February 2017 Southwest Florida Real Estate Market Report
The months of supply continued to grow in February as the overall market reached a level slightly above 8 months of inventory. This is compared to the 6.4 months of inventory reported at the end of the February 2016 Southwest Florida real estate market report. While this number is not nearly as alarming as levels seen in 2008, the increases still tend to give us pause.
Single family homes experienced the largest increases in properties priced from $250,000 to $500,000, which is up 38% over 2016, and those priced above $5 million, increasing 21%. The condominium segments posting the largest gains were those priced from $1 – $2 million, with a 40% increase, and also those priced above $5 million, which were up 100%. Also notable is the 30% increase in the number of condominiums and single family homes priced under $250,000, which are up 17%.
Despite these numbers, it is more important to consider the differentiation between communities in Southwest Florida. Overall market numbers and inventories can differ substantially between neighborhoods. The Neighborhood Snapshot Report gives a clear representation of this and shows some areas continuing to experience a reasonably balanced market, while others are well above the one year level.
There are still plenty of buyers interested in purchasing Southwest Florida real estate, and we are not alarmed by these increases in inventory. Nevertheless, we continue to advise sellers to be aware of these market trends and to work with their John R. Wood Realtor® to determine a fair listing price for their property if they want to procure a sales contract more quickly.