Southwest Florida Real Estate Market Update [New for February 2023]

What impacts do hurricanes have on home prices a year after the storm? And how is the market now that we're a full month into 2023? Let’s take a look at how the real estate market across Southwest Florida performed in January.

Hi it’s Marcus Larrea, team lead at Palm Paradise Realty Group, and as we close out the first month of 2023, the numbers for the Southwest Florida real estate market remain strong.

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Single Family Stats for January 2023

Lee County
Jan 2022Jan 2023% (+-)
Closed Sales 1,127 844 -25.1%
Closed Sales YTD 1,127 844 -25.1%
Median Sale Price $400,000 $426,250 6.6%
Average Sale Price $562,061 $573,909 2.1%
(Inventory) Active Listings 4,221 5,459 29.3%
Months Supply of Inventory 4 6 50%
Close Price to List Price Ratio 100% 98% -2%
Median Time to Contract 7 22 214.3%
Collier County
Jan 2022Jan 2023% (+-)
Closed Sales 452 278 -38.5%
Closed Sales YTD 452 278 -38.5%
Median Sale Price $720,000 $752,500 4.5%
Average Sale Price $1,314,847 $1,723,593 31.1%
(Inventory) Active Listings 1,790 2,568 43.5%
Months Supply of Inventory 4 9 125%
Close Price to List Price Ratio 100% 96% -3.8%
Median Time to Contract 12 35 191.7%

Townhouses & Condo Sales in January 2023

Lee County
Jan 2022Jan 2023% (+-)
Closed Sales 515 336 -34.8%
Closed Sales YTD 515 336 -34.8%
Median Sale Price $295,000 $320,000 8.5%
Average Sale Price $357,418 $499,566 39.8%
(Inventory) Active Listings 1,476 2,208 49.6%
Months Supply of Inventory 3 7 133.3%
Close Price to List Price Ratio 100% 98% -2.4%
Median Time to Contract 5 17 240%
Collier County
Jan 2022Jan 2023% (+-)
Closed Sales 506 400 -20.9%
Closed Sales YTD 506 400 -20.9%
Median Sale Price $439,750 $685,720 55.9%
Average Sale Price $716,803 $1,182,072 64.9%
(Inventory) Active Listings 1,572 2,079 32.3%
Months Supply of Inventory 3 5 66.7%
Close Price to List Price Ratio 100% 99% -1.2%
Median Time to Contract 5 13 160%

*Data pulled from Southwest Florida MLS on 2/6/2023

Southwest Florida's Current Market

Median sale prices across Lee County and Collier County saw healthy year over year increases ranging from 4.5% to 8.5% depending on property type. Townhomes and condos in Collier County show a whopping 56% year over year increase, but digging into those numbers a bit more showed the number was skewed significantly upward as the Kalea Bay luxury condo development in North Naples released and sold a significant amount of inventory in January. 

The amount of inventory hitting the market continues to increase, and homes are sitting on the market a bit longer than the previous few years. However, the homes with little to no hurricane damage or no open claims still seem to be selling quite a bit faster as long as they are priced right.

List price to sold price ratio also continues to drop, down to 97.7% across the Southwest Florida MLS. This means depending on the property, how it is originally priced, how long it has been on the market, the condition, the demand, etc., you can negotiate asking prices down a bit.

Hurricane Recovery & Real Estate

What kind of an impact do hurricanes have on home prices the year following the storm? A study completed by Veros, a Real Estate Data Analytics company, took five major hurricanes that have hit the US: Hurricanes Katrina, Harvey, Andrew, Hugo, and Charley (which greatly affected Fort Myers, Sanibel, and Punta Gorda). After adjusting for inflation, the data shows that in the year following the storm, price appreciation accelerated well above national averages, giving each market where the storm hit between a 5.5% and 6.6% boost in appreciation. 

Good news for home owners across Southwest Florida and a great opportunity for home buyers to gain equity fast on their purchases this year.

A Strong Track Record Amid Market Turmoil

Last year we helped 387 families purchase homes and 148 families sell them. This means we are very in tune with ever-changing market conditions. Our team members are highly trained and have the experience needed to navigate this challenging market effectively.

It all comes down to strategy.

For home sellers, it is important to remember that how your home is prepared, priced, and marketed makes a huge difference in the quality and amount of offers you receive. That's not all, though. Once the offers come in, it's time to negotiate. Strategic and powerful negotiating is what drives the price up to its max price. 

Generating the most interest and the best offers on any home requires far more than a "For Sale" sign and photos. It is important to bridge the gap between the home's current and future condition and make it easier for prospective buyers to envision themselves living in the property through recommended cost-effective updates, staging, and other professional marketing strategies.

For buyers, purchasing a home in today's market will also require a very strategic approach.

Even though we are in a competitive market that requires patience and understanding from buyers, you still need a strategy. Knowing the right questions to ask listing agents and finding out information about sellers' true motives for selling is crucial in winning offers, especially in today's market. By asking the right questions, we can predict how high any potential competing offers will be, how much the home may ultimately sell for, the terms that will be most attractive to the seller, and any other special circumstances that may help you get into the property you want.

Trust Your Team at Palm Paradise Realty Group

Ultimately, whether buying or selling, leveraging the right strategies and expertise and working with an experienced team like Palm Paradise Realty Group will make the difference for you and your family in achieving your real estate goals.

If you'd like to discuss your upcoming real estate needs, you can reach any of our experienced team members at or give us a call at 239-349-2487.

Thanks for watching.


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