July 2024 Real Estate MARKET UPDATE

BY: D. MICHAEL BURKE & HUNTER D. HABIB

As of July 2024, the real estate market in Southwest Florida is experiencing notable shifts. With 16,367 active listings currently available, a slight decrease from the 17,022 listings recorded on June 4, 2024, the market is exhibiting a trend towards tighter inventory. This is complemented by the fact that 1,304 properties have seen price decreases in the past week, indicating a more competitive landscape for sellers.

Inventory and Market Dynamics
The months supply of inventory, a key indicator of market health, has decreased in both Lee and Collier Counties. Lee County now stands at 6.3 months, while Collier County is at 6.8 months. This reduction in supply suggests that we might be normalizing and seeing our typical seasonal trends like in the years pre-pandemic. 

Moreover, the average days on the market have been inching upwards, with Lee County properties now taking an average of 70 days to sell, and Collier County at 81 days. This slight increase indicates that while demand remains strong, buyers are taking a bit more time to make their decisions.

Price Adjustments
The recent wave of price decreases – 1,304 in the past week alone – signals that sellers are becoming more realistic about their pricing strategies to attract buyers in this competitive environment. This adjustment can be a strategic move to ensure properties are sold within a reasonable timeframe, given the increased days on the market.

Why Now is a Good Time to Sell in Southwest Florida
Given the current market conditions, now is an opportune moment for sellers in Southwest Florida. Here’s why:

Reduced Inventory: With the months supply of inventory decreasing, sellers face less competition. This means your property is more likely to stand out and attract serious buyers.

Strong Buyer Demand: Despite the increase in days on the market, buyer interest remains robust. Southwest Florida continues to be a desirable location for its weather, lifestyle, and economic opportunities. This consistent demand supports healthy market activity.

Competitive Pricing Advantage: The recent trend of price decreases indicates that sellers who price their homes competitively are more likely to attract buyers quickly. With fewer properties on the market, a well-priced home can generate significant interest and potentially multiple offers.

Market Stabilization: The slight increase in days on the market suggests that the frenzy of quick sales might be slowing, allowing for more strategic marketing and negotiations. Sellers have the advantage of a stabilized market where buyers are still motivated but are taking the necessary time to make informed decisions.

Conclusion
The Southwest Florida real estate market in July 2024 is characterized by a balanced mix of opportunities and challenges. With a slight decrease in inventory and a stable demand, sellers are well-positioned to take advantage of current market dynamics. Adjusting pricing strategies and understanding the competitive landscape can lead to successful transactions. For those considering selling, now is a strategic time to list your property and capitalize on the evolving market conditions in Southwest Florida.