How's the Real Estate Market | September 2020
Quick Snap Shot of the real estate market for September 2020
September is one of the slowest months for businesses; parents have just slashed tons of money for kids to return to school, many people have just recently returned from a summer vacation and are saving for the holidays and the reasons go on and on.
The same happens in real estate. September tends to be a slow month but this year the story played a little different and it turned out to be a great month for the real estate business.
Here is a quick snap shot of how the real estate market did for the month of September in 2020 for the United States, state of Florida and counties of Lee and Collier.
United States real estate market
Historically low interest rates; average of 2.89% for a 30 year conventional fixed rate mortgage, has made it affordable for the general population to purchase a home, resulting in 31% of all sales being represented by first time home buyers.
People are really taking advantage of the low rates and the numbers show.
Compared to year ago, total sales for single family homes were up by 21.8% and condo and townhomes up by 13.6%.
The high demand has also impacted prices which continues to increase. The median price for single family home has increased a total of 15.2% and is now at $316,200 and an increase of 9.9% for condos and townhouses currently at $272,000.
The average days on the market for all existing properties in the United States was 21 days.
Florida real estate market
The Florida real estate market continues to increase and expand and although September is considered a slow month for the area, the total sales number saw an exciting increase compared to year ago.
For single family homes the increase was of 22% and for condo and townhomes the increase was a bit higher at 25.3%.
Florida is also experiencing a price increase just as the rest of the United States. Median sales price increased by 13.2% for single family homes, making the new median price $300,000 and an increase of 12.7% and new price of $217,500 for condo and townhomes.
Average price for single family homes have increased by 23% compared to last year and making the new average price $418,092 and $304,461 for condos and townhomes, a 16.4% increase.
The average days on the market for single family homes was 23 days and 38 days for condos and townhouses.
Although there are no shortage of buyers, Florida is experiencing very low inventory. Current inventory is down by 37.4% with a 2.2 months supply of inventory for single family homes and down by 7.4% with a 5.1 months
Lee County real estate market
Lee county is experiencing a huge flux of people moving to the area. With that, sales have had a great increase compared to last year. Single family home sales saw an increase of 36.5% and 47.6% for condos and townhouses.
Median prices increased by 16.9% and are now at $295,000 for single family homes and 13.8% for condos and townhouses with a new price of $215,000.
Average prices have also increased, 19.8% compared to last year, making the new average price for single family homes $391,168 and 12.6% increase for condo and townhouses at $265,787.
The total days on the market for single family homes was 40 days and 67 days for condos and townhouses.
The demand for housing has also increased and inventory is down by 38.4% year over year for single family homes with a 2.6 months supply of inventory and for condos and townhouses down by 14.4% with 4.2 months supply of inventory.
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Collier County real estate market
Collier county's real estate market couldn't be doing any better. Sales have seen a massive increase in September of 2020 compared to a year ago. Single family homes saw an increase of 71.7% and condos and townhouses saw an increase of 57.1%.
For single family homes median prices have increased by 17.3% and are now at $502,500 and an increase of 18.3% for condos and townhouses with a median price of $300,000.
Average price for single family homes experienced an increase of 24.4% with an average price of $816,621 and 34.2% increase and price of $503,070 for condos and townhouses.
Days on the market have dropped tremendously compared to last month's number which was an average of 99 days for both single family and condos and is now at 58 days for single family homes and 64 days for condos and townhouses.
Even as a luxury market, Collier County is also experiencing low inventory, with a drop of 35.7% for single family homes compared to September of 2019 and a 3.7 months supply of inventory. The decrease for condos and townhouses was 6.1% with a 5.6 months supply of inventory.
Considering the interest rates remain low and the home buying process continues to be a great alternative to the population, the real estate market should continue to see great numbers such as the past few months.
What is your opinion about the real estate market? Will it crash soon or will it remain stable? I'd love to hear your comments and opinions.
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