Fort Myers Housing Market Trends
Fort Myers, located in southwestern Florida, is a popular destination for tourists, retirees, and families due to its warm climate, beautiful beaches, and relaxed lifestyle. The Fort Myers housing market has been experiencing steady growth over the past few years, with home prices rising and inventory levels decreasing. This report provides an overview of the current Fort Myers housing market trends and forecasts for 2023.
Median Listing Home Price:
According to Realtor.com, as of January 2023, the median listing home price in Fort Myers, FL was $400K, representing a 14.3% increase year-over-year. The median home sold price was $345K. This indicates that sellers are experiencing higher returns on their investments, while buyers are paying more for homes.
The median listing home price per square foot was $254. While the median listing home price is higher than the median home sold price, the gap between the two has decreased over the past year, indicating that buyers are willing to pay more for homes, and sellers are becoming more realistic in their pricing expectations.
Sale-to-List Price Ratio:
In January 2023, homes in Fort Myers, FL sold for 2.77% below the asking price on average. This shows that sellers are still able to negotiate the price of their homes, but buyers are not getting as many discounts as they were in the past. These housing market trends are based on single-family, condo, and townhome properties listed for sale on realtor.com. Land, multi-unit, and other property types are excluded.
Fort Myers, FL is currently a seller's market in January 2023, indicating that there are more buyers than there are homes available. This trend is expected to continue through 2023, with demand for housing remaining strong. On average, homes in Fort Myers, FL sell after 60 days on the market. The trend for median days on the market has increased slightly since last year. This indicates that homes are taking longer to sell, but the overall market is still healthy.
Housing Market Trends:
According to Redfin, in January 2023, the median sale price of homes in Fort Myers was $377,250, which is an increase of 17.9% compared to last year. On average, homes in Fort Myers sell after 23 days on the market, which is higher than the 8 days it took to sell a home last year. There were 202 homes sold in January 2023, which is a decrease from the 277 homes sold in January 2022.
The average sale price per square foot in Fort Myers is $231, up 11.6% since last year. Fort Myers is a somewhat competitive housing market, with homes receiving one offer on average. Some homes get multiple offers, and hot homes can sell for around the list price and go pending in around 6 days.
Comparing Fort Myers to nearby cities, the average home sells for about 2% below the list price and goes pending in around 39 days in the Cape Coral-Fort Myers metro area. In the Naples-Immokalee-Marco Island metro area, the average home sells for about 3% below the list price and goes pending in around 16 days.
Fort Myers Migration & Relocation Trends
Fort Myers is attracting homebuyers from outside the metro area, with 1% of homebuyers searching to move into Fort Myers from other metros. The top three metros with homebuyers searching to move into Fort Myers are Chicago, Boston, and New York. About 61% of Fort Myers homebuyers searched to stay within the Fort Myers metropolitan area, with Sarasota being the most popular destination followed by Tampa and Asheville. This suggests that many buyers are looking to relocate within the region for various reasons such as job opportunities, lifestyle, and family.
Fort Myers Housing Market Forecast 2023-2024
According to Zillow's Home Value Index (ZHVI), which measures monthly changes in property-level Zestimates, the Fort Myers housing market has experienced a strong upward trend over the past year. The average home value in Fort Myers is $360,853, which represents a 15.1% increase from the previous year. The median sale-to-list ratio as of December 31, 2022, is 0.978, indicating that homes are selling close to their list prices.
Looking at the past year, the Fort Myers housing market has seen an impressive growth trend, with a 15.1% increase in average home values. Zillow's forecast for 2023 is positive, predicting that the market will continue to see an upward trend but with a slightly lower growth rate than the previous year. Despite this, the market still represents a healthy and positive outlook.
The Fort Myers housing market has also seen a decrease in the percentage of homes selling over their list price, indicating a potentially stabilizing market. However, with a median of only 15 days to pending, homes are selling quickly, indicating continued demand for housing in the area. Overall, the Fort Myers housing market appears to be in a positive state, with a strong growth trend and a healthy outlook for the future.
Buyers searching for homes in Fort Myers should be prepared for a somewhat competitive market with homes receiving multiple offers. However, sellers can expect to receive offers quickly, and their homes may sell for around the list price or above it. The Fort Myers area offers an excellent quality of life with a warm climate, beautiful beaches, and a wide range of recreational activities. With careful research, potential homebuyers can find the right property in Fort Myers that meets their needs and fits their budget.
How is Real Estate Investing in Fort Myers, FL?
Real estate investing in Fort Myers, FL can be a lucrative opportunity for investors, but like any investment, it also comes with potential risks and drawbacks. Potentially lower home prices and cost of living compared to Miami may attract investors and homebuyers looking for a more affordable option with similar climate and lifestyle features as Miami. Here are some of the top reasons to consider investing in Fort Myers real estate, as well as some potential cons to keep in mind:
- Strong Housing Market: As discussed earlier, Fort Myers has experienced a significant increase in home values over the past year, with a healthy upward trend predicted to continue in 2023. This makes Fort Myers a great place for real estate investors to buy and hold properties for long-term appreciation.
- Growing Population: Fort Myers is experiencing steady population growth, with many people attracted to the area's warm climate, beaches, and outdoor activities. This population growth creates a strong demand for housing, making it easier for real estate investors to find tenants and keep their properties occupied.
- Low Taxes: Florida has no state income tax, and Fort Myers has some of the lowest property taxes in the state. This can make it easier for investors to generate positive cash flow on their properties.
- The Fort Myers multifamily real estate sector: It has experienced growth in recent years, with an increasing demand for rental properties in the area. The growth in the rental market can be attributed to several factors, including a growing population, a strong job market, and an increase in the number of retirees moving to the area. Investing in large multifamily properties in Fort Myers can offer several advantages, such as stable cash flow from rental income, long-term appreciation potential, and diversification of investment portfolio. Additionally, owning a multifamily property in Fort Myers can provide economies of scale in terms of property management, maintenance, and tenant acquisition.
- Interest Rates: As of February 26, 2023, the average 30-year fixed mortgage interest rate is 6.94%, up 15 basis points over the last seven days. High-interest rates can make it more expensive for investors to finance their properties, which can reduce their overall return on investment.
- Natural Disasters: Fort Myers is located in a region of Florida that is prone to hurricanes and other natural disasters. This can create additional risks for real estate investors, who may need to pay higher insurance premiums and take extra steps to protect their properties from damage.
- Seasonal Rental Demand: Fort Myers is a popular destination for snowbirds and other seasonal residents, which can create fluctuations in rental demand throughout the year. Investors may need to adjust their rental rates or marketing strategies to account for these seasonal variations.
In conclusion, real estate investing in Fort Myers, FL has the potential to be a profitable opportunity for investors, but it also comes with some potential drawbacks and risks that need to be carefully considered. Investors should conduct thorough research and analysis before making any investment decisions and should work with experienced professionals to help mitigate risks and maximize returns.
Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process. They are well-informed about critical factors that affect your specific market area, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates.
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The information contained in this article was pulled from third-party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.