December 2024 Real Estate MARKET UPDATE

BY: D. MICHAEL BURKE & HUNTER D. HABIB

As we near the end of 2024, the Southwest Florida real estate market has seen notable shifts, reflecting changing dynamics influenced by seasonal patterns, economic factors, and buyer sentiment. Whether you’re a buyer, seller, or industry professional, staying updated on these trends is essential.

Active Listings Surge

The number of active listings in the market has been steadily increasing over the past three months. As of December 9, 2024, there are 19,288 homes on the market, marking a significant 15% increase compared to last month. This growth comes after a year of fluctuating inventory levels:

• June 2024: 17,022
• July 2024: 16,367
• August 2024: 15,604
• September 2024: 15,256
• October 2024: 15,745
• November 2024: 16,561

The uptick in listings may suggest that more sellers are entering the market, perhaps encouraged by the slower but steady pace of price decreases and an easing in buyer competition.

Price Adjustments on the Rise

Over the last seven days, 1,661 price decreases were recorded, indicating that sellers are adjusting their expectations to align with current market conditions. This trend reflects an increased emphasis on pricing strategies to attract buyers as days on the market remain elevated.

Months of Inventory Trends

Inventory levels have also been a focus this year, with months of supply gradually decreasing after peaking in March 2024.

• Lee County: Now at 7.6 months
• Collier County: Now at 8.1 months

While these figures still indicate a balanced-to-buyer’s market, they represent a noticeable improvement compared to earlier in the year, when inventory levels were less favorable for sellers.

Days on Market Stabilizing

The average days on market for homes in Southwest Florida remain high but have shown slight month-over-month decreases:

• Lee County: 79 days
• Collier County: 85 days

Although these numbers are significantly higher than earlier in the year, the stabilization may suggest that buyers and sellers are adjusting to new norms.

Seasonal Influence and Economic Context

As Southwest Florida welcomes its annual influx of snowbirds, the market typically sees increased activity in the winter months. This seasonal uptick could provide more opportunities for sellers, especially those pricing competitively.

Additionally, broader economic factors, such as the Federal Reserve’s recent rate drop, are likely to influence buyer activity. Lower borrowing costs could attract more buyers, further balancing the scales between supply and demand.

Looking Ahead

The current surge in active listings and the strategic pricing adjustments reflect a market in transition. With the snowbird season ramping up and interest rates showing favorable signs, Southwest Florida’s real estate market remains dynamic, presenting unique opportunities for both buyers and sellers.

Whether you’re considering selling or buying, working with an experienced local professional is essential to navigate these changes successfully. Reach out to stay informed about how these trends may impact your real estate goals.