January 2024 Real Estate MARKET UPDATE

BY: D. MICHAEL BURKE & HUNTER D. HABIB

As we step into the new year, it’s essential to reflect on the dynamic landscape of Southwest Florida’s real estate market in 2023. This recap aims to provide a comprehensive overview, shedding light on key statistics and trends that have shaped the industry over the past year.

Market Performance:

In 2023, the real estate market in Southwest Florida experienced a notable shift, with 31,816 homes sold. This figure reflects a 10% decrease from the previous year’s sales of 35,346 homes and a substantial 33% decline from the robust 2021 closed sales of 48,026 homes. The market’s performance indicates a nuanced interplay of factors influencing buyer and seller behavior.

Current Market Snapshot:

As of January 2, 2024, Southwest Florida boasts 14,186 active listings, showcasing the diverse range of properties available to prospective buyers. Within the last seven days, 678 price decreases have been recorded, indicating a market that is responsive to changing dynamics and buyer preferences.

Inventory Trends:

The months supply of inventory, a crucial metric in understanding market conditions, has seen an increase in both Lee and Collier Counties. Lee County’s inventory has reached 5.3 months, while Collier County is slightly higher at 5.5 months. This shift suggests a balance between supply and demand, with implications for pricing and negotiation dynamics.

Days on the Market:

Days on the market (DOM) have become an important metric for gauging the pace of property sales. In Lee County, the average DOM has steadily climbed to 58 days, reflecting a thoughtful consideration process by potential buyers. Collier County follows suit with an average DOM of 63 days, indicating a similar trend in the region.

Challenges and Opportunities:

The real estate landscape in Southwest Florida faces challenges amid changing market dynamics. However, these challenges also present opportunities for buyers and sellers alike. Understanding the market’s intricacies and staying informed about emerging trends will be key to navigating the real estate landscape effectively in the coming months.

Overall Thoughts:

As we bid farewell to 2023, Southwest Florida’s real estate market has shown resilience and adaptability in the face of changing conditions. If you’re considering putting your home up for sale and have any questions regarding the current state of the market, our team is always available to assist you. Our team of experienced professionals can help you achieve your residential real estate goals, whether you’re buying or selling. With our proven tools, you can be assured of getting the most out of your transaction.