The single-family SW Florida inventory gap has decreased to 5,631 homes in late August, down 7,329 back in February. The gap is the difference between available inventory and pending sales.

SW Florida Inventory Gap

There are three ways the gap can narrow. Demand can grow by outpacing new homes entering the market is the first. Secondly, less homes can enter the market. And third, homes can expire or be taken off the market which lowers supply. They didn’t sell; they just disappeared like a UFO.

In Lee County, the primary reason that gap is narrowing is the third option. Many sellers are taking their home off the market and giving up. Some sellers will rent their home out while others will just stay in their home. Their home may not suit their needs, but they are not motivated to make that move right now for their own reasons. Many are financial reasons. For many, they may need to net a certain amount for their next down payment. As equity vanishes, so does their down payment.

Of course, people can get into their next home with less down payment, but at what cost? Interest rates are high compared to what they were four years ago. It may not make sense to put a low amount down and financing a new home at a higher rate.

Ego

For others it is ego. We’ve heard many people say I don’t lose money on real estate. One way to do that is to never sell for less than you paid for a property. You may have to hold onto it for a while, but so long as you can afford the property you’re in, you don’t have to sell. Even though some homeowners would benefit from buying their next property at a discount compared to a few years ago, the thought of selling for less than they want forbids them from making that decision.

How do you justify what is the correct decision for you? I would start by calling your trusted Realtor. The Ellis Team are SW Florida property experts in Lee County. We specialize in Fort Myers and Cape Coral, and all of Lee County. There are other great Realtors as well. Just Google the Realtors you are considering speaking with and you’ll gain valuable insight.

Select a Trusted Realtor Expert

Once you select a Realtor, invite them over for a candid conversation. Talk about what your home is worth. Not what you want for it. Lay out the cost of keeping your home. This includes mortgage payment, insurance, and all fees like lawn, pest control, electricity, water, sewer, HOA fees, etc. Homeowners are often surprised at the total cost of owning their own home. Once you know those numbers, decide where you would go.

We need to look at how much you would earn if you put your equity in the bank, invested it, or plopped it down on your next home. How much will your next home cost per month? Is it newer, and will it have less maintenance costs going forward? Will the next home appreciate more rapidly than your current home.

The answers to these questions can make your decision much clearer. If your current home will appreciate at 2% and have a lot of ongoing maintenance and your next home appreciates at 4% with less maintenance, it’s costing you money to stay.

Call Brett or Sande Ellis

Brett Ellis and Sande Ellis are SW Florida property experts. We don’t try to sell you anything. We’ve built our reputation on offering solid advice and let you make the best decision for you and your family. We can be reached at 239-310-6500

Or visit www.SWFLhomevalues.com Our site will give you a free online estimate of your home’s value. Sande or Brett can validate it for you and see if it sounds right to you, but that is a good first step.

Enjoy your Labor Day weekend, and Happy House Selling!

Southwest Florida Real Estate Market Update August

This real estate market report is brough to you by the Ellis Team, SW Florida’s top real estate team and voted Best in Fort Myers and Cape Coral by News Press readers.

Gulf Coast Real Estate Insiders Podcast

Check out our new podcast, the Gulf Coast Real Estate Insiders Podcast

Our latest episode 3 covers surviving tough markets and AI in real estate.

Buyers consider total cost of ownership when making real estate purchasing decisions. High mandatory fees repel buyers in today’s market unless true value is present. Buyers today are concerned about affordability and what their property is going to cost on a yearly basis.

It’s not just the purchase price that’s on the buyer’s mind. They want to know what it’s going to cost to hold the property. This includes insurance, homeowner’s fees, maintenance, taxes, and financing if applicable. Interest rates have obviously affected total cost of ownership, but it seems like everything has risen all at once.

Buyers Consider Total Cost

The first questions buyers ask are what are the age of the roof, air conditioner, and water heater. The next questions they ask are what the taxes and flood insurance are, and what are the ongoing association fees. In fact, some buyers start with the ongoing fees first and eliminate neighborhoods where the fees are higher than they like.

Condo and homeowners’ associations are faced with the difficult task of making hard choices. The higher the rate, the less desirable their neighborhood will be in some buyer’s eyes. Some associations pay for items like lawn maintenance while others let the homeowner themselves pay for it. We see group contracts for cable TV or internet which can lower the cost if everyone is included in the contract, while not everyone may want that. 2nd homeowners may object because they do not use the service year-round and don’t wish to pay for cable TV or Internet for 12 months.

Back in College

 When I studied Finance back in college, we studied the correlation between multi variable equations. This was helpful in assigning a value to a variable, if there was a correlation. I used that equation to study all the sales in SW Florida in 2024. I was able to isolate each amenity or maintenance fee cost and assign a value to each item that had a high correlation. The reason I did this was because I wanted to know if a neighborhood includes certain amenities, is it good value. Because each neighborhood offers different things and has different fees, I had to use this advanced equation to solve for the standard values.

