by Mike Colpitts 
Home sales decline in the Fort Myers area during the month of September as the summer heat and higher mortgage rates scare home buyers.
- Sales figures compiled from the Royal Palm Coast Realtors Association show a drop in re-sales from August.
- However, the condo market shows a major up-swing as buyers turn out to capture lower prices on condominiums.
Home sales decline in September during the height of the summer hot spell when sales of homes are usually slower in the Fort Myers area. Some 1,281 homes, condos, townhouses and manufactured properties closed during the month in Lee County.
Sales figures were compiled from the Royal Palm Coast Realtors Association multiple listing service. The majority of sales were single family homes, with 974 closing escrow during the month. The condo market is showing substantial improvement as buyers turn out to make purchases because of lower prices on condominiums listed for sale.
Some 198 condos sold in September in Fort Myers and Fort Myers Beach, up substantially from the previous month. Some 284 single family homes sold in September in Fort Myers proper as buyers got some of the lowest home prices in the city in years. A total of 1,460 single family homes sold in Lee county.
The Federal Reserve’s cut in mortgage interest rates is expected to drive more home sales as the Fed makes more cuts in coming months. But consumers feelings of financial and job insecurity make it difficult to tell when sales should pick up. The prices of homes and condos in the Fort Myers area are still declining as the market comes to grips with lower home prices.
The market’s median price for a home topped out at $469,900 in May 2022 in all of Lee County and has since come down to a median price of $395,000 at the end of September. The median price includes all homes, condos and other residential properties sold in Lee County.
The lag in home sales isn’t unexpected as the local housing market makes inroads to stabilize with lower mortgage rates. However, rates first dropped after the Fed cut its rate for borrowing three weeks ago before rising twice since then.
“The 30-year fixed-rate mortgage increased again this week but remains below its 52-week average of 6.71%,” said Sam Khater, Freddie Mac’s chief economist. “The last few months have brought lower rates and as indicated by the recently reported increase in pending home sales, homebuyers are feeling more confident to get into the market.”
The 30-year fixed rate mortgage averaged 6.34% as of Oct. 2nd, slightly up from a week earlier when it averaged 6.30%. A year ago the same 30-year mortgage averaged 6.12%.
Financial analysts contend it will take a series of rate cuts by the Fed to bring mortgage rates down enough to energize the market and induce enough consumers to buy homes. The number of renters in the Fort Myers area has increased substantially over the past three years with the construction of large apartment complexes.
The rental rates, however, on rentals for most families have only come down 10 to 15% on average in the Fort Myers area, according to local landlords. As rents decline and housing prices drop more home buyers will enter the market.
However, home prices are also expected to increase as interest rates decline. Buying before that happens may be challenging for some trying to wait out the market.