Monday, January 21, 2019 / by Hunter Habib
Market Update - January 2019
Greetings Neighbors and Happy New Year!
I hope you’ve been enjoying the chilly weather we’ve been fortunate enough to have over the last month. While the temperatures have been cooling down, the Southwest Florida real estate market has been heating up a bit in January 2019. We’re off to a great start with a very active season thus far, but how did the market fare overall in 2018? Let’s look at our year-end review.
During the period of January 2018 to December 2018, there were 559 single-family home active listings in Bonita Springs. The average number of single-family units sold per month was 85, with a total of 1,020 single-family units sold for the year. The average month’s supply of inventory for the year was 6.6 months. The lion’s share of single-family units sold in 2018
In Estero in 2018, there were 439 active single-family home listings and 321 active condominium listings. Cumulatively, there were a total of 1,457 units sold in 2018 with an average month’s supply of inventory at 6.3 months. Also, in the Estero market, most units sold for both condominium and single-family units were in the $100,000 to $400,000 price segment.
Further south in Naples during the period of January 2018 to December 2018, there were 3,318 single-family home active listings in Naples. The average number of single-family units sold per month was 440, with a total of 5,283 single-family units sold for the year. The average month’s supply of inventory for the year was 7.5 months. The lion’s share of
Going north now to Fort Myers, 2018 saw a combined total number of sales for single-family homes and condominiums of 6,713. This market also saw the lion share of its sales in the $400,000 and below price segment. The Fort Myers market also saw a lower month’s supply of inventory sitting at an average of 5.3 for 2018. In 2018, there were 1,698 active single-family units and 1,285 active condominium units for sale. The cumulative average number of sales per month in the Fort Myers market was 559.
Fort Myers Beach
Down to the coastline, Fort Myers Beach saw a total of 170 single-family units sold and 302 condominium units sold in 2018. Sold units in Fort Myers Beach were spread over several price segments$700,000 and below for both home types. Inventory in Fort Myers Beach was higher than previously mentioned markets with an average of 8.3 months’ supply of inventory.
Moving up the coast to the north, Cape Coral showed a cumulative total of 5,979 units sold for single-family homes and condominiums. A whopping 95 percent of all single-family units sold in Cape Coral
The Bottom Line
In 2018, the Southwest Florida residential real estate market saw a steady market with increasing signs of normalization through the year. Most markets also have inventory challenges in many of the lower price segments, as most sales for almost all markets were in these price segments. While not inactive by any standard, the higher-priced luxury market did see a less active sales year across the board, which can be due to other variables such as long-term hurricane damage still being reconciled for example. However, across all markets and price segments, overpricing was an issue. The trend for 2018 showed that units sold were units that were priced to market value. Those units overpriced sat on the market with little to no activity. 2018 also showed as the year progresses, price repositions increased as sellers realized that buyers in the market were savvy and were not giving time to overpriced units in any market, price segment or home type. Other variables included the lower value of the Canadian dollar and a bit of political uncertainty, especially from our European buyers’ perspectives. For 2018 though, the bottom line was that price was really the name of the game. In comparison to past years, the overall outlook is that the Southwest Florida market was steady and active in 2018.
As we move into 2019, the price is still the key to getting it sold. With the historical influx of new inventory on the market in January 2018, as well as new construction inventory, sellers must take caution to price accurately if they are serious about selling this winter season. According to national surveys and research, Cape Coral and Fort Myers are both poised for positive growth in 2019, so that will also be a factor in the new year for homeowners wishing to sell in those markets. Additionally, this growth may also spill over into the Bonita Springs and Estero markets as well for those looking to buy more south.
Some good advice for sellers in 2019? If you’re interested in selling but want to “play” the market by listing an overpriced unit, you’ll be hard-pressed to find an experienced real estate agent who will take an overpriced listing. Your best bet is to not waste your time, but rather wait until you truly are ready and motivated to sell, as buyers are very savvy (as are their real estate agents!) and will not waste time negotiating for an overpriced listing.
What are your plans for buying or selling this winter? Whether you’re looking to invest, purchase a second home or just looking for the home of your dreams, our team can help you make it happen with the best possible outcome! Here is a handy list of unique sales tools we provide our buying and selling clients. Whether buying or selling, our tools are PROVEN to help you get the most from your transaction!