Explore our most recent findings in this exclusive Southwest Florida Real Estate Market Report for July!
The Southwest Florida real estate market has undergone significant shifts over the past few years. As the frenzy of the market’s peak has calmed, we’ve seen both sales and new listings slow down. However, this pullback in new listings, despite some recent upticks, has played a crucial role in keeping inventory levels in check. Let’s dive into the details of how these trends are shaping the current market.
A Delicate Balance of Inventory Levels
One of the key factors in understanding the current real estate market is inventory. Inventory refers to the number of homes available for sale at any given time. While inventory levels have risen from their lows, they’ve done so gradually, avoiding the potential pitfall of oversupply.
In real estate, we measure the balance between supply and demand using “months of supply.” This metric takes into account how quickly homes are selling relative to the number of homes available. In Southwest Florida, a balanced market typically has 6 to 12 months of supply. More than 12 months usually indicates a buyer’s market, where buyers have the upper hand, and prices may drop. Fewer than 6 months suggest a seller’s market, where competition among buyers can drive prices up.
Currently, the months of supply in Southwest Florida are holding steady between 6 and 7 months. This balance has helped stabilize prices, with the 12-month rolling average sales price showing only small month-to-month changes so far this year.
Pricing Your Home
Even in a balanced market, sellers need to be strategic with their pricing. While homes are selling, the days of properties flying off the market in a week with multiple bids are behind us. On average, homes in Southwest Florida are selling in about 70 days at 96.7% of their list price. These figures might seem slower compared to the market peak, but they are actually quite favorable compared to balanced markets of the past.
For sellers, this means it’s crucial to price your home correctly from the start. Overpricing can lead to extended time on the market, while competitive pricing can attract serious buyers and lead to a smoother sale process.
Patience and Preparedness are Key
For buyers, the current market conditions mean you have options, but it’s still important to act decisively when you find the right home. Although homes aren’t selling as quickly as they did during the peak, well-priced properties won’t stay on the market forever. This is where having a knowledgeable Realtor® by your side can make all the difference. They can help you navigate the local market and ensure you’re ready to move forward when the time is right.
Local Market Variations
It’s also worth noting that trends can vary significantly across different segments of the market. Whether you’re buying or selling, understanding the nuances of your specific area is crucial. This is another reason why partnering with a professional Realtor® is so valuable—they have the local knowledge and expertise to help you succeed in any market condition.
Watch this YouTube video for a comprehensive review of today’s market conditions:
Conclusion
The Southwest Florida real estate market has shifted from the frenzy of the peak years to a more balanced state. While the pace of sales has slowed, and inventory levels have risen, this has resulted in a stable market where both buyers and sellers can find opportunities. Whether you’re looking to buy or sell, staying informed and working with a professional can help you make the most of the current market conditions.
We are pleased to announce that through June, John R. Wood Christie’s International Real Estate continues to rank as the top brokerage in total year-to-date sales volume and transactions in Southwest Florida!*
*Broker ranking according to SWFLA MLS for residential improved property excluding manufactured housing in Lee and Collier Counties.
Did you enjoy the July 2024 Southwest Florida Real Estate Market Report? Follow Stacey Glenn on all social media platforms to keep yourself updated with the latest trends in Real Estate!