Real estate inventory supply tightens in SW Florida since December with current supply standing at 4.20 months. Back in December the number stood at a 4.43-month’s supply. It’s interesting, because everyone believes inventory levels are falling. That is a true statement, but inventory levels only fell 58 homes since December.
Real Estate Inventory Supply Tightens
The bigger story is 535 more homes sold in the past 365 days than the past December’s last 365 days. This tells us home sales are on the uptick. We’ve been preaching how low interest rates are causing more people to purchase, and that is also true.
So basically, we’ve seen 535 more sales combined with 58 less homes. These two factors caused the month’s supply to drop to 4.2 months. Could there be more to the story? Let’s dig a little deeper.
Inventory Levels Rise Above $300k
We saw inventory levels rise in all ranges above $300k. The good news is sales rose in those ranges as well to help offset that. When we analyze each price range, we discovered the month’s supply of inventory grew in the $600k-$1 million range, and the $100k-$150k range. The differences in each range are minuscule.
We have a healthy market, and if a home is priced correctly and marketed well, it should sell. If a home is not selling and being marketed, it means the market is rejecting the price and it must be lowered to meet where the buyers are.
Some homes are priced correctly, and they’re just not marketed. In that case, the seller will never know if it’s the price or the marketing. If it is marketed well, sometimes the seller refuses to accept that they want more for their home than the market will bear. They’ll typically say things like “You’re not attracting the right buyers”, or “They aren’t buyers, they’re just lookers and can’t qualify for my home.” They’re often shocked to find out those buyers went and bought another home that was a better value.
Buyers don’t care what a seller needs for their home. They only care about what’s best for their family. Sellers should understand this because they were the same way when they were purchasing.
Agent’s Role in Transaction
A real estate agent’s job is part analyst, part psychologist. We must uncover the true motivations for each buyer and seller and determine what is most important. If they truly want a different home but are holding on too tightly to the home they have, perhaps they’re not as motivated to move as they thought they were.
We have a really good market right now. It’s a good time to sell because buyers are out there, and rates are affordable. Low interest rates are beneficial on the sell side because more people qualify for the home than they did when rates were higher. It’s also beneficial when that seller turns around and purchases the next home if they’re getting a mortgage.
We’re telling people it’s not a bad idea to get a mortgage even if they were considering paying cash. It’s almost free money at this point if they qualify, and we can help get buyers a loan with zero lender fees at market rate without paying a premium.
If you’re a seller and would like a neighborhood snapshot of your home, simply email me at Brett@topagent.com with your name and address and I’ll set you up on a system that will email you updates on your neighborhood. Or, you can signup at ellisteam.kw.com and put in your neighborhood. The site will show you all the homes for sale along with neighborhood statistics.
Our mission is to provide you with information the easiest way possible. Your search for information should be easy, not complicated. And if you need some wisdom and counseling about the process, we’re here to help with that too.
We’re here for you whatever step you are in the process. You might just be starting out, you might be interviewing agents for a home you’re considering selling, or your home may have expired, and you want to switch agents. Please call Brett or Sande Ellis 239-489-4042 Ext 4, use our website, or email us and we’ll be glad to help.
See last weeks article “Once in a Lifetime Opportunity”