Last year - most of 2021 - saw the price of homes continue to soar in Southwest Florida, including it the months that have traditionally been the slow-selling "off season" here, the months from April or May until the end of the year. But in 2022, as the housing market barrels toward the end of the year and the holiday season, potential home buyers are likely wondering what’s in store for the coming season.
The answer is likely that home buying and selling patterns will return to "normal" in January, 2023 in that they'll match the years prior to 2020 in spite of higher interest rates. (Remember that cash buyers are an important component of the SWFL real estate market.) Compared to 2021, which was a standout year for real estate in Collier County, closed sales in October 2022 decreased 24.5 percent to 662 closed sales from 877 closed sales in October 2021. Pending sales (homes under contract) also decreased 43.3 percent to 673 pending sales from 1,186 pending sales in October 2021. This trend will likely hold in November and December, so the prospects for more of a buyer's market towards the end of the year are good. In January, though, as the "snowbirds" come back, probably not so much.
According to NABOR®’s statistics, October’s overall median closed price held fast at $555,000, the same as was reported in September. But compared to October 2021, the overall median closed price increased 23.3 percent from $450,000. Interestingly, the statistics showed a 1.6 percent decrease in median closed price for condominiums between September and October. So in particular, while we saw a slight increase in new listings by condominium owners who had damage and decided to sell instead of rebuild, hurricane Ian is not going to spark a fire sale trend.
There was also a 26.1 percent increase in new listings in October compared to September, which has always been typical for this time of year prior to 2020. So act now before the holidays to get the best price currently available for a SWFL home. You won't regret it.
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