January 2024 Lee County Market Update
Lee County Market Update
Hi, this is Mike Darda with Compass Realty giving you your January 2024 market update for Lee county Florida. We are also going to do a market review year over year on this update today. So first off, Happy New Year! We are now past holidays and tourist season is in full swing. This is a very exciting time of year in real estate.
To start off like we always do, let's go to the sold report for December of 2023, where we have 702 homes actually sell and closed that month compared to 778 of December in 2022. That's actually a drop of about 10%.
The inventory is the big story of 2023; we have a dramatic increase of right now 4,870 homes for sale compare to only 2,315 last year at this time. That is more than double the number of homes for sale which if you're a buyer that's great news you've got a terrific selection, very competitive prices out there and more negotiating buying power. In fact that we always talk about absorption rate and that is if you don't list another home for sale, how long will it take to sell all the homes in the market place. Right now, we are at 7 months supply of homes in the market and if you remember part from previous videos anything that start approaching a 5 or 6 months supply or more is solidly a buyers market meaning the buyer has the upper hand in the negotiations. There are more sellers than there are buyers, and that tilts things in favor of the buyer and that is where we are at solidly today as we go into season.
If we look at sales prices, there has not really been an impact of this too much right now. $486,000 is the average sale price of a home at this time compared to a year ago where it was $494,000 so just a slight less than 2% drop.
However it takes longer to sell homes where seeing actually double the time it took a year ago. Right now, it's 47 days on the market is average compared to about 24 days a year ago. Sellers are noticing its taking a longer time to sell, and some sellers are under pressure to sell and want to speed up the process. We are starting to see a good number of price reduction are occuring in the market place this year.
So, mortgage rates are a bright parts of the market there are actually slightly as of this recording from a month ago they're at 6.6% from 6.4% a month ago but over all they have drop in the last quarter well over 1% even 1 and half percent in some cases so definitely much more affordable Remember, every 1% change in interest rates changes a buyer's purchasing power by 10%.
This is a time of year where we get a lot of our second home buyers showing up here in town to purchase, and we do expect that to be good this year for a couple of reasons. One, those interest rates we just mentioned are also predicted to go lower throughout 2024. And we also are noticing that other factors are at play, such as the stock market is strong. That typically helps the second home buyer, especially the luxury market buyers in the marketplace. And then if you look at all that combined, hey, it's Florida, it is cold up north, and we got a lot of sunshine. So this is a great time of year to be a buyer or a seller. If you have any questions how these market stats affect you, please call us. We're happy to help.