March 2024 Real Estate MARKET UPDATE

BY: D. MICHAEL BURKE & HUNTER D. HABIB

Growing Inventory and Price Adjustments

One prominent feature of the current market is the steady increase in available inventory. As of February 1st, 2024, there were 16,078 active listings in Southwest Florida. Fast forward to March 5th, and that number has risen to 17,304, signifying a notable uptick in housing stock.

Additionally, data reveals a significant number of price decreases in the last seven days, with 2,282 recorded adjustments. This trend suggests a response to market conditions, as sellers seek to align their prices with buyer expectations and competitive dynamics.

Supply Dynamics and Days on Market

Examining supply dynamics, we observe an increase in the months’ supply of inventory across both Lee and Collier Counties. Lee County now stands at 6.4 months, while Collier County reports 7.3 months of inventory. This shift indicates a slightly more balanced market, providing buyers with a broader selection of properties to consider.

Accompanying this trend is a gradual uptick in the average days on market. In Lee County, properties spend an average of 68 days listed, while Collier County records an average of 71 days. While still relatively brisk, these figures suggest a moderation in the pace of transactions, offering buyers more time to deliberate and negotiate.

Economic Indicators: Southwest Florida International Airport

Beyond real estate metrics, broader economic indicators offer valuable context for understanding market dynamics. Southwest Florida International Airport (RSW) serves as a crucial hub, facilitating travel and commerce for the region.

According to data from the Lee County Port Authority, RSW experienced robust passenger traffic in January 2024, with 1,108,190 passengers—an impressive 19% year-over-year increase. Leading the pack in passenger volume were airlines such as Delta, Southwest, American, United, and Frontier, contributing to RSW’s total of 10,082 arrivals and departures—an 18% increase compared to January 2023.

Implications and Outlook

The current state of Southwest Florida’s real estate market reflects a dynamic interplay of supply, demand, and economic factors. Growing inventory and price adjustments signal a market in flux, offering opportunities for both buyers and sellers to navigate shifting dynamics.

With supply dynamics adjusting and days on market slowly increasing, buyers may find themselves with more options and negotiating power. Meanwhile, sellers can leverage pricing strategies to remain competitive in a market characterized by increased inventory.

As we move forward into the rest of 2024, monitoring these trends and economic indicators will be crucial for stakeholders in the Southwest Florida real estate market. By staying informed and adaptable, both buyers and sellers can position themselves for success in an evolving landscape.