Hello,
I thought you might be interested in my thoughts as provided to the local newspaper concerning local the real estate market for Lee County for next year.
Question: What do you expect from the year ahead?
Answer: During 2011 the Lee County real estate market continued the slow and methodical healing process. We saw inventory levels declining primarily due to decreases in the number of foreclosed properties coming on the market. While overall sales were down approximately 8% in 2011 compared to 2010, the average sales price was up about 12%. I would expect to see 2012 resemble 2011. With fewer distressed properties keeping inventory levels lower, there should be upward pressure on pricing as buyers compete over the lower number of homes on the market. Recent increases in sales prices are mostly due to fewer lower priced foreclosures selling.
I would not expect to see any dramatic trends occurring over the next year. The process continues to be slow and there is no evidence that we will see huge changes in the near future.
Question: What are going to be the key issues or make-or-break factors?
Answer: The unknown variable continues to be the flow of foreclosures. Recent slight increases in the number of new foreclosures at the Lee County courthouse do not lead me to believe we will see a “second wave”. Should we see dramatic increases in the new foreclosures we could expect to see the healing process slow down even more.
The economy both locally and throughout the US will dictate how many boomers are able to make the move to Florida. Improvement in the economy can increase demand and speed the healing in Lee County.
Steve Koffman
Koffman & Associates, Inc.
Century 21 Sunbelt Realty
506 SW 47th Terrace
Cape Coral, FL 33914
W 239-443-5191
Steve@koffman.com
