We get calls all the time from discouraged sellers asking for our help.  They placed their home on the market with another agent and it didn’t sell.  They just can’t understand why their home wasn’t liked enough by a buyer to make an offer.  We tell them there are 3 reasons why homes fail to sell.

3 Reasons Why Homes Fail to Sell

  1. A home must be marketed everywhere to attract top dollar.  Simply placing it in MLS or adding a few yard signs may not get the job done.  Even though your home is on MLS, it’s not reaching the whole market.  It also doesn’t stand out.  Buyers have choices, and if you’re just on a list, your home better stand out as a bargain or offer something they really want.  Getting your home out to the right people at the right time in their buying cycle is key.  We can’t tell you how many times a buyer has said we wished we’d known about this other home when we were buying.  It was on MLS, but it didn’t stand out.  It was just a home on a list.
  2. So, you’ve got your home on the MLS.  Does the description make the buyer want to call and ask more questions?  Are all the fields perfect in MLS.  If a Realtor, or buyer for that matter, is searching for a particular field and yours is missing, your home is invisible in that search.  Do you have all the required documents uploaded into MLS at time of listing?  This isn’t the time to be lazy.  Many times, buyers have questions about the HOA, the rules, the finances, etc. and they like to see the answers immediately. If they’re absent, they move on and you lost your chance.
  3. Your home must be priced at market. If it is over the market, it’s not really on the market.  Finding the true market price can be tricky, we get it.  It takes years of experience and studying the market daily as the market is always in flux. We tell sellers we should receive an offer about every 4-5 showings.  If we’re not getting offers, something is wrong.  If we’re not getting showings at all, something bigger is wrong.  We’ve either got an error in the details, or our price is off more than originally thought.  If you’d like to get a pretty good ball park idea of your home’s worth, go to www.swflhomevalues.com It is a computer and does a pretty good job, but it’s no substitute for us looking at your property.

Many people say it’s not price, it’s the condition or the location.  It’s true, you can’t change the location.  You’re locked in by location, and if you’ve got a neighbor that isn’t keeping up their property, it could affect your value.

If your condition isn’t up to par, it too could affect your value. Notice the key words here?  Your value.  Value is determined by the market.  You set the price, the market determines the value.  If your price isn’t at value, it will sit.  You can improve your condition, and that may help.  You may not get dollar for dollar back on improvements, but they may help protect your downside if your home has some objections from buyers.

It pays to hire a professional.  Failing at any one of these 3 critical components can kill a sale, or worse, cause you to sell it for less than it’s worth.  Why reach 1 buyer when you can reach hundreds? A Realtor with years of experience can help you price it properly, market it for all it’s worth, and handle all the details so you have a smooth move.

If you’re thinking of selling, Always Call the Ellis Team at Keller Williams Realty 239-489-4042 Ext 4  ask for Sande or Brett.  If your home failed to sell the first time, we can help fix that and get you on your way.  Good luck and Happy Selling!

If you’re buying, check out www.LeeCountyOnline.com  We’ve got all the homes for sale in MLS, and it’s updated instantly.  No more looking at homes that aren’t really on the market anymore.

Ellis Team Weekend Open Houses

Open House Sunday 1-3 PM

Reflection Lakes 5 Bedroom 3 Bath Pool Home on Lake

Reflection lakes Pool Home

13994 Reflection Lakes Dr

Open House Sunday 1-3 PM

Daniel’s Park 4 Bedroom 3 Bath Home With 3 Car Garage

Daniel’s Park 4 Bedroom 3 Bath Home With 3 Car Garage

14077 Danpark Loop

 

 

Real estate agents across SW Florida have been complaining that sales have been sluggish, however the numbers show that 2018 Lee County Florida home sales shaping up to be decent year. Both April and May numbers have topped previous years, and January, February, and March are right in there.  If things keep progressing, we’ll have a chance to top 2015 sales levels.

What is fueling the increase in home sales?  Two things come to mind right off the bat.  Higher inventory and price reductions.  Inventory 7.8% this year to 5,787 listings compared to 5,368 last year.  This opens up more choices for buyers.

7 Day Market Watch 2018 Lee County Florida Home Sales Shaping Up

We’re seeing as many price reductions as new listings in a typical 7-day period.  In the past 7 days we saw 440 price reductions compared to 323 new listings and 376 pending sales.  This tells us sellers have recognized the need to adjust their price and are making the adjustments.  When this happens, sales occur.

