Lee County 2024 year end sale prices were down 3.6% for single family homes, and down 3.1% for condos.
A number of factors could have caused this, but first we’ll look at this like a math equation. More homes came to the market then sold causing inventory to rise. When there are more sellers than buyers, it puts downward pressure on prices.
2024 Year End Sale Prices
Closed sales for the year were down 1.1%. That’s not too bad. The zinger to home prices was that single family inventory rose 29.4%. Rising inventory combined with slower sales is not a recipe for higher prices.
The condo market is even worse. Closed sales were down 16.4% in 2024, while inventory grew 44.8%. We now have an 11-month supply of condos on the market in Lee County. Many factors have contributed to this, not the least of which is rising insurance costs. The other major factor influencing condo sales is the new rules taking effect January 1, 2025, regarding engineering and reserve studies and forcing certain condos to catch-up all at once on reserves.
2024 for a downright awful year for real estate. Was there any good news as we closed out the year?
Good News
Insurance reforms are working. In 2024, 10 new companies entered the Florida insurance market. Citizens Property Insurance saw a decrease in policies of 428,650. Because Citizens is an insurer of last resort, this means private companies picked up those policies and are coming back.
32 Florida companies filed for a zero percent increase in insurance rates, while 17 companies filed for a decrease in rates. That’s good news. There has been a decline in litigation, presumably because of the new laws put in place in recent years to combat insurance rates.
The election is over. People can now move forward. Whether their candidate won or lost, we now know the direction of the government and policy. There were huge unknowns throughout 2024.
Rates peaked on January 14th but have come down about .25% since then as of writing this article. We track the 10-year treasury yield since mortgage rates are more closely tied to this rate than others. Most experts believe rates will decline a little in 2025, perhaps less than 1%.
Where are We Headed?
Nobody knows. We can say pending sales have begun picking up, but not yet at a rate we feel they should. Inventory is still growing. A few weeks ago, we wrote an article that gave clues. In our view, 2025 is shaping up to be a lot like the 2019 market. You can read more about that on our blog at https://Blog.topagent.com Home sales typically pick up in February and March. We’ll be watching these numbers like a hawk and report to you.
Selling?
If you’re thinking of selling, call Brett or Sande Ellis at Keller Williams Realty 239-310-6500. We can answer your questions and provide market direction and statistics to help you make better decisions. Or go to www.SWFLhomevalues.com to get an instant price for your home.
Buying
While we can’t say prices are at the bottom, this might be an opportunity. It’s impossible to predict the top or bottom. What we can say is there is optimism in 2025 that was not there in 2024. Phone calls are picking up, and showings are picking up. These things must happen first, and they are. We don’t go from a down market to up market and skip these steps. Pending sales may begin to rise in February, and if they do, closings may not be far behind. We believe now is an excellent time to buy before every other buyer decides to buy, becoming your competition.
To search the MLS like a pro, check out www.LeeCountyOnline.com, or call us at 239-489-4042 and we’ll be glad to help. Good luck, and Happy House Hunting!
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