Southwest Florida real estate market nearing balance

Southwest Florida real estate market nearing balance

The Southwest Florida real estate market ended 2023 on a positive note. According to the John R. Wood Monthly Market Report for December 2023, as of December 31, 2023, the available listing inventory stood at 5.41 months of supply. That is short of what is considered balanced for the area. It also shows significant growth, with the end of 2022 having only 2.57 months of supply following the pandemic-driven surge that depleted the market.

With the Southwest Florida real estate market near a balanced level, the average sale price in 2023 did not move significantly, with an increase of 2%. The average number of days a listing sits on the market was 59 for December and 49 for the year. It’s an increase for recent history, but still fewer days than the average of 89 days from the pre-pandemic period of 2017 through 2019.

Total sales for 2023 were down 11% following last year’s post-pandemic sales surge. Compared to pre-pandemic sales, 2023 sales were down by a smaller margin of 6%. On the other side of the market, new listings were up 5% compared to 2022 but were still down 14% compared to pre-pandemic years. The slower growth has prevented an abundance of inventory needed for a buyers’ market.

Sellers need to remember that when choosing a list price, despite the number of days on the market being relatively low, buyers still have more options, and closing prices stabilized in 2023. This is good news for buyers, but they should keep in mind that when they find the right home, properties are selling, and the market is not oversupplied.

Market conditions can change due to several factors, including price segment, product type, and location. Having skilled and knowledgeable real estate professionals like Team Hancock is essential to navigating this dynamic market and creating a strategy to achieve success for buyers and sellers. We are optimistic about the market in 2024 and look forward to helping you.

Team Hancock is a member of John R. Wood Christie’s International Real Estate. The group was the #1 brokerage in Southwest Florida in 2023, with $4.5 Billion in closed sales volume. John R. Wood was also #1 in the number of closed transactions and listings sold in Southwest Florida and came in as the top brokerage in closed sales volume in Naples, Ave Maria, Bonita-Estero, Fort Myers, Fort Myers Beach, and Pine Island.

Broker rankings according to SWFLA MLS. All rankings are for residential improved property, excluding manufactured housing. “Southwest Florida” ranking includes Lee and Collier Counties.

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