Fort Myers area condo market sales have stabilized over the past three months, a survey of the Royal Palm Coast Realtor Association MLS revealed. Sales have remained close on a monthly basis as prices continue to decline.
Some 340 condo units sold during May in Lee County, 377 in April and 362 in March as condo sales stabilize and the value of units decline. Buyers are taking advantage of lower prices amid market turmoil. Inventory has surged 37.2% from a year ago leading to a buyers market characterized by longer selling times and seller concessions.
A combination of economic factors and regulatory changes have influenced buyer behavior and market conditions. Higher mortgage rates combined with state legislation requiring condo associations to inspect for structural flaws have produced a condo market that has seen sales slow for more than two years. The Surfside condo collapse in Southern Florida resulted in a series of changes in the Florida condo market.
A slowdown in net migration has reduced the influx of new residents in the state, impacting demand in previously high-growth areas. But the Fort Myers real estate market is particularly strong in the single family home sector, where sales have increased for more than three straight months.
Fort Myers Condo Sales Stabilize
The median sale price of condos in Fort Myers has decline to $313,500, while the average sale price fell by 8.3% to $372,808. Cash sales, which are traditionally strong in this market, also saw a decline, dropping from 63.5% to 57.5%.
Nearly two-out-of-three condo sales have been in cash until recently.
Naples Luxury Prices Decline
Naples remains a stronghold for luxury condos. Despite a slight decline in median prices to $445,000, the high-end market is still robust. The average sale price was $675,668, indicating sustained demand among affluent buyers. However, rising HOA fees and maintenance costs have impacted affordability, leading to a 5% decrease in condo prices.
The Naples luxury market remains a stronghold as more Northerners move South for warmer weather and a tropical environment.
Miami in a Shifting Market
Miami’s condo market has shown relative stability compared to other regions. However, the average sale price has decreased, suggesting that while demand persists, buyers are becoming more price-sensitive. The market remains active, but sellers may need to adjust expectations to align with buyers.
Condo Sales Stabilize
Statewide, Florida’s condo market has been influenced by key factors:
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- Insurance Costs: Rising insurance premiums have impacted affordability, particularly in coastal areas prone to hurricanes.
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- COA Fees: Increased COA fees, partly due to the implementation of the Building Safety Act, have added to the financial burden on condo owners.
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- Regulatory Changes: The Building Safety Act, requiring structural integrity studies and repairs for buildings over 30 years old, has led to substantial special assessments, affecting property values and buyer interest.
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- Interest Rates: Higher mortgage rates have dampened buyer enthusiasm, leading to longer selling times and price adjustments.