The results are in. We isolated how much an amenity or maintenance fee item adds to the average cost of a HOA or condo bill per month. For instance, lawn/land maintenance averages $131.97 per home in 2024 if it’s included in the HOA fee. Cable TV added $35.15. A community pool added $67.38

Comparison Shopping

A buyer generally adds up the amenities that are important to them and looks at the HOA fee and decides if the community is a good value to them. It’s almost impossible to calculate for a buyer because it’s not always apples and apples. Each community includes different things, so a buyer goes by feeling and total cost. They want certain things, but there is a limit to how much they want to pay to receive them.

Because the Ellis Team has all this data, we can now ask if a certain subdivision is a good value relative to the amenities it offers and what the maintenance fee covers. Buyers consider total cost of ownership for the amenities they prefer.

Neighborhood Query

For fun, I asked if Reflection Lakes was a good value for the amenities it offers and what the HOA charges.  Here is the result: “Based on the data, Reflection Lakes rates as a good value.

The average cost per amenity/maintenance item for Reflection Lakes is $212.47, which is lower than the overall average of $319.11 for all other properties in the dataset. This suggests that you get more amenities and maintenance services for your recurring fees compared to the average property.”

We can ask neighborhood by neighborhood if the amenities they offer compared to what the HOA charges are a good value. The results might surprise you.

Next week we’ll publish the top HOA values in Lee County based upon the monthly HOA cost versus amenities provided. If you’d like us to lookup your neighborhood, simply comment on this article over on our Blog at https://blog.topagent.com

We hope you enjoy this analysis. To search homes on the MLS, check out www.LeeCountyOnline.com or get your home’s property value at www.SWFLhomevalues.com

 

HOA Fees Video Analysis

Today we are debunking real estate myths and discussing what buyers and sellers need to know.

Debunking Real Estate Myths in Fort Myers/Cape Coral 

The Southwest Florida real estate market, particularly in the Fort Myers and Cape Coral areas, is a unique and dynamic landscape. While the sun shines brightly, a few persistent real estate myths can cast shadows on what can be a smooth and successful transaction. Let’s shine a light on the truth and debunk some of the most common myths specific to our beautiful Gulf Coast.

 

Myth #1: Property Insurance in Florida is Impossible to Get and Unaffordable

 

For anyone considering a move to Southwest Florida, the topic of property insurance often comes with anxiety. The myth is that due to past storms and market volatility, securing affordable and comprehensive coverage is a nearly insurmountable hurdle for homebuyers.

 

The Reality: While property insurance has faced challenges, the situation is far from hopeless. Recent legislative reforms and the entry of new carriers have begun to stabilize the landscape, leading to more competitive rates and greater availability. The key is to be proactive. Buyers should work closely with a knowledgeable local agent and an experienced insurance broker. They can help you navigate options and find coverage that meets your needs. Newer homes built to stronger codes also often qualify for more favorable rates. By doing your due diligence and relying on local expertise, you can secure the necessary coverage without breaking the bank.

 

Myth #2: After a Hurricane, Property Values Plummet

 

In a region that has faced the power of nature, it’s understandable that some people fear a long-term negative impact on property values. The myth suggests that after a major storm, the market will collapse.

 

The Reality: History shows that the Fort Myers and Cape Coral real estate market is remarkably resilient. While there may be a temporary slowdown as the community recovers, property values tend to rebound strongly. Our region’s desirability remains a powerful draw. Furthermore, rebuilding efforts often result in newer, more resilient homes, which can actually increase a neighborhood’s overall value. For buyers, the post-storm period can be an opportunity to invest in a revitalized area. For sellers, it’s about showcasing the improvements and resilience of their property and community.

 

Myth #3: All Real Estate Agents Offer the Same Services

 

With countless agents in the area, it’s tempting to think they are all interchangeable. The myth is that an agent’s main job is just to list a property or show a house.

 

The Reality: Not all agents are created equal. A top agent in the Fort Myers and Cape Coral market is a local expert, a skilled negotiator, and a trusted advisor. Their value lies in their deep understanding of local nuances, from flood zones and insurance changes to neighborhood-specific market trends. They have a network of reliable professionals, from inspectors to contractors, and a proven marketing strategy that gets your home in front of the right buyers. Choosing an agent based on experience and local expertise can make the difference between a frustrating transaction and a seamless, profitable one.

 

Myth #4: Cape Coral’s Canal System Means Every Home is a Boater’s Paradise

 

Cape Coral is famous for its extensive canal system, leading many to assume that any home on a canal is a prime spot for a boat.

 

The Reality: While the canals are a major selling point, not all canal homes are created equal. Boaters need to consider several factors, including whether the canal provides direct gulf access. Some canals are freshwater, while others are saltwater with bridges that may be too low for larger boats. It’s crucial for buyers to work with an agent who understands these distinctions and can help them find a property that truly meets their specific boating needs.

Conclusion

Navigating the Fort Myers and Cape Coral real estate market requires more than just a passing knowledge of local trends. By debunking real estate myths, you can approach your real estate journey with confidence and clarity. With the right information and a skilled professional by your side, you can make informed decisions that lead to your real estate success.

Visit www.LeeCountyOnline.com to see all homes in MLS or call us at 239-489-4042