Home prices remain flat as home sales dip. October median home price in Lee County was unchanged at $400,000, the same as last year. The average sales were down 3.2% to $530,281 in 2024, down from $547,676 last year. We prefer to use the median price as it’s less susceptible to high or low sales influencing the number.
Total single-family homes closed were down 13.6% in October. 2024 is tracking to be one of the lower sales volume years, and a sign of how unhealthy the economy is in 2024.
Interest Rates
Interest rates fell at the end of last week slightly, which would be a welcome sign if they continue. The talk of government cutting spending is welcome news to the bond market. It’s almost as if the bond market wants to believe the government can cut spending, but given their track record the markets are hedging their bets.
Additionally, inflation is still too high, but new data will be coming out in the next few weeks. PCE is due out November 27th, but this article is written on November 25th ahead of that report. If PCE comes in at .2% or less look for interest rates to lower. If it comes in higher, we might have to wait for rates to come down further.
Inventory
SW Florida inventory is rising. Pending sales have been slow, although slightly better in the last week. New listings are outpacing new pending sales by a wide margin, which leads to increased inventory. High inventory is one reason home prices remain flat. With the election behind us we hope that buyers will begin to focus on their real estate goals heading into 2025.
Lower interest rates may help get some buyers off the fence if they occur. Season is near, and already winter is hitting northern states with a fury. Early winters usually spur people’s interest in Florida.
Flood Insurance Update
In case you missed it, FEMA has decided to place Fort Myers Beach on probation. This means they lose their 25% discount. Essentially flood insurance just increased 25% on the beach. Probation also means they could lose the flood insurance program altogether if they don’t make more changes. This probation could last up to 2 years before rate discounts would apply, if they qualify.
How will flood insurance rates affect property sales on Fort Myers Beach? We do not know. All we can say is it’s unfortunate as they have worked hard to maintain that discount. It may not be the end of the world, but it’s never good when costs increase that much so suddenly.
Best Search Site
Where can you go to find the best deals in SW Florida? www.LeeCountyOnlinie.com is the best place to search. Not only can you search all the homes, but you can save searches so that new properties matching your criteria will be emailed to you when they arrive. It’s like a store sending you Black Friday deals tailored just for you, all year long. Give it a try and let us know what you think.
Of course, you can always reach us at 239-489-4042. We have all the technology, but there’s no substitute for speaking with a live person that will listen to your needs and work with you to accomplish your goals. AI is nice, but we think in the end most people will want to work with a human they can trust. Our team looks forward to working with you.
After you’re done shopping all those Black Friday deals, check out what our SW Florida real estate market has to offer. There are some deals out there, and the best time to buy is when there is product on the shelves. The worst time to buy is when the shelves are bare. It’s a good time for buyers right now.
Good luck, and Happy Shopping! Let us know if we can help you.
Ellis Team Weekend Open Houses
Open House Saturday 12-3 PM
2513 SE 24th Ave Cape Coral FL 33904
Open House Sunday 12-3 PM
10813 Denninghton Rd Fort Myers FL 33913
