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Real estate in the region is experiencing a boom that has not been seen since 2005, with prices for residential, commercial and office space rising almost to historic levels.
Having been here for a while, Southwest Floridians will likely remember what happened a few years after the insane ascent.
Industry leaders attending a Market Trends Summit at the Caloosa Sound Convention Center & Amphitheater in Fort Myers on Thursday provided clarity. They say even though conditions are now similar to 2005, another devastating bankruptcy is nowhere in sight, though a return to normal – where one “The irrational market is being replaced by a rational one” – may be.
The data, research, and analysis presented at the Caloosa Sound Convention Center & Amphitheater in Fort Myers was designed to help homeowners, home buyers, property professionals, and Southwest Florida understand the latest trends in the property market.
This trend is strongly upward as properties of all types are being sold at prices approaching those before the last housing bubble.
Speaking about land, sales and new home development, Randy Thibaut, Founder, Owner and CEO of LSI Companies, said the demand due to many people’s desire for new homes has created issues with supply, prices, materials and manpower . This has pushed prices up even further and could lead to a drop in prices.
“We have people who want to leave their apartment and move into a house, and they hit the wall and were priced.” said Thibaut. “The subject was stuck jobs, too little material and no manpower. It is frustrating.”
Thibault said areas like North Fort Myers are finally seeing the start of great development. More than 1,000 units will soon be built in Oak Creek / Chapel Creek.
Many more will soon ascend to Paradise Isles.
The big question is whether – and when – the reset button could finally be set.
“There is no playbook. Whatever happens will happen. There are no reminders on the door of someone saying, “Guess what?” When prices hit the wall, be ready to react. “ said Thibault. “Optimism is good. The reality is better. “
Denny Grimes, president of Denny Grimes & Team at Keller Williams Realty, said the media had fueled a frenzy over the market’s decline in recent months, leading some to believe the end was near. In reality, the market is still double-digit better than it was two years ago.
“Don’t be fooled if negative numbers come out because the performance is still very strong.” Grimes said.
Still, there are markets that experience “burned earth” Growth of over 100 percent, which is very worrying. He called it a “Market in the millions” with records we probably won’t see again.
Cases Grimes cited for a correction include record lows in consumer sentiment, dead mortgage applications, prices at all-time highs, falling home sales, global economic turmoil, inflation and expected inventory inflows.
“The height of the madness is over. We are returning to normal. We will not crash “, Grimes said. “The irrational market is being replaced by a rational one. The market will stay above average because people are motivated to go where they are instead of where they are going. “
Justin Thibaut, President and Partner of LSI Companies, spoke about commercial development, saying that many retail companies are leaving the malls and going into areas you wouldn’t expect.
He cited North Fort Myers and Lawhon’s Market as examples (which earned applause) of a small footprint and one-stop shop.
“You can get anything from a family dinner to a roll of toilet paper and a full tank, and they’ve been in business for 50 years for good reason. You deliver what people want “, said Thibaut. “Small neighborhood retail is the transition, and perhaps the retail future is an adjustment to the retail past.”
There are questions about offices, especially as COVID made many work remotely. Thibaut said that many offices offer employees more convenience than just a cubic one, and that high-end office space is lacking in southwest Florida.
Medical offices are exploding, however, and there are many out of state companies wanting to come to Florida in offices that can accommodate them.
source https://www.bisayanews.com/2021/09/17/market-trends-experts-both-optimistic-cautious-about-local-real-estate-news-sports-jobs/
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