Housing market shifts one year after Ian

Like many of us, the recent anniversary of Hurricane Ian has been a source of intense reflection for me.

One year after the 500-year storm upended our region, and so many of our lives, my heart goes out to those who lost everything: You can buy a new home or replace a missing roof, but you can’t buy back lost memories.

Not only did thousands of families lose their homes and properties, but they also lost family heirlooms, photos of their children and so much more. When you think of home, you don’t only think of the walls surrounding you; you think of the photos on the walls, the blankets on the couch and the dishes in the sink.

Twelve months after Ian left its mark on Southwest Florida, the housing market has certainly shifted.

Over a recent seven-day period in late September, we saw over 900 active listings. During that same period, about 630 homes were sold.

In my experience, that’s the first time in quite a while where the number of listings has surpassed the number of homes sold. In fact, the number of days that a listing remains on the market is increasing across Collier, Lee and Charlotte counties.

This isn’t just a Southwest Florida phenomenon. Our firm, Call It Closed International Realty, works with agents, brokers, buyers and sellers across the country. From Denver and Los Angeles to Charlotte and Louisville, these patterns are playing out similarly.

Historically, we see more hesitancy when presidential elections approach, as one is next year. Buyers, sellers and investors generally are looking to avoid the uncertainty that comes any time a new administration could come into office.

Aside from the current cool-off period, Southwest Florida’s housing market hasn’t necessarily shifted in a bad way. We’ve seen plenty of excitement in the market, including new developments and fresh homes, and there is plenty to look forward to as our region grows.

Although hundreds of homes along Fort Myers Beach and along our waterways were destroyed, we’ve already seen homes popping back up and restoration making good progress. For a moment, view the redevelopments through a lens of optimism: Everything is becoming new.

Families are replacing the material things, essentially creating brand-new houses. Typically, when something in the home is improved, the value of the home immediately goes up. Ian-caused remodels are no different.

To their disbelief, homeowners have watched the value of their waterfront homes shoot up.

In Southwest Florida, we’re here to boat, beach and enjoy life in paradise. Being on the water is our form of happiness, and no storm will stop that. In fact, our seasonal residents are arriving earlier and earlier, proving that Southwest Florida’s resilience keeps us at the forefront of non-locals' minds.

Buyer hesitancy has no place here in Southwest Florida. I’ve seen a surge of interest in Sanibel, Captiva and Fort Myers Beach. Recently, we saw that the Red Coconut RV Park in Fort Myers was purchased for $52 million. For a community still reeling from the effects of a monumental disaster, these numbers and trends are amazing.

Interest is undeniably high. As the Federal Reserve’s interest rate continues to climb, we are feeling the effects. In the first week of October, mortgage interest rates reached a 23-year high, averaging 7.5% for a 30-year, conventional loan.

Though the rising interest rates are having an impact on Southwest Florida homeowners, there are workarounds.

I’ve found that a lot of my clients are simply shifting how they manage their personal lives.

Just the other day, I had a family with a decision to make: Do we splurge on a bigger home, or do we work with the less costly home? Ultimately, they decided to set a two-year plan for themselves.

Rather than viewing the less expensive home as a lifetime commitment, they perceived it as a steppingstone and decided to purchase it, fix it up and then sell it when the interest rates go down. After selling and making a profit, they’ll use the money to buy the house that they wanted in the first place.

In the last year, we’ve seen the highest level of inventory that we’ve seen in the last four years. Not only have we faced one major disaster in the last four years, but we’ve faced two.

At the beginning of COVID-19, people began to shift the way that they live their lives at home for a simple reason: they were home.

From lockdowns to hurricanes, I feel like the market is just trying to adjust, as are families.

I had a family come to me and say “I have the choice to work from home, but I also have the choice to go to work. What do I want to do?”

As society returns to normal, families looking to move to Florida are having to consider the possibility of their remote positions becoming in-person again. Will they go back to the area that they are originally from, or will they continue their journey to Florida?

If you are looking to sell your home right now, consider waiting until January. Speak with a real estate agent to determine exactly what your home's value is; math never lies, so be sure to find out the actual dollar amount that your house is worth.

Find a real estate agent that will go to the bat for you and your family. Now is the time to negotiate and get a good deal; find the right agent to do it.

Aprile Osborne, Naples-based Call It Closed International Realty co-founder, has been a licensed agent in Southwest Florida for almost 20 years.

This article originally appeared on Fort Myers News-Press: Housing market shifts one year after Ian