Is Season Back? Bonita Springs/ Estero Real Estate Market Update

The current buyer hesitation and dip in activity

BONITA SPRINGS, Fla. 

While area brokers have been relatively pleased with the market’s performance year-to date, for the first time this year, April’s Bonita Springs and Estero real estate metrics indicate the activity quieted down showing month-over-month decreases in a number of the key stats.  “New listings, inventory, new pending and closed sales all ended lower in comparison to March,” said Steve Kolenda, Managing Broker for Berkshire Hathaway Florida Realty’s office in Bonita Springs. “These dips may indicate we’re seeing signs of the traditional “season” we’ve seen historically and pre-pandemic.”  The median price dipped slightly in April but still seems to be holding strong and up slightly from a year ago with the median closed price at $565,000 versus last month at $575,000.  “Supply is still a major issue but this respite could be the ideal time for buyers waiting to make their move,” Kolenda added.

“It seems that the new market of buyers are purchasing homes here in southwest Florida to live in them and not just flip them or buy them as an investment. Many people are also staying here year-round and selling their homes up north. According to the Tampa Bay Economic Development Council, 1,218 people move to Florida every day,” says Jerry Murphy, Managing Broker of Downing–Frye Real Estate’s Bonita Springs office. 

The April 2022 inventory level was only at 465, April 2023 has an inventory of 794. This is a 70.8% increase from last year to this year,  but if we compare 2020 to now, available inventory is currently still down by 48%. Inventory is slowly recovering but it’s still facing strong overall demand. 

 In addition to inventory climbing, median prices have remained strong. A contributing factor to this would be the continued desirability of southwest Florida and the fact that people are coming down here and staying. 

“With over 1,200 people moving here every day, there will never be enough housing,” said Murphy. 

Erin McDonald, Managing Broker at Premier Sotheby’s International Realty said, “There has been a lot more buyer hesitation. Properties are constantly being shown however, there is a lack of urgency. We have seen a big pendulum swing from where they were to now. Many buyers are thinking things over and wanting to control the process with more inspection negotiation and a little price wiggling. There is an evident misalignment between buyers and sellers with sellers still thinking it is last January in terms of the price they want to bring properties on the market and buyers have a clearer picture of the fact that it is not that time anymore and things are a little softer, not sliding in value, just not appreciating like they were.”

Local realtors have seen that for certain communities and certain properties, 5 days on the market seem like forever and in other places, they are just sitting with little interest. In the end, it comes down to the price and many sellers are holding on to the old market. 

“The previous market, buyers’ goal was to get the house. Many local realtors are now seeing buyers hesitate on many properties, especially ones with bold designs and features. The homes that are more modern and neutral have been moving more than the bold ones as the market has cooled off. The prices have gone up so high that people are not willing to pay the high price of an updated house for an outdated home,” said Murphy. 

According to Joe Pavich, Broker, Owner and Realtor at J.Pavich Real Estate,” People are also concerned of the flood zones and flood insurance. With the recent update in the flood zones, many neighborhoods that were not considered in flood zones now are so understanding the update and available insurance options is critical. It has encouraged many people to consider more inland locations both east and also north, changing the market down Corkscrew with the new developments growing daily.”

The local realtors want to help buyers get clear with what is holding them up, now is a great time to jump in. They are encouraging these potential buyers to act sooner than later, there are many buyers out there that are shopping around, and once everyone gets off the sidelines there is going to be a lot of pressure on the market.

Murphy encourages hesitant buyers to purchase new construction, “buying a new home is also a hedge against inflation and gets buyers into the market with many buying incentives.” For buyers using financing options, buying a new construction home will provide better deals than buying a resale home. Some builders have great financing products. In addition to this, there are many closing cost incentives for some new construction homes as well. 

CEO of Bonita Springs Estero Realtors, Meighan Harris encourages those looking to buy with financing who may need some financial assistance to look into the CDBG Programs offered by the county. According to leegov, “If you are purchasing an existing or new single-family home (or condominium/townhouse) in Unincorporated Lee County, you may qualify for assistance. The maximum purchase price is $380,000 and the amount of assistance includes up to 50% of the lender-required minimum down payment.” For more information on the program visit https://www.leegov.com/dhs/assistance/financial. 

The Bonita Springs-Estero REALTORS’® Multiple Listing Service (MLS) syndicates to LISTHUB, which distributes to 2,000+ real estate search websites.

About Bonita Springs- Estero REALTORS®

Founded in 1966, the Bonita Springs-Estero REALTORS® is a local trade organization of over 1,000 REALTORS® and more than 120 affiliated industry members. Bonita Springs-Estero REALTORS® is part of the National Association of REALTORS® and Florida REALTORS® and provides its members with a wide range of services designed to educate and empower members and consumers alike through the opportunity to sell or purchase real property. It also provides the public with up-to-the-minute real estate reports, trends and information about the Bonita Springs and Estero real estate market. For more information visit https://www.bonitaesterorealtors.com/.