2018 Lee County Florida Home Sales Shaping Up

Official numbers released this week show median price and sales price increasing in May.  You might ask, how is it possible to have increasing prices while sellers are decreasing their asking prices?  Median price is defined as the price where half the sales occur over that price and half occur under.  If most of the upper end sellers overprice their home, there are fewer sales up there and it forces the median price down, because that’s what’s selling.  Lower priced sellers were more in-tune with the market.  As the mid and upper ranges accepted that change needed to occur, more sales started happening.  As this occurs, it pulls the average and median price upward.

Many will read the headlines and infer that prices are rising when in fact prices have not been rising.  It’s the fall in prices that created the sales.  It is the reluctance of mid to upper sellers to adjust sooner that stalled the sales.  There were only so many mid to lower listings to go around.

We expect to see good sales numbers the balance of 2018 as the market adjusts to the shift.  The market always adjusts.  It’s only a matter of how long it takes to do so.  It’s kind of like pulling off a band-aid.  You can pull it slowly or rip it off.  Either way it comes off, it’s just a matter of how long you want the pain to last.

Buyers can rejoice now because there are some pretty good deals out there.  For instance, we’ve got a 5-bedroom, 3 bath pool home on the lake in Reflection Lakes for just $459,000.  Last year that same home would have sold for $525,000.  We’ve got a 4-bedroom 3 bath home in Belle Lago for $465,000.  It was on the market with another broker last year for well over $500,000.  Imagine getting a 4-bedroom home in Paseo for $500,000.  We’ve got that too.  We even have a 4 bedroom home in Reflection Lakes for $375,000.

In fact, if you want to see a list of Hot Buys, go to www.LeeCountyOnline.com and click on the Featured Listing Section.  If you’re interested in how a neighborhood is doing, check out the Market Reports section.

Sellers who are curious as to their home’s value will appreciate the property valuation tool.  It’s free, and provides a detailed report on your home within seconds.

If you’re thinking of buying or selling, we should probably talk.  We’ve got a way for you to save thousands when getting a mortgage.  We have options for you to save thousands too when selling.  If you’re thinking of selling, ask for Sande or Brett Ellis 239-489-4042 Ext 4.  If you’re buying, we have a team of buyer agents ready to help you find your dream home and save money on the loan too.  Always Call the Ellis team!  We’re here to help.

Ellis Team Weekend Open Houses

Open House Saturday 1-3 PM

17970 Maddelena Cir  Belle Lago Open House

Open House Sunday 11AM – 1PM

5970 Trailwinds Dr Unit 121

As real estate agents I think we tend to forget that people really don’t know how to sell their home. What seems basic to a veteran agent is not basic to all, and even many newer agents don’t know all the best tips.  We decided to cover 8 seller mistakes when putting home on the market.

8 Seller Mistakes When Putting Home on the Market

  1. Don’t be present for showings.  If you absolutely must be home for showings, don’t say a word.  Take a walk, drive around the block, or anywhere you can to avoid conversation with the buyers.  Sellers believe they know their home better than anyone; therefore, they can sell it better than anyone.  Be aware of the $1,000 rule.  Practically every word you speak to the buyers costs you $1,000.  I’d say try it, but it’ll cost you.
  2. Don’t photograph everything. There is no rule you must provide a photo of everything.  Leave a little to the imagination.  Make them want to get inside and see everything.  Most bathrooms don’t need to be photographed, unless they are spectacular, stand out, and are a selling feature.
  3. Set correct listing price and negotiate firm. You’ll get a better sales price if you set the correct list price.  Overpricing drives buyers away.  You’re not going to fool a buyer today, so you might as well price correctly upfront.  Buyers typically don’t want to insult a seller, so they just move on to other better values.  Or worse yet, they never view inside of your home because it’s not on their radar.
  4. Select the best agent to market your home, not the least expensive. Selecting the least expensive can cost you thousands.  It’s not what an agent charges that matters, it’s what ends up in your pocket at closing.  All Realtors are not the same.  Some agents sell homes faster and for more money.  Enough to cover the difference in rate, and then some.
  5. Make your home accessible. We live in the online age.  People expect fast access, both online and in person.  Some buyers are buying today and won’t come back tomorrow just to see your home.  By the time your home is available and picked up, they bought something else.  It just repeats with the next buyer.
  6. Check with your condo or HOA. There are many required disclosures and documents you must pass on to buyer at contract.  Failure to do so can cost you a sale. Get these documents upfront.  It’s a pain, but you’re going to have to do it anyway, so don’t lose a buyer and get them now.
  7. Disclose defects. Better yet, repair problems so next buyer doesn’t have to deal with it.  Most buyers want a problem free home.  They want to move in and not have to repair a bunch of things.  Their time and budget is stretched enough, and having to repair other peoples’ existing issues kind of takes the fun out of home shopping.  If you don’t want to do the repair, chances are you next buyer may not either.
  8. Market your home everywhere! Newspaper, online, social media, etc.  Make sure your home is target marketed to home buyers looking for what you have.  Throwing a sign out there and posting on an online site won’t cut it.  Everyone does that.  You want to stand out.

