There are several indicators to judge the real estate market in SW Florida.  A few of the things we look at are Inventory levels, pending sales, closed sales, and price changes. Real estate inventory levels grow in SW Florida.

Real Estate Inventory Levels Grow in SW Florida

A neutral market is considered to be 5.5 months.  When we last calculated month’s supply of inventory back in December 2016 the overall market supply for single family homes was 5.65 months.  That number has grown to 6.29 months.  That’s still a healthy number, however it is growing.  This could be an indication of a shifting market.

Market shifts are entirely normal.  They are as guaranteed as the weather changing, so it’s nothing agents fret about one way or the other.  Experienced agents are accustomed to dealing in shifting markets.  The way you market and sell does change as the market changes.  In fact, just last September the average supply was 5.07 months.  We warned months ago we’d be keeping an eye on these numbers to see if the trend continues.

Real Estate Inventory Levels Grow in SW Florida

Since September we’ve seen an increase of more than 1 month supply of homes on the market.  Because this index includes active listings plus pending sales with contingencies, we won’t get too excited because we have many pending from season that may close and help bring these numbers up.

So, what’s the take-away from these numbers?  Sellers have increased competition from other sellers.  The buyer is not your enemy.  Other sellers are.  Increasing inventory supply puts a damper on price increases.  At some point, it can stall price gains altogether.

It also pays to know where your home stands in the food chain.  For those that have a million dollar plus home, you realize there is almost a year and a half supply of competing homes on the market.  If your motivation is to sell, you have to price your home to best compete against all those other homes.

If you have a home in the $300,000-$400,000 range, you too need to watch the market as your price range is above the average.  Homes, $300,000 or less, are doing better than the overall market as there are more buyers fighting to purchase these homes.  Not everyone qualifies for the higher priced homes.

When bringing a home to the market you must ask yourself, what is your motivation?  Where are you going when you sell, and when would you like to accomplish this?  Look up your home’s price in the chart and evaluate it objectively.  Pretend you’re a buyer.  Would you buy your home right now for the price you’re asking?

Hire the Best Agent

If you don’t like the category your home is in, it’s imperative that you hire the best agent who has experience working in a shifting market, and brings serious marketing for your home.  The more buyers who are exposed to your home, the more your home will fetch at the sale.  In some cases, it may be the difference of selling at all.

The other thing you must do is price it correctly.  Your number can’t be what you’d like to get, or what you need to get.  It has to be what the market will bear.  The market has no sympathy.  It doesn’t care if your home is your retirement nest egg, or you owe a lot on it.  The market sizes up all the homes for sale and ranks each one.  The home’s that show the most value relative to their price sell.  Even if a home is super nice, if it is overpriced relative to its value, it will sit.

Think of a pro football player.  A team only has so much money to spend.  They have a budget.  If there is an all-pro quarterback available in the free agent market whose value is $10 Million per year, but he wants $30 Million because he’s special will a team pay it?  Probably not if they can get another all-pro quarterback in the $10 Million dollar range.  They’ll save that $20 Million and spend it on other players they need to fill out the team.  Tony Romo just retired because his value dropped.  He wants top money and while teams would love to have him as a backup, he’s not the franchise player anymore.  It’s sad, but it’s reality.

It doesn’t matter how nice a home is or what it has in it.  If you overprice it relative to the market, it won’t sell.  You can search the MLS like a pro for free at www.LeeCountyOnline.com Please call the Ellis Team 239-489-4042.  We’ll help you price it fairly, and market it aggressively.

Ellis Team Weekend Open House

Sunday 1-4 PM

Big Changes to Real Estate Sales Contracts Gulf Access Waterfront Pool Home
Gulf Access Waterfront Home

1516 SW 43rd St Cape Coral

Pool Home

3 Bedrooms, 3 Baths

$560,000

SW Florida real estate agents were expecting big numbers this real estate season, and so far, we’ve seen SW Florida home sales flat this season.  The real key going forward will be March and April numbers when they are released over the next two months.

SW Florida Home Sales Flat This Season

We have a crystal ball that tells us how sales numbers might come in.  Pending listings leads to closed sales.