May 2024 Market Update

May 2024

Lee County Market Update

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

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

 

So we're going to jump right into the Sold Report. And what we're seeing with sales is they're down just slightly from a year ago. Sales are down 2% to 1,015 homes closing escrow in April of 2024. 

 

The big story though is the Inventory, which is literally up double from what it was a year ago. We are up from 2,905 homes for sale a year ago to 5,797 homes for sale now.

 

 As sellers are cashing in on their equity. They're also noticing that now we are in what we call a Buyer's market. There's 5.7 month supply of homes on the market now, meaning if no one lists another home for sale, it would take 5.7 months to sell all the homes that are on the market. That is what we call a Buyer's market, meaning there's more sellers and there are buyers to buy their homes. 

 

Sellers, as a result, are noticing it's taking longer to sell their homes. The days on the market has increased from 43 days on the market April of last year to 69 days on the market on average now. 

 

According to Mortgage Daily News, we are also seeing that rates are up from 6.4% to 7.5%. And as we've talked about in earlier videos, for every 1% interest rates adjust, a buyer's purchasing power is affected by 10%. So there are buyers that are on the sidelines that are waiting for rates to come down. But we're finding that rates are not coming down as fast as anticipated. According to Bloomberg, the robust economy combined with a strong jobs market means that there's increase possibility of inflation, and therefore, the investors are predicting that the Fed is likely to adjust rates this year less than a half a percent as opposed to the 2% we were anticipating earlier this year. 

 

Right now, prices are holding, though. We are seeing they're actually up 2% year over year. The average last year was 493,000 in Lee County. Right now, it stands at 502,000. So that's good news.

 

But the most common question I'm asked now that season is ending is that, is it is still a good time to sell a home? So to answer that question, we're gonna show you a graph of sales from last year in 2023.And if you look at this graph, you will notice that in May, June and July, we actually had more home sell than in January and about the same number sell that we're selling in February. So if you thought you miss season, you right now you still have as good of a time to sell your home as you did back in January and February.We didn't see things really drop off until around September.

 

So to sum it all up, buyers are out there and about the same numbers as they were last year.They just have a lot more to choose from.They have a greeat selection. And as a result, sellers just need to be on point with their pricing.They need to be competitive and be prepared to be negotiable.

 

If you have any questions about these market statistics or how it might affect your plans, whether buying or selling real estate, call me. I'd be thrilled to hear from you. Thanks for watching. 

 

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