Question: “How’s the Market?”
This is the most common question I get as a real estate agent in Southwest Florida. From strangers in elevators to my dearest friends, everyone wants to know what’s happening in the market… My usual answer is “it depends” because it really does depend on where in Southwest Florida your home is, whether you’re a buyer or a seller, which price range you’re selling or buying in, and even the dynamics of your particular community. As you can see, there are so many variables that one blanket statement really doesn’t work. We must narrow down our focus and that’s exactly what I’ve done for you in this 33908 market update.
The source of my statistics is the Multiple Listing Service (MLS) which is the central hub for realtors for listing properties, sales and recording statistics. It is the same source that is used by the Realtor Association for their monthly and annual press releases. Data was extracted for single family homes, in 33908, between January 1 and May 12th, 2017 and compared to the same period in 2016.
So… how is the market?
Answer: “Great for both buyers and sellers!”
Here’s the short of it…
- More homes are selling and values are steadily increasing.
- Homes priced right sell quickly at close to asking.
- Mortgages are still affordable with many options.
33908 Market Update
And here’s the long of it…
More Homes are Selling and Values are Steadily Increasing
We’ve sold more homes so far this year than we had by this time last year. In fact, 28% more homes have sold (199 YTD in 2017 v. 155 YTD in 2016).
Values are increasing too, but steadily. I took a look at the price per square foot of the homes that have sold, rather than the total price, because it takes into consideration size of the homes. The price per square foot of homes sold increased to $174/SF from $162/SF last year. That’s an 8% increase in value.
Median Size was 2,182 square feet.
Homes Priced Right Sell Quickly and at Close to Asking
Talking homes that have actually sold, not just those that have been listed for sale at any price, those homes went under contract in 45 days and then officially closed about 60 days later. The final sales price was 97% of the asking price.
Median List Price was $389,000 with sales price of $375,000.
Mortgages are Still Affordable with Many Options
As Americans, we are enjoying the benefits of historically low interest rates even despite recent increases. The last two rates I saw come across my desk were 4.125% for a 30-year fixed rate on a single family home for $350,000 and a 4.5% rate for a 30-year fixed on a $500,000 home. That works out to about $485-500 payment per month per $100,000.
Lenders are able to offer a multitude of lending options. FHA gives the most flexibility for closing cost assistance. 3% Down Conventional Loans allow borrowers to drop the PMI (Mortgage Insurance Payment that gets added onto the bill every month) once a certain amount of equity is achieved in the home. Then there’s VA Loans, Medical Professional and Educator Loans, 5% Down Conventional, 10% Down Conventional and of course the 20% Down Conventional Loan. To find out more about these loan products, speak with an expert and/or get pre-approved, call Stacey at 239-923-1343. She will get you connected to a great lender.
For more information and future market update reports, sign up to receive our monthly newsletters. Want an in-depth report on your zip code? Just ask!