Southwest Florida – Naples Bonita Springs Estero – Real Estate Market
It’s Just Different
Real estate is local, local, local (and often in SWFL it’s hyperlocal) … and there is no better proof of this than the southwest Florida real estate market – it’s just different.
Why? First and foremost, SWFL real estate market is a locale that is marked by seasonal residents. What is a seasonal resident? People who do not make SWFL their primary residence and if they do a large majority will bail out of the area for three or more months over the summer. Why does this matter? Motivation, or more importantly the lack of motivation on the part of buyers and sellers.
Buyer: “I don’t have to buy, I can buy now or maybe next year or maybe in two or more years. But, if just the right property comes along at the right price…” You see where this is going…
Sellers: First we need a short discussion about the inventory. Plain and simple, there is just too much inventory. Why? New construction has been for some time now and continues to flood the market. High inventory, for anything, reduces overall demand. More accurately, while the demand remains somewhat constant the over inventory makes it seem like the market is slowing down while the actual number of sales is reasonably strong and not falling off a cliff. So back to sellers…
Seller: “I don’t really have to sell now. If I can get the price I want then I’ll sell. If it doesn’t sell this season then I’ll put it back on the market next season, no hurry.”
So why are properties lingering so long on the market? Price. The high inventory and lots of buyer choices tend to push priced down.
The average days on market (DOM) for southwest Florida is much higher than other parts of the country.
NAPLES SINGLE-FAMILY HOMES
The average DOM in Buffalo NY is about one-half what it is in Naples.
The average DOM in Reading MA is about one-third what it is in Naples
The average DOM in Columbus OH, right now, is about 66 days!
OTHER MARKETS COMPARISONS
The numbers represent a buyer or seller advantage index; 30 or below is the buyer’s favor while above 30 is the seller’s favor.
Some of the charts and graphs depicted here are Copyright © 2019 Altos Research, Inc.