Although the month of November is considered to be a slow month for real estate, this year told a completely different story. Below is a quick snapshot of the real estate market for each of the following: United States, Florida and Lee County in Southwest Florida.
United State Real Estate Market Report
Starting with the country as whole, closed sales were up by 2.7% compared to November of 2018 and median prices also rose by 5.4% and are now at $271,300.
Inventory remains down at -5.7% with a 3.7 months supply and average days on the market were 38 days.
Compared to previous years and taking into account that November is not considered to be a great month for buying and selling real estate due to all the holidays, shopping and traveling, it was a great month overall for the entire country.
The biggest contributors to that is first time home buyers who represented 32% of all sales during that month.
State of Florida Real Estate Market Report
Another great month for the sunshine state! Single family homes closed sales were up by 6.1% while condo/townhomes were also up by 6.3% compared to November 2018.
Median sales prices also experienced a great increase year over year at 12.9% and median price at $265,000 for single family homes and 5.4% for condo/townhomes at $195,000.
Inventory also remains low in the state of Florida, with single family homes at -10.5% and 3.6 months supply of inventory and -7.1% and 5.5 months supply for condo/townhomes.
The average time on the market was 40 days for single family homes and 43 days for condo/townhouse.
Lee County Real Estate Market Report
Lee county's real estate market remains strong with solid numbers just as the previous months.
Close sales were up again for both single family homes, at 6.6% and condo/townhouses, at 4.9% compared to November of last year.
Median sales price also saw an increase, by 5% for singles family homes bringing the median sales price up to $262,500 and 4.3% for condo/townhouses at $195,000.
Lee county also experienced low inventory just as the rest of the state and country, with -14.2% and 4.7 months supply of inventory for single family homes and -12.9% with 5.4 months supply for condo/townhouses.
Total number of days on the market for both single family homes and condo/townhouses was 67 days.
Overall all cities in Lee County experienced an increase in sales in comparison to November of last year with the exception of Bonita Springs that saw a decrease of -36%, Pine Island at -18.2% and Lehigh Acres at -3.7%.
Fort Myers Beach finally saw an increase in single family homes with a 75% increase year over year and a total of 14 closed sales.
From these numbers we can see that low interest rates, low unemployment rate and career advancement has made home ownership more affordable for many, hence, contributing to more people purchasing homes for the first time or upsizing to a different one.
However, while the demand is high, the supply remains low and building new homes may be the alternative to satiate the demand but will builders start building more homes in hopes that people will buy them, just as it happened back in 2007-08 before the market crash, or will they place safe and wait to be reached by buyers who are ready to build?