Yes, Two Hurricanes Did Affect SWFL Home Sales & Prices
Our SWFL real estate market had enough obstacles prior to Hurricanes Helene and Milton adding to our woes. The sales market was shut down for several days during October. Despite the headwinds (sorry for the pun), October’s sales numbers and prices were not too far behind September’s stats. IMO, the two hurricanes will set back the beginning of the market turnaround by a month or more, i.e. Feb or March instead of Jan.
On the upside, the election is over, the Fed has dropped the 2nd of what is expected several rate decreases, and our northern friends will soon start feeling the chilly air and snow that sends many of them to the warmth and sun of the Sunshine State.
Cape Coral Oct 2023 vs. Oct 2024
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Oct 2023
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Oct 2024 |
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Cape Coral |
376 Sales $483,000
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355 Sales $455,000 - 6 % |
Lee County Oct 2023 vs. Oct 2024
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Oct 2023
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Oct 2024
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Lee County |
1017 Sales $548,000 |
876 Sales $539,000 - 2 % |
Cape Coral Gulf Access Homes: Oct 2023 = 53 Gulf Access Sales, Avg Price: $934,000
Oct 2024 = 46 Gulf Access Sales, Avg Price: $812,000
Cape Coral $1M+ Homes: Oct 2023 = 13 $1M+ Sales, Avg Price: $1,785,000 Highest: $5,800,000
Oct 2024 = 8 $1M+ Sales, Avg Price: $1,540,000 Highest: $2,300,000
Notes: 1.Cape Coral home inventory jumped to 8 months, the highest level in several years and fully implementing a "buyer's market".
2. Note the decrease in both the number of upper-market home sales and prices. This may not improve much until the first quarter of 2025.
WalletHub: Florida 2nd Best State to Live in U.S.
The personal finance company compiled 51 comparison points to rank all 50 states in their 2024 study. The list of factors includes job opportunities, educational quality, safety and the cost of groceries. Florida came in 2nd to Massachusetts. Here’s what WalletHub had to say about the Sunshine State:
It boasts one of the lowest unemployment rates in the country at just 2.9%, plus the sixth-most job opportunities per capita.
It has the seventh-lowest tax rates and sixth-highest median household income growth, making it a great place to build and grow wealth.
Fla offers an abundance of leisure activities per capita, especially restaurants, beaches, fitness centers and theaters.
It is a pretty safe state, with the ninth-most law enforcement employees per capita, the 13th-lowest violent crime rate, and the 15th lowest property crime rate.
Expert: Homeowners Rebuild After Storms
Dr. Brad O’Connor, chief economist for Florida Realtors, said storms never seem to leave a statewide impact on the housing market. Rather, they cause a temporary lull in sales. He added, “usually we see within a couple of months the same number of sales as before". Even with a slight increase in distressed properties following hurricanes, most experts do not foresee huge price declines in the state.
Real estate professionals state that despite an untick in some current homeowners selling their properties following Hurricanes Helene and Milton, the Florida housing markets are set for a rebound as communities rebuild and new single-family and condominium developments emerge. Some coastal homeowners may seek out more affordable, inland Florida homes.
Zillow: Builders Shift to Condos, Townhomes
America’s housing stock continues to grow faster than it did before the pandemic-induced housing frenzy, as builders race to fill a shortage of 4.5 million homes. Building attached homes helps reduce land costs and offers more affordable options for budget-conscious buyers.
Construction starts for detached single-family homes declined by nearly 9% from 2022 to 2023 but starts for attached single-family homes rose by more than 3% over the same time span. The pace of construction is slowing, likely due in large part to slowing demand amid housing affordability.
Markets with faster jobs and income growth, and thus higher housing demand, have historically seen larger increases in new construction activity relative to slower growth markets. Lisa: We expect new construction in SWFL to increase as soon as interest rates become more reasonable.
Renter Households Outpace Owners Nationally
Redfin: Rentership rates are lower in metros where it’s more affordable to buy a home. In Cape Coral, only 21.8% of households are renter households – the lowest share among the metros Redfin analyzed.
The number of renter households rose 2.7% in the third quarter year over year, to a record 45.6 million. That rate is three times faster than the 0.9% increase in homeowner households, which now total a record 87 million. Renter households have formed faster than homeownership households for the past four quarters as the cost of buying a home rose significantly faster than the cost of renting.
Facts & Stats and Tom’s Musings
Experts: Florida Insurance Market Solid: The state’s insurers have sufficient reinsurance capital to weather Hurricanes Milton, Helene, Debby and another Milton-sized storm this year. Jenna: This is welcome news for SWFL homeowners who are already burdened with high insurance premiums.
Wicked Dolphin Voted Top 10 Distillery in U.S. – USA Today readers named Cape Coral’s Wicked Dolphin #5 top distillery in U.S. This makes five straight years in the Top 10 in the best craft rum distilleries in the country. There are 18 premium rums along with Wicked Dolphin’s own vodka. Cocktails are also available. They’ve won over 60 medals in the past 12 years, including some internationally.
Homeowners Sitting on Record Amount of Home Equity: According to Unlock Technologies,Americans have roughly $11.5 trillion in tappable equity - meaning the amount they could withdraw and still maintain a 20% cushion.
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American Households: More Dogs, Fewer Children – A study by Pew Research Center shows that amid shrinking households and declining birth rates, one family member is increasingly taking center stage: the pet. More adults are now caring for pets than children. Alongside their elevated status, pets are enjoying elevated living. The American pet industry spending has surged from $90 billion in 2018 to an estimated $150 billion in 2024.
Redfin: New Construction Falls to 3-Year Low: Newly built homes are making up a smaller portion of total inventory as builders back off and more homeowners list their houses for sale.
*Do Hurricanes Impact the Number of People Moving to Florida?
*House Bill 1049 Requires Sellers to Disclose Flood HistoryCWL~