As we saw at the end of last year, the Florida and SWFL real estate markets have seen phenomenal growth. Of course, when you compare it to places like New York City or San Francisco, our area also retains its attractiveness for affordability as well. And the fact of the matter is that we also have many excellent amenities to add to that strengthening value and cost-effectiveness.
But as your resource for all things Southwest Florida, I’m constantly reviewing the data. Why is that so important? Even though there are many Realtors throughout the country who are experienced, it takes a trained eye to see trends as they develop. Whether you’re investing or simply looking for your first home, this can make a big difference in the future value of your properties.
So, today, we’re looking at some of the Florida data that’s recently crossed my desk. This way, we can get even more perspective on which way the market is trending.
More closed sales and higher median prices
Ending 2017, Florida’s market saw higher median prices. At the same time, the state also saw more closed sales as well. The month of December, for single-family homes, saw tighter inventory in a market many were already calling a seller’s market. We also saw sellers getting a roughly 96% median on their original listing price.
These factors support increased growth
But let’s move beyond just the data to identify trends, before looking at it in totality. The first aspect I like to highlight is the shortening inventory. Anything below a 6 months rate is considered a seller’s market, and we have that here in Florida. This is also demonstrated by our higher list to sale percentage. When you consider these together, you get the sense that the market is enjoying strong increased growth going into 2018.
But this isn’t the whole story
However, I know that the subtle details also matter. In a way, they can even change your own perspective on what’s going on. For example, because we have far less foreclosures right now, we’re also experiencing a normal real estate market in Florida. Once you take out previous foreclosures from the data, the story changes a bit. In fact, it’s possible to see that any particular house may be less in terms of appreciation percentages than originally assumed.
The bottom-line and connecting the dots
What does this all mean for you? First, for first-time homebuyers, you may have heard that fast-rising prices for SWFL real estate could be an issue going forward. However, when we look at the data, we see that growth is there, but with affordability too. Still, if you’re a seller, you’ve probably enjoyed a solid amount of growth. But, as the market continues to trend in this direction, what can be right for you differs for each person.
And when you have questions about your real estate goals, I’m the Southwest Florida expert to talk to. I’ll dig into the data for you and provide you with an assessment that takes your property’s factors into consideration. It’s all about what’s right for you!
Terry Records
Broker/Owner
Records Results Real Estate
Residential Sales and Property Management Service