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  • Writer's pictureEd DiMarco MS, MA

Southwest Florida Real Estate Markets Ranked by Affordability - May 2024

Southwest Florida offers a variety of real estate markets, each with unique affordability levels. By examining key metrics such as the Months Supply of Inventory (MSI), the 12-month change in inventory, median days on the market, list-to-sold price percentage, and median sold price across Marco Island, Bonita Springs, Naples, Cape Coral, and Fort Myers, we can rank these markets from most affordable to least affordable.

Southwest Florida Real Estate Markets Ranked by Affordability May 2024

1. Fort Myers: The Most Affordable Market

Months Supply of Inventory: 6.36

12-Month Change in Inventory: +115.59%

Median Days on the Market: 51

List to Sold Price Percentage: 95.5%

Median Sold Price: $372,000


Fort Myers ranks as the most affordable real estate market in Southwest Florida. With a median sold price of $372,000, it offers the lowest entry point for buyers. The market shows a significant 115.59% increase in inventory, indicating a shift towards a buyer's market. Properties spend an average of 51 days on the market and sell for approximately 95.5% of their list prices, providing opportunities for negotiation.


2. Cape Coral: Affordable with Stable Demand

Months Supply of Inventory: 6.8

12-Month Change in Inventory: +91.01%

Median Days on the Market: 56

List to Sold Price Percentage: 96.8%

Median Sold Price: $399,999


Cape Coral is the second most affordable market, with a median sold price of $399,999. The MSI of 6.8 indicates a balanced market with stable demand. The inventory has increased by 91.01%, giving buyers more options. Homes sell within 56 days on average and achieve 96.8% of their list prices, making Cape Coral a stable and affordable choice for homebuyers.


3. Naples: Moderately Priced and Stable

Months Supply of Inventory: 7.15

12-Month Change in Inventory: +102.55%

Median Days on the Market: 45

List to Sold Price Percentage: 95.8%

Median Sold Price: $650,000


Naples offers a moderately priced market with a median sold price of $650,000. The MSI stands at 7.15, indicating a balanced market with a significant 102.55% increase in inventory. Homes in Naples sell relatively quickly, with a median of 45 days on the market, and secure 95.8% of their list prices. This stability makes Naples a reliable option for buyers seeking a moderately priced market.


4. Bonita Springs: Competitive and High Demand

Months Supply of Inventory: 7.15

12-Month Change in Inventory: +114.71%

Median Days on the Market: 42

List to Sold Price Percentage: 95.8%

Median Sold Price: $675,815


Bonita Springs ranks fourth in affordability, with a median sold price of $675,815. Despite a significant 114.71% increase in inventory, the market remains competitive, with homes selling in 42 days on average and fetching 95.8% of their list prices. The high demand and competitive pricing reflect Bonita Springs' attractiveness.


5. Marco Island: The Least Affordable Market

Months Supply of Inventory: 8.42

12-Month Change in Inventory: +26.62%

Median Days on the Market: 50

List to Sold Price Percentage: 94.9%

Median Sold Price: $1,175,000


Marco Island is the least affordable market in Southwest Florida, with a median sold price of $1,175,000. The MSI of 8.42 indicates a balanced market with a slight increase in inventory of 26.62%. Properties sell within 50 days and for 94.9% of their list prices. The high median sold price reflects the premium value and strong demand for properties in Marco Island.


Conclusion

Based on affordability, Fort Myers emerged as the most affordable market for buyers in May 2024, offering the lowest median sold price and a significant increase in inventory. Conversely, Marco Island is the least affordable market due to its high median sold price and premium property values. Understanding these market conditions can help buyers make informed decisions and find the best opportunities in Southwest Florida's real estate landscape.


Southwest Florida Real Estate Markets in May 2024: FAQ


1. What is the most affordable real estate market in Southwest Florida?

Fort Myers is the most affordable real estate market in Southwest Florida, with a median sold price of $372,000.


2. How does the Months Supply of Inventory (MSI) for Fort Myers indicate its affordability?

Fort Myers has an MSI of 6.36, indicating a balanced market. The significant 115.59% increase in inventory over the past year suggests more options for buyers, contributing to its affordability.


3. What is the median sold price in Cape Coral, and how does it reflect affordability?

The median sold price in Cape Coral is $399,999, making it the second most affordable market in Southwest Florida.


4. How has the inventory in Cape Coral changed over the past year?

The inventory in Cape Coral has increased by 91.01% over the past year, providing more choices for buyers and contributing to its affordability.


5. What makes Naples a moderately priced market?

Naples has a median sold price of $650,000, a balanced MSI of 7.15, and a 102.55% increase in inventory, indicating a stable and moderately priced market.


