September 2024 Real Estate MARKET UPDATE

BY: D. MICHAEL BURKE & HUNTER D. HABIB

As we enter September 2024, the real estate market in Southwest Florida continues to evolve, reflecting both seasonal patterns and broader economic influences. This update provides insights into the current trends and what they mean for buyers, sellers, and investors.

Active Listings: A Gradual Decline

The number of active listings in Southwest Florida has been steadily decreasing over the past few months. On June 4th, there were 17,022 active listings, which dropped to 16,367 by July 1st. August 1st saw a further reduction to 15,604, and as of September 3rd, active listings have dipped to 15,256. This gradual decline in inventory indicates a tightening market, where fewer properties are available, potentially leading to increased competition among buyers.

Price Adjustments: A Sign of Market Softening?

In the last seven days, there have been 1,035 price decreases across the region. This level of price reduction suggests that sellers may be adjusting their expectations in response to changing market conditions. As the market cools from the rapid pace seen in previous years, sellers are becoming more realistic in their pricing, aiming to attract buyers who are now taking a more cautious approach.

Inventory Levels: Stability in Lee County, Tightening in Collier County

The months’ supply of inventory—a key indicator of market balance—remains relatively stable in Lee County at 6.0 months. This level suggests a balanced market, where neither buyers nor sellers have a distinct advantage. In contrast, Collier County has seen a slight decrease in inventory to 6.2 months, down from earlier levels. 

Days on Market: An Increase in Time to Sell

As we discussed last month, the days on the market in both Lee and Collier counties are some of the highest in the country. The average time a property stays on the market is now 75 days in Lee County and 82 days in Collier County. Gone are the crazy selling days of the pandemic; we are now back to a more typical Florida market, where properties take longer to sell, and buyers are taking their time to make decisions.

Watching the Fed: Interest Rates in Focus

Looking ahead, all eyes will be on the Federal Reserve meeting scheduled for September 17th-18th. The decisions made during this meeting could significantly impact the real estate market, particularly in terms of interest rates. While there has been speculation about potential interest rate cuts, it’s possible that these predictions have already been factored into the current market, as evidenced by the 1 to 1.5-point drop in 30-year conventional mortgage rates over the last year. The outcome of this meeting will be critical in shaping market conditions as we move into the final quarter of 2024.

What Does This Mean for You?

• For Buyers: The market is still offering opportunities, but the increasing days on market and price reductions could give you more leverage in negotiations. However, with inventory levels declining, particularly in Collier County, it’s wise to act decisively when you find a property that meets your needs.

• For Sellers: While the market remains relatively balanced, the trend of price decreases and longer days on market suggests that pricing your home competitively from the start is crucial. Working with a knowledgeable real estate agent can help you navigate these conditions and position your property to attract serious buyers.

• For Investors: The decreasing inventory and the current price adjustments present a unique opportunity to find deals, especially if you’re looking to invest in areas with longer days on market. However, the importance of thorough market analysis cannot be overstated.

As we continue through September, staying informed about these trends will be key to making the best real estate decisions in Southwest Florida’s dynamic market. Whether you’re buying, selling, or investing, understanding the current state of the market will help you navigate your next steps with confidence.