June 2024 Real Estate MARKET UPDATE

BY: D. MICHAEL BURKE & HUNTER D. HABIB

As of June 2024, the real estate market in Southwest Florida is exhibiting several notable trends that are of interest to both buyers and sellers. Here’s a detailed look at the current market conditions in this beautiful region, encompassing key metrics and insights.

Active Listings and Market Activity

The number of active listings in Southwest Florida currently stands at 17,022. This figure represents a slight decrease of approximately 500 listings from the previous month. Despite the reduction in active listings, the market remains dynamic, with a notable volume of price adjustments. In the past seven days alone, there have been 1,662 price decreases, indicating that sellers are becoming more flexible and responsive to market conditions.

Inventory Levels and Market Supply

The months supply of inventory, a critical measure of market balance, has also shown a downward trend in both Lee and Collier Counties. Lee County’s months supply of inventory has decreased to 6.4 months, while Collier County’s has dipped to 7.2 months. These decreases suggest a tightening market, where the supply of homes is becoming more limited relative to the demand.

Days on Market

Homes in both Lee and Collier Counties are now staying on the market longer, with the average days on market creeping up to 70 days. This gradual increase suggests that while there is still significant interest in property transactions, buyers are taking a bit more time to make their purchasing decisions, possibly due to the slight cooling in the market.

Median Sales Prices

The median sales price in Lee County has remained relatively stable over the past two years, hovering around $400,000. In contrast, Collier County has experienced a slow but steady increase in median sales prices, rising from $600,000 in March 2022 to $687,000 as of June 2024. This upward trend in Collier County reflects its ongoing desirability and robust demand for higher-end properties.

Why Now is a Good Time to Buy Real Estate in Southwest Florida

Given the current market conditions, now is an opportune time to consider purchasing real estate in Southwest Florida. Here are a few reasons why:

1. Decreased Competition
With the number of active listings slightly declining and the days on market increasing, buyers may face less competition when making offers. This can provide more room for negotiation and potentially better deals.

2. Price Adjustments
The recent wave of price decreases suggests that sellers are willing to be flexible to close deals. This trend can present buyers with opportunities to purchase properties at more attractive prices.

3. Stable to Growing Property Values
In Lee County, the stability in median sales prices provides a predictable market environment, which is beneficial for planning and investment. Meanwhile, the gradual increase in median prices in Collier County indicates potential for long-term appreciation, making it a promising area for investment.

4. Interest Rates
While not explicitly detailed in the latest data, the broader economic context and interest rate environment always play a critical role in real estate decisions. If interest rates remain favorable, this can significantly enhance buying power and make home purchases more affordable in the long run.

5. Inventory Levels
Despite the decrease in months supply of inventory, the current levels still suggest a balanced market, not overly favoring sellers. This balance provides a fair landscape for buyers to find a variety of options without the intense pressure of a highly competitive market.

In conclusion, the Southwest Florida real estate market as of June 2024 presents a unique mix of opportunities. With a slight cooling in active listings and days on market, coupled with price flexibility and stable to increasing property values, now is a strategically advantageous time for buyers to enter the market. Whether you are looking for a primary residence, a vacation home, or an investment property, Southwest Florida continues to offer promising prospects.