August 2024 Real Estate MARKET UPDATE

BY: D. MICHAEL BURKE & HUNTER D. HABIB

As we navigate through the second half of 2024, the real estate market in Southwest Florida presents a dynamic landscape shaped by shifting inventory levels, price adjustments, and evolving buyer and seller behaviors. In this update, we will tell you what you need to hear, not just what you want to hear. Here’s a closer look at the key statistics and trends defining the market as of August 1, 2024.

Inventory Levels and Active Listings
The total number of active listings has seen some fluctuation over the past few months. On June 4, 2024, there were 17,022 active listings in the MLS, which decreased to 16,367 by July 1, 2024. As of August 1, 2024, the number of active listings has further declined to 15,604. This trend suggests a tightening market, with fewer properties available for potential buyers.

Price Adjustments

The past week has witnessed a notable number of price decreases, with 1,292 listings reducing their asking prices. This surge in price reductions indicates that sellers are adjusting their expectations to align more closely with current market conditions, potentially responding to the decreased inventory and increased days on the market.

Months Supply of Inventory

The months supply of inventory, a crucial metric indicating the balance between supply and demand, has decreased in both Lee and Collier counties. Lee County now has a 6.0-month supply, while Collier County stands at 6.4 months. These figures represent a shift towards a more balanced market, though leaning slightly in favor of sellers as the inventory contracts.

Days on the Market
The average days on the market for properties in Lee and Collier counties have been gradually increasing. In Lee County, properties now spend an average of 71 days on the market, while in Collier County, the average is slightly higher at 83 days. This gradual increase suggests that while demand remains strong, buyers are taking a bit more time to make purchasing decisions, possibly due to the evolving price dynamics and inventory levels.

Median Days on Market in Major Metro Areas
Among the 200 largest metro area housing markets, several cities in Southwest Florida have the highest median days on market:

Naples, FL — 85 days
Punta Gorda, FL — 80 days
Cape Coral, FL — 78 days
North Port, FL — 74 days

These figures highlight the slower pace of transactions in these areas, reflective of the broader trends in inventory and pricing.

In contrast, the markets with the lowest median days on market are:

Manchester, NH — 16 days
Hartford, CT — 17 days
Rochester, NY — 17 days
Rockford, IL — 19 days
San Jose, CA — 20 days

These cities are experiencing much faster transaction times, indicative of high demand and quick turnover.

Conclusion
The real estate market in Southwest Florida as of August 1, 2024, reflects a nuanced interplay of decreasing inventory, price adjustments, and longer market times. For buyers, the current environment offers opportunities to negotiate as sellers become more flexible with pricing. For sellers, the key to success lies in pricing competitively and being patient as market conditions continue to evolve. As always, staying informed and working with experienced real estate professionals will be crucial in navigating this dynamic market.