Lee County Market Update

October 2022

Click here to watch Mike's Lee County Market Update for the month of October! 

Hi, this is Mike Darda with Darda Group and Compass FL. Thank you for checking out our market update for the month of October 2022.

Lee County Market Update

September 2022

Click here to watch Mike's Lee County Market Update for the month of September!

Hi, this is Mike Darda with Darda Group and Compass Realty. Thank you for checking out our market update for the month of September 2022. 

Local Statistics

In August, there were 429 properties that closed escrow in Cape Coral and in Fort Myers there were 195.

If you go back one year, you'll see that there were 557 properties in Cape Coral that closed escrow for August 2021 and 275 in Fort Myers, so our sales have reduced by up to 25% year over year. Now a big reason why this has taken place is because last year, obviously, we were in a pandemic-related real estate market fueled by really low interest rates. Today we've moved into a more balanced market, with higher and rising interest rates, and it's beginning to have an impact on the sales volume, as you can see in this report. 

Next we are going to go over our active listing report. Now this gives you an idea of how many homes are actually for sale at any given time in the market. At the end of August, we finished with 1456 properties for sale in Cape Coral and 367 properties for sale in Fort Myers. That is up approximately 3 times compared to last year when the inventories were averaging 554 in Cape Coral and 218 in Fort Myers. So we're starting to see the inventory creep up quickly, which is good if you want to keep home pricing in check. However, it's been holding at the same level of inventory for the last 6 weeks, which if that holds, is a sign of the market starting to stabilize.

Absorption Rate

An absorption rate is a great indicator of what type of market the general market is sitting in. So, for example, the absorption rate right now is averaging about a three-month supply of homes, meaning that if the sales volume remained the same and no other homes came up for sale, it would take approximately 3.39 months before all of the existing inventory would sell off. Now that absorption rate has been climbing because in months past that absorption rate was a lot lower, whenever the absorption rate is averaging between zero and three months' supply, it's considered to be a seller's market.

And then, when the absorption rates are between four and five months of supply, it is typically considered to be more of a neutral market. And of course, for inventories or months of supply that exceed six months, it's typically what we call a buyer's market. Right now we're kind of sitting at the tail end of a seller's market, generally speaking for the whole market.

That won't be the case for every price point, so it's important for any real estate professional with a client to zoom into the price range in which you're selling your property and see what the absorption rate is in that price range. That will always give you a really good idea of what your challenges might be, how long the days on market might take to sell a home, and what kind of demand overall you could expect for your sales, so that's something to look at when it comes to absorption rate.

For example, in the mid 300’s there is only a 1.5 month supply, which is considered a sellers' market, versus a 7.6 month supply for properties over 1 million, which is considered a buyers' market.

Right now, interest rates are averaging around six percent. If you go back just a month ago, it was averaging just over five percent. If you go back over six months ago, it was in the high threes, so rates have been moving up, and again, that's beginning to have an impact on buyer demand and overall selling prices.

So I know we covered a lot of points this month, but it's important that I think we all look at it. Take some time to look at the report that's attached on our website so you guys can see everything and all the data. In any case, I hope you guys have a great September. I look forward to talking to you soon. Take care.

As always, if you have any additional questions please feel free to respond to our email info@dardagroup.com or contact us here at the office at 239-542-2822. We are here to help!

Lee County Market Update

August 2022

Click here to watch Mike's Lee County Market Update for the month of August!

The real estate market is shifting, home prices are softening, and high interest rates compared to 6 months ago!

The reality is we are actually shifting more towards a normal and balanced market; however there are a lot of people who have never experienced that. If you haven’t participated in the real estate market prior to 2012, whether as a buyer, a seller of real estate, or even as a real estate agent for that matter, you probably haven’t even experienced what we call a more normal and balanced market. This is the reality of what’s happening right now and we are having to make those adjustments with higher interest rate environments in a market that’s softening a little bit, so this month we’re going to speak to some of those points and will go ahead and kick off with the sales report for Lee County.

