The Federal Housing Finance Agency House Price Index accumulates data from financed home purchases using Fannie Mae and Freddie Mac as their source. The FHFA HPI shows the Cape Coral Fort Myers housing market as the #2 fastest rising prices year over year, and #1 fastest rising in the past quarter.
In other words, home price appreciation is not slowing down in the Cape Coral Fort Myers housing market. Both cities are lumped into an MSA, so therefore you will see it labeled as Cape Coral Fort Myers housing market.
Florida ranked #5 out of all states, and Florida scored 8 out of the top 28 spots nationwide.
Why is Florida doing so well? People are attracted to Florida for a variety of reasons. Of course year-round sunshine, moderate temperatures, beaches, golfing, fishing, boating are the usual things you hear about Florida. Lately it is more than that.
In the past 5 years people have been moving to Florida for lower taxes, police protection, remote work, and less mandates. Entire companies have decided to relocate to Florida as well as induvial families and workers.
Is there a Bubble? Prices rise when there is more demand than supply. We do not see demand slowing down anytime soon. In fact, it feels like it is accelerating. Sometimes it takes companies years to make a relocation happen, and some of these have been planned 3-5 years ago and we are just now seeing them come to fruition.
We do not have enough supply. Builders are building as fast as they can, but they cannot keep up. Supply chain issues have only made it worse. Demand is picking up and supply is getting worse. In this mathematical equation there is only one way for prices to move, and it is up.
Other parts of the country are talking about a slowdown in growth. The key word there is growth. Prices are still rising, just not as fast. In Florida, we have seen an uptick in growth. Everyone that moves to Florida is moving from somewhere else.
We have not even hot season yet, and recently we just opened our borders to Canada. You will notice our roads are a lot busier now too. Demand is accelerating. Supply is not.
Some fear a new Covid variant may damper the economy. It might. Keep in mind when Covid originally hit Florida became popular. If a new variant were to become rampant, who is to say Florida wouldn’t attract even more?
Right now, it seems Florida wins no matter what happens. Can unforeseen circumstances change all this? Sure, anything is possible. All we are saying is the old rules of work and where people want to live have changed, and Covid has sped that thought process up.
If you are a buyer and hesitant to pull the trigger because you hear the market may fall, you might be in for a rude awakening. We do not see any apparent signs today this market is in a bubble, in fact to the contrary.
We have some excellent tools to keep up on the market. Our seller website www.SWFLhomevalues.com gives Free and Fast home value reports. Our buyer website www.LeeCountyOnline.com shows you the latest listings and is updated within minutes. No more looking at old listing data or missing out on hot new properties. Our websites are the best in the business and keep you informed in a fast-moving market.
If you are thinking of selling, call Brett or Sande at 239-310-6500 and we’ll be happy to show you how we can get you Top Dollar through our advanced marketing nationwide.
If you are a buyer simply trying to score a property, call our buyer hotline at 239-489-4042 and we will get you a buyer agent fast and on track to getting your next home.
Good luck and Happy real estate shopping!