South Florida Real Estate Market - Miami-Dade Home prices continue to rise despite declining housing National Trends 

 

Home prices are currently soaring in certain parts of Florida, but that doesn’t have to be your reality if you’re one of the many prospective buyers out there considering the Southwest Florida real estate market. To understand the real appeal of buying property in Southwest Florida right now, it’s important to take a look at not only the local housing market in more expensive locations, but also look at how those markets compare to today’s home values in more much more affordable markets, such as Southwest Florida. That’s especially true when it comes to comparing Southwest Florida affordability to locations like Miami-Dade County in South Florida. 

 

Southwest Florida’s real estate market and home values, how is it affected?

 

For two consecutive months now, home prices in Miami-Dade County have hit new records, as the median sales price for a single-family home in the area was $600,000 in April 2023 and $620,000 in May 2023. The data, which was recently released by the Miami Association of Realtors, really puts into perspective just how much of an increase we’ve seen, because in May 2022, the median sales price for a single-family home in Miami-Dade County was $575,000. That’s nearly an eight-percent increase, year-over-year. The data also points out that inventory is near an all-time low, not just for single-family homes, but also for condos. Despite the fact inventory is on the rise as of late, total inventory is still down considerably when you compare it to May 2019, which was pre-pandemic. 

 

It's no secret there’s strong buyer demand in the Miami area and low inventory. While that’s probably great news for sellers, if makes it even more difficult if you’re one of those trying to find and afford a home in Miami-Dade County. The local housing market in the Miami area is imbalanced, and even though housing prices have fallen across most of the rest of the state and the U.S. thanks, in part, to higher interest rates on mortgages, it hasn’t done much for the Miami area. The region continues to attract affluent buyers from places outside of Florida, like San Francisco, Chicago, and New York, and that’s only accelerated the problem of higher home prices. Some of these out-of-state buyers are paying cash and driving up prices even more. While South Florida is definitely an attractive place to buy property, the Miami area is now considered one of the nation’s least affordable in terms of housing. 

 

But that’s not necessarily the case in other parts of Florida. Looking statewide, data from Florida Realtors shows median sales prices staying relatively flat, year-over-year. While people, especially first time buyers are dealing with the pain of higher interest rates, there’s been some stabilization in terms of price growth. In other words, the trend of rising prices has slowed down a bit. That’s why data shows the statewide median sales price for an existing single-family home in May 2023 was just under $420,000, which is about the same as it was in May of last year. Of course, as we now can see, that’s not the case everywhere in Florida, especially in South Florida where prices are headed up. 

 

Cape Coral Custom Homes

 

 

 

Southwest Florida Custom Home options?

 

So, if you’re considering buying real estate in the near future, what are your options? Some of the prospective buyers that perhaps were once in the market for a single-family home are turning to alternatives like condos because the price point is more affordable. High prices are also driving some buyers to places like neighboring Broward County. Still, other buyers are starting to become more open to other real estate options. They’re looking for alternatives that still keep them in Florida, close enough to what attracted them to this part of the country in the first place, but perhaps a bit farther away from Miami. Some buyers are turning their attention to Southwest Florida, and for good reason.

 

It's not just for new construction, but also for existing homes and land. Southwest Florida is packed with waterfront properties, plus it also gives the opportunity for custom homes. While that’s the case in other markets too, there’s something unique and special about taking your home and property search to Southwest Florida, and it has to do with your budget. 

 

For those who are new to buying real estate and even those who are closer to celebrating their Golden Years, Southwest Florida is a great option, for several reasons. First time home buyers in Southwest Florida and retirees are discovering they can end up with more home, more space, and more land, dollar-for-dollar, when they take their home search to Southwest Florida. That’s a big draw for buyers who thought they wanted to be in South Florida but are now seeing there are other options out there. It’s clear to see that Southwest Florida home values are strong, especially so in popular places such as Fort Myers and Cape Coral. 

 

Fort Myers home values

 

Fort Myers home values, in particular, are strong right now, as we’ve seen steady growth for several years. In recent months, we’ve seen that Fort Myers is in a seller’s market, which means there’s still some competition for buyers hoping to snag a great property, but it’s not as much as the Miami area. Fort Myers is a popular spot for tourists, but also for retirees and for families, some of which are first time home buyers in Southwest Florida. 

 

While the median listing price in Fort Myers is up a little over last year, as of April of this year it was slightly below $400,000, which is definitely a more attractive price point for many buyers, especially those who’ve been watching the Miami-area market. The median home sold price is a bit lower too, so it’s obvious you can still find some great deals out there, especially if you expand your home search to places like Fort Myers.

