Home Inventory Shrinks

The Brief

• Homes being marketed for sale in the Fort Myers area have dropped by more than 6,000 units as the home inventory shrinks.

• The buyers market and still substantial inventory of single family homes to choose from gives purchasers the advantage.

• Homes for sale in the Fort Myers area are currently more reasonably priced than before the market boom in activity.

The inventory of homes in Fort Myers is dropping as home sales are seeing a pick up, despite an unusually wet tropical rainy season this summer. The volume of single family homes being sold are increasing as the summer selling season comes to an end.

Most U.S. housing markets see a strong increase in sales during summer but Fort Myers typically sees a slowdown during the hottest months of the year, including August. Lower home prices have driven more buyers to look for homes than during most summers.

The number of homes for sale in Fort Myers listed on the market are declining after the kids returned to school and many homeowners decided to pull their homes off the market.

The inventory of single family homes and condos listed has been cut by more than 6,000 units in just three months. There were 29,600 homes, condos and townhouses on the market at the end of April, according to figures from the Royal Palm Coast Association of Realtors MLS.

At the end of July, 23,180 properties were listed for sale in Lee and Collier counties. The area includes Fort Myers, Fort Myers Beach, Lehigh Acres, Cape Coral and Naples. As the home inventory shrinks, the drop is a sea change for the market, which has seen home prices decline more than 20% on average from its high. 

When the housing market in the Fort Myers area was a sellers market inventory was tight. The lowest the inventory reached was in June, 2022 when there were just 9,788 homes listed for sale. The near record low modern-day inventory and record low mortgage rates pressured the market and home prices soared.

The Covid pandemic saw thousands of new residents move to the area to make home purchases as interest rates hovered at record lows. In January, 2022 homes were selling rapidly and prices soared. Bidding wars were common, and many areas of the community saw appreciation hit 2 to 3% increases in home values each month.

Homes being sold in Fort Myers these days are much more reasonably priced after nearly three years of declining prices. The market has shifted into a clear buyers market, where home purchasers are getting better deals and there is often room for negotiating. It’s a friendlier market after a classic Southern summertime slowdown. 

Despite the hot spell, home sales increased over the past quarter, demonstrating that even during the hottest part of the year the pace of home sales is stronger. Fort Myers economy is rich with growth and ripe for change. Commercial businesses are moving to the area and opening, including manufacturing as Florida sees a resurgence of growth that is forecast to sustain.

The U.S. Census Bureau says 1,500 people a day are moving to Florida.

The average time for homes to sell has increased but the shift from a sellers market to a buyers market is clear, with more signs of change for the region than in many years. As market dynamics change, market shifts become more evident. When the Federal Reserve eventually cuts interest rates the Southwest Florida housing market is likely to see a resurgence in home prices. 

Finding the right home takes time. You can start your search for a home in Southwest Florida here: Fort Myers Homes for Sale