Lee County’s real estate market displayed mixed signals in June. Single family home sales were down 31% from June 2005, and down 10.27% from May. There were still 891 sales in June which signals buyers are still buying. The median single family homes sale price dropped 5% from June 2005 levels, and dropped 6.46% from May 2006 levels.
This tells us that the sellers have adjusted their asking prices to meet where the buyers are, which is a sign the market is finding itslef and sellers are beginning to discover where the buyers actually are.
Here are some other interesting statistics as of July 25, 2006:
Lee County Florida Current Market Statistics.
|July 25,2006||Active||Pending||Months Supply of Inventory|
|May 27, 2006||Active||Pending||Months Supply of Inventory|
Inventory levels for single family homes in Lee County Florida have actually increased slightly from 12.74 months supply to 12.97 months supply. This was a bit of a suprise given the trend single family homes was setting.
Condominium inventory levels actually decreased slightly from 14.22 months supply to 14.17 months supply in Lee County.
Many consumers are confused as to what all this means. They’re not alone, as many real estate professionals are as well. It’s like throwing darts at a moving target. The bulls eye keeps moving.
This could be a very good sign going forward however. It means the market is finding itself. After Hurricane Andrew, many sales didn’t take place on the East Coast because for two years sellers held onto yesterday’s dreams. Sellers today have become much more realistic, and have reacted the way they need to, for the most part. We are seeing transactions more in line with 2003 numbers, which means we have more inventory than the market can absorb right now. It will take some time to work through the excess inventory, which will place a cap on upward pressure on prices for the time being.
The real question is, are prices done dropping? We predicted 9 months ago single family median home prices would drop to about $260,000. We are still above that figure at $268,000. We were holding steady around $280,000 for 4 straight months. The jury is still out, and I think we need another month or two to get a better handle, but I think there’s a very good chance we’re about at the end statistically. It may not feel like the end for some sellers who still have more to go. Not all sellers are priced where they should be.