Inventory will rise modestly this year although not enough to offset the demand. Existing homeowners will remain the largest source of inventory and as a result, seller’s will continue to have the upper hand. 10-12K in 2018 for all three markets: Cape Coral, Ft. Myers and Bonita Estero with the majority being in Cape Coral.
Appreciation will continue in the single digits as we’ve seen over the course of the last couple years but they may reach the double digit mark, if the slow rate of homebuilding persists (permitting, labor shortage etc.). Overall they will be less than 10% in 2018 in Cape Coral and Ft. Myers.
Cape Coral new construction remains strong and robust as builders add more inventory on a more consistent basis to our already limited supply. Expect more spec homes being built which should help the supply shortage. The biggest obstacle will be in wages, skilled trades, etc.
Interest rates-anticipate higher rates in 2018 with 5% not out of the question before the end of the year, looser lending requirements and more technology advances will make automation data collection more common and more buyers qualifying for mortgages.
Affordability-as unemployment continues to be below the national average, wages (income) and home prices could align allowing for more FTHB and Millennials to enter the market. Nearly 37% of buyers are FTHB and 36% are Millennials.