STATE OF THE SOUTHWEST FLORIDA MARKET
STATE OF THE SOUTHWEST FLORIDA MARKET
WHAT IS HAPPENING IN THE REAL ESTATE MARKET?
With the increase in interest rates, the state of the economy, international unrest, and various other factors, consumer confidence in purchasing properties has decreased. Additionally, homeowners who currently have low mortgage rates are hesitant to upgrade or downsize because they don’t want their rates to double or more.
In Southwest Florida, there is more inventory coming on the market daily than there are daily pending sales. Although properties are still being sold, the number of new listings on the market can double the amount of pending sales, resulting in a continued increase in supply.
What I find interesting is that sellers used to have great success when selling their property, similar to hitting grand slams in baseball. However, the percentage of the list price actually received has decreased from last year, so owners are more likely to hit a double or, if lucky, a triple.
Prices are slowly decreasing, but not by significant amounts. By monitoring trends daily in Ft Myers Beach, Estero, Bonita, and Naples, I’ve noticed that one of the major market trends involves national publicly traded builders like Lennar, DR Horton, and others. These builders have the best market reconnaissance and top-rated R&D departments to track local markets.
Just a few months ago, builders like these would not invest in promotions, send out marketing emails, or increase broker commissions. Previously, if I brought a client to buy in their development, I would receive a small commission. However, now builders are reducing prices, offering various promotions to buyers. and significantly increasing commissions compared to a few months ago.
Considering MLS trends, such as longer days on the market, and the aforementioned builder trends, I believe this is a buyers’ market. Others may disagree, but for me, these MLS factors and the aggressive promotions by builders are enough to make this determination.
The bottom line is:
1. If you are selling, you must price your property aggressively to make a sale. Hitting a grand slam is no longer realistic, so be satisfied with a double or, if lucky, a triple.
2. If you are a buyer, now is a good time to act, especially if you have cash. There are deals available!
I have tracked and identified properties which I see as offering some real opportunities. If you are interested, please contact me for details.