Local Statistics

First, we’re going to look at our sold report and give an idea of how many homes are selling each month, and I’ll circle this for you in red. There were 493 properties that closed last month in Cape Coral in the month of July. Now that’s down roughly 18% compared to July of last year, when 605 home sales had closed escrow. In Fort Myers, 202 homes sold in July compared to 306 the previous July, giving us a percentage difference of 34%. Now last year we were still selling to some of those pandemic-related buyers, and at this point that’s all but evaporated and now we’re back to a more normal balance market with Buyer demand that’s more relative to housing units that are available and of course the interest rates.

The next thing to look at is our active inventory report. This report reflects how many homes are for sale on the market and right now there are currently 1,427 properties for sale in Cape Coral. That's up roughly 3 times compared to last year, when there were 502 for sale. In Fort Myers we currently have 354 properties that are for sale and that’s up roughly 59% compared to last year when there were 209 properties for sale in Fort Myers. So our inventories have been trending up.

With this data we can calculate the absorption rate. The absorption rate is simply the amount of homes that are for sale and how long it would take to sell off the existing inventory if nothing else came up for sale. So currently our absorption rate is sitting at a 2.9 month supply, and to give you some perspective, last year it was at roughly a 0.8 month supply. So obviously we are trending up, the inventory overall relative to the demand is growing, so right now we are sitting at what we call the tail end of a sellers market.

A sellers market is typically anywhere from 0 to 3 month supply of homes for sale. A 4 to 5 month supply is considered more of a neutral market. Anything that is six months or more is considered a buyers market right now; again we are at 2.9 month supply. Because we are at the tail end of a sellers market and we are starting to see the inventories grow, we are starting to see pricing soften a little bit and experiencing in some cases price reductions in the market. All of which, going back to the beginning of this video, is what you see in a normal balanced market.

Interest Rates

The last piece we will talk about today is mortgage interest rates. Currently, mortgage interest rates for FHA loans are in the high 4's and for conventional loans they are running in the low 5's. Now, that’s up from the beginning of this year, when interest rates were averaging 3.25%. For every 1% that mortgage rate increases, it diminishes a buyer's purchasing power by up to 10% when they’re getting financing. So when rates go up, it has an impact on what a buyer qualifies for, and a large part of what we’re seeing play out in the market right now, is the reality of higher interest rates, but there is a silver lining if I were to just go back over the last several weeks up to about a month ago, rates were at a higher of 6.5%. They’ve already come back down to about 5%. It’s still higher than it was before and is still having an impact on buyer demand. The fact that rates are not going up higher than 6.5% and starting to come back down a little bit is a very positive sign for the local market. So in any case, if you have any other questions regarding the real estate market here in Lee County Florida, just know we’re always here to help. I want to thank you all for taking the time to watch this video today and I’ll see you soon.

As always, if you have any additional questions please feel free to respond to our email info@dardagroup.com or contact us here at the office at 239-542-2822. We are here to help!

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: 

• Single Family Homes sold in June this year were at 648 vs 753 a year ago, approximately a 14% drop. 
• 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.  
• Condos/Townhomes sold in June this year is at 53 vs 104 a year ago, about half as many.
• Condos/Townhome Inventory is currently up at 125 units vs 52 a year ago.

Fort Myers: 

• Single Family Homes sold in June this year were at 229 vs 336 a year ago; that's a drop of 32%.
• Single Family Home Inventory is currently up at 347 homes for sale vs 183 a year ago, almost double the inventory.
• Condos/Townhomes sold in June this year, is at 161 vs 272 a year ago, a drop of about 40%.
• 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.

As always, if you have any additional questions please feel free to respond to our email info@dardagroup.com or contact us here at the office at 239-542-2822. We are here to help!

Lee County Market Update May 2022

Click here to watch Mike's Lee County Market Update for the month of May!

From The Desk Of Mike Darda

This month's report focuses on the hottest topics trending now in the local market. As always, if you have any additional questions, please feel free to respond to this email or contact us here at the office at 239-542-2822. We are here to help!

