The Southwest Florida real estate market has been booming over the past few years with home values rapidly increasing and high demand from buyers. If you’re thinking of buying or selling a home in Cape Coral, Fort Myers, Naples or surrounding areas, here are 5 important things you need to know about the current housing market.
- Home prices keep rising. Southwest Florida has seen some of the biggest home price spikes in the nation over the last year. The median sales price for single-family homes in Cape Coral has increased by over 30% compared to last year. Strong demand and low inventory are fueling much higher sale prices.
- Inventory is extremely low. The low supply of homes for sale has been a driving factor behind price increases. There are less than 1/3 of the homes on the market now versus the same period last year in cities like Fort Myers and Naples. This shortage is creating a strong seller’s market.
- Bidding wars are common. With more buyers and fewer properties for sale, it’s not uncommon for homes to receive multiple offers. Homes priced correctly are selling within days or weeks of listing – often for above asking price. Cash buyers and those with preapproval have a competitive advantage.
- Mortgage rates are rising. After hitting record lows in 2020 and 2021, mortgage rates have been trending upward in recent months. This increase, while still relatively low historically, has priced some buyers out of the market and cooled activity slightly. Rates are expected to continue climbing in 2023.
- Vacation and investment demand is high. Along with retirees seeking year-round warmth, Southwest Florida is attracting many second home buyers and investors taking advantage of the hot real estate market and rental demand. This influx is further straining limited housing supply in the area.
Stay up to date on the latest Southwest Florida real estate market news and trends to make the most informed decision for your property goals. If you have any other questions, please reach out. I’d be happy to discuss further.