 

Fort Myers home values are something to consider, because if you’re in the market for Florida custom homes, you’ll likely find a more affordable option in a place like Fort Myers than you might find in the Miami area. Florida custom homes don’t have to be out of reach. There are several great examples of Southwest Florida custom homes that check off all the boxes, including staying on budget. If that’s something that’s important to you in buying real estate in Florida, it’s yet another good reason to take your home search to Southwest Florida. If you’re a boating enthusiast, there is ample opportunity when it comes to finding Southwest Florida waterfront homes in Fort Myers. Because the city sits right along the Caloosahatchee River, you’ll find several waterfront communities in the city to choose from. While some of these waterfront properties are on the river, others are on canals and lakes. 

 

This helps to provide ever more budget-friendly options for buyers who don’t want to give up the advantage of a waterfront property, but also don’t have an unlimited budget to spend. Sure, there are several luxury communities, but there are also some more affordable options, and that’s one of the things that makes Fort Myers such a popular place to call home. If you’re looking for a great waterfront property with room to dock your boat, you’ll probably find it in Fort Myers. 

 

It's easy to see that today’s home values vary by location and sometimes region, but that doesn’t mean sacrificing what you want and need in a home. Sometimes, the true value is finding another housing market that better matches what you are searching for. Many people are discovering there’s real value in Southwest Florida. 

 

Cape Coral home values 

 

Fort Myers isn’t the only city in the Southwest Florida real estate market to offer more affordable alternatives to Miami-Dade County. Another option is Cape Coral, where the median listing home price hit close to $450,000 and the median sales price of homes hit $400,000 at the beginning of the year. While both were up over a year ago, it’s also obviously much more affordable than Miami. If you’re intrigued by Cape Coral home values, keep in mind that it is a somewhat competitive market, and in early 2023, homes there were selling, on average, after being on the market for just over a month.

 

Homes in Cape Coral tend to sell for slightly less than listing price, so it appears there may be a little room to negotiate if you’re a buyer in Cape Coral, but not a lot. Still, that’s at least a positive sign, and so is the more affordable price point of many homes in Cape Coral. Unlike Miami-Dade, Cape Coral is more of a balanced market, which is better news for buyers. Cape Coral home values are strong, and it’s another good choice if you’re trying to escape the soaring prices presented by another Florida home market right now. 

 

It certainly doesn’t hurt that Cape Coral still has room to build. It’s more difficult to build new construction in Miami-Dade because there’s not a lot of land left to build on. That’s not the case with Cape Coral, though, and the city’s seen record growth in recent years. While plenty of cities in Florida have waterfront property, Cape Coral has the uniqueness of hundreds of miles of canals. That helps, too, when it comes to more affordable options for Southwest Florida waterfront homes, which is oftentimes a big draw when it comes to buying land and property in Florida. 

 

Southwest Florida custom homes aren’t just for those with unlimited budgets. Because Cape Coral has a more attractive starting price point than places such as Miami-Dade, it means it may be possible to get the home you’ve always wanted without going well beyond your means. Southwest Florida home values are appealing because you get more for your budget, when compared to some other locations, even in the State of Florida. If you want or need more land to build, or more simply more livable space in a home, Southwest Florida is becoming more and more appealing. 

 

Both people and businesses are attracted to places like Cape Coral. Just as new homes are going up, more businesses are coming to places like Cape Coral not just for the affordability, but because it means being able to tap into the ever-increasing job market in Southwest Florida. Both Fort Myers and Cape Coral are still growing. In recent years, Fort Myers was ranked one of the nation’s fastest growing cities by population, and Cape Coral continues to attract new residents and businesses, too. While Miami remains a hot location and one of the most populous in the entire state, Southwest Florida continues to get attention itself, thanks to its job prospects, its affordability, its beautiful homes, and its opportunities.

 

If you’re hoping to see your budget stretch a bit more, and possibly find a housing market that’s a bit more favorable to buyers, it could be worth your time and money to take your home search to Southwest Florida. Not only will you likely find some fantastic options in terms of custom homes and waterfront homes in Southwest Florida, but it’s also likely you may find them at a considerably better price point than you would if you simply stayed only in South Florida. 

 

While the pandemic certainly changed some things in terms of the nation’s housing market, it also gave some people the opportunities to explore real estate in parts of the nation they had not seriously considered before. Southwest Florida is now set to gain from those with the knowledge to compare markets and see which have the best local amenities and price point, and many times, the answer is clear to see. When it comes to finding some great options for real estate in Southwest Florida, consider the many desirable options that exist right now in locations such as Cape Coral and Fort Myers. Not only are you likely to find a great home or property, but also one that may better fit your needs and the needs of your budget.