Now’s the time to buy in Bonita Springs and Estero

BONITA SPRINGS, Fla. –  Local Realtors and Brokers suggest that now may be a good time to buy a home and here are a few reasons why. There were 803 active listings in May of 2023 which was a 59.3% increase from May of 2022. This represents a 106.3% increase of months of supply over May 2022. The result was a 3.3 month supply of active inventory, up from 1.6 months in 2022. For the first time in 3 years, median closed sales prices saw a decrease from May of 2022 to May of 2023 with a small $9,000 drop or 1.6%. Average days on market also saw a triple digit increase with May of 2022 holding strong at 13 days and now May of 2023 sitting in a more relaxed market with an average of 37 days. Comparing May of this year to May of last year, there has been a decrease in new listings, pending sales and closed sales. 

From a year-to-date perspective active inventory, new listings and pending sales all continued to decrease in May from their highpoint in March.  Months of supply also continued ticking downward while average days on market remained flat from April to May.  Median prices are still holding above $550K and the number of closed sales increased in May, despite a decrease in pending sales.  All in all, it seems the Bonita Springs- Estero area is a pretty good market as demand remains high, inventory remains at about 50% and days on market is under 50% of historical averages.

Local Realtors encourage potential buyers to stop waiting for prices to soften or interest rates to drop. “With months of supply still low, the lack of inventory is keeping our prices where they are. Inventory levels are not down enough to change the prices,” said Steve Kolenda, Managing Broker for Berkshire Hathaway Florida Realty’s office in Bonita Springs.

“This is a normalization period. There are many factors that are playing a role like the interest rates, banks closing, the debt ceiling, election year, no matter what, historically things always get a little weird and squirrely around this time,” said Adam Ruud, managing broker and owner of Domain Realty. “Going back a decade, we’re still in a pretty good market if you compare it and take out the couple years of craziness. It’s not a lot to be disappointed about. I actually like more sustainability in our market.”

It is understood that current interest rates may be playing a role for both buyers and sellers. With buyers waiting for a drop and sellers who already have a low interest rate, not willing to give up their low rate. The hesitation for sellers may also be affecting the low inventory. 

“Now is the time to buy. When people who are waiting for interest rates to go down, jump when rates decrease, it will put pressure on the market and increase prices. There is a good chance you will pay more for it if you wait,” said Erin McDonald, Managing Broker at Premier Sotheby’s International Realty.

Jerry Murphy, Managing Broker of Downing–Frye Real Estate’s Bonita Springs office reminds buyers, “You can always buy now with the higher interest rates and refinance when the rates decrease.”

The current market is also allowing for buyers to be more picky with their property and local realtors and brokers have seen it first hand. With the increase of days on market there is less pressure on properties allowing for buyers to think things over and analyze their purchase and the home. 

“Now cannot be compared to 2021 and 2022 when sellers were asking and getting a premium price on properties that were not in premium condition. Now we are seeing a disconnect between some sellers who are still trying to do that and buyers who are not willing,” said Murphy. 

“They finally have an opportunity to be a little bit more selective because they’re not in the frenzy, it seems to be business as usual,” said Kolenda.

Ruud adds, “I think buyers want what they want. When it comes to new construction, the location is going to be further east. However, it seems to be worth it despite the longer drive to the beach. It is worth the exchange of not being in a flood zone, having an updated home and having the newest building codes.”

Kolenda closes with, “The most important thing for buyers and sellers to remember is that, the market is influenced by a variety of factors.  Buyers and Sellers both shouldn’t wait for one component to change and not expect another factor to counterbalance the impact.  If someone is considering either buying or selling, they need to look at the market as it stands today and decide if making a move now will accomplish their objectives. If it does, then they should do it.  Trying to hedge the market rarely works.”