Wish we had more room.  If you’re thinking of selling, always call the Ellis Team.  We’ll go over our entire list and expose your home to more people.  Call Sande or Brett Ellis 239-489-4042 Ext 4  To search the MLS like a pro, visit www.LeeCountyOnline.com

Don’t forget to vote us Best Real Estate Team in SW Florida in News Press Reader Poll.  www.Bestswfl.com

Ellis Team Weekend Open Houses

Open House Sunday 1-3 PM

Reflection Lakes 5 Bed 3 Bath Pool Home on Lake

Large Reflection Lakes Pool home priced to sell and ready to go

13994 Reflection Lakes Dr

Open House Sunday 1-3 PM

Bella Lago 4 Bed 3 Bath Pool Home

3 Car Garage, Granite Counters, and more

19790 Maddelana

Open House Sunday 1-4 PM

Cape Coral Direct Access Waterfront Pool Home

Direct Access Cape Coral Waterfront Pool Home

1933 SE 36th St

 

 

 

April was a strong month in the Southwest Florida real estate sales market.  Closed sales were up 23% over last year, and that’s not all.  Not only were the number of sales up, so were the prices.  The median price was up 5.4% in April to $262,500, up from $249,000 the previous year.  The average sales price was up 8.1%

Because the number of homes closed was up, and prices were up, naturally too was the total volume of sales.  Total volume this April was $545 Million, up from $410 Million last year.  That’s a 32.9% increase.  We’ve mentioned in previous articles that top agents across SW Florida are reporting an increase in their business this season over last.

So, does this mean the market is shooting up?  If you read the headlines, you would think so.  Pockets of the market are doing well and other pockets not so much.  We believe May numbers could be good too when they are released next month, only because our numbers are better than last years.  That doesn’t mean a good April and May will translate to the whole year, nor to every neighborhood and price range.

Southwest Florida Real Estate Sales

One thing the latest numbers show us is new listings are up 19.8%.  Inventory is up 5.1%.  This is one of the reasons you’re seeing more sales, because we finally have more property available for buyers.  The hottest segment of the market is below $400,000, and some would say lower than that.  If you look at the chart, we’ve seen a tremendous increase of new listings in that affordable range.  When that happens, sales increase.

Homes priced over $400k are just not as hot right now.  Sure, we had some April sales because it was season.  Those closed sales occurred in February and March.  Since then we’re not seeing as many.  We are seeing sales across all prices ranges for homes that are priced correctly.  Because the market is shifting right now, it’s sometimes hard to get a fix on what is priced correctly and what isn’t.

Showings in May are down.  And yet, many homes are still selling.  If your home is getting lots of showings, it’s probably priced close to the market.  If not, you’re probably priced over the market.

Last week I went out to preview new builder inventory.  As a Realtor we see the incentives the public doesn’t always see.  Home builders want to get as much money as they can for their homes.  However, home builders are less emotional and react quicker to market changes than regular sellers.  Home builders are not emotional like a home seller is.  They have no ties to the property.  It’s just a number to them.  Granted, they want that number to be the highest it can be.

I was amazed at some of the prices I saw.  Builders are not lowering because they’re kind.  They’re lowering because they are seeing changes. New construction pricing and incentives affects resale pricing.