We are starting to see signs that the housing market is cooling! 

National Statistics: 

• Per the National Association of Realtors, sales are down 2.4% month over month. However, the National Association of Realtors also says that we still have a housing supply shortage nationally of about 5.5 million homes! 

Local Statistics:

• Single Family Homes median sale prices are up 29.9% year over year to an average of $470,000. 
• Townhome/Condos median sale price is up 38.5% year over year to an average of $342,000.

Inventory is on the rise!

Cape Coral:

• Single Family Homes currently have 1,022 on the market this month versus the 477 Single Family Homes that were for sale in January 2022. 
• Condos currently have 111 units on the market now versus 35 units that were for sale in January 2022. 

Fort Myers: 

• Single Family Homes currently have 309 on the market this month versus the 116 Single Family Homes that were for sale in January 2022.
• Condos currently have 275 units on the market now versus 133 units that were for sale in January 2022. 

To recap this is still considered a sellers market territory. We are roughly at a 2.5 month supply of homes on the market at the moment. Anything 3 months supply or less is considered a sellers market. 4 months supply is a neutral market, and 5-6 months supply of inventory is considered a buyers market. We are seeing the early signs of a market trending towards more of a normal market! 

Interest rates are up!

Currently for a 30 Year Conventional the rates are at 5.94% which is up from 3.45% in January 2022.

Looking back in history this is roughly the same as interest rates were in 2008, but in 1988-1989 the average interest rate was running 10.5% all day. So historically we feel like these rates are not bad at all.

Should I buy now or wait?

The most common question we get asked is "should we buy now or wait?" So there are a lot of variables that depend on the buyer's individual situation. 

For example, if you are financing, rates are still predicted to go up. So it may be wise to buy now while you can lock in rates at their current level. 

We need to remember markets are cyclical; they go up, they go down. If you own real estate now, most of the factors that are causing that market to go up in down is will be the similar market here locally to do the same.

So the question is, "Where do you want to ride out this market?" Whether it be in a big or small home, it really in the long run will not make much difference since all of the properties tend to go up and down at a similar pace. 

Pros for sellers:

• Supply and demand is still in your favor
• Prices are continuing to go up

Pros for buyers:

• A lot more selection to choose from
• Fewer bidding wars 
• Sellers are tending to be more negotiable on things like price and terms

Lee County Market Update

April 2022

Click here to watch Mike's Lee County Market Update for the month of April!

From The Desk Of Mike Darda 

This month's report focuses on the hottest topics trending now in the local market. As always, if you have any additional questions please feel free to respond to this email or contact us here at the office at 239-542-2822. We are here to help!

THE MEDIAN PRICE OF A HOME IN THE UNITED STATES IS UP 15% TO $373,500!

Local Statistics:

The average days on the market is 19 days and prices are up dramatically!

Single Family Homes median sale prices are up 31.5% year over year to approximately $465,000 year over year.

Townhome/Condos median sale price is up 44.7% year over year to an average of $340,000.

Inventory: 

In Cape Coral last May we were seeing 351 homes for sale on the market. Currently we are at 771 homes for sale in Cape Coral.

Last May, Fort Myers had 184 homes for sale and currently this May there are 241 homes for sale on the market.

This is still a strong seller's market with low inventory that ranges from a month to a month and a half. Buyers are getting a little more selection and we are not seeing as many bidding war scenarios due to interest rates going up.  

Interest Rates:

Interest rates are still rising! 

Currently for a 30 Year Conventional the rates are at 5.57%, which is the highest interest rates have been for a 30 Year Conventional since 2011!

These rates are creating affordability issues for buyers, remember that for every 1% that interest rates go up that decreases buyers ability to borrow what they qualify for by 10%. These affordability issues are starting to create some headwinds on our market. In some ways it benefits us because buyers will be moving and relocating from higher cost markets to lower costing markets, which we may be considered one of them. 

As always, if you have any additional questions please feel free to respond to our email info@dardagroup.com or contact us here at the office at 239-542-2822. We are here to help!

