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Southwest Florida and the Real Estate Market TODAY

Tuesday, April 11, 2023   /   by Abby Kurtz-Lendner

Southwest Florida and the Real Estate Market TODAY

The real estate market is currently experiencing an unusual cycle. Typically, the market moves between a buyer's and seller's markets, but the situation now is different. Both the supply and demand have decreased. According to a Redfin study, new listings dropped by 21.8% year-over-year during the four weeks ending April 2, one of the most significant declines since the start of the pandemic.

One reason for the decrease in supply is that many homeowners have no desire to move as they have secured generational-low mortgage rates in recent years. While interest rates have fallen for four consecutive weeks, they are still twice as high as before 2021. Homebuyers who are not deterred by current mortgage rates quickly purchase new listings. Almost half of the homes that go under contract are sold within two weeks of listing. This is an increase from about 25% at the beginning of 2023.

Redfin Deputy Chief Economist Taylor Marr believes that elevated mortgage rates may discourage potential sellers more than potential buyers. Giving up a 3% mortgage rate for a rate in the 6% range can be challenging. Serious homebuyers have become accustomed to a 5% or 6% interest rate and have adjusted their budgets accordingly.

Homebuyers are also facing challenges in buying homes, with many new listings receiving multiple offers and selling quickly. A Denver Redfin agent, Stephanie Collins, shared that one of her buyers recently made an offer on a move-in ready home in a popular area. The home was priced at $520,000, which was in line with the market, but it received eight offers and sold for $560,000 to another buyer.

The Florida real estate market is experiencing significant price increases, with three of the top five cities in the United States for price increases located in the state. Fort Lauderdale saw an 8.9% increase year-over-year, followed by West Palm Beach with an 8.2% increase and Miami with a 7.9% increase. On the other hand, home prices dropped in 28 of the 50 most populous metros in the United States, with Austin, Texas, seeing the most significant decrease at 14.7% year-over-year.

This blog was written given the information by the © 2023 Florida Realtors® article titled "Why Does It Still Feel Like a Seller’s Market?" By Kerry Smith.

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"The Cole Team"
Brenda Cole
1337 Cape Coral Pkwy East
Cape Coral, FL 33904
239-542-3332


The source of this real property information is the copyrighted and proprietary database compilation of the Southwest Florida MLS organizations Copyright 2024. Southwest Florida MLS organizations. All rights reserved. The accuracy of this information is not warranted or guaranteed. This information should be independently verified if any person intends to engage in a transaction in reliance upon it. The property information herein is derived from various sources that may include, but not be limited to, county records and the Multiple Listing Service and it may include approximations. Although the information is believed to be accurate, it is not warranted and you should not rely upon it without personal verification.
2024 Royal Palm Coast REALTORĀ® Association. All rights reserved. Information has not been verified, is not guaranteed, and is subject to change. The data relating to real estate for sale on this web site comes in part from the Internet Data Exchange (IDX) of the Florida Gulf Coast Multiple Listing Service, Inc. Real estate listings held by brokerage firms other than Brenda Cole- "The Cole Team" / RE/MAX Realty Group IDX logo and detailed information about them includes the name of the listing brokers. The information being provided is for consumers personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Last Updated: 3/4/2024 1:22 PM CST
The data relating to real estate for sale on this limited electronic display comes in part from the Southwest Florida Multiple Listing Services. Properties listed with brokerage firms other than Brenda Cole- "The Cole Team" / RE/MAX Realty Group are marked with the BR Program Icon or the BR House Icon and detailed information about them includes the name of the Listing Brokers. The properties displayed may not be all the properties available through the BR Program. The source of this real property information is the copyrighted and proprietary database compilation of the participating Southwest Florida MLS organizations and is Copyright 2017 Southwest Florida MLS organizations. All rights reserved. The accuracy of this information is not warranted or guaranteed. This information should be independently verified if any person intends to engage in a transaction in reliance upon it. Some properties that appear for sale on this limited electronic display may no longer be available. For the most current information, contact Brenda Cole- "The Cole Team" / RE/MAX Realty Group Data last updated 3/4/2024 1:22 PM CST.
The source of this real property information is the copyrighted and proprietary database compilation of the Southwest Florida MLS organizations Copyright 2024. Southwest Florida MLS organizations. All rights reserved. The accuracy of this information is not warranted or guaranteed. This information should be independently verified if any person intends to engage in a transaction in reliance upon it. The property information herein is derived from various sources that may include, but not be limited to, county records and the Multiple Listing Service and it may include approximations. Although the information is believed to be accurate, it is not warranted and you should not rely upon it without personal verification.
mls logoĀ© 2024 My Florida Regional MLS DBA Stellar MLS, Inc.. All rights reserved. The data relating to real estate displayed on this website comes in part from the Internet Data Exchange (IDX) Program of My Florida Regional MLS DBA Stellar MLS, Inc. All listing information is deemed reliable but not guaranteed and should be independently verified through personal inspection by appropriate professionals. Listings displayed on this website may be subject to prior sale or removal from sale; availability of any listing should always be independently verified. Listing information is provided for consumers' personal, non-commercial use, solely to identify potential properties for potential purchase; all other use is strictly prohibited and may violate relevant federal and state law.3/4/2024 1:22 PM CST
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