Southwest Florida Housing Market Remains Strong

While there is evidence around the country that the strong housing market is coming to an end, real estate continues to be a major money-maker in Southwest Florida. Home values continue to soar. The median home price continues to rise. Will this bubble be bursting any time soon?

“This is the hottest area to be selling real estate. We can’t be happier to be putting signs up and down. It means property is moving,” said Andrea Signorelli of Miloff Aubuchon Realty.

As an example, let’s look at Patty Carbaugh. She’s looking to buy a condo, unaware of what to expect because, until now, it’s been a seller’s market.

“I think they’re probably seeing the higher prices and said, ‘Okay I’m going to throw the place on the market and see if I can get it.’ And they might,” said Carbaugh.

This was practically a foregone conclusion up until recently. Plenty of buyers - and not enough sellers - sent prices through the roof. It’s just simple economics at work.

The numbers back up this theory. The median price of a home in Lee County has doubled in just three years, from $145,500 in September of 2002, to $288,700 this past September. Real estate agent Brett Ellis, however, believes the tide has turned. He points to the recent leveling off of median sales prices in the region, which stood at $287,500 in July was barely raised two months later.

The way to know if this is the case for sure is to do some statistical analysis. Ellis tracks what has been sold, for how much, and what is out there. He plots it all on spreadsheets and graphs. Here is one surprising statistic from his findings – in one day, there were more than 150 price reductions.

“The homes did not sell and they are being forced to lower their price down to where the market is,” he said.

Neverthess, Ellis doesn’t believe bubble is bursting or we are hitting a real estate recession. Numbers from previous years were simply so great, it would be impossible to expect that trend to be the status quo.

“The real estate market has been moving so fast for so long, the slowdown may feel like we are going backwards. We are not. We are just moving forward at a more normal pace,” said Ellis. He stated that the area is looking at a 5-15% price increase, certainly nothing to scoff at by historical standards. The days of seeing 45% increases, understandably, are probably “long gone.”

So, what does that mean for those interested in a Florida home loan? You’ll no longer get hammered by skyrocketing prices, so it’s a good time to be in the market. However, the cost of owning a piece of the American dream will still go up.