Official Lee County real estate sales price statistics are out, and it reveals a 20.2% increase in the last year. Median sales price rose from $262,000 December 2019 to $315,000 December 2020. Average sales prices show an even greater gain. December 2019 average sales price was $346,857 compared to $455,685. That is over $100,000 gain and a 31.4% increase.
The rate of gain is not sustainable. Do not expect prices to rise 30% year after year. There is room for further price gains, but not at that rate. Low interest rates are helping buyers afford more home. High interest from out of state buyers is also fueling demand. This trend picked up 4 years ago and we expect that to continue.
Florida a Work From Home State
Covid-19 has taught us much of America can work from anywhere. With that being said, many are choosing to exit big cities and work in less crowded areas with better climate and lower taxes. Florida stands out as an excellent choice. I read an article yesterday that showed Florida is now the most attractive state for net migration from other states.
Fort Myers was also named the fasted growing city in America by Business Insider. The Fort Myers/Cape Coral area has been undervalued for years. If you go back and read our past articles, we talked a lot about Florida having 67 counties, and two saw price gains below the state average. Those two counties were Lee and Martin counties. Eventually this equalizes, and the world has taken notice. If you are an out of state buyer looking for sunshine and a nice place to live, you are not necessarily tied to one area.
Naples and Bonita have always been expensive compared to rest of Lee County. I remember the day when Bonita was not expensive, but recently it has been as growth filled in. Growth is marching right up the coast and now Fort Myers is the bullseye. Therefore, we are seeing price increases greater than some areas and it will continue.
Excellent Buys if You Know Where to Look
There are still some excellent buys out there, both in resale and new construction. We need more new construction to help with demand. We are seeing builders raise prices dramatically on lots, home construction, and pool costs. Some of that is demand, and some is increased costs for lumber and supplies.
New construction prices rising dramatically will help pull resale prices even higher. When new homes go up $100,000, resales follow. We expect 2021 to be another great year, but some buyers are getting priced out of the market. The market does not care who buys the home. An out of state buyer with more money may be able to pay more than a local buyer.
We are seeing buyers having to adjust where they want to live as some are getting priced out of their desired neighborhood due to real estate sales price increases.
Getting Top Dollar Not Easy For Everyone
We are also seeing For Sale By Owners giving up and hiring Realtors. Getting top dollar is not easy if you do not know how to reach today’s buyers and you do not know how to close the transaction. Anybody can find a buyer, but can you find many? Today there is typically more than one buyer for every property, you just have to find them. When you have more buyers to choose from, you will get a better price.
An experienced agent also knows how to select the best offer. It’s not always price. We are looking for the buyer most likely to close. If you have questions on that, reach out to Sande and Brett Ellis at 239-310-6500
Some people like our Free Instant Home Price Evaluator. If you are thinking about selling, we can validate the price and make sure it is accurate. Prices are changing by the week, so do not leave money on the table. Always call the Ellis Team at Keller Williams Realty!