08/22/2024
Southwest Florida Market Perspective: As the pace of sales has gone through a period of decline in the years since the peak of the market, so too has the rate at which listings have entered the market. This sustained pullback in new listings, despite recent upticks has, to a large degree, counterbalanced the decline in sales and has kept inventory levels in check. Inventory has risen, thankfully, but not to the point of over-supply. In real estate, the relationship between supply and demand is gauged by “months of supply”, which takes into consideration the rate at which sales are absorbing available inventory. In Southwest Florida, 6 to 12 months of supply is generally considered to reflect a balanced market. Greater months of supply suggests a buyer’s market, putting downward pressure on pricing, while fewer months of supply suggest a seller’s market and puts upward pressure on pricing. With months of supply holding steady between 6 and 7 months so far year to date, the 12-month rolling average sales price has been stable, only posting nominal month-to-month changes so far this year. Even in a balanced market, a seller should be cognizant of how their home is positioned price-wise. Although homes are selling, buyers have options and the days of homes selling in a week with multiple bids are behind us. On average, homes in Southwest Florida are selling in 70 days at 96.7% of list price. While different from what those who sold during the peak experienced, these numbers stack up very favorably compared to balanced markets of past. For buyers, it’s important to remember that although homes aren’t selling as fast as they were during the peak, homes are still selling and a properly priced home won’t remain available indefinitely. Of course, trends will likely vary in differing localized market segments, which is one of many areas where the specialized knowledge and skills of a professional Realtor® create success for buyers and sellers.
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