6. How quickly are homes selling in Naples?

Homes in Naples sell relatively quickly, with a median of 45 days on the market.


7. What is the median sold price in Bonita Springs?

The median sold price in Bonita Springs is $675,815, reflecting its competitive and high-demand market.


8. How has the inventory in Bonita Springs changed over the past year?

The inventory in Bonita Springs has increased by 114.71%, suggesting a more competitive market with ample options for buyers.


9. How quickly are homes selling in Bonita Springs?

Homes in Bonita Springs are selling in a median of 42 days, indicating strong demand and competitive pricing.


10. What is the least affordable market in Southwest Florida?

Marco Island is the least affordable market, with a median sold price of $1,175,000.


11. How does the Months Supply of Inventory (MSI) for Marco Island reflect its market conditions?

Marco Island's MSI is 8.42, indicating a balanced market. The 26.62% increase in inventory suggests a potential shift towards a buyer's market.


12. How quickly are homes selling in Marco Island?

Homes in Marco Island are selling relatively quickly, with a median of 50 days on the market.


13. What does the List to Sold Price Percentage indicate about the markets?

The List-to-Sold Price Percentage shows how close homes are selling to their listing prices. Fort Myers has 95.5%, Cape Coral 96.8%, Naples 95.8%, Bonita Springs 95.8%, and Marco Island 94.9%.


14. How does inventory increase impact market conditions in Southwest Florida?

An increase in inventory generally provides more options for buyers and can lead to more competitive pricing, as seen in Fort Myers (+115.59%) and Bonita Springs (+114.71%).


15. Why must MSI and median sold price be considered when evaluating affordability?

Considering MSI and median sold price provides a comprehensive view of market conditions, balancing supply and demand dynamics with the actual cost of properties.


16. How does Fort Myers' inventory increase affect buyers?

The 115.59% increase in inventory in Fort Myers provides buyers with more options and potentially better bargaining power, contributing to the market's affordability.


17. What is the median number of days homes are on the market in Cape Coral?

The median number of days homes are on the market in Cape Coral is 56 days, indicating a relatively quick sales pace.


18. How does the List to Sold Price Percentage in Cape Coral reflect market stability?

With a List-to-Sold Price Percentage of 96.8%, Cape Coral shows that homes sell close to their list prices, indicating stable and accurate pricing.


19. How does Naples' market stability benefit buyers and sellers?

Naples' market stability, reflected by a balanced MSI of 7.15 and a median sold price of $650,000, provides a predictable environment for buyers and sellers.


20. What factors contribute to Bonita Springs' competitive market?

Bonita Springs' competitive market is driven by high demand, a median of 42 days on the market, and a median sold price of $675,815.


21. How does Marco Island's high median sold price impact affordability?

Marco Island's high median sold price of $1,175,000 makes it the least affordable market in Southwest Florida, indicating a premium market with strong demand.


22. What is the significance of a balanced MSI in Southwest Florida markets?

A balanced MSI, such as the 6.36 in Fort Myers and 7.15 in Naples and Bonita Springs, indicates a stable market with relatively even supply and demand.


23. How does the increase in inventory in Bonita Springs affect potential buyers?

The 114.71% increase in inventory in Bonita Springs provides potential buyers with more options and possibly better negotiating power.


24. Why are the median days on the market essential for buyers?

The median days on the market indicate how quickly homes are selling, helping buyers understand how fast they need to act. Naples' median of 45 days suggests a swift market.


25. How can the List to Sold Price Percentage guide sellers in setting prices?

The List to Sold Price Percentage helps sellers understand how close to the listing price homes are selling, aiding in setting realistic and competitive prices.


26. How does Cape Coral's median sold price compare to other Southwest Florida markets?

Cape Coral's median sold price of $399,999 is lower than Naples, Bonita Springs, and Marco Island, making it one of the more affordable markets.


27. How do inventory levels in Fort Myers compare to those in Marco Island?

Fort Myers' inventory increased significantly (+115.59%), whereas Marco Island's increase was more modest (+26.62%), indicating different market dynamics.


28. What does the List to Sold Price Percentage indicate about buyer demand in Naples?

A List to Sold Price Percentage of 95.8% in Naples indicates strong buyer demand, with homes selling close to their listing prices.


29. How does Marco Island's market appeal to luxury buyers?

Marco Island's high median sold price of $1,175,000 and balanced inventory levels make it an attractive market for luxury buyers seeking premium properties.


30. Why should investors consider inventory changes when evaluating markets?

Investors should consider inventory changes, such as the 91.01% increase in Cape Coral, as they can signal shifts in supply and demand, impacting pricing and investment opportunities.


By Ed DiMarco, Expert Real Estate Agent and Investor Specializing in Southwest Florida


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