Lee County Market Update

March 2022

Click here to watch Mike's Lee County Market Update for the month of March.

From The Desk Of Mike Darda 

This month's report focuses on the hottest topics trending now in the local market. As always, if you have any additional questions please feel free to respond to this email or contact us here at the office at 239-542-2822. We are here to help!

New listings and sale price continue to increase!

The number of new listings for single family homes coming onto the market is at a 6.8% faster rate than before. The condos listing rate has actually dropped by 5%. Inventory is still low overall.

Single Family Homes:

• Inventory is down approximately 57% year over year. 
• Average Sale Prices are up 26% year over year to approximately $430,000.
• Days On Market has dropped to 46% to 22 days on the market.
  

Townhome/Condos:

• Inventory is down approximately 75% year over year. 
• Average Sale Price is up 38% year over year to an average of $315,000.
• Days On Market has dropped 80% to 12 days on the market.

Overall: 

We are seeing inventory levels slowly rising each week. So relief is in sight for homebuyers, giving them more choices. Condos remain, especially in low inventory, which is partially due to many buyers switching to buying condos because of the higher price point on single family homes. We have also come off our first three months of the year, which is the high season for condo buyer's also causing the low inventory we are seeing.  

Interest Rates:

Interest rates have risen 1.4% since January 2022.

Currently:

• 15 Year Fixed - 4.30%
• 30 Year Conventional - 5.12%
• 30 Year FHA - 4.65%

These rates are creating affordability issues for buyers and driving some towards the rental market, which is also seeing dramatic increases in rents right now. Overall sales have remained strong, even though rates have gone up, we have yet to see a major impact on volume of sales and rising prices in our market place.

Looking Forward

Season is now behind us and our summer market is ahead! The last few years, thanks to our growing population, the summer market is not the slow market Lee County is used to having. Instead, it has remained consistently busy all year long. With this being said, we are looking forward to the coming months to see what it has to bring! 

As always, if you have any additional questions please feel free to respond to our email info@dardagroup.com or contact us here at the office at 239-542-2822. We are here to help!

Lee County Market Update

February 2022

Click here to watch Mike's Lee County Market Update for the month of February.

From The Desk Of Mike Darda 

This month's report focuses on the hottest topics trending now in the local market. As always, if you have any additional questions please feel free to respond to this email or contact us here at the office at 239-542-2822. We are here to help!

Home shortages & bidding wars continue to dominate headlines as prices continue to soar!

Single Family Homes:

• Inventory is down approximately 67% year over year to just a 3 week supply on the market. 
• Pending Sales are up 43% year over year. 
• Average Sale Prices are up 21.8% to approximately $570,000.

Townhome/Condos:

• Inventory is down 82% year over year to a 2 week supply of homes on the market. 
• Pending Sales are up approximately 6.6% year over year. 
• Average Sale Price is up 34.6% year over year to an average of $400,000.

Supply:

The supply is concentrated mostly in the upper-end of the marketplace. The lower-end of the marketplace inventory is quickly disappearing leaving some first time home buyers behind. 

Interest Rates

Interest rates have had an up tick of almost 1% since December 2021. 

Currently:

• 30 year fixed rates - 4.09%
• 15 year fixed rates - 3.40%
• FHA 30 year loans - 3.55%

These are now the highest rates we have seen since May of 2019!

Looking Forward

Right now it is very likely that sales volume is being held back by low inventory. We are now into the last month of tourist season, often the best month where buyers tend to make buying decisions before heading back north. This is an excellent time to have your home on the market! We will also see residual effects of our season well through June. 

As we head into the summer months we will shift more to a traditionally local buyer. It will be interesting to see how the rise of interest rates effects these "traditional buyers" as they tend to finance more where seasonal buyers usually tend to pay more often in cash. 

As always, if you have any additional questions please feel free to respond to our email info@dardagroup.com or contact us here at the office at 239-542-2822. We are here to help!