Sellers need to know that buyers don’t just look at one home.  They look at 20 or more, and online sometimes it’s hundreds.  They learn the market.  They’re using sites like www.LeeCountyOnline.com and seeing all the listings in real-time.  Fairly quickly they can see what’s going on and make decisions.  Sellers tend to set a price and forget about it.  They get mad at their Realtor, mad at their neighbor who just reduced their price, and mad at the market when it doesn’t sell.  Instead of getting mad, we’d like to see you have success.  When your price matches the market, it will sell, assuming it’s marketed correctly.

If you’re looking to sell your home, please call Sande or Brett Ellis 239-489-4042 Ext 4.  We can help you purchase too.  And don’t forget to vote for us as best real estate team in SW Florida.  We’re going for a 3 peat and could use your vote.

Top Real Estate Bargains in SW Florida

See homes in Southwest Florida $300,000 and below

Official sales numbers are out, and Southwest Florida housing median home prices rose 2% past year.  March 2018 median home price came in at $260,000, up from $255,000 last year.  All year we’ve been saying home prices have been flat since about June, so this was a nice rise albeit a moderate rise.  Average home prices were up 4.1% to $375,895, up from $361,082 last year.

Southwest Florida Median Home Prices Rose 2% Past Year

The number of home sales were down 2.7% in March versus last year.  So, what is the takeaway from these numbers?  Statistically we have a balanced market neither favoring the buyer or the seller.  Of course, certain price ranges and neighborhoods can vary.  These are what we call sub-markets.

All real estate is local.  It doesn’t matter if you’re in Pittsburgh PA, Peoria IL, or, Cleveland OH.  What’s true in one market can be different in another.  What’s true in one market can be different in a sub-market of that same market.  Therefore, it’s important to work with a seasoned Realtor with experience in the market you’re looking.  While I believe the Ellis Team are some of the best agents around, we wouldn’t be in another town like Pensacola or Jacksonville.  Sure, we’re licensed Florida agents and can serve you anywhere in Florida, but is that wise?

By the same token, national websites cannot help you like a good local one can.  www.LeeCountyOnline.com is the best local SW Florida real estate website for several reasons.  It has all the listings, and it’s updated instantly.  Other large national websites don’t have all the listings, and many of the listings they do have offer incomplete or inaccurate data.  We’ve had calls on our own listing and the condo or HOA fee is completely wrong on the national sites.  It’s correct on our website.

We’ve had calls on a property that wasn’t on the market from one of the national sites.  Turns out the property sold three times since the listing they found.  We have no idea how they could have a listing from a decade ago on their site.  You’d think they’d at least get the last listing, not three before it.

Selecting the wrong agent to work with you can be a costly mistake.  Sometimes people choose to work with a friend or relative to purchase a home.  When you find out you bought the wrong home, or paid too much for it, it can be frustrating.  Or worse, when you lose the home over an inspection issue that could have been handled with a little experience and know-how.  There’s no substitute for hard work, and experience.

Choosing the right lender is important too.  Some lenders have high fees, while others are notorious for rigid underwriting requirements and not getting loans closed.  Experienced Realtors know which lenders perform what they say, on time, and where the best rates are.  Did you know most lenders have extra requirements they place on buyers?  They’re called overlays.  We work with lenders that offer little or no overlays, so the buyer can be approved almost instantly.  Buyers hate all the documentation and hoops banks make you jump through just to get a loan.

Insurance is another big issue.  A large homeowner’s or flood premium increases your monthly payment.  This can alter how much home you can afford.  Remember, you’re approved for a total payment amount.  Why let insurance eat away at your purchasing power?  We know a few good insurance agents we keep in our pocket.  It helps our buyers beat out other buyers to the best properties.

Between having the most accurate and timely information, getting the loan the easy way, and best prices on insurance, we turn the home buying process into fun!  This way you can concentrate on shopping for a home which is the fun part.  We’ll handle all the other details, so you can get your loan, save money, and enjoy that great house you just found.  And you’ll be smiling because you got it and the other buyers didn’t.  Always call the Ellis Team at Keller Williams Realty 239-489-4042

Ellis Team Weekend Open Houses

Open House Saturday 1-3 PM

Belle Lago 4 Bed 3 Bath Pool Home

Belle Lago  19790 Maddelena Cir

Daniels Park Home Open Saturday 1-4 PM

Coming Soon

 

In February we reported that the housing supply in Southwest Florida stood at 5.48 months.  We are happy to report the Southwest Florida housing supply declines since February, down to 5.28 months.  This occurred for two reasons.

