The local market has been on fire for the past year or two, and has enjoyed a steady resurgence from the depths of the collapse we experienced only six short years ago.
That doesn’t mean there still aren’t lingering signs of trouble in the Southwest Florida real estate market.
Take foreclosures, for example. Foreclosures are still occurring throughout Southwest Florida and Lee County. In the month of October, there were 179 foreclosure lawsuits filed. Fortunately, though, the market has recovered to the point where October’s numbers represent yet another month of the lowest foreclosure figures we’ve seen since 2006.
There was a glut of cheap foreclosed homes that came into the market in a giant wave back in 2008. These homes were snapped up, and since then, market conditions have improved to the point where there are fewer of these homes entering the market.
In fact, Lee County is building more new homes than there are foreclosures. Last month, there were 276 single-family home permits filed by builders in Lee County. This is a modest rise from a few years ago, and was six permits above September’s numbers and 30 permits above what was reported in August.
Bonita Springs and Estero were big beneficiaries of home-building activity over the past few months. Last month, Bonita Springs reported 70 new home permits, while Estero helped to account for 77 total new home permits filed in unincorporated Lee County.
For a homeowner, this has two implications:
- There’s less competition from foreclosures, which helps to maintain your home’s value;
- There’s more competition from new homes in key areas.
This means you’ll have to price and market your home competitively to compete with new homes if they are being constructed near your property. Contact us for more information on how you can take advantage.