Lee County Market Update

January 2022

Click here to watch Mike's Lee County Market Update for the month of January.

From The Desk Of Mike Darda

This month's report focuses on the hottest topics trending now in the local market. As always, if you have any additional questions please feel free to respond to this email or contact us here at the office at 239-542-2822. We are here to help!

Market Update For January 2022

Low Supply & Higher Prices Continue To Challenge Buyers

Single Family Home prices are up 27% year over year to a median price of $415,000. Townhome/Condo prices are up 31% year over year to a median price of $294,500. Inventory is down 75% for both Single Family Homes & Townhomes/Condos. The Average Days on Market is down for both Single Family Homes & Townhomes/Condos to 20 days compared to 57 days last year.

Interest Rates Are Rising

We are now seeing interest rates crest over the 4% mark for a 30 year fixed rate mortgage. The FED has indicated that there are going to be 4-7 more interest hikes by the end of 2022. 

New Construction 

New construction homes are not only facing a supply chain issue but also labor issues as well. Presented with those two challenges new construction may be delayed over a year. Currently, new construction homes are experiencing delays of a couple months or more based on when materials will be delivered. There is a shortage of materials including:

• Lumber
• Trusses
• Windows
• Garage Doors
• Appliances

With these supply shortages come new construction prices being driven upwards forcing what would be new construction buyers back into the resale market. This is creating more of a demand on the low inventory at this time. 

Season Is In Full Effect 

We have about two more months of season, which is arguably the best part of season because buyers are making their buying decisions before heading back up North for the summer. Between now and Easter should be a strong buying season for our snowbird buyers. 

Looking for something to do to get into the holiday spirit? This month there are so many activities to enjoy with the entire family and friends. As we all know, the holiday season isn't solely about presents and gifts, but instead, it is to spend time with your loved ones that you do not get to see all the time. ‘Tis the season and get out of the house and enjoy this time with your favorite people! Below you will find events taking place the month of December throughout SWFL.

• Fort Myers Beach Christmas Boat Parade
  • Saturday, December 4th | 6 pm - 8 pm
  • Salty Sam's Marina | 2500 Main St. Fort Myers Beach, FL 33931

Join us for some Christmas spirit at the 33rd Annual Fort Myers Beach Christmas Boat Parade! Two years ago we were voted the 5th Best Holiday Parade in a USA Today 10BEST poll. Then last year we were featured in a TravelAwaits article listing 15 fabulous boat parades in Florida. We’re aiming to make this year’s parade the best ever! For more information on the Fort Myers Beach Christmas parade click here.

• Naples Christmas Boat Parade
  • Saturday, December 11th | 6:15 pm - 8:30 pm
  • Naples City Dock | 880 12th Ave S, Naples, FL 34102

A Naples favorite holiday tradition ~ MIACC’s Christmas Boat Parade on Naples Bay, December 11th!!! The parade may be viewed from: Naples City Dock (limited), Pinchers Tin City, Riverwalk Restaurant, Naples Landing, Kelly’s Fish House, The Boat House on Naples Bay, and Bayview Park. For more information on the Naples Christmas Boat Parade click here.

• Marco Island Christmas Boat Parade
  • Saturday, December 18th | 6 pm - 9 pm 
  • The Esplanade | 760 N. Collier Blvd., Marco Island, FL 34145

Enjoy a wonderful festive family evening. Watch the boats sail by, decked out with festive holiday lights and decorations! Recommended viewing spots include The Esplanade on Smokehouse Bay and Snook Inn on the Marco River. For more information on the Marco Island Christmas Boat Parade click here.

• Cape Coral Christmas Boat Parade
  
  • Saturday, December 18th | 5:30 pm - 9:30 pm
  • Four Freedoms Park | 4818 Tarpon Ct, Cape Coral, FL 33904

Located at Four Freedoms Park on Cape Coral Pkwy, the festival has food, Christmas music, a family movie on the big screen, and a visit from Santa Claus along with the parade. For more information on the Cape Coral Christmas Boat Parade click here.