December 2023 Lee County Market Update
Lee County Market Update
Hi, this is Andrew Darda with Compass Real Estate and the Darda Group. And it's time for our monthly Market update video for Lee County for November 2023.
So let's get right to it with homes sold. In the month of November 2023, 608 homes closed. Now, this is a decrease of about 9%. This time last year, we saw 668 homes close in the month of November 2022.
Now, the active homes, that's the big thing that everybody's noticing. These are the for sale signs in your neighborhood, on your street. We're all noticing there's a bit more this year. And it's true, the inventory has nearly doubled. So this time last year, there's about 2,226 homes for sale. This year, 4,719 houses for sale.
So what does that mean? There's more inventory and buyers have a lot more to look at. Now the good news, in the month of November this year, we saw 572 homes go under contract. These are fresh sales buyers looking at homes last month and putting them under contract. So there are active buyers in the marketplace, 572 new pending sales last month.
Some of the things that we're also talking about, our monthly Market Update videos and we've been tracking our prices. This time last year, the average price for selling is 492,000. This year, 470,000. So prices have come down year over year, about 4.4%, at least on the averages.
We're also noticing that those for-sale signs we just talked about are sticking around a little bit longer. The average days on market is up. Last year it was about 35 days to sell a house. This year, it's about 52 days to go under contract.
So what does that all mean? How do we tally it up? Absorption rate is something that the real estate community typically looks at for this. And the absorption rate now based on this data, is 7.64. So what does that mean? That means that if not a single home comes up for sale in the next 24-48 hours or whenever, it's going to take about 7.6 months to go through the entire inventory that's currently on the marketplace.
Now, what's attributing to all this? I think we know the answer. It's interest rates. It's all over the news, and the interest rates are up. So they're up this time last year about 11%. So last year we were hovering around six and a half percent. Right now, we're at seven and a quarter. Now. The good news, especially heading into season, is that in the month of November, interest rates did dip down a little bit. So hopefully that continues.
Some of the other things that we like to track here in our marketplace are the short-term rental occupancies, especially heading into a season. That's a good way of measuring how many new tourists are coming into the marketplace at any given time, especially as we head into the holidays and into the season. And a lot of our partners are telling us they’re about 63% to 65% booked out. That's good news. And hopefully it continues as we get into the rest of the holidays and into the new year.
Well, that's November 2023 in a nutshell. That's our monthly update. Thanks for tuning in. If you have any questions, please don't hesitate to reach out to us. We'd be happy to help. If we don't hear from you, I hope you had a great Thanksgiving, and I wish you Happy Holidays.