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Florida Market Rebalancing
Click here or on image to view Local Market Update for Bonita Springs-Estero
The demand for Florida real estate has been exceedingly strong over the past few years, but now in mid September of 2023 the Florida market is undergoing a healthy rebalancing with the higher interest rates and increased cost of borrowing. During the pandemic, Florida experienced a new work-from-home economy, increased demand from corporate investors as well as a large influx of people relocating to the sunshine state, much higher than the normal snowbird activity each winter.
With so many people moving to Florida in recent years, housing prices have risen significantly in a relatively short period of time. This strong demand has also caused the amount of homes for sale, often referred to as available inventory, to remain relatively low at a 2.8 month's supply (a six month's supply is standard in a normal market). Fewer listings hitting the market is also helping to keep inventory levels low (roughly 15% less listings vs a year ago).
Due to there being fewer homes to choose from, correctly priced homes are continuing to sell fairly quickly after hitting the market and for homes in choice neighborhoods with good schools and preferred location, multiple-offer situations are still occurring, but at a much lesser pace than was during the market peak.
Florida New Construction
Florida's new home construction market is also affected by the strong demand. While previous supply chain issues experienced during the pandemic have been resolved, current construction labor shortages are now causing delays for home builders in various metropolitan markets around the state. As a result, wait times for new homes can now be up 12+ months in some cases, versus the more normal 7 - 9 months build time from initial contract to close.
While many who are relocating to Florida are eager to escape the cold weather or to start their retirement years as Floridians, and not necessarily wanting to wait this extended length of time for a home to be built, many are opting for recently-built homes in the resale market and will often pay a premium above ask price to secure a deal.
Source: FloridaRealtors.org
John R. Wood Christie’s International agents continue to outpace the competition and the market! Year-to-date through August, John R. Wood Christie’s International Real Estate continues to hold the first-place position for closed sales volume and transactions in Southwest Florida.
As always, I welcome hearing from you with your real estate market questions -- Deb
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