Welcome to the 2017 Southwest Florida State of the Market Report. We love this time of year as we get to analyze how the previous year ended up and give our insights on what the future year may bring to us.
The headlines may read that 2016 ended with a whimper. We might disagree. All year we were saying sales were down and prices were kind of flat. This was true. 2015 sales prices were revised downward in the latest official release so the 2016 numbers appear better than they were. We eked out an 8.3% median price increase which is fantastic considering many months were flat. December’s numbers really helped the year. The last 6 months of the year showed median prices hovering between $225,000 and $230,000. December’s shot up to $249,900. Additionally, the number of homes closed shot up in December as well.
2016 sales numbers were down all year. Closed sales were down 6% for the year. For the most part we were behind last year’s numbers except August and November. This is not uncommon when prices rise. As you can tell from the year end prices chart, we’ve come a long way back. Would you rather be where we are today or 2007 which was a bit higher?
We’ve got a healthy market today. We did not have that in 2005, hence the free-fall we experienced a few years later. We have end users for our homes now. Back in 2005 we had speculators flipping homes from one speculator to the next. We had some cleaning up to do.
I remember as a boy my mom saying you can’t go out and play until you clean up that room. That was Hell! All a boy full of energy in the Midwest wanted to do on a sunny day was go out and play. Being bottled up inside was no fun. We didn’t have all the video games and Internet, so outside was where it was at.
SW Florida felt the same, only it lasted several years. Our market was Hell for anybody who bought in 2006, 2006, or 2007. We had some cleaning up to do. 2009 was the bottom of the market but it still wasn’t big fun.
Today almost everyone is outside playing, and most everyone has a clean room at home. January started with a bang this year. We think for the first time in a while there is genuine optimism about the economy. This past election was fierce and gruesome. People are glad that’s over and looking forward to lower taxes and a smoother mortgage process. Both are in the works.
Nobody knows how long this excitement will last. All we can tell you is 2017 season has started off well, and we expect it to end well. If a seller prices a home correctly, it will sell. If a home is overpriced, it will sit.
Year End Sales Numbers
Buyers are competing to win a home. If a home is priced at market, it may attract several buyers. We have a balanced and healthy market. Sure, we’re not back to the height of the market, and that’s OK. Those numbers were not supported by end users or income. Today’s demand is supported by people needing a place to live, not a speculative get rich scheme.
2017 Southwest Florida State of the Market Report Video
We have a full State of the Market video on our Facebook page www.facebook.com/Ellisteam or watch below.
Be sure to search the MLS at www.LeeCountyOnline.com or get neighborhood reports here too. If you’d like to talk to us about the market or how we could sell your home and find you a better home for you, please call us at 239-489-4042 Ext 4. Brett and Sande are easy to talk to and we’re never pushy. We present you with your options and we’ll help you accomplish them!
Good luck and Happy House Hunting!