I bet you’re as tired of COVID as I am, but when it comes to our Sanibel real estate market, it’s still big news.
The current conditions are unlike anything we’ve experienced, with several national issues affecting our local community. But, as they say, real estate is local and what is happening nationwide does not tell the full story of what is happening on our island.
Nationwide Trends
Earlier this year, pandemic fears and related lockdowns caused a huge drop in existing home sales. But after the initial shock, surprising to me, sales picked right up again at an even higher pace!
This strength in the real estate market is likely influenced by several factors:
- People who put plans on hold to either sell or purchase a home due to COVID are now back in the market and we are seeing some pent-up demand.
- Record low interest rates are providing buyers with greater purchasing power. Also, buyers who may have otherwise waited are accelerating their plans to lock in these super-low rates.
We should be in a buyer’s housing market right now, but COVID turned everything upside down.” – Realtor.com
- There is a trend of people wanting to move from dense urban cities to more rural areas. Some believe this may be a short term trend based on where folks want to ‘shelter in place’. But some evidence suggests COVID “work from home” mandates have enabled more people and companies to realize the legitimacy of not commuting to the office every day. In fact, a recent survey determined “If, given the chance to work from home permanently, 2 out of 3 respondents would move away from the city for more living space”.
- In a similar trend, more families are speeding up their plans to purchase second homes and vacation get-aways.
However, not all segments of the market are experiencing the same activity. At the national level, the market bounce-back is heavily skewed towards high-end homes with the biggest growth in homes over $1 million.
COVID Craziness & Sanibel Home Sales
This year we had a relatively slow Spring (which is normally our most active season). We then saw demand build up over Summer and experienced a record-setting September with demand still looking strong into Fall. This is highly unusual as real estate activity normally drops sharply after the start of September.
This late-season demand has resulted in record-low inventory levels overall. But not all segments of our market have performed the same. Unlike what the national statistics suggest, Sanibel has seen more demand for single-family homes priced below $1 Million. Earlier this year, condos were selling much more slowly; however, recently we’ve seen a significant uptick in demand.
Months of Inventory for Sanibel Single Family Homes
(comparing September over the past 5 years)
This chart illustrates that September of 2020 shows significantly less inventory compared to demand than previous years. Homes under $1M show half the inventory of the prior year.
% of Sanibel Listings marked as Pending
(comparing September over the past 5 years)
This chart shows the percentage of current Sanibel listings that are marked as Pending and under contract. You can clearly see a huge increase in activity compared to prior years, with the biggest change in homes priced below $1M.
Sanibel Single Family Home Prices
As you can see, Sanibel prices have, on average, remained steady. However, we have seen prices creeping up after being depressed slightly during the worst of the COVID lockdowns.
What does this mean for Sanibel homeowners?
In prior years, we often recommended waiting to list your home until closer to ‘Season’. But this year is clearly different.
We believe that right now is a great time to list your home. Inventory is limited and prices are slightly up. We are still seeing a lot of buyer activity both on our websites and in person. As always, the market can be unpredictable, so current favorable seller conditions may not last.
Pricing and marketing your home or condo is especially tricky right now due to the quickly changing conditions. I highly recommend that you speak with a trusted real estate professional if you are considering selling your home in the near future.
