The Ellis Team SW Florida Real Estate Current Market Index showed improvement once again. We decided to illustrate what is going on in Southwest Florida real estate in graph format this time. Basically inventory is falling and pending sales are remaining steady as closings are picking up. Read below graph for further analysis.
The latest Fort Myers – Cape Coral data shows a Current Market Index down to 7.47, down from 7.71 in April 2008. The lower the number the better the market is for sellers. The higher the number the more of a buyers market it is. Lee County Florida numbers have fallen steadily as well. Actually home sales numbers in Cape Coral Florida are some of the strongest numbers in the county right now. The Cape Coral CMI index stands at 6.32 which is less than the rest of the county. Lee County overall stands at 9.57.
Single family homes on the market dropped to 15,340 while pending sales stood at 1,603. To put that in perspective, pending sales back in January were 821, so you can really see sales have picked up significantly in the last few months. Most agents, mortgage companies, and title companies I speak with are busy again, although prices are down. Agents essentially have to do twice as much work and close twice as much to compensate for the losses in sales prices. Additionally, it takes time to educate buyers as to what is ocurring in today’s market, just as it took time to educate sellers when the market turned in 2005 and 2006.
Short sales also create extra work as many times there can be multiple offers on the property and no guarantee the bank will accept any of the offers. Overall this is welcome news because real estate fuels the rest of the SW Florida economy, and a surge in real estate activity can only help the rest of the economy over time, even if at lower prices.