Fort Myers Beach Home and Condo Prices on the Rise
by Scott Meadows
on Saturday, January 24th, 2015 at 5:44am.
Home values are on the rise Fort Myers Beach...
If you've been thinking about making the move down to Southwest Florida, especially in the area of Fort Myers Beach, you might want to make your move before it's too late. Home values are on the rise in Fort Myers Beach, and if you wait too long, you're going to miss out not only on landing a reasonably priced home, but also on making a profit on your investment in the future should you decide to sell.
Many have been noticing the rising prices, and rather than wait until they're close to retirement or they're actually retired, they're opting to buy now while the prices are still low enough that it's not going to cause them to break the bank. It also gives them a chance to decide what they want to use the property for in the meantime.
Here's something to consider if you're thinking of renting out your home until you're retired, even if you occasionally want to use it to stay when you vacation. According to Lending Tree, in 2012, the average monthly mortgage payment in Florida was $912.99, and Zillow states that the current median rental price in the Fort Myers metro area is $1,545 with the median rental price in Fort Myers at $1,600. Assuming you don't charge much more in rent than the above and your mortgage payment is around the aforementioned totals, you can earn yourself around $700 a month in rental income which works out to around $8,400 a year.
Now you're probably thinking about how property taxes fit in. For a home that has a median value of $182,400, according to Counties"tax-rates.org, you'll pay about $2,197 a year in property taxes to have a home in Lee County, which brings your total down to $6,203 a year in rental income. Obviously there are going to be other costs associated with the property, but even after paying property taxes and your mortgage payment, having a potential $6,000+ profit to work with for a beautiful home in a breathtaking area you're going to eventually retire to is not a bad deal.
Right now, according to Trulia, the median cost of a Fort Myers home is $168,800 for the October 14, 2014 to January 15, 2015 quarter. This is the result of an increase of 2.3 percent from the previous quarter, and an increase of 4.8 percent from what the stats were the year before. What's even more incredible is the increase over the past five years. Information from Trulia also states that over the last five years, sale prices have appreciated 53.5 percent in Fort Myers alone.
Regarding homes that are specifically in Fort Myers Beach, according to Zillow, the median home value is currently $386,600, the median price of sold homes is $320,750, and the median price of homes currently listed is $405,900. Over the past year, home values have gone up 10.8 percent alone. The Zillow Home Value Forecast predicts that home values will continue to rise 4.6 percent for the time period of November 30, 2014 to November 30, 2015.
According to the Market Health Index on Zillow, which depicts the current health of the market in a specific area – in this case Fort Myers Beach – compared to other markets across the country, the Fort Myers Beach Market is rated a 9.2 out of 10. Ratings are based on 10 different fields, such as foreclosure re-sales, projected evolution of home values, and how homes in the area are selling compared to how they did in the past. As of September 30, 2014, homes with a negative equity rated at 7.4 percent compared to the United States average of 16.9 percent, and the rating for those who were delinquent on their mortgage was 7.9 percent, which is only a bit higher than the national average of 6.4 percent.
Nearby cities are doing good as well. According to the Zillow Home Value Index (ZHVI), which states the median home valuation for a particular area, the median ZHVI for Captiva is $846,100, Sanibel is $662,000, Bonita Springs is $289,200, Miromar Lakes is $518,300, Estero is $270,000, and Cape Coral is $174,900.
In June 2014, the President of the Realtor Association of Greater Fort Myers and the Beach Inc, Karen Swanbeck, stated, "The market value of properties on Fort Myers Beach is continuing to increase. We are seeing a reduction in inventory and days on market is decreasing. However, demand for Fort Myers Beach property continues to rise. We expect a busy summer season as the real estate market is stronger in many areas of the country, and people will be looking at purchasing a property in Florida when they sell."
From beachfront home values in Fort Myers Beach on the rise to condominium values rising all over the area, there's no better time than now to make your move, If you want to know what a home could be worth, check out House Values Fort Myers for an estimate.