It looks like the recession of the housing industry is in full recovery especially throughout Southwest Florida. Unemployment remains high in many areas of the country and GDP growth is slow. But the housing market is looking good.
Higher demand paired with lower inventory has led prices to increase across the board. This limited inventory is mainly due to two factors: years of repressed new home starts and lower foreclosure rates. Land sales throughout the region including Cape Coral land sales are seeing growth in sales numbers and sales prices. It’s as simple as the law of supply and demand. When demand outpaces supply, prices rise. The proof is in the pudding of our current housing market.
Though mortgage interest rates have begun to creep higher, they continue to stay near historic lows. Following the restructuring of the lending industry at the end of the last decade, banks are doing a much more thorough job at screening borrowers. People know they’ll need to jump through hoops, and they are prepared. What we are seeing right now is a pool of buyers that are qualified and ready to move into homeownership. This pool continues to grow. Buyer traffic is up 29 percent from last year, but inventory is down 10 percent.
When searching for real estate invesments, it’s easy to get excited when you see this rise in prices. It’s time to dust off those properties purchased at the bottom of the market and start getting ready to sell. If you weren’t lucky enough to grab any of those great deals, don’t despair there are still many great lots and land available for sale. To learn about land for sale in Florida contact a member of the 9 Core Realty land sales team at (239) 333-2221.