State of the Market-Mini Update

Here is a look at Inventory levels from random past dates and today. Active represents Active listings by date, and Pending represents properties that were under contract for sale at the time. CMI represents our Current Market Index, which accurately predicts where the market is heading. See Below for Commentary.

 

Fort Myers Geo Areas

ACTIVE
PENDING
CMI
6/20/2003 819 378 2.17
8/7/2003 768 337 2.28
10/15/2003 825 303 2.72
12/14/2004 494 295 1.67
4/1/2005 435 428 1.02
7/25/2005 398 350 1.14
9/29/2005 490 267 1.84
10/25/2005 626 200 3.13
1/24/2006 1338 210 6.37
dddd

Cape Coral Geo Areas

ACTIVE
PENDING
CMI
6/20/2003 1575 805 1.95
8/7/2003 1463 733 2
10/15/2003 1593 651 2.45
12/14/2004 886 581 1.52
4/1/2005 1006 894 1.13
7/25/2005 1020 971 1.05
9/29/2005 1653 751 2.2
10/25/2005 2141 605 3.64
1/24/2006 3926 537 7.31

 

 

As you can see, inventory is rising quickly, and the market has swung from a Hot sellers market to a buyers market. The CMI index in October predicted the market would slow, and as you can see, Active listings have swelled while Pending sales have dropped.

We are seeing about a 5 to 1 ratio of new listings entering the market each day to number of homes that go pending, which has lead to a dramatic increase in inventory. How much will this build-up affect prices? Stay tuned and we’ll post more Mini-updates on what is happening in SW Florida Real Estate.

Note, we selected certain geographic areas inside our MLS system for same sales comparisons. The Fort Myers and Cape Coral Geo areas do not encompass the Entire Lee County market, there are actually many more listings than what is shown here. We do feel, however, this is an accuratae representation of what is happening all over SW FLorida, regardless of which Geo area homes are located in.

 

To search for homes for sale, feel free to shop at www.LeeCountyonline.com

The National Association of Homebuilders (NAHB) is meeting this week in Orlando Flrida. They are concerned about markets such as Las Vegas, Phoenix, Orlando, Miami and San Diego where investors accounted for more than 25% of the total sales in those markets. Nationwide, investors accounted for 20% of all sales. Home Builders Predict Housing Slowdown.Particulary troubling could be upscale home and condominuims, according to NAHB. Investors started pulling back in the 4th quarter of 2005.

The fear is investors will choose to sell properties or pull-out of existing contracts, which could lead to over supply and put pressure on prices. Investors have left the real estate market and gone back into other things, like the stock market and commodities.

We’ll be sure to keep you posted on what changes if any are in stor for Lee County and the Southwest Florida real estate market.

HUD has introduced enhancements to the streamlined 203(k)
program to facilitate the purchase of property that needs only
minor rehab work, including raising the ceiling for repair costs
to $35,000.

Loan program Allows you to Build in Repair Costs

This allows a buyer or investor to purchase a property that needs repair and build in the anticipated costs to the loan. It’s a good way to purchase a property, improve it, and have equity or sell it. Everyone wins as long as you purchase the property up-front at a fair price. The buyer makes some equity, and the neighborhood is improved as the property is improved.

Feel free to call us at 239-489-4042 to take advantage of this program in Lee County, Southwest Florida. Visit our website Topagent.com 

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The annual Cyber Star Summit is being held this week in San Antonio Texas. The Cyber Stars are the Top 200 agents nationwide out of more than 1.5 million Realtors. The Cyber Stars are discussing the latest trends in technology, improving communications with buyers and sellers, and evaluating the latests products to better serve the Real Estate community.Brett Ellis is is a Cyber Star and was asked to speak at this years Summit. Not only was it a pleasure speaking to such a powerful group, I also enjoyed learning from some of the brightest minds in the business today. We look forward to bringing some of the latest trends to the Fort Myers, Southwest real estate market. Technology, along with real estate is developing at lightning speed, and those that adapt and change with it will become more efficient and prosper.