Could home sale price gains become a trend in SW Florida? It could, and here’s why. SW Florida hasn’t seen true price gains the last few years for whatever reason. And that’s OK with us. We always felt if there was a recession and price correction, SW Florida would be somewhat insulated as we didn’t participate in price run-ups like other counties in the state. Now that the economy is taking off and interest rates are low, all signs seem go for the Florida real estate market.
This creates an opportunity for SW Florida. While all of Florida is benefiting from the booming economy, low rates, and low taxes, SW Florida may have more room to grow than other counties that have already experienced price gains. Just as certain stock industries appreciate at various rates, so can local real estate markets.
High tax states like New York and New Jersey sometimes flock to the East coast of Florida, while Midwestern states like Illinois, Minnesota, Ohio, Iowa, etc. tend to migrate to the West coast. Even that is changing though. Part-time and full-time residents from East coast of Florida are coming over to West coast as well. People want value and quality of life when deciding where to live, and SW Florida offers both, and it’s beginning to get noticed. Our values are great, and traffic is so much better than the big cities.
Home Sale Price Gains a Trend in SW Florida?
Median home prices are up 5% this November vs. last November and average prices are up 1.6% Year to date median home prices are up 2.4% while average price are down 2.2% We’ll be watching the next few months numbers to see if a price trend emerges. The last few weeks we’ve written extensively on how the SW Florida real estate market is changing. All these indicators point to a strengthening real estate market, and we love the potential of this market.
Stock pickers frequently look for the undervalued stocks in an industry, or the diamond in the rough. SW Florida was forgotten about for whatever reason, and we think that’s about to change. Will we see double digit growth? Doubtful and we’re not looking for that. We love steady, sustainable growth with quality of life. SW Florida doesn’t want to become Miami West. We have our own laid-back character and charm, and most want to keep it that way. You can’t stop growth, but you can be smart about it. Proper planning for roads, bridges, water quality, wildlife, shopping, etc. makes a big difference.
Near the end of January, we’ll have final 2019 numbers, and when final numbers are in, we believe 2019 will be a great year. Home sales should eclipse the past 4 years, prices should be up, and inventory should be down. If this holds true, we’ll have a better idea of how 2020 will shape up. History only tells us where we’ve been. It doesn’t always tell us where we’re going. To know that, we either have to read the tea leaves or pull out our crystal ball.
It is hard to read the tea leaves if you don’t know exactly where you’ve been, where you are today, and what factors are influencing the market currently. We have a pretty good handle on all three, and final 2019 numbers combined with January preliminary sales data will go a long way to telling us how season will go.
If you have a home to sell, always call Brett or Sande Ellis at the Ellis Team at Keller Williams Realty 239-489-4042 Ext 4 or visit www.SWFLhomevalues.com to get an instant free analysis of your home.
We hope the holidays were kind to you and we look forward to serving you another year in real estate. Please let us know how we can help you.
Good luck and Happy Home Selling!
See Last Week’s Article “November Closed Home Sales up 6.6%”