After a brief decline following Hurricane Ian, the Fort Myers real estate market is thriving again. In the wake of the storm, there were 900 fewer real estate listings than projected. Nine months later, there are more than 1,300 new listings than projected.
The September storm created a backlog of homes as many sellers took their homes off the market. With things returning to normal, the unanticipated home availability comes at the perfect time. Vacationers and investors are also returning, providing the demand needed for surplus listings.
When it comes to Fort Myers real estate Florida is an ideal location to invest. Explore why Fort Myers is a great tourist destination and perfect for real estate investments.
Fort Myers Housing Market Fundamentals
Home prices are the biggest story in the real estate market since the Covid-19 pandemic started. High inflation triggered record increases in home prices.
The U.S. Federal Reserve has started raising interest rates to combat inflation. While 30-year mortgage rates are hovering around 7%, high housing demand has not wavered.
One reason is the number of Americans moving into Florida. According to the U.S. Census, Florida is the fastest-growing state in the country. Its population grew by nearly 2% from 2021 to 2022.
The average home price in Florida is more than $383,000. High home prices and mortgage rates do present a challenge for first-time homebuyers. Many do not have cash reserves for a down payment.
However, investors are capitalizing on the market dynamics. Average monthly rents are significantly higher than properties' fair market value. Weekly rental prices are also high, driven by steady demand for Florida tourism.
This means that short-term property owners are earning more profit than normal. There are few signs of the market slowing down.
Economic experts are now pushing off their predictions of a recession. Demand for Florida housing and tourism does not appear to be slowing.
Why Is Southwestern Florida a Tourist Destination?
It is important to understand why Florida is such an ideal location for real estate investment. Of course, the weather in Florida gives investors more bang for their buck. Tourists and residents enjoy warm weather for more months than in the northeastern portion of the U.S.
There are other economic factors as well. The cost of living in Florida is less than in other coastal states.
This is primarily because of Florida's competitive tax structure. Property taxes are less than many states and there is no state income tax.
Lastly, Florida is designed to attract and retain tourists. There are so many fun things to do with theme parks, beaches, and nightlife.
Your Guide to Fort Myers Real Estate Florida
You are now ready to pull the trigger on a Fort Myers real estate investment. While other markets in the country may be slowing, southwestern Florida is not one of them. The hurricane hangover is over, and people are ready to move and vacation here again.
If you want to learn more about Fort Myers real estate Florida, contact us today to speak with a property management professional.
