The month’s supply of SW Florida real estate inventory supply declined in July from April levels. There are many reasons for this which we’ll go into detail.
Sellers are listening. Buyers’ motivation topped out about 9 months ago and sales suffered. We’ve seen instances in the past where buyers were at one level, and sellers were at another level, and there was a standstill. The longer the standstill, the longer homes sit on the market and inventory grows.
This time around, word got out and sellers didn’t want to be caught holding the bag. They made the adjustments quicker, and it’s paid off. Sure, nobody is happy to reduce their asking price. Without movement, nothing would happen. If a seller’s true desire is to sell, then you’ve got to find that price point where price equals value in the market’s eye. It looks like sellers have been doing that.
For the most part, inventory has declined, and sales have increased. Inventory declined in all price ranges in Lee County Florida. Closed sales increased in all price ranges except the less than $100k and $100-150k ranges. This decline could simply be a matter of not as much inventory to sell, therefore not as many closed sales. With months supply of 1.25 months or less, it’s hardly worth mentioning except to be factual.
Buyers should take note. You’re no longer in the driver’s seat. With 4.57 months’ supply of overall inventory we’re back to a seller’s market, statistically speaking. Sellers, don’t get too excited either. It really depends on which price range your home is located. Once your home crosses that $300,000 threshold you enter neutral to buyers’ market territory. If you’ve got a home that’s been on the market awhile, it’s probably time to adjust to where the buyers are.
If you’re a seller priced under $300k and your home is not selling, there is a problem. An immediate adjustment may be in order. If it is priced correctly, it should be getting action. We tell sellers we should be getting offers about every 4-5 showings. If we’re getting showings and no offers, the marketing is working. The price or condition isn’t. If a seller isn’t getting showings, it’s either the price or the marketing. It could be both.
As a seller, you’re really in charge of two things. Setting the correct price and selecting the best agent. Mistakes in the MLS, bad photos, or lack of marketing muscle can be a turnoff to buyers or make your listing invisible. We’ve seen lack of good marketing cost sellers a sale, or thousands in their pocket at closing because they didn’t attract the highest and best buyers for their home.
If your home is overpriced, you’re just adding to the marketing time and kidding yourself. Typically, in the end you’ll end up taking a lower price than you otherwise would have had you priced it correctly upfront. If your agent recommends taking action on price, listen. If you aren’t having that conversation with your agent, perhaps it’s time to be proactive. Perhaps your agent recommended a lower price at tie of listing, but you were stubborn or convinced it should be higher. Perhaps your agent has recommended price adjustments and you’ve declined. Whatever the case, ultimately, it’s on you as the seller.
If you decline your doctor’s advice, the results are on you as the patient. If you decline your attorney’s advice, the results are on you as the client. The same is true in real estate. It’s your home. If you’re OK with owning it and not selling, then that’s fine. If you’re not OK and would like to move on, it’s time to adjust. It’s either the marketing or the price.
If your home has expired, or if you’re considering putting your home on the market, perhaps it’s time to get a 2nd opinion. Always Call the Ellis Team. We specialize in getting homes sold the 1st time. We’d be happy to look at your home and figure out what we can do to sell it. 239-489-4042 Ext 4 or www.LeeCountyOnline.com Ask for Sande or Brett Ellis.