Sanibel Real Estate blog:Healthy Market!

An  interesting article in the 8/15 Fort Myers News-Press, for all of you interested in buying or selling Sanibel real estate.

Lee County sales were up more than 9 percent as compared to the same time last year. Collier’s sales were down slightly. The two factors that contribute to Lee’s performance are affordability and inventory. The median sales price in Collier is $423,000 as compared to $218,000 in Lee County.

Obviously there are more $200,000 buyers than $400,000 ones, so this should drive inventory down and prices up. That is what is happening in Lee as inventory is down almost 16 percent and the quarterly median price is up 9.6 percent. Collier’s inventory is down less than 2 percent and the median price has risen a modest 4 percent. Naples hasn’t lost its luster, just its affordability.

Sales for condominiums are down slightly in both counties.

The most newsworthy event is that the quarterly median sales price in Lee County has finally passed the $200,000 mark. That’s impressive considering the median was only $143,000 for the second quarter in 2013. Interestingly, Collier’s median price in 2012 was $275,000, 25 percent higher than Lee’s current median price.

Luxury, ultra luxury continue improvement

The Lee County luxury market ($1 million-$5 million) saw an impressive 24 percent increase in closed sales during the second quarter and Collier County had a 7 percent reduction in closings in the same price and time range. However in the ultra luxury market, which are homes sold over $5 million, Collier had a 47 percent increase and Lee County had no change.

The most improved segment

The move-up market segments, which are the price ranges above $300,000, were the most improved in Lee County during the second quarter. Specifically, the $300,000-$500,000 was up 19 percent, the $500,000 to $1 million was up 25 percent and the million dollar plus market was up 23 percent. There were 346 closed single-family homes last quarter in the price range of $500,000 to $1 million. In fact there were more homes sold in that price range in Lee County then in Collier. Collier’s percentage changes were +17 percent, +7 percent and -3 percent respectively.

In spite of Collier’s improvement in the ultra luxury segment, there were fewer homes sold between $1 million to $5 million during the second quarter this year versus last year. This may be because that buyer moved their purchase into Lee County or decided to take advantage of the many new home choices that now exist.

Conclusion

The health of the residential market is as good as I’ve seen it in more than a decade. Supply, but not too much, price growth, but not too fast, and investors, but not too many. Our market, which used to be a four-month selling season, has turned into a 12-month selling season. I expect this to continue as long as the sellers from our feeder markets continue to reap the benefits of their improving market.

If it is time for you to hop in (or out) of the Sanibel real estate market, check out our listing at www.chuckandrews.com or give us a call at 239-849-3396.

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