Closed Sales
Closed sales for the 12-month period ending June 30, 2022 were down 20.4% from the preceding 12-months, from 41,956 to 33,397. The 2,656 sales posted for the month of June were down 33.7% when compared to June of 2021, a time when the market was still posting a record-breaking sales pace. However, excluding last year, closed sales for the month were the highest on record for June.
Listing Inventory / New Listings
As of June 30, 5,124 properties were available, up 105.8% from a year prior and up 23% from the prior month. New listings for the 12-month period ending June 30, 2022 were down 6.3% from the preceding 12-months, from 39,361 to 36,865. For the month of June, new listings were up 11.3% from June of 2021. 1.84 months of supply was posted as of June 30, 2022 and, although more than double that of last year, still denotes a sellers’ market. In Southwest Florida, 6 to 12 months of supply is generally considered a balanced market.
Average Selling Price
The average selling price for the 12-month period through June 30, 2022 was $723,540, up 22.2% from the preceding 12-month period when the average selling price was $592,323.
Summary
The market continues to move away from its previous frenzied pace. Newly pending sales for June occurred at a steady rate, trending slightly below pre-pandemic levels which suggests that closed sales in coming weeks may follow a similar pattern. It’s not unusual, when a market is undergoing a shift, that we see an ebb and flow in the pace of sales. One of many encouraging indicators is that the market hasn’t shifted at a dramatic rate and, instead, has been steadily undergoing a correction over the course of the year. Even though the market remains well into sellers’ market territory, sellers whose expectations haven’t yet adjusted with the shift in the market may need some guidance on current market trends and the best strategies to sell their home. Instead of a seller’s home selling in hours with multiples bids, it will likely require more time before offers and possibly even showings begin to materialize. And pricing may have to be more in line with recent relevant closed sales rather than adding the kinds of significant mark-ups that were occurring last year. Although pricing continues to post increases, the rate of increase has subsided and will likely continue to do so until the market finds equilibrium. A slower rate of increase doesn’t necessarily mean pricing will decline, so buyers may want to take this into consideration before potentially passing up a great home due to an expectation that they’ll find another one just like it at a lower price later on. With more listings now on the market, buyers who had put their search on pause may find this to be a good time to reengage the market.
Through June, John R. Wood Properties continues to be the leading brokerage in both closed dollar volume and transaction sides in Southwest Florida!
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