Estero Real Estate Condo Market Update Feb 08
The Estero Florida real estate market for the month of February is showing signs of stability with new listings, with strengthening in the pending sales and with closed sales. The median price paid for a condo in Estero is experiencing deflation, which has a positive effect on the pending sales.
New Listings: In February a total of 61 condos were listed for sale in the Estero area. The new listings in February were slightly higher than the 56 condos listed in February 2007, but significantly less than the 114 condos listed in 2006. The number of new listings for the past three months are significantly down from 2006 and slightly above or below the 2007 levels. Stability of new listings is slowly starting to formulate.
Pending Sales: In February, 28 Estero condominiums were placed under contract for purchase. This compares most favorably with the previous years of 2007 and 2006, where 14 and 13 were pending sale. The trend for the past three months have shown similar results of pending sales higher than previous years. This activity is showing a strengthening of the real estate market, by buyers entering the market due to lower prices.
Closed Sales: During February 10 condos were sold, up 6 units over the same period in 2007, but 2 units less than 2006. The trend for the past three months consistently shows closings up over the same months in 2007 and 2006. When looking at this trend, it represents a strengthening of the market via buyer confidence that the market is close to the bottom or at the bottom.
Median Price Paid: The median price of an Estero condo sold in February was $166,450 compared with $332,500 in 2007 and $313,985 in 2006. The trend for the median sold price for the past three months shows a median price less than in the same month from the previous year. The increased trends for pending sales and closed sales reflect the lower prices in Estero condos. As prices drop, the affordability factor increases, coupled with the low interest rate for mortgages.
At the beginning of March the Estero market has 432 condos for sale, which represents approximately a 38 month supply of inventory to be sold. However, the absorption rate for new listings reflects 6.1 months versus the previous two months absorption rate of 14.0 and 9.5 months.
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