Active inventory fell from 5,705 homes for sale in February down to 5,552 in late April.  Closed sales in last 365 days back in February were 12,487.  Today that number rose to 12,612.  Both statistics helped reduce the months’ supply of inventory in SW Florida.

Southwest Florida housing supply declines

Sometimes sales are low because of rising prices, and sometimes they’re low simply because there isn’t enough inventory.  Inventory has grown in the last few years a bit.  Closed sales fell 2.7% in March from previous year. Closed sales in February were up 10.7%, and its possible closed sales in April are up too which affects that number.  We won’t have official closed sales numbers for April until late May.

In almost all price ranges housing supply fell except for the $200-$250k price range, which actually grew from 3.72 months’ supply to 3.85 months’ supply.

These numbers tell us our market is balanced and healthy.  Most experts agree that a balanced market is around 5.5 months supply. At 5.28 months we’re right there.

Of course, markets vary by neighborhood amenities, location, price range, and more.  The chart shows you how each price range is faring right now. Obviously, it you have a $1 Million plus home, it will take longer to sell on average than lower priced homes.  There just aren’t as many buyers as there are sellers.  The Ellis Team just sold a $1.1 Million condo in Gulf Harbour in 122 days.  It takes aggressive marketing and proper pricing to make that happen.  Currently there are 6 active listings in this building and no pending sales.

We’ve had a great season so far. Our sales have doubled over last year even though the Board of Realtors membership has only increased 4.3%.  I’ve spoken with a few other top agents who are also having a banner year. This tells us that experienced agents who spend money advertising and have been through up, down, and sideways markets are getting it done.  Experienced agents have the knowledge to navigate their sellers though any kind of market.

Listing your home with a family friend, neighbor, or relative can cost you thousands on your sale, and might cost you a relationship as well.  We don’t have the burden of trying to get the number you want or need.  We can objectively investigate what the market is paying for your home.  Then we target buyers online and through our networks to find that buyer.  The days of sticking a sign out front or placing it in MLS and hoping someone will sell it are gone.  To get Top Dollar you must go out and find the buyer.

If you’re a buyer, you want to know how prices are performing in a community, how fiscally solid the homeowners association is, and other factors that may be influencing the market.  Working with a skilled, full-time, knowledgeable Realtor is key.  You won’t realize how much it costs you to hire an inexperienced agent until you run into issues, and then it will be too late.

We’re keeping our eyes on interest rates in the coming weeks.  If they rise it will put pressure on buyers to make a move this summer.  They’ve already risen, and we believe there is room to rise much more over the next few years.  Waiting to buy or sell will cost buyers and homeowners with higher rates and will put pressure on affordability.

We encourage you to check out www.LeeCountyOnline.com where you can search for all the homes on MLS.  Or, you can call us at 239-489-4042.  Ask for Sande or Brett Ellis if you’re thinking of selling.

Good luck and Happy House Hunting!

Ellis Team Weekend Open Houses

Whiskey Creek Open Saturday 1-3 PM

1455 Claret Ct

Reflection Lakes Open House Sunday 1-3 PM

13994 Reflection Lakes Dr

South Pointe South Open Sunday 1-3 PM

9721 Deerfoot Dr 3 Bed 2 Bath Home

9721 Deerfoot Dr

 

We’re hearing from a lot of sellers who are concerned that their home has been on the market awhile and it didn’t sell this season.  They’re calling asking how we market homes and what they can do to get their home sold before their listing expires.  This article includes tips on how to sell your Florida home out of season.

How to Sell Your Florida Home Out of Season
Win the Beauty Contest

We get it.  Sellers who weren’t successful are frustrated.  The sellers who listed and sold are happy, and the ones who listed and sat are not.  Putting your home on the market is a lot like entering a beauty contest.  Even though your home is beautiful, it may get skipped over by other beautiful homes that compete more favorably.  The other contestants take the prize.  Two weeks pass by and another bevy of beauties hit the market before you get the chance to reduce your price.  Your beautiful home never really got the chance to be the new beauty on the market.

