Rising Florida home prices are being caused by low inventory levels. Across Florida, median home prices increased 13.2% while the number of homes closed increased 8.8% In Southwest Florida, median home prices gained 16.5% in August over last year. The number of homes closed also increased 16.5%.
We are seeing a perfect storm. Low interest rates are driving consumer demand. Other factors are in play as well. Covid-19 has made people think about where they want to live, and where they want to work. Many can work from home, so they might as well live and work somewhere they enjoy. If they can live anywhere, they might as well enjoy the benefits of living in a low tax state.
When we look at the inventory levels, we notice listings always go down February through August or September. You might notice a difference this year. Listing levels were already way down in 2019 due to a booming economy and low interest rates. Fast forward to 2020 and we see that accelerating. Not every part of the state is enjoying the success we are, but then again, many other counties enjoyed big price gains the last several years. Lee County didn’t see that, so there is more room for gains than other areas of the state.
This past week the Ellis Team has worked on several multiple offer situations, both on the selling end and the buying end. Scoring that victory for our clients requires determination and skill. We work with buyers to structure their offer to look the absolute best it can to the seller. Because we work with so many sellers, we know their concerns and can offer a lot of wisdom to our buyers.
Our sellers benefit greatly too. The worst thing you can do in a market like this is take the wrong offer. Buyers and buyer’s agents will present the story they want you to see, and it is our job to uncover the facts and separate the offers impartially so our seller can make the best decision. Just because we have multiple offers today does not mean we will if we must put it back on the market in the future. You never want to squander a good opportunity, and yet it’s a fine line between determining whether it’s a good opportunity, or an opportunity to waste time. This is where the wisdom of an experienced agent comes in.
The market is hot and we have rising Florida home prices. This does not mean all properties will generate multiple offers. Proactive marketing must be employed to insure receiving top dollar. Sure, you can get lucky, but who wants to play with luck in a market like this? We never know how long these great markets will last. The biggest mistake most sellers make is being overconfident for too long and missing the market. Subconsciously they hold on to the number in their head from 2 months ago all the while they’ve missed the market of the moment.
The Ellis Team has a plan. We sit down and show you where homes have sold. We go over the 3 things that will happen once your home goes on the market, and what to do in each scenario. Our sellers are prepared for the market of the moment, and if the market shifts at the exact time your home is on the market, we can too.
If the buyers shift, we can adjust our marketing as we have the intelligence to us that. Talk to Brett or Sande Ellis 239-489-4042 Ext 4 and we will be happy to discuss your options. Even if you are not ready yet, it might help to begin talking about options should you decide down the road. Information is power.
We also have a website where you can get a Free instant online valuation of your home www.SWFLhomevalues.com People love that website.
We are here to talk. Brett and Sande are easy to talk to, and there is no pressure for you to do anything. Call us and let’s chat. You will feel better, and you’ll have some information that will help you make decisions.
Good luck and Happy Selling!
See Last Week’s Article “United States Housing Market Not Affected From Unemployment Yet”