SW Florida real estate inventory supply rose slightly since October. In October the months supply of inventory stood at 4.33 months. Today the real estate inventory supply registers 4.43 months. We’ve been reporting that listing inventory has been growing since October, but so has pending and closed sales. This chart illustrates the relationship between active inventory versus closed sales the last 365 days and its effect on real estate inventory supply.
Sometimes we have a glut of inventory and low sales. Other times we have low sales because there is little inventory to sell. The relationship between the two data points tells a story. The market is constantly moving; therefore, we are constantly studying it. If you think you have the market all figured out today, you’re an expert for one day. Studying the numbers is a never-ending process, but it is what’s required to keep clients educated so they can make the best selling and purchasing decisions available.
Looking closer at the numbers reveals in general the lower priced ranges below $300,000 did the best. Most all these ranges saw even or declining supply relative to sales. The $600k- $1 Million and the $1 million plus ranges gained the most inventory. We have three possible theories as to why this occurred.
Higher priced homes generally take longer to sell, so it’s possible there is a lag between the time sellers place their home on market and time it closes. The other theory could be that buyers have really turned on in the lower ranges due to lower interest rates. Perhaps buyers in the lower ranges are more interest rate sensitive. Lastly, it could be that mid-range and higher range buyers are move-up buyers and have recently sold their entry level homes. They could help push sales higher in the mid ranges in the coming months.
While any of these theories are possible it proves that the market doesn’t always move in tandem. Certain ranges get hot before others, and certain ranges cool before others. We’ve even seen certain ranges remain hot and other ranges remain cold for extended periods of time in the past. While every market is local, there are several sub-markets in any market.
Sometimes it’s unfair to report how the overall market is doing, because it can distort what’s going on at the neighborhood level, or at particular price points. Have you noticed that certain stocks slump while the overall stock market is on fire? The same is true in real estate.
The Ellis Team gets called on several listing appointments each month. Sellers call us because they want an accurate valuation of their property. They don’t want to under price it and give equity away, and they don’t want to over-price it and have it sit on the market with no offers. Some sellers have an honest disagreement about what the market is telling them their home is worth, so they choose not to sell, or they list it above market value, and it fails to sell. It’s natural to think your own home is worth more than other people think it’s worth because you’re emotionally tied to it. We get it, and as humans we feel the same way about our own stuff.
Therefore, it pays to have someone else you can trust represent you. A non-biased advisor can be honest with you and educate you about the market and where your home stands relative to the competition. We enjoy helping people get Top Dollar for their homes through our market knowledge, expert negotiating, and world-class marketing. We also know pricing it correctly upfront will help get a better price. And if you place your home on the market and it doesn’t sell, don’t stop marketing. It may be time to re-position it in the marketplace, but don’t stop the marketing. You’ll need more marketing juice to inform buyers of the new price.
To learn more about your home’s value, simply call Brett or Sande Ellis 239-489-40402 Ext 4 or visit www.SWFLhomevalues.com to get a Free and instant online value of your home.
See last week’s article “December Real Estate Activity Busier than Usual”
Good luck and Happy Holidays from the Ellis Team!