Thursday, June 5, 2008

Markets Stabilize in Southwest Florida

I’ve heard a number of negative comments lately about some of the positive news that has recently been circling on the news and in various articles, some of which are below. I think the best way to respond to those that believe the news media is being over stated is with hard data and figures.

I believe many outside the real estate industry would be surprised to learn that the Naples & Bonita Springs market have seen significant sales over the past 5 months! In the over $1 million market there were 203 single family homes that sold in the first 5 months of this year at an average price just under $2.2 million. At the same time there were 165 condos over $1 million that sold for an average price of $1.8 million. This accounts for nearly $740 million in sales in just the over $1 million price point with the most expensive home selling at $12.9 million and the most expensive condo selling at $9 million. There are certainly both homes and condos that are significantly less that $1 million, but I thought this would illustrate that there are a significant number of sales happening in this market in contrast to many that believe nothing is going on! Also of note was the fact that on average(both single family and condo) properties sold at 89% of their asking price, so on a $2.2 million asking price the property was actually selling at just under $2 million, a $200,000 discount.

The Fort Myers-Cape Coral area has been a little slower in rebounding but home sales spiked in April 2008, up 41% over April 2007, so we are definitely seeing a market improvement.

Prices have been coming down in both markets and this is certainly a big reason for the surge in sales. As you can see above though, the majority of sellers have lowered their asking prices and buyers on average are paying within 11% of asking price. Those seeking to pick up a property at a significant discount over 2005 pricing is possible now as the majority of sellers have lowered their prices to reflect the current market.

There are sales taking place and those in the market to purchase should begin to look and take advantage of the best buys in terms of location, view and designer finishes.

Southwest Florida is the southern most point in the United States with easy access to I-75 and Southwest Florida International Airport. As the mildest climate in the peak winter months it will continue to be a sought after destination. Let me assist you in finding the best buys relative to the current market values and your desires, before the prime properties are picked over.

Warm Regards,

Garren Grup, REALTOR

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