Home prices on the rise in Lee County

Bonita Springs Real Estate / Estero Real Estate / Naples Real Estate

By D. Michael Burke

As we know, home prices and sales were affected by a chaotic real estate market in 2010, but ended the year with a nice increase, according to information released Thursday, January 17 by Florida Realtors. Meanwhile, in a separate survey released the same day by the National Association of Realtors, the number of people who bought previously owned homes last year fell to the lowest level in 13 years. But home sales in December jumped to the fastest pace in seven months. The point is that the activity in December does not reflect the remainder of the prior year (in a good way), but it sure seems to be paving the way into 2011. First a look back…

In Lee County, the median sales price was $92,500 in December, up 3 percent from November’s $89,800. There were 1,322 houses sold, up 29 percent from 1,022 in November. Sales include only those assisted by a Realtor. For the entire year of 2010, prices were up 4 percent to $93,700 from 2009’s $90,400. Sales fell 6 percent from 16,260 to 15,207. Statewide, the median dropped 5 percent to $133,100 from $139,800 and the number of sales was up 4 percent from 14,923 to 15,550.

The first quarter of 2010 in Lee County was strong, but we have a few missteps throughout the year that affected the Southwest Florida real estate market. The oil well leak in the Gulf of Mexico started in April and caused buyers to waver as the oil continued to flow, but fortunately didn’t happen in time to dampen the positive effects of a tax credit for first-time homebuyers.

A wave of reports that major banks and law firms had made serious mistakes in processing mortgage foreclosures – including "robo signing," in which law firm officials reportedly signed thousands of documents without reading them – was another blow to the market unfortunately.

Thus, the gap widened between what sellers wanted and what buyers were willing to pay.

In Lee and Collier counties, home prices have been depressed by a record number of foreclosures and high unemployment. Many potential buyers held off on purchases last year, fearful that prices hadn’t bottomed out yet. The poor year for sales ended strong in December. Buyers snapped up homes at a seasonally adjusted annual rate of 5.28 million units, an increase of 12.8 percent from November and the strongest sales pace since last May.

Now, going into 2011, buyers want to buy and are not so inclined to take a step back.

And, with a dwindling number of cheap foreclosed houses hitting the marketplace, prices firmed up in 2010 and may continue that trend as 2011 wears on. I expect to see pricing stabilize with more people up North deciding got act sooner rather than later, especially with blizzard conditions in most of the country right now.

Overall, it’s safe to say that sales of existing single-family homes in Lee County got off to a strong start in January, rising 47 percent from a year ago to 1,115. So, if you’re trying to sell your property, you’ll be relieved to know that your home will sell even though it may not be at a price that will elate you. Of course if you’re in the market to buy a home, you’ll be thrilled. The healing has begun. Lastly, the year-over-year gains in sales and declines in median prices continued the trend of recent months, although fewer homes and condominiums sold in January compared to December.

The good news is that you don’t have to be confused by the numbers, the predictions, and the guessing. All you need a professional who can help you navigate through these waters and to achieve your objectives. Call me now for a free consultation or market analysis; I’m confident that I can help you sell your property or find the home you’re looking for. Call me today at 239-498-7600 or email Michael@CoconutPointRealEstate.com.