Verandah/Cottonwood Bend Housing Market Update

Southwest Florida’s Housing Market and the Upcoming “Season”

By: D. Michael Burke & Hunter D. Habib

As we step into the upcoming “season” here in Southwest Florida, it’s an opportune moment to delve into how this annual phenomenon influences both our local housing market as a whole and the specific landscape here in Verandah. The real estate market, as they say, moves in cycles, and this pattern is currently unfolding not only across the nation but also within our local community.

In recent years, we’ve witnessed a surge in housing demand here in Southwest Florida, which has led to escalating property prices and a constrained supply of homes entering the market. However, more recently, we’ve noticed an uptick in the number of homes available for sale in the MLS, along with an increase in the average days they spend on the market. The graph below illustrates this shift, where a greater array of options for potential buyers corresponds to extended days on the market, which, in turn, begins to exert downward pressure on prices.

Cottonwood Bend Real Estate Data:

In the specific context of Cottonwood Bend, let’s delve into the data from the past year. It unequivocally demonstrates that the most recent six units were sold during the last quarter of 2022 or the initial quarter of 2023, primarily reflecting seasonal sales patterns. While most of the currently “Active” listings appear competitive on the surface, it’s essential to question their actual competitiveness. You might wonder, “Why, then, did these properties not find buyers, Michael?” Drawing from my extensive 20+ years of experience in the industry, I can assert that when a property fails to sell, it typically boils down to one of two factors: pricing or condition, and sometimes, it’s a combination of both. Have the properties been updated to align with the current preferences of prospective buyers? Pricing any property involves a meticulous consideration of various factors. Once again, the paramount factor remains the perceived value from the buyer’s perspective. It’s worth noting that property prices in Verandah have seen a remarkable 80% increase over the last five years. While a significant market retreat isn’t on the horizon, prudent pricing is crucial to ensure properties don’t languish on the market.

In summary, it’s crucial to recognize the strong connection between Southwest Florida’s housing market and its seasonal trends, particularly in Verandah. A noteworthy point is that the majority of our buyers view their purchase as a second home or a vacation retreat. They’re not merely acquiring a property; they’re embracing the Cottonwood Bend/Verandah lifestyle. Ultimately, buyers make their decisions based on the perceived value of both the property and the community – it’s as straightforward as that.

Should you require additional clarification or wish to arrange a meeting to delve further into the market dynamics, I am more than willing to accommodate your request. Please feel free to reach out to me either via phone at 239-777-0473 or through email at Michael@DMichaelBurke.com.