Southwest Florida Real Estate Market Update [New for December 2023]
Impacts on mortgage rates from the latest Fed meeting on December 13th and the numbers for the month of November for the Southwest Florida Real Estate Market.
Hi, it’s Marcus Larrea, Team Lead at Palm Paradise Real Estate. Today, I've got some fresh insights from November for the Southwest Florida Real Estate Market.
Single Family Stats for November 2023
Nov 2022 | Nov 2023 | % (+-) | |
---|---|---|---|
Closed Sales | 840 | 910 | 8.3% |
Closed Sales YTD | 13,874 | 12,683 | -8.6% |
Median Sale Price | $410,000 | $413,500 | 0.9% |
Average Sale Price | $551,184 | $545,541 | -1% |
(Inventory) Active Listings | 5,142 | 7,304 | 42% |
Months Supply of Inventory | 6 | 8 | 33.3% |
Close Price to List Price Ratio | 98.70% | 98% | -1% |
Median Time to Contract | 23 | 34 | 47.8% |
Nov 2022 | Nov 2023 | % (+-) | |
---|---|---|---|
Closed Sales | 314 | 273 | -13.1% |
Closed Sales YTD | 5,114 | 4,474 | -12.5% |
Median Sale Price | $810,000 | $765,000 | -5.6% |
Average Sale Price | $1,443,211 | $1,130,396 | -21.7% |
(Inventory) Active Listings | 2,457 | 2,676 | 8.9% |
Months Supply of Inventory | 8 | 10 | 25% |
Close Price to List Price Ratio | 97% | 97% | 0.4% |
Median Time to Contract | 32 | 34 | 6.3% |
Townhouses & Condo Sales in November 2023
Nov 2022 | Nov 2023 | % (+-) | |
---|---|---|---|
Closed Sales | 383 | 361 | -5.7% |
Closed Sales YTD | 6,180 | 5,167 | -16.4% |
Median Sale Price | $325,000 | $350,000 | 7.7% |
Average Sale Price | $404,326 | $457,563 | 13.2% |
(Inventory) Active Listings | 1,829 | 3,328 | 82% |
Months Supply of Inventory | 5 | 9 | 80% |
Close Price to List Price Ratio | 99% | 97% | -1.5% |
Median Time to Contract | 12 | 32 | 166.7% |
Nov 2022 | Nov 2023 | % (+-) | |
---|---|---|---|
Closed Sales | 331 | 324 | -2.1% |
Closed Sales YTD | 5,659 | 4,784 | -15.5% |
Median Sale Price | $475,000 | $487,500 | 2.6% |
Average Sale Price | $752,666 | $770,955 | 2.4% |
(Inventory) Active Listings | 1,824 | 2,614 | 43.3% |
Months Supply of Inventory | 6 | 8 | 33.3% |
Close Price to List Price Ratio | 97.70% | 97% | -0.4% |
Median Time to Contract | 20 | 26 | 30% |
*Data pulled from Southwest Florida MLS on 12/7/2023
Through the year from January to November, closed sales are still trailing behind last year by 8.6% to 16.4%, varying by area and property type.
Overall median sale prices across Lee and Collier Counties have been stable.
Median sale price for townhomes and condos in Lee County are leading the way with a 7.7% jump in median sale price from last year. We are also seeing increases in median sale price for single-family homes in Lee County, as well as condos and townhomes in Collier County.
On the other hand, the median sale price for single-family homes in Collier County have experienced a slight dip of 5.6% compared to last November.
The big question on everyone's mind – 'Are prices going to climb again or are they going to drop?' We believe they will continue to climb again, but at a more gradual pace than what we've seen in the past 4-5 years.
Inventory is on the rise in both Lee and Collier Counties. Yet, when we look back over the last decade, it's clear that our inventory levels are still quite low.
And how long are homes staying on the market? We're averaging around 26 to 34 days, which has remained pretty steady recently, though slightly higher than last year.
Right now, the market is in a unique balance but we seem to be heading towards a slight buyers’ market but that could change with impacts from interest rate drops.
I've got some crucial updates that could really influence your real estate plans in 2024.
Let's dive in with the Federal Reserve. Fed Chairman Jerome Powell held a key meeting on December 13th. The outcome? Rates are staying put, for now. This decision is a big deal for our economy and has a direct impact on the real estate market.
Here’s what you need to know: Interest rates have made a significant drop – we're talking going from a high of 8.03% down to 6.62% according to Mortgage News Daily rate index. This isn't just a minor adjustment; it's a major shift that's reshaping the landscape for both buyers and sellers.
Looking into the future, the Fed is hinting at three rate cuts in 2024, maybe starting as early as March. This could signal a much more favorable climate for borrowing and a positive wave across the real estate market.
What does all this mean if you're looking to buy or sell? Well, this drop in rates has already sparked a 19% jump in mortgage applications. That means more buyers are stepping into the ring, setting us up for a highly competitive 2024.
If you're thinking about waiting for lower rates to buy, waiting could mean facing higher prices and tougher competition. On the flip side, if you're selling, get ready for increased demand, potentially higher offers, and maybe even multiple bids on your property.
That's where we come in. Our team at Palm Paradise Realty, with over 600 transactions closed this year alone, has the expertise to navigate these ever-changing conditions. We are here to empower you with the knowledge to make informed decisions, whether you're buying or selling.
Interested in exploring your options in Southwest Florida's real estate market? Let's talk. Our team of experienced professionals are here to guide you every step of the way. Thank you for watching, and remember, with Palm Paradise Realty, you're always in good hands.
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