February 2024 Market Update
Lee County Market Update
Hi, this is Mike Darda with Compass Realty giving you your February 2024 market update for Lee County, Florida, including Fort Myers and Cape Coral.
So, first news we're going to cover is closed sales like we always do. They are actually down year over year from 679 a year ago to 559 this year in the first month of the year.
Active inventory, though, is the big headline because that's up double. It's more than twice what it was last year. In January last year, we had 2,410 homes on the market, and now it's 5,066 homes, which, if you divide the sales by the inventory, that gives us the absorption rate. Meaning if nobody else lists another home for sale, how long would it take to get all the homes sold on the marketplace? If it's less than three months, it's usually considered a seller's market with upward trending prices. If it's more than six months, it's usually considered a buyer's market with typically downward trending pricing. Right now, we actually have a ten month supply of homes on the market, which is the largest inventory we've seen in a number of years. So it'll be interesting to see how that affects pricing going forward.
But at the moment, pricing is actually up 11% year over year from last January to this January. Last year it was 482,000. This year it's $537,000 average sale price.
We're also seeing as a result of all this, inventory days on the market is increasing, meaning it's taking longer for sellers to get their homes sold. It was about 39 days on the market a year ago. It's now 66 days on the market average. And with this inventory increasing every week, we're expecting that period of time to get longer and longer.
At this point, interest rates are still hovering about the same as last year, 6.69% versus 6.13% a year ago.
And going forward, what we have to look at is we got about two or three months of high season left. So here what's really exciting about the last few months of season is historically they are the best selling months of season. So February is better than January, for example. And we continue to see sales ramp up in March and April before they start trending down. So it's a great time of year, if you are a seller, to have your best foot forward on price. We will, and we do expect, because we see this every year, sellers that are looking to not carry their home through the summer and really want it sold before season ends, we do expect more price adjustments to happen in the marketplace over the course of the next two months.
So other good news in real estate is the state of Florida has now approved six new insurance companies to join the insurance market. If you're interested to know what companies those are, they are:
Tailrow Insurance Company
Mainsail Insurance Company
Orion 180 Insurance Company
Orion 180 Select Insurance Company
Orange Insurance Exchange
Condo Owners Reciprocal Insurance.
So if you have any questions about the market stats we just talked about and how they affect you, whether you're buying or selling real estate, please reach out to us. We'd be thrilled to talk to you about them. Thanks for watching.