Home Sales Steady in October

Home sales were steady in October in the Fort Myers area as the region saw an end to the sizzling summer heat.
Sales of homes typically pick up when the snowbird season starts, but Trump tariffs have thrown a wrench into the housing market.
Lower mortgage rates are incentivizing home purchasers to return to the market, which is expected to see an increase in home sales.

Single family home sales remained steady in October from the previous month, with 990 homes sold in the Fort Myers region. Some 998 homes sold in September as the housing market worked its way through the final days of the summer heat wave.

Home sales typically pick up in the area after the summer heat fades and snowbirds return to the area. Fewer homeowners and tourists returned to Florida last season after the Trump administration enacted massive tariffs against Canada, which is the U.S. biggest trade partner.

The largest number of home sales for the month took place in Cape Coral in Lee County, where 419 single family homes sold in October. The city of Fort Myers had 289 sell in October, followed by Lehigh Acres, with 207 sold homes.

Condo Sales Remain Soft

Only 178 condominiums sold in the Fort Myers area during October as the Florida condo market remains in the doldrums as a result of new requirements imposed by the Florida legislature. Older condo developments are now required to be inspected for building deficiencies as a result of the Surfside condo collapse in 2021, in which 98 people died.

The housing market has seen a decline in home prices over the last three years in the Fort Myers area, but with lower mortgage rates the number of shoppers is up and sales are expected to increase in coming months.

Mortgage Rates Drive Sales

“Mortgage rates decreased for the fourth consecutive week,” said Freddie Mac chief economist Sam Khater. “The last few months have brought lower rates and homebuyers are increasingly entering the market.”

The 30-year fixed rate mortgage averaged 6.17% last week, down from a week earlier when it averaged 6.19%. A year ago, the same 30-year mortgage averaged 6.72%. The Federal Reserve has cut interest rates for two successive meetings and is expected to continue on its interest rate cutting wave over at least the next year.

Drops and increases in mortgage interest rates usually follow the Fed’s actions with the government body’s two mandates to control inflation and keep employment at the highest levels possible.