Southwest Florida Single-Family Home Market Inventory Finally Rises, Sales Slow

Single-family homes have come up for sale in the heart of the Southwest Florida market at a faster rate in the past three months than any other three-month period in the past decade.

Real estate agent Denny Grimes, founder of Keller Williams’ Grimes & Team, discovered the trend when looking at data from March, April and May.

Single-family homes sold so quickly in Southwest Florida last year and this year that sellers sometimes didn’t need to put up a for sale sign. This is a trend that is beginning to change as the supply of new listings increases.

“Here’s what I want you to put into perspective,” Grimes said, “when you look at the numbers and the median sale price, these are things that were under contract 30, 60 and 90 days ago. They were already under contract. These are lagging indicators. What is interesting is the inventory.

There were 4,117 homes listed in Lee County, 1,604 homes listed in Collier County, and 2,203 homes listed in Charlotte County.

Lee and Collier have combined for 876 requested price drops in the past seven days, and 206 properties have returned to the market after being under contract, real estate agent Ronnie Delfino said. It saw 926 new listings on the market for those two counties, compared to 737 homes closed during the same period.

“Over the past year or so, you’ve seen more ads sold than pending than you’d see new ads coming to market,” Delfino said. “Right now we have about 150-200 more listings than either sold or pending in this seven day period. So you’re definitely starting to see it slow down a bit. “

Comparing any year to 2021 isn’t fair, Grimes said.

“There were no houses to sell, because there were no houses to buy. When you compare a good year to a perfect year, it’s going to be short,” Grimes said. “The important thing to watch is the new real estate listings. What changes the direction of the market is the inventory level.

Over the past year, it’s been common to see more pending sales than listings.

“Now in the last seven days in Lee County there is a total of 425 new registrations,” Grimes said. “And in the same seven-day period, there were 396 pending. So it’s just spinning now. There are more new listings in the market than going out, suggesting the tide is turning on stocks.

“The other thing we see is that there have been 409 price cuts and 43 price increases. There are almost 10 times more sellers who say they should reduce their price. It wasn’t where it was six months ago.

The median selling price, another key indicator of the housing market, was still rising slightly in Collier from April to May, but it was slowing in Lee and falling in Charlotte.

In Collier County, it was $775,000, up 4.2% from $740,000 in April. The Lee County median sale price was $470,000, up 0.42% from $468,000. Charlotte County saw a decline of nearly 5% to $384,000.

Inflation, rising interest rates and a summer slowdown in southwest Florida have combined to cause a shift in the single-family home market, both Grimes and Delfino said. The days of selling homes for 15-20% above list price in just a few days may be over for now.

“If I had a crystal ball, I would be a billionaire,” Delfino said. “Do I see the prices going down a bit? Sure. Many price drops in the last seven to 14 days in our marketplace. I think it’s just more our market normalizing.