Numbers released by the Florida Association of Realtors indicated single Family home median prices increased in Fort Myers/ Cape Coral for the third straight month in January of 2007, posting a 1.7 percent increase over December 2006 sale prices. Median prices are down against 2006 numbers, which was to be expected because sale prices have been down since mid-year 2006. Each month we’ll report negative numbers year over year until we surpass previous years levels.
While we’re glad to see median price gains for the third straight month, we’re not ready to state that our market has bottomed yet. We’d like to see an end to increasing inventory levels, along with a rise in pending sales before we make that call. We do see and end in sight now. Closed sales were down significantly in January 2007 Vs 2006 levels.
We’re not as optimistic about Condo sales. Condo sales are off significantly, and we have a 3 year supply of condos on the market today. We’re concerned that once the prime condo selling season ends (Easter) that many frustrated condo sellers will be forced to reduce prices significantly to sell their units. Condo sellers have become increasingly frustrated due to a backlog in inventory, rising insurance and maintanence fees costs, and rising property taxes.