Lee County’s real estate market inproved slightly over May, further confirming that the market has leveled out. For 4 straight months the median prices has remained around $280,000 for single family homes, and this month it grew to $286,500.
Here are some other interesting statistics:
Lee County Florida Current Market Statistics.
|Active||Pending||Months Supply of Inventory|
Number of single family home sales are down 24% from last years numbers, but they are up 8.41% over May’s numbers. Each month builds on the next, indicating a market that has bottomed and leveled out. Single family home prices in SW Florida are up 5% over last year, and up 2.14% over last months figures.
The median price has stabilized, however the mean average price could still change as some sellers are reacting to market conditions and correcting their price to compete against other sellers.
What’s changed is the short term investor is out of this market. Buyers no longer compete with investors to buy homes, so there is less upward pressure and more selection. With rates below 7%, buyers will look back on May and June of 2006 as the best time to buy.
Given the improving news, we don’t see a lot of upward pressure on prices. The wild cards in this market are increasing interest rates, and increasing insurance rates. Both bite into home buyers purchasing power, which limits how much more they can afford to spend on a monthly payments. Some home buyers can’t afford to live here.
Because Florida is a destination state, we have no shortage of buyers. We do have a shortage of workers, which does impact the quality of life eventually. With ample supply of people buying here, roads, restaurants, hotels, etc. will be more crowded and serviced less.