Lee and Collier County Home and Condominium Sales - September 2007

While sales continue to slow in both Lee and Collier counties as Season begins, now could not be a better time to buy in Southwest Florida. Prices have dramatically dropped and builders are literally giving away fully decked out homes. Unfortunately, like everywhere else in the country, if you listen to the national media, you'd think the sky is falling. I can't tell you how many inquiries we get from clients thinking that home prices are still at their 2005/2006 levels. The fact is nothing could be further from the truth.

Looking at year over year data, the number of sales in both counties were down substantially in September.  In Lee, home sales were down 53% and condos were down by 39%. In Collier county, homes were down 21% and condominium sales dropped by 35%. To be fair, it should be noted that September is not, and has never been, a big selling month here in Southwest Florida. Most local buyers try not to close at that time since school is starting and it's a little early for the snowbirds' arrival.  All the bad press and the mortgage crunch didn't help either. Many potential buyers continue sitting on the fence waiting for some miraculous sign that the bottom is here. The problem with that attitude is, it usually means it will pass you right by and you'll wonder how you missed it. It's not likely that the national media, especially going into an election year, is going to put on the front page of their newspapers "The bottom is here, Buy Now".

Our savvy buyers are looking right now to purchase their piece of Paradise and are laughing all the way to the bank.  Our last sale in September was for a new villa our client picked up for $200K below its initial asking price.  And, the builder made every change they requested.  Not bad for a new second home owner here in Bonita Springs.

A little research shows potential buyers the current situation in September.  The median sales price for Lee fell to $231,500 for homes (down 11%) and $221,200 for condominiums (down 4%). In Collier county, the median price for homes is $416,000 (down 3%) and for condominiums is $260,000 (down 21%). Overall, both counties' home and condominium prices are down 35% to 45% over the highs of 2005 and 2006.

For the most part, prices are back to early 2004 levels. Existing inventory is plentiful, new construction continues strong, mortgage rates are falling and both private sellers and the builders are negotiating.  So, for those you looking for property here in Paradise, the 2007-2008 Season is an opportune time for your purchase.

For more information on Southwest Florida real estate or Florida home loans, please contact us at Gulf Coast Associates, Realtors® or Metro Mortgage Company. Terry and I will be happy to assist you in any way we can.

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