Southwest Florida real estate home prices increased 6% in April up to $249,000. Median home prices had been $235,000 last April. However, while the median price saw a rise, the average sale price only increased .9% over last year.
As you can see from the graph, in 2016 April’s numbers increased over March. That didn’t happen this year. The median price actually slipped $6,000 this April from March and the average sale price fell almost $15,000.
Pending inventory is down 10.1% and new pending sales were down 5.1%. Active listings were up 4.6% although new listings were down 10.1%.
What does all this data mean for the Southwest Florida real estate home market? We believe home prices have risen enough such that we’re in a fairly balanced market. Our market is no longer rising because it had over-corrected and was undervalued. Standard economic forces will be the driving factor going forward. As we write this article today the Fed’s decision has not been announced. It is widely expected they may raise rates .25% this week which would affect car loans and equity lines. It may or may not affect 30 yr mortgage rates.
We do know that since the election over $4 Trillion dollars of wealth has been created in the stock market. Home prices have risen as well. Could we see some of that stock market money make its way over into the real estate market? It’s happened before.
Rising interest rates typically erodes buyer purchasing power, so that’s not always good for the real estate market, although rates are low by historical standards.
Could baby boomers withdraw lofty 401k and investment money and move over to real estate? It depends on their outlook of the stock market, interest rates, and the economy going forward.
Jobs are being created again too. Over 700,000 have been created since the election. This may be good news for the real estate market, although jobs are shifting. Have you noticed retail sales are taking it hard?
Companies like Sears, Kmart, Lowes and others have struggled. Shopping malls are closing across the country as shopping patterns are changing. More are shopping online.
We’ll be keeping an eye on economic data as we think that will lead to consumer confidence. We’ll also be looking at inventory supply numbers as well as builder inventory numbers. We think there is an opportunity for builders to sell homes again. If they build it, buyers will come.
Many local sellers would like to sell. They just don’t know where they’d like to live yet, so they’re waiting. In addition to touring available existing inventory, our team has been checking out new construction projects. We think this may be the driver that unlocks home sales. While inventory has risen some, it’s still low enough that home sellers don’t feel like they have enough choices to make a move.
It’s a double-edged sword though because as new construction inventory opens, there becomes more competition for existing home sellers. Our economy needs both to fully thrive, but in the right proportions.
Southwest Florida Real Estate Home Prices Steady
I like where this market is right now. The Southwest Florida real estate market is balanced depending on which price range you’re in. If you’re thinking of making a move in Southwest Florida, give our team a call. We know the existing inventory and the new construction projects. You don’t pay more to use a Realtor when buying new. Our fee is already built-in to their price. It’s cheaper for them to pay realtors a commission than it is to advertise to bring in that many sales. Plus, they know we have the ability to bring in more customers, so they treat our customers better. It could cost you by not knowing all your options.
You need to know things like county versus city property taxes, CDD fees, homeowner and flood insurance rates. These vary by location and age of the home. We can help you sort all this out so you make a great decision.
Call our team at 239-489-4042 or visit www.LeeCountyOnline.com to search all the homes. If you have a home to sell, call us and ask for Sande or Brett. We’ll sell your home fast and for top dollar so you don’t miss that next opportunity.
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Watch the Future of Real Estate June 2017 Southwest Florida Real Estate Market Update