2016 was an interesting year to say the least. In real estate it started out with a robust market and an uptick in transactions. We saw home prices increase and the investors fighting over properties they could purchase and flip. Inventory was down during the first quarter but we noticed our luxury properties were gaining time on the market. Throughout the year, there seemed to be a softening in that market which still exists through this last quarter.
The second quarter still showed a steady but sporadic number of properties being sold. The market for our more reasonable to average Lee County sales prices still were quick to fly off the shelf. A property that was priced correctly and was under $250K often sold in under 30 days with multiple offers for the seller to choose from. Toward the end of the second quarter, the number of transactions in Lee and Collier County began dropping. Prices continued to edge up in some areas but for the most part remained flat unless you were in the luxury market which started to see price adjustments to encourage offers.
The third quarter across the board saw reduced transactions and a soft market. Many of the new home builders told me their walk in traffic was less than they had hoped. At the end of the 3rd quarter board statistics verified what we were experiencing in our offices... sales in Ft Myers were down 29% from 2015. Sales were down 9.5% in Cape Coral and Lehigh was down about 5%.
Our Orange River Loop Neighborhood has seen the same thing happening. We have had a few sales on the Loop this year and are seeing some very nice homes being built or rehabbed by our new neighbors.
This past week we have seen an abundance of traffic in our office and last week we sold 6 homes. I believe our market in 2017 is going to be a good one. However, the mortgage news has me scratching my head. Mortgage rates are edging up, but more importantly the Federal Government is putting more stringent practices in place which will make getting a loan more difficult. This is not good news for all our buyers, but I am hopeful that change may be short lived with the new administration coming in next month. A relaxing of the Dodd Frank requirements will certainly help shorten the length of time it takes to get a mortgage if nothing else.
We will always have an advantage for selling our real estate on Orange River Loop; you don't have to worry about those snowy temperatures we are seeing up North! Actually on my way to the office recently, I thought everyone must have left that weather behind and they were already here...
To you and your families - have a Very Merry Christmas and a Happy New Year! Terri