Lee County Market Update June 2022
Lee County Market Update June 2022
Click here to watch Mike's Lee County Market Update for the month of June!
Rising inflation, soaring home prices & increased interest rates have combined to cause a slowdown in the U.S. housing market!
To help quell inflation, which reached 9.1% as of last measure in June. The FED raised interest rates by .75 of a percentage point in June. That is the largest interest rates hike since 1994! Higher prices coupled with 30 year fixed mortgage rates approaching 6% have exasperated affordability challenges and has rapidly cooled demand, with home sales and mortgage applications falling sharply from a year ago.
Local Statistics
Cape Coral:
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Single Family Homes sold in June this year were at 648 vs 753 a year ago, approximately a 14% drop.
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Single Family Home Inventory is up at 1,303 homes for sale vs 453 a year ago, almost 3 times as many homes that are currently for sale.
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Condos/Townhomes sold in June this year is at 53 vs 104 a year ago, about half as many.
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Condos/Townhome Inventory is currently up at 125 units vs 52 a year ago.
Fort Myers:
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Single Family Homes sold in June this year were at 229 vs 336 a year ago; that's a drop of 32%.
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Single Family Home Inventory is currently up at 347 homes for sale vs 183 a year ago, almost double the inventory.
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Condos/Townhomes sold in June this year, is at 161 vs 272 a year ago, a drop of about 40%.
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Condos/Townhome Inventory is currently up at 342 units vs 161 a year ago.
Existing Home Sales
With monthly mortgage payments up more than 50% compared to this time last year, the rising cost of home ownership has sidelined many prospective buyers. Nationally, the median sales price of existing homes recently exceeded $400,000 for the first time ever, a 15% increase from the same period a year ago. As existing homes sales continue to soften nationwide, housing supply is slowly improving, with inventory up for a second straight month. In time, price growth is expected to moderate as supply grows. For now, however, inventory remains low and buyers are feeling the squeeze of higher prices all around.
A Shifting Market
In summary, this is good news for buyers as they have more selection, do not have to compete in bidding wars, and sellers are much more negotiable than they were six months ago. Sellers are experiencing longer marketing times. We have gone from days on the market to weeks on the market as a typical marketing time frame. As a result, motivated sellers that need to move quicker are beginning to adjust their prices.
As the reality of the shifting market sets in, many of the sellers that were trying to take advantage of the hot market are now either taking their homes off the market or coming down from their optimistic prices they were asking originally.
Overall
In general, we are seeing a move away from a sellers market into a more neutral market. At some price points like over $1,000,000, only 28 sold in June while 189 are still on the market, making this a 7 month supply. So at some price points it could be a buyers market.
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