Travelers are returning to Southwest Florida to find low inventory
Travelers are returning to Southwest Florida after the pandemic grounded flights and restricted some from coming, and RSW has announced new international flights from Frankfurt and Montreal, along with Midwestern and Northeast Destinations.
One recent arrival, Mark Keegans of Toronto, said: “I think the weather is the biggest thing, and my wife and I are looking at buying a place down here to spend the winters down here.” (NBC-2)
Really, really low Inventory
I have been pointing out for some time that this coming winter will see visitors from Europe for the first time in over 18 months, more visitors from Canada than came last year, as well as US visitors who did not want to travel last winter. And as the visitor from Toronto showed, some will be here to buy.
But will they find anything for sale? This is the Inventory position in Naples as at the end of September:
And here it is by price:
The most fundamental economic law is that of demand and supply. In economic theory, higher prices produce greater supply, but while that might work for a factory which can add an extra shift to meet demand, it does not work too well in housing, where new construction is plagued in many places by the shortage of land, and in most places by a shortage of labour and materials and by lengthy planning processes.
So what happens when demand exceeds supply? Yep, prices go up. I believe that the housing market in Southwest Florida was under-priced as we entered the COVID-induced boom with more people than ever wanting to live here or at least have a winter home. And pending a major economic shock – the potential “unknown unknown” – I see no reason to expect prices to do other than continue to increase.
REALTOR®| Market Analyst | DomainRealty.com
Naples, Bonita Springs and Fort Myers
Market Analyst | Team Harborside | teamharborside.com
Sagan Harborside Sotheby’s International Realty
One Essex Street | Marblehead, MA 01945
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