As a realtor, the questions I have been receiving the most lately is: how is the market doing and have the prices of the homes decreased due to the coronavirus pandemic.
To be quite honest, the answer is great and no. The housing market is doing great despite of the current financial crisis many are facing and no, the prices have not decreased. In fact, the prices have increased!
The pandemic has heavily impacted big cities such as New York, Los Angeles and Chicago, where residents who are now working remotely are also looking for more square footage and a better standard of living.
As working from home becomes a permanent situation rather than a temporary, many urban residents find themselves no longer being tied to the city, some are even choosing to relocate down south where the weather is warmer and taxes are lower.
Hence, why the market in Florida is hotter than ever although fall is right around the corner.
Not just in Florida though, the United States as a whole is experiencing high sales volume, with an increase of 8.7% compared to July of last year.
Considering the high demand for property, inventory remains down by 21.1% compared to last year, with 3.1 months supply of inventory and properties being on the market for an average of 22 days.
Florida Real Estate Market
Florida along with other states in the south, has become the hot spot for many looking to flee from high taxes, enormous mortgage or rental rates and the daily chaotic city life style.
Contrary to what many expected, sales have actually increased compared to last year, single family homes up by 11.5% and condo and townhouses up by 6.3%
The median sales prices, which accounts for half of the homes sold above and and the other sold for below that price has also increased for both single family homes and condo and townhouses,
Up by 10.1% at $295,000 for single family homes and up by 11.7% at $210,000 for condo and townhouses
The average sales price also increased for single family by 14.9% at $409,257.
Inventory remains very low due to the high demand, with 2.5 months supply of inventory for single family homes, down by 32.2% compared to last year and 5.6 months supply of inventory for condos and townhouses, down by 4.8%.
The total days on the market for single family homes in the state of Florida was 38 days and 57 days for condos and townhouses.
Lee County Real Estate Market
If you build, they will come! And coming to Lee county they are but even with all the new apartment complex and new homes being built, inventory still remains low with a 3.0 months supply of inventory for single family homes and 4.9 monthly supply of inventory for condos and townhouses.
Sales are on the rise, single family homes experienced yet another increase of 11.3% compared to July of last year and 3.8% for condo and townhouses.
Media sales prices have also risen, single family homes at $288,125 with a 8.9% increase and condo and townhouses at $197,000 with a 6.5% increase.
As expected the average sales price has also increased, single family homes are now at $381,253, an increase of 7.9% and condo and townhouses at $254,105 with an increase of 12.8%.
Total days on the market for single family homes in Lee county for the month of July in 2020 was 74 days and 79 days for condos and townhouses.
Even though most of Collier County identifies mostly with the luxury market, the demand is no different than Lee county and sales also remain on the rise.
Single family homes saw an increase in sales by 36.4% compared to last year while condos and townhouses saw an increase of 20.4%.
The median sales prices for single family homes in Collier county experienced an increase by 11.9% at $475,000 whereas Condo and townhouses also experienced an increase of 13% at 280,000 up by 13%.
Average sales price on the other hand not only increased but also proves that Naples is a great competitor in the luxury market with single family homes averaging $831,441, an increase of 4.8% compared to last year and condos and townhouses at 437,651 up by 13.5 %.
Inventory supply is low just as in other regions of the state with 4.6 months supply of inventory for single family homes, a decrease of 34.3% year over year and condos and townhouses with 6.4 months supply of inventory, 4.5% decrease from last year.
The totals days on the market for Collier County single family homes were 99 days and for condos and townhouses 108 days.
** These numbers are provided by the National Association of Realtors, Florida Association of Realtors and the Royal Palm Coast Association of Realtors.**