While the market in Southwest Florida is hot and prices are rising sharply, it is interesting to see how prices compare with the peak from 2006/2008.
The median Single Family Home price in Naples has only just passed the earlier peak.
Condos saw the most extreme activity in the early 2000s and the median Condo price in Naples is still not quite back to the earlier peak.
Unlike Naples, the median Single Family Home (SFH) price in Bonita Springs has not yet beaten its prior peak.
The same pattern is seen in Condos with the median price not back to the peak levels of the early 2000s.
The median price of the Single Family Homes sold in Estero has been rising sharply recently:
While that of the Condos sold has been steady:
Single Family home prices have exceeded their prior peak levels:
The median price of the Condos sold is getting close:
If the real estate market in Florida was in a period of irrational exuberance in the early 2000s, is that a good time to which to compare current prices?
Looking at the performance of the NASADAQ 100 Index provides some pointers. Recall that this Index soared during the dot.com boom to a peak of around 4400 in February 2000 before falling to around 700 in 2002.
The peak level was surpassed again in 2015/2016 and since then, thanks to the performance of stocks like Apple, Amazon, Alphabet (Google), Netflix and Tesla, it has taken off like one of Elon Musk’s rockets.
I am not suggesting that property prices in Southwest Florida are on the launching pad, but neither am I suggesting that prices will not continue to rise. Whereas real estate markets are often cyclical, what we are seeing now is secular move as people rethink where they want to live, work and pay taxes (or not in Florida!)
Sales Associate | Market Analyst | DomainRealty.com
Naples, Bonita Springs and Fort Myers