Our Southwest Florida Market Report for September 2022 includes the latest real estate data, as well as a comprehensive list of market conditions in SWFL. From inventory and sales activity to market trends, it all comes together in this monthly market report. Stay up-to-date and plan ahead with our monthly market reports!
Closed sales for the 12-month period ending September 30, 2022 were down 26.7% from the preceding 12-months, from 41,559 to 30,480. The 1,449 sales posted for the month of September were down 44.8% when compared to September of 2021, a time when the market was still posting a record-breaking sales pace. Compared with pre-pandemic trends, September sales were down 14%.
Listing Inventory / New Listings
As of September 30, 2022, 5,375 properties were available, up 108.5% from a year prior but down 1% from the prior month. New listings for the 12-month period ending September 30, 2022 were down 5.4% from the preceding 12-months, from 37,884 to 36,836. For the month of September, new listings were down 26.6% from September of 2021. 2.12 months of supply was posted as of September 30, 2022, remaining well into a sellers’ market territory. 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 September 30, 2022 was $755,403, up 22.6% from the preceding 12-month period when the average selling price was $615,992.
Other than some end-of-the-month closings that no doubt were cancelled or postponed due to hurricane Ian, statistics as of our September report show little influence from the storm. In coming months, as more data filters through, we will be better positioned to assess the level of influence the storm has had on our local markets, and we will be certain to report those findings to you. Clearly, new listings and sales in the most impacted areas such as Fort Myers Beach and the Islands will post initial declines and lower than normal activity during the recovery process. If history is any indication, less impacted areas are likely to experience an increase in demand, both from displaced residents seeking housing, as well as from buyers who were targeting the now-impacted areas, and instead may seek alternative locations, at least until the most impacted areas recover.
What we can report so far for the market-at-large is that since Hurricane Ian passed, after newly pended sales fell sharply in the days following the storm, the rate of newly pended sales has increased steadily and, as of October 7th, daily sales were already back to 73% of their pre-storm pace. That’s for all Collier and Lee areas from Marco up to Cape Coral and the Islands. We are optimistic that overall market recovery will be swift, just as has proved to be the case in the past after other storms have impacted Southwest Florida. And yes, some specific areas will take longer, but those areas, too, will indeed recover and reemerge brighter and stronger when they do.
Hurricanes and Real Estate
Generally speaking, after a period of slower-than-usual sales, real estate markets usually recover at a surprising rate. This proved to be the case with Hurricane Irma which hit Southwest Florida in 2017. Newly pended sales dropped by 90% just following the storm, then were back to their normal pace just five weeks later. Reviewing what history suggests about how storm surge impacted markets recover; after Hurricane Katrina in 2005, sales in the Metro New Orleans market fell noticeably for about a month’s time before they returned to, and then even exceeded, their prior pace. More recently, after Hurricane Harvey in 2017, a similar trend held true for the Houston Metro area. Every storm is different and every market is different, and it remains to be seen exactly how recovery will look for Southwest Florida, but early indicators are favorable. Historical post-storm trends, a strong resolve by residents to rebuilt, and a continued deep passion for Southwest Florida’s beauty and lifestyle by residents and visitors alike, all bode very well for a strong recovery.
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