We are experiencing a “low inventory” market at the moment. Believe it or not, our inventory of homes, condos and land for sale has been cut by two thirds (67%!!!) over the past 3 years. In 2012-2013, inventories were running around 300 homes, 300 condos and 100 lots. Today, November 18th, 2015, we have 106 single family homes currently for sale, 88 condominiums for sale and 59 lots for sale.
As we know from basic economics, low inventories typically drive prices upward. So we are in a seller’s market. The good news is that the negotiating range of Sanibel real estate deals averages around 6%. So there is still a little wiggle room in most cases. The shorter period of time a property has been on the market, the less wiggle room there is.
Another insight on a low inventory market is that buyers should act quickly if they find a home or condo that meets their needs. Some buildings are so small that units only come up for sale every few years.
More current market facts; year to date home sales are 215 homes!! 145 condos sold year to date and 39 lot sales. Inventories will surely rise before the start of our peak sales season: December through April.
During the real estate boom and bust of 2003-2008, some areas around the country saw huge drops in property value, but we were fortunate on Sanibel Island. Values dropped 25% or so and prices have now rebounded to 2005 values in most cases.
Feel free to call us anytime for more detailed market information. We are always happy to take your call.