The housing market throughout the United States is a complex and ever-changing environment that needs to be researched and updated regularly in order to fully understand the climate. If you are planning to buy or sell a home in Southwest FL in the near future, you need to find out what the local market is like and what average home prices in Southwest FL are right now. These prices will offer you vital information concerning the overall health of the market and your potential for success.

When it comes to home buyers, knowing average home prices in Southwest FL will allow them to make well-informed decisions about the likelihood of finding the ideal home in their price range. Home sellers can use the average home price information to make sure that they are listing their homes for competitive prices on the market.

Similarly to other real estate markets around the country, the market of Southwest FL has not yet normalized to pre-pandemic conditions. As of January 2023, home sales were down compared to January 2022 and the sale prices have only risen 4% since last year, but the inventory has more than doubled compared to the same time last year. This is still well below the pre-pandemic levels, though. 

With all of this information, what do potential home buyers and home sellers need to know about the current market conditions and how do average home prices in Southwest FL play a role in their real estate success? Our team at Your Home Sold Guaranteed Realty of Greater Florida is happy to answer these questions.

What Factors Average Affect Home Prices in Southwest FL?

Before we get into the specifics of the Southwest FL real estate market, there are a few things to discuss in general about what can affect the state of the market. Some of the most influential factors for the housing market include:

• Economic conditions: Challenging issues such as rising interest rates, inflation, recession, and other economic problems can cause homes to be unaffordable for many home buyers. This can even lead to home sellers having to lower their asking prices in order to get attention from interested home buyers.
• Demographic trends: The local home market and its average home prices can also be affected by the area’s demographic trends such as age, income, education level, and family size of the population. If there are a number of Empty Nesters in the area, for example, they may want to downsize or move to senior communities. This demand can increase prices for these types of homes.
• Availability of housing: Probably the most basic economic concept – supply and demand – greatly influences prices in the local market. If there is low supply but high demand, this will drive prices skyward. If the opposite is true, then prices can plummet. 
• Interest rates: The cost of a mortgage is compounded by the interest rate obtained by the home buyer. When interest rates are generally high, this can make mortgages less affordable, especially for first-time home buyers. As a result, home sellers may need to lower their asking prices to compensate for the higher interest rates.
• Seasonal trends: Supply and demand are also affected by the seasons. During the warmer months, more home buyers are actively looking so home sellers can list their homes for higher prices. Colder months lead to less demand and lower prices (who wants to move in December??).

What Are the Current Average Home Prices in Southwest FL?

Historically, Southwest Florida has been one of the most profitable housing markets with demand remaining high due to the many benefits of living in the area. Natural attractions, warm temperatures year-round, and cheap taxes continually bring newcomers into the state to invest in homes. However, the pandemic changed that trend, and the housing market has been reeling from it ever since. 

With rising interest rates and high inflation, the advantages of living in Florida are starting to no longer outweigh the costs of homes. Even so, house appreciation trends continue to benefit homeowners due to the imbalance between demand and supply across the state. The average home value in Florida, as of February 2023, is $377,706, according to the Zillow Home Value Index. These values have increased by 11.1% over the last twelve months, and most homes only remain on the market for an average of 31 days before turning to pending. These trends are predicted to continue growing throughout 2023. Only, however, 13.5% of homes sell over list price while 67.9% sell under the list price. 

In the Tampa Bay area, specifically, there is no change in home values projected until May 2023, when the average will decrease by 0.3%. They are predicted to increase once again by 0.6% by the end of February 2024. For the Southwest Florida region such as Cape Coral, home values are projected to decrease by 0.1% by the end of March 2023 and further decrease by the end of May 2023. There is a 2% increase expectation for the end of February 2024.

While the Southwest Florida housing market will likely remain quite strong throughout 2023, the market is expected to stabilize causing the growth rate to slow and balance between home buyers and sellers to develop.

Buying or Selling a Home in Southwest Florida? Things to Consider.

Whenever you are trying to buy or sell a home, there are many factors that need to be considered and things to keep in mind throughout the entire process. How can you work to ensure that you will have a successful real estate experience then?

For home sellers, the state of the market is going to determine many things about your home selling success. If the market is more balanced, you may need to prepare for a longer than average sale process and to have your home on the market longer than expected. To attract interested home buyers, it may be necessary to lower the asking price so that home buyers facing expensive mortgage payments may be able to afford the payments a bit more easily.

Home buyers should pay attention to interest rates to determine how much competition may be out there. Higher interest rates force many people out of the market. Likewise, with fewer competing home buyers, your initial offer is more likely to be accepted because there is an increased supply but less demand. You may even find that home sellers are willing to negotiate and/or agree to concessions to close the deal.

Working with an experienced Southwest Florida realtor will be the best way to ensure that your home sells or you can buy the perfect home for you. At Your Home Sold Guaranteed Realty of Greater Florida, our real estate team will guide you through the whole process, help you understand the impact of the current housing market conditions on your real estate journey, and ensure you get the best possible deal.

Determine Your Home Value for Free with Our Southwest Florida Team!

Whether you are buying or selling a home in Southwest Florida, you need to know who the best realtors in the area are and how they can help you. Our team is known as one of the absolute best in the area, and we are dedicated to helping you achieve your real estate goals. 

With our vast knowledge of the local real estate market as well as historical market trends and average home prices in Southwest Florida, we guarantee that you are well-informed at every stage of the process. Our previous clients have shared thousands of five-star reviews that we would love to share with you to demonstrate our level of customer service, communication, and the benefits of our unique home buyer and seller guarantees.

For home sellers, we invite you to learn more about the Guaranteed Sale Program that provides you a safety net when it comes to selling in a specific time frame. Essentially, if it doesn’t sell, we will buy it ourselves!

Home buyers can take advantage of the Home Buyer Satisfaction Guarantee. This offers you the chance to return your home if you are not 100% satisfied with it. We will buy it back if you realize it is not perfect for you and your family.

If you are ready to buy or sell a home and want more information on the average home prices in Southwest FL, be sure to reach out to our experienced and skilled realtors. We are happy to answer any questions and address any concerns you may have. Give us a call at 239-880-3563 or fill out the form below with the requested information. We look forward to hearing from you!