Sometimes a new beauty comes on the market and it attracts multiple offers.  Before you know it, it sells for full price, maybe even more. It’s frustrating to watch other homes take the crown while yours is left standing on stage.  The good news I guess is that there’s a new beauty contest upcoming, but you’ve got to make some changes, or you’ll suffer the same fate as the last contest.  After awhile they’ll start asking what’s wrong with you, why are you still here?

We’d like to help you avoid this madness.  Before we begin, let’s just state that we too have some homes that occasionally don’t sell.  When sellers take our advice, their home sells.  You have to want to be the winner.  Here’s our formula to win the next beauty contest.

  1. Hire the right Realtor.  Not all Realtors are the same.  They don’t advertise the same, have the same number of leads, or have the experience necessary to lead you through the process.  You’ve seen very talented teams lose the big game due to coaching mistakes.  Hiring the right coach can make all the difference.
  2. Price your home correctly. If the market doesn’t respond, adjust.  The market doesn’t stand still, and neither does your competition.  New homes enter the market, and existing homes make price adjustments. If you list a home and never change, you may get left on stage.
  3. Make sure your home looks as good as it can. You don’t have to remodel.  Simple things can make a big difference.  Talk to us and discover how certain minor changes can make a big difference in the judge’s eyes.
  4. Listen to your Realtor. If you did the research and hired the best Realtor, it’s crazy not to take their advice.  If you’re not going to listen to your Realtor, I guess it doesn’t matter who you hire.
  5. Listen to the market. The market speaks to you.  If you’re getting lots of showing but no offers, a small price adjustment may be necessary.  If you’re not getting showings at all, you either have a large adjustment to make, or something is off with the marketing.  Perhaps there is a field wrong in MLS.  Is your home being advertised in the paper, online, and to other Realtors?  Perhaps a highly advertised open house may be necessary.
  6. Don’t be afraid to make a change. Sometimes owners list with a friend or relative.  This is dangerous because they often want to please you.  They may be afraid to tell you the market has shifted, or they may miss it because of their love for you.  Listing with a friend or relative can destroy your relationship.  If that is your situation, give us a call.  We have a way of handling this for you and getting your home sold without offending your friend.

If you have a home to sell, we’d love to help you.  Simply go to www.SWFLhomevalues.com and enter your address.  We’ll provide you with a free online market evaluation.  If you’d like to go to the next step, we can schedule a time to meet your and view your home.  Or, you can always call Sande or Brett Ellis at 239-489-4042 Ext 4.  Always Call the Ellis Team!  We’ll get your home Sold!

Ellis Team Weekend Open Houses

Reflection Lakes – Open Sunday 1-4 PM

13994 Reflection Lakes Dr

14016 Shimmering Lakes Ct

Colony Lakes – Open Sunday 1-3 PM

16804 Colony Lakes Blvd

The value of your home is determined by what able buyers are willing to pay for your home and what the appraiser will appraise it for.  It is not determined by what your neighbor down the street is asking for their home.  Today we’ll explore the dangers of pricing homes compared to neighbors listing.

Dangers of Pricing Homes Compared to Neighbors Listing

Often, we go out on listing appointments and we give our opinion of value after studying the property and the comparable sales.  It’s not unusual for a seller to say “But the home down the street is listed at X and my home is much nicer.”  Then we hear the list of upgrades, and the routine maintenance items the seller has made, like trimming the bushes last week, new light bulbs, new AC in 2005, and new roof 10 years ago.

All these details are important for the MLS sheet, and some are important as selling features, so don’t forget to bring anything up you feel might be important. Just don’t expect extra value for routine maintenance on your home and even some upgrades don’t provide value.  It may make the home stand out against another.

Some upgrades do add value.  Most upgrades don’t add 100% of the cost though.  I blame TV shows for painting the picture of putting $50,000 in upgrades into a home and expecting an increase of $200,000 in value.  This isn’t how it works, unless you somehow bought the property for way under value.

We’re watching a few neighborhoods right now where sellers are pricing compared to their neighbors.  There are no sales in the last 4 months and yet there are 5 new listings within 4 months and 1 older than 4 months.  None have gone pending either.  We see price reductions, but they are all still significantly over priced.  A few came on the market in the last 2 weeks and they are overpriced as well.

