LEE COAST MARKET CONDITIONS-LISTING INVENTORY
In this first overview of the market conditions which affect Useppa Island real estate, we have selected the 33924 and 33921 zip codes to provide the most meaningful overview of the housing market.
Zip 33924 includes Useppa Island, Cayo Costa, North Captiva and Captiva Islands. These islands are located immediately to the west and southwest, and include a wide array of housing types, ages and conditions-just as Useppa does. We are just a microcosm of the larger spectrum. Zip 33921 includes Boca Grande and areas to the north along Gasparilla Island.
The news from most of these areas has been positive regarding market demand and increasing values. Some news accounts are absolutely glowing. However, perhaps that joy is inflated due to the dismal economic conditions which preceded 2013.
Real Estate Inventory
A glance at the inventory chart below clearly shows that we still have a long way to go. The lack of turnover since 2007 has resulted in a large overhang of inventory, and as the “good news” grows, more and more sellers are joining the listing movement. After all, no or slow sale conditions don’t mean life stops. While waiting for improved market conditions, people age and goals change; divorces and weddings happen, as do diminished circumstances, health, and etc. Humans are dynamic, while the past market conditions have been static.
While we are all cheered by the upward momentum, pricing has to take into account the supply of homes for sale. The data below indicates that, over the past year, months of inventory available has trended to about 36 months, dipping to 20 or so during the high selling season, then immediately followed by large upward supply swings as more owners list to cash in on the surge in sales.
Predictably, values have only recovered 40% of 2006 pricing. Until the demand to sell declines, don’t expect to see any sharp value increases; many homes remain underwater if purchased in the 2004-2007 era. The current need or desire to sell, dictates an informed pricing strategy is vital to a successful and timely sale.