It's been awhile since my latest blog post, and a good friend this weekend made a nice comment about how he values the analysis in our articles, so it compelled me to be more active with this moving forward. As many know, we are a very active real estate and construction firm in the Iona McGregor submarket and have some inside scoops for you here.
To me, the Iona McGregor submarket includes Whiskey Creek and every property south of the Midpoint Bridge on the River side of McGregor, extending to the Old McGregor stretch that runs you out to Sanibel.
For starters, lets have a snapshot of the housing market in comparison to last year's numbers.
From January through July of 2017, 133 homes sold with a median sales price of $314,000.
From January through July of 2018, 141 homes sold with a median sales price of $319,000
By comparison, the Iona McGregor submarket improved, albeit by a small amount, year over year. The number of sales was surprising to me a little bit since the market inventory is tightning and the main complaint among prospective buyers is that there is nothing for sale for them to pick from. This typically means they cannot afford it and will likely begin moving their interests toward Gladiolus and more south.
From January through July of 2017, 65 homes sold with a median sales price of $665,000.
From January through July of 2018, 61 homes sold with a median sales price of $850,300.
While the number of home sales declined slightly, the median price of closed sales has drastically gone up. This is largely due to depleted inventory. We are seeing more and more prospects moving toward tear-down homes or total remodels since much of the inventory that is priced above a million dollars is dated and is in need or a makeover.
Meditteranean style homes are sitting on the market longer than modern-contemporary. I don't think you will see a resurgence of meditteranean style homes for quite some time. Whites, grays, and clean lines are the preferred style.
Sales data could be misleading. We have taken a half dozen contracts on high-end custom remodels since April, and our sources and friends are telling us to "get ready for season." The common thoughts among real estate professionals is that a boom for remodels is coming this season..
Recently, we saw a market study using 2 comparable sale in Jonathan Harbour. These two homes were homes that we recently finished a remodel job on. The closing price per the MLS was all the market study company had to go on. What they didn't realize was that the owners of these homes invested over $250,000 each to update their homes.
The red tide and algae issue continues to be a major concern among vacationers. This upcoming election is extremely important to our economic success, so make sure to go to the voting booth this month for the governor primary and vote for the candidate who supports your personal values and priorities.
There are 178 single family homes for sale in the Iona McGregor submarket. In July, 30 homes sold, which puts the absorption rate at 5.9 which is the number of months it would take at the current pace of sales to sell out of current active inventory. This rate indicates a healthy buyer/seller market balance. We are definitely seeing a demand for new construction homes for pricepoints between $250,000 and $350,000. However, many buyers will still pay a premium for quality and location.
Higher end clientele are continuing to show high interest levels for riverfront homes and those on Sanibel and Captiva.
Our predictions remain bullish given the healthy stock market and high home values in the northern states whose population will begin invading SW Florida in the next couple of months. Local banks are also bullish in specific locations, especially the Iona McGregor corridor. Unfortunately, many of the homes listed on the MLS are inflated and a wave of price reductions may be on the horizon.