June 2024 Market Update

June 2024

Lee County Market Update

Hi, this is Mike Darda with Compass Realty giving you your June 2024 market update for Lee County, Florida, including Fort Myers and Cape Coral. 

Hi, this is Mike Darda with Compass Realty, giving you your June 2024 Market Update for Cape Coral, Fort Myers, and all of Lee County. So thank you for tuning in today.

And right now, we'll start with the Average activity with the Sales in Lee County. We have 857 homes sold and closed in the month of May. That's down 23% from 1,120 homes that sold last year in May.

So Active Inventory, we're also seeing some big changes, it is up. They were at 5,721 homes for sale versus 3,123 a year ago. That's an increase of 83%.

Days on the Market are extended, as a result of that, we are now seeing 71 days on the market average versus 43 a year ago. So that is up 65%.

The Absorption Rate, which is simply if nobody lists another home for sale, how long would it take to sell all the homes on the market? That currently sits at 6.7 months supply, which is squarely in a buyer's market, which means there are more sellers than buyers and buyers have the upper hand.

The Average Sale price seems to be holding fairly steady. It's $497,000 in Lee County versus $513,000 a year ago. That's a drop of 3%.

In Mortgage news, interest rates are currently at 7.29% for a 30-year fixed versus 6.9% a year ago. Rates may seem high, but overall, they have stabilized since late 2023 because the Fed has paused the rate decreases that they were predicting they were going to do this year, things to stubborn inflation that they hinted we were gonna have reductions this year, but we haven't seen them yet.

Insurance is always a big news item in Real Estate in Florida. And right now, some good news. In the state of Florida, the Office of Insurance said 9 insurance companies are actually going to lower their rates this year and 10 insurance companies have pledged to hold their rates. They're staying the same, not raising or lowering them. So that's really good news for us because overall, according to a study that was done by bank rate, they have said that insurance-wise, the state of Florida is the highest in the country with an average of $6,300 a year annually for insurance versus the national average of $2,100.

Also, according to research from Florida Atlantic University, 9 Florida housing markets are overvalued with Cape Coral being listed as the most overvalued in Florida and No. 3 most overvalued in the nation at 38.9%. So No. 1 in the nation, by the way, is Atlanta, followed by Detroit, then Cape Coral, Tampa, and Las Vegas round out the top five.

So that's your market update for June 2024. Thank you for taking the time to watch. And if you have any questions on how these market conditions affect you, whether buying or selling, reach out to us. We'd be happy to hear from you. Thanks for watching.

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