Each seller is convinced that previous sellers have set the market.  The reality is the first few sellers are like lost beacons in space, and each new seller follows their light.  The problem is they’re going in the wrong direction and their buyers are in another galaxy.

As soon as a seller puts their home on the market at the correct price, it will sell, if marketed correctly. All their neighbors will tell them they priced it too cheap, because they all want a higher price.  This is human nature; however, it doesn’t help anybody.  Just because everyone is overpriced, and no homes are selling in your neighborhood doesn’t mean a buyer will come along and overpay.

After a while, buyers begin to ask what’s wrong with the neighborhood.  All these homes are on the market and there are no sales.  We’ve got a decent market here in Southwest Florida.  If a home is priced correctly, there is a market.

Unlike towns where a plant closing affects the market, we have buyers.  The market has changed from last year.  Buyers are ready, willing, and able, but they’re cautious.  They don’t want to overpay.  This is a sign that our market is fully recovered, as much as it’s going to, and that prices have leveled out.  Now market forces take over, like interest rates, incomes, consumer confidence, etc.

We are not in jeopardy of crashing like back in 2006.  We will not see rapid price gains either.  SW Florida has a balanced market dependent on market forces, and that’s an awesome thing.

When you’re putting your home on the market, you must ask yourself.  Am I pricing my home at today’s value, or pricing it compared to what my neighbor down the street is asking?  We’d better go find some actual sales and base it off those who have won the home selling game versus those who want a certain number, or think their home is worth a certain number because that’s what their neighbor is asking.

If you’re thinking of selling your home, call Sande or Brett Ellis 239-489-4042 Ext 4.  We’ll give you the straight scoop.  We’ll get you Top Dollar, and we’ll get it Sold. You’ll be moving on while your neighbors wonder if their house will ever sell.  You can visit our website www.LeeCountyOnline.com to see all the homes in MLS.  Call Brett and Sande and start packing!

Ellis Team Weekend Open Houses

Open House Saturday 1-4 PM

1465 Arglye Dr

Open House Saturday 1-3 PM

1281 Biltmore Dr

Open House Sunday 1-4 PM

13994 Reflection Lakes Dr

Reflection Lakes Gated Community

Open House Sunday 1-3 PM

18 NE 1th Ave Cape Coral

Cape Coral Open House Sunday 1-3 PM

Since October 2017 listing inventory in SW Florida has risen over 25%, while at same time closed sales have fallen slightly.  This has caused the months supply of inventory to rise to 5.48 months, up from 4.31 months last October.

It’s important to know this information as it’s an indicator of the health of the market and which way prices are headed.  It also tells us if we’ve gotten a little ahead of ourselves in either direction.

Southwest Florida Listing Inventory Rises 25.44% Since October

Much like the stock market, the real estate market also fluctuates.  The market is always testing limits and boundaries, and when it finds them it reacts.  This is true in boom markets, bust markets, and normal variations in between.

When inventory levels got too low back in 2009 we knew the market was headed for a steady rebound, and we sure got one.  It didn’t happen overnight and not all prices ranges reacted simultaneously.  Nonetheless, it happened.  2005 and 2009 were extreme examples.

More realistic are the normal market gyrations most people don’t even see unless they study the numbers.  If you’re a seller and you notice lots of homes in your neighborhood are on the market, and none are selling, you know what this is like.  It’s possible the neighborhood just got ahead of itself compared to other neighborhoods.  A simple market adjustment can usually fix this unless there is a bigger underlying issue.

While not all price ranges react the same, we can tell you all price ranges in SW Florida gained monthly supply.  Not one price range fell, so this was across the board.  We can say the hardest hit ranges begin at $400,000 & up.  The $400-600k range shot up from 6.99 months in October to 9.20 months now.  The $600-1 Million rose from 10.29 months to 14.49 months now.  The $1 Million+ market rose from 14.62 months last October to 19.59 months now.

These are important numbers to know.  Sellers in particular price ranges need to know how their range is doing.  In a rising market you can price just ahead of the market, and if you’re wrong, the market will catch you.  However, pricing too high doesn’t work in a rising inventory market.  The market won’t catch you.  If anything the market is leveling out or could be in for a slight reduction.

Nobody is calling for a market correction here.  The fundamentals are just too strong, and nothing like what we saw back in 2005.  We have end users and renters hoping to buy.  Rising inventory levels can be a sign that sellers have out-priced buyer’s ability to pay for the increases.  Home prices have risen, but wages may not have kept pace.

