June Housing Market Update

Lee County June Housing Market Update

The June housing market update for Lee County showed more than $1.81 Billion worth of properties closed during the month. The largest sale was $11,500,000 for a single-family home in Bonita Beach overlooking the Gulf of Mexico.

Like the rest of Southwest Florida, inventory increased significantly in June. Single-family inventory rose 85.7 percent and condos rose 72.3 percent. The significant increase over last year is a step in the right direction. However, we are a long way from a balanced market which is a 6 to 7 months’ supply of homes for sale. As of June 30th, overall inventory was just below a 2 months’ supply.

So, if you are wondering if prices are going to fall, keep in mind either supply would have to increase significantly, or demand would need to drop notable before we would see prices drop below existing closed sales. With real estate, supply takes a long time to catch up. In one year, we’ve almost doubled supply and we are still 4 months’ supply short of a normal market.

From a pricing standpoint, we have seen list prices adjusted to reflect current market values. So, when you read headlines about all the price reductions, keep in mind these are properties which were overpriced from the get-go and the Sellers are now lowering their “list” price which is still above or at the same level as recent closed sales.

From the demand side, we have seen a slow down with both closed sales and pending sales down double digits. The question is how much of the slowdown is due to seasonality and how much is due to a drop in demand? What we do know is Florida was recently ranked the 3rd most stable housing market in the United States.

Additionally, foreign buyers have re-entered the market after 2 years of sitting on the sidelines due to Covid. According to a recent report from the National Association of Realtors, 24% of international buyers chose Florida. Approximately 44 percent of foreign buyers purchased a property for use as a vacation home, rental, or both. Additionally, home prices in many U.S. metro areas are comparatively inexpensive compared to prices in other global cities making them attractive to foreign buyers.

Bottom line, we have started moving back towards a normal market. However, it is going to be a slow road back to a balanced market.

Lee County June Housing Market Update – Single Family Homes

June 2022 versus June 2021 Single Family Home Highlights:

• Closed sales decreased 14.9 percent going from 1,751 transactions down to 1,490 sales.
• Pending sales decreased 19.4 percent down from 1,586 last June versus 1,278 this June.
• Inventory increased 85.7 percent up to 3,012 properties for sale compared to this same time last year when 1,622 homes were for sale.
• New listings increased from 1,606 up to 1,950 which was a 21.4 percent increase.
• Median days on market increased to 13 days which was an 18.2 percent increase versus June of 2021.
• Available inventory of single-family homes ended June with a 2.1 months’ supply of homes available for sale which was up from 1 months’ supply during June 2021.

Once again single-family home prices showed a significant increase in the median sales price, up 23.3 percent over June of last year. If you are a Seller, you still have time to capture the top of the market.

Keep in mind inventory is building and Sellers are starting to reduce their prices. So, if you are considering selling, we recommend you do not wait much longer and be sure to price it right from the start. To find the best list price, we will consider current market demand, the value of other homes in your neighborhood, look at where prices are trending and your home’s condition. Call, email, or text us today. What is my home worth…

Also, keep in mind, even though industry experts continue to say growth will slow, we have yet to see a slowdown reflected in the actual local market data. If inventory remains low, prices will continue to rise. However, if inventory continues to build, we should see the rate of growth start to slow.

If you are considering buying a property, there are twice as many properties to choose from! At the same time, finding the right property may take time. To stay on top of new properties hitting the market sign up for automatic property alerts.

Lee County June Housing Market Update – Condos and Townhomes

June 2022 versus June 2021 Condo Highlights:

• Condo sales decreased 31 percent going from 928 real estate transactions down to 640 sales.
• Pending sales decreased 34.1 percent down from 776 last June to 511 this June.
• Inventory increased 72.3 percent up to 989 condos for sale compared to last June when there were only 574 units for sale.
• New listings decreased from 707 down to 702 which was a 0.7 percent increase.
• Median days to contract fell to 12 days which represented a 14.3 percent decrease versus June of 2021.
• Available inventory of condos ended June with a 1.5 months’ supply of properties available for sale which was a 114.3 percent increase!

The Lee County Condo market remains a strong seller’s market. Even though inventory has more than doubled compared to this time last year, historically it remains extremely low at just a 1.5 month’s supply. A balanced market would be a 6-7 months’ supply of homes for sale. Like last month due to low inventory both pending and closed sales were down year-over-year.

Additionally, if you are considering selling, new listings continued to sell quickly. Days on market remained extremely low at just 14 days from the day a condo was listed to contract. Also, both the median and average price continued to rise during May up 37.7 percent and 39.8 percent, respectively. As more inventory is added, we expect prices to start to level out.

If you are a buyer and you have been sitting on the sidelines, it may be time to start taking a closer look at homes for sale. Depending on the neighborhood, you may be surprised at the number of properties available. To stay up to date sign up for automatic property alerts.

Bottom line, it is a seller’s market for both condos and single-family homes. So now would be a great time to cash in on the high buyer demand. You might be surprised to learn how much your home is worth in today’s market. Wondering what the benefits are of using an agent sell your home? What is my home worth…

Whether you are buying or selling we have real estate specialists who cover the Gulf Coast from Naples to Sarasota, so if you are considering moving to the area, contact us for more information.

Southwest Florida June Housing Market Update

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2022 Lee County Housing Market Update Single Family Homes

2022 Lee County Housing Market Update Condos

Begin Your Own Search for a Southwest Florida Vacation Home or Second Home:

So, if you are ready to begin your search for your dream home or condominium in Southwest Florida, we encourage you to explore our website to find information about communities in the area.  If golf is your game, we specialize in golf community real estate.

July 24th, 2022, Posted by NaplesGolfGuy