, Team Lead
📲 Call/Text Direct at (239) 734-7723
📲 Email: info@gulfpointeproperties.com
👨‍💻 Website: https://www.homesearchinswflorida.com/

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