Rising interest rates can dampen a buyer’s ability to purchase as well.  We stated many times how a 1% rise in rates takes away 11% purchasing power from a buyer.  Do that to enough buyers and you can affect a market.  We’ve seen rising rates, and we expect them to rise more.

Bottom line, if you’re a buyer, get in soon.  Rising rates rob you. They’re like a thief in the night.  If you’re a seller, price your home correctly, and hire the best agent you can find to market it.  You have more competition now.  Exactly 25.44% more to be precise.   The market has stabilized.  A neutral market is defined as 5.5 months supply.  Anything more is a buyer’s market; anything less is a seller’s market.  At 5.48 months supply, we’re about as balanced as you can get, which means prices aren’t going to move up until we work down supply.

To sell your home, call Sande or Brett Ellis 239-489-4042 Ext 4.  To research the market, find your home’s value, or get neighborhood updates, go to www.LeeCountyOnline.com If you’re looking to buy, one of our happy agents will be glad to assist you. 239-489-4042

Good luck and happy selling!

Rising interest rates costs buyers money when purchasing a home.  It either increases their payment, or it decreases the amount of purchase to maintain the same payment.  Buyers have been warned for some time that rates would go up, and now they’re listening. Buyers flock to beat 2018 interest rate increases in 2018.

If you want to see where rates are headed, one indicator we look at is oil prices.  As the economy improves, countries consume more oil.  As oil consumption increases, it raises the cost of oil.  Simple supply and demand.   As oil prices increase, it raises the cost of inflation because so many things are tied to oil.  Transportation costs increase, so not only does it cost you more to fill up your car with gas, it also costs companies more to move their product.

Lumber goes up because there is more demand for building plus it costs more to cut it and move it due to oil.  Food prices go up because it costs more to plow the fields, and transport groceries to warehouses and eventually the stores.  Postage goes up as Fed Ex, UPS, and the USPS pay more to deliver mail and packages.  Oil influences a lot of things.

Buyers Flock to Beat 2018 Interest Rate Increases

As you can see from the graph, oil futures have been increasing since June of 2017.  The 10 yr treasury yield has been increasing since September 2017.  Oil price and interest rates are closely tied as they feed off each other.  Oil signifies inflation may rise, and inflation rises, so typically does interest rates.

Mortgages are most closely associated with the 10 Yr treasury yield.  Perhaps this is because not all mortgages remain for 15 years or 30 years.  The average homeowner typically sells and purchases another home before their mortgage is paid off.

Buyers Flock to Beat 2018 Interest Rate Increases

If you’re on the fence about when to purchase, the recent rise in interest rates may make you move sooner rather than waiting.  Even if you own a home, it may be a good time to sell and purchase that next home.

If you sell now, you have more available buyers for your home.  As rates rise, you will lose buyers to the increased costs.  And, you’ll save when you buy your next home too.  Not only will you qualify for more home today than when rates rise, you’ll also pay less when rates are lower.

Presumably you’ll get a higher sale now with more qualified buyers than you might with less qualified buyers later, and you’ll save money on the next mortgage.  It’s a double win-win for a seller contemplating a move.  Sure, home prices may still go higher, so it’s not automatic you’ll get more for your home today.  We’re just saying there will be less competition from other sellers now and more demand from buyers now than when rates rise.  It’s always more fun to sell when you’re holding more of the cards.

Rates have already begun to rise, so sellers aren’t holding all the cards they were 6 months ago.  We are seeing more inventory, which in a way is good thing because now sellers have more options when they decide to move.  Many sellers wouldn’t sell because they had no idea on where they’d go.  That’s opened up just a bit, which helps.

Always work with an experienced agent who knows the market.  If you’d like to search the MLS for Free like a pro, go to www.LeeCountyOnline.com  It has all the listings and is updated instantly. No more wasting your time on properties that sold months ago.  And you’ll see all the new listings instantly too.

Or Call Sande or Brett at 239-489-4042 Ext 4 to sell your home.  We have a team of experienced agent partners who can help you buy your next home too.

Always Call the Ellis Team at Keller Williams Realty!  We’re here to help!

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Buyers Flock to Beat 2018 Interest Rate Increases

 

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