Located in Southwestern Florida, Fort Myers is a popular destination for retirees, tourists, and migrants.
The city offers a warm climate throughout the year, beautiful beaches, impressive venues - such as Downtown Fort Myers' Caloosa Sound Convention Center & Amphitheater, many cultural activities, and a relaxed lifestyle for adults and teenagers.
As a result, the Fort Myers housing market has experienced steady growth over the past few years.
According to the latest reports, home prices have risen in Fort Myers as the home supply falls, which shows that the local housing market has remained competitive.
However, real estate investors and homebuyers still wonder if buying a house in this city is a good idea. What do experts say? Are rising home prices telling us that the Fort Myers housing market will crash soon?
If you want to find the answers to these questions in order to make a sound investment decision, read on! Here's all the information you need to know!
Fort Myers Housing Market Trends
Redfin's March 2023 reports showed that home prices in Fort Myers had risen 14.8% compared to the same period last year. The median price for a house sold in this city exceeded $400,000.
In addition, inventory dropped considerably by the end of this year's first quarter, which means that the Fort Myers real estate market has remained somewhat competitive compared to other cities.
Here's more information on the latest local housing market trends.
Median Home Sold Price in Fort Myers
According to Redfin's March 2023 reports, the median listing home price in Fort Myers is up 14.8% compared to last year's figures.
Additionally, the median home sold price reported in March 2023 is the highest since June of last year. Back then, a property in Fort Myers, FL, sold for $415,000.
In this city, the median price increased for all home types, except townhouses.
The latest data from Realtor.com showed there are 3,396 homes for sale in Fort Myers, FL. The number included 419 residential units that were newly listed.
Redfin's latest reports also showed that 13.8% of all home types in Fort Myers, FL, sell above list price, which accounts for a 38.3% year-over-year drop.
The average home in this city sells for around 3% below the list price. Also, it goes pending in around 19 days.
In addition, around 48.3% of homes had price drops, which shows an increase of 16.8% compared to last year's figures.
However, hot homes in Fort Myers, FL, sell for around the list price and go pending in just six days.
Median Days on the Market
In Fort Myers and other parts of Southwest Florida, the amount of time homes spend on the market before going under contract is also higher. However, it's still low, which is a sign the market is competitive.
March 2023 figures showed that the median days on the market rose from seven to 20 compared to last year's figures. However, the changes seen in recent months have been slight.
In January of this year, the median days on the market was 24 days, but the number dropped to 19 in February. In March, it's only one day higher than the previous month.
According to the latest report released by Redfin, the number of homes sold in Fort Myers, FL, also fell from 405 listed and purchased units in March of last year to just 320 in March 2023.
However, the figure proves that the market has experienced steady growth in recent months, as it's the highest number since May 2022. Back then, 350 homes were sold.
During this year's first quarter, the number of homes sold hovered between 183 in January and 228 in February before rising by almost 100 units in March.
Florida is one of the country's top 10 states with the highest foreclosure rate, as there's a total of 3,298 foreclosure filings out of 9,764,897 housing units.
With a foreclosure rate of one in every 2,961 homes, the Sunshine State holds the 10th place on SoFi's list of foreclosures.
Clay, Union, Osceola, Washington, and Baker had the highest foreclosures per housing unit.
Factors Affecting the Fort Myers Housing Market
Both in Fort Myers, FL, and other US cities, certain factors influence the real estate market. Population growth, interest rates, and tax policies are some of them. Find more information below!
The City's Economy
The economy can greatly influence the housing market in Florida (FL), Fort Myers included. In fact, it happens in any other city.
If the economy is healthy and growing, the housing market also thrives.
The construction and labor markets in Fort Myers, which play a key role in the economy, struggled last year.
However, according to the US Bureau of Labor Statistics, the unemployment rate in Cape Coral-Fort Myers, FL, was 2.8%, which is lower than in December of last year, when it sat at 4.1%.
Overall, low unemployment is associated with a growing economy, which means consumers are purchasing goods and services because they have more money or are more confident in their financial situation.
Local legislation can also affect Fort Myers' real estate market since tax credits, subsidies, deductions, and other similar factors have a major impact on property demand and prices.
Mortgage Interest Rates
The higher the interest rates, the lower the home prices. Contrastingly, if interest rates fall, property values and demand go up because it's easier to get a loan and buy a house.
Changes in demographics, including population growth, migration patterns, and other aspects, can also define people's real estate purchases, which have a direct impact on the market.
Will the Fort Myers Real Estate Market Crash?
Potential homebuyers and real estate investors are concerned about the country's economic situation as rumors of a potential recession grow.
As a result, they don't want to invest in the real estate market because they believe it'll crash soon. However, experts insist that it won't happen. Instead, there will be only a slowdown.
Additionally, a few signs show that the Fort Myers housing market is not likely to crash this year, including the following:
- High Housing Demand: As mentioned, the housing demand in Fort Myers remains high. In March, the number of homes sold rose considerably. In addition, the city is a top choice among millennials in their prime buying years and migrants.
- Low Housing Supply: In Fort Myers, FL, the housing supply dropped due to high demand. This shows that a real estate market crash isn't on the horizon, as this event occurs when inventory is excessively high, demand falls, and there are not enough homebuyers.
- Low Supply of Newly Built Homes: There's a lack of newly built homes because people are unwilling to go through the tedious process of getting approval to buy land and build properties.
- A Drop in Foreclosures: Although Florida has one of the country's highest foreclosure rates, foreclosure filings have fallen across the country, as people have more equity in their properties and stronger personal balance sheets.
- Stricter Lending Criteria: Getting a loan is much more difficult now than it was 15 years ago since lenders now set stricter criteria.
Fort Myers Housing Market Statistics
If you're planning to buy a home in Fort Myers, you should also consider the following statistics:
- According to Realtor.com, the median home listing price per square foot in Fort Myers was $259.
- The latest reports posted on Realtor.com also show there are 3,396 homes for sale in Fort Myers. Prices range from $9.9k to $13.5M per residential property.
- Realtor.com also said there are 967 rentals in Fort Myers, with prices ranging from $575 to $21k a month.
- In Collier County, single-family home sales dropped by 31%, followed by Lee County (19.5%) and Charlotte (9.3%).
- Multifamily permits in Lee County rose by 62%. In Charlotte and Collier counties, the number grew by 57% and 18%, respectively.
Housing Market Predictions
Is Fort Myers a good place to buy a home? What do experts say about the future of the local housing market? Here's the analysts' forecast:
Drop in Home Sales and Inventory
Most experts believe that high-interest rates will cause home sales to fall since buying a property will be more expensive in the long run.
Analysts expect home sales to fall by at least 10%. Furthermore, they believe that the median days on the market will increase by at least 10 days next year.
In other words, specialists believe that the number of houses sold will be lower, and properties will spend more time on the market before going under contract.
Additionally, housing inventory is expected to remain low.
Rising Interest Rates
Analysts predict that the Fort Myers housing market will be impacted by higher mortgage interest rates.
Although mortgage interest rates have reached record highs, experts believe they will continue rising to 8.5% for 30-year fixed-rate loans and 7.70% for 15-year fix-rate loans.
Drop in Home Prices and Affordability
As a result of a drop in demand and inventory, home prices will remain low, falling as much as 5% this year. According to experts, the main reason for this drop will be unaffordability, as properties will be less attractive to potential buyers.
Fort Myers Housing Market Forecast
Zillow's Home Value Index (ZHVI) showed that the Fort Myers housing market has experienced upward trends in recent months, as the average sale price for a home increased by 15.1% to $360,853 compared to last year's figures.
In addition, the median listing price also rose, and the sale-to-list price was 91.1%.
Experts predict that the city's housing market will continue to grow thanks to these upward trends even though the growth rate may be lower.
However, the latest trends and fluctuations in the Fort Myers housing market represent a positive outlook.
The Final Verdict
Whether you're in coastal communities, such as Fort Myers Beach, or in another part of the city, buying property could be a good idea.
Fort Myers is a great place to live due to its thriving economy, strong labor market, cultural activities, and climate.
However, before making a decision, you should consider some aspects. The predictions for the Fort Myers housing market are positive, but you must make sure your investment is really favorable.
Remember you can also contact a professional real estate agent if you need expert guidance to make a sound investment decision.
Frequently Asked Questions
Is Fort Myers a Seller's Market?
Yes, it is! Homeowners have more negotiation power because demand is high, but inventory is low.
Is It a Good Time to Buy a Home in Fort Myers?
Based on experts' predictions, many may believe it's a good time to buy a home in Fort Myers. However, the demand is growing, and the inventory is low, which makes the prices too high.
Investors should consider their budget, preferences, and strategy before making a decision.
Is It a Good Idea to Buy Commercial Real Estate Properties in Fort Myers?
Although the Fort Myers housing market is growing and has remained competitive despite recent negative events, investors shouldn't rush to buy property in this city.
As mentioned, you must consider different aspects to determine if buying a house or commercial property in Fort Myers or anywhere in Southwest Florida is a good idea.
If you still have doubts about it, don't hesitate to contact a professional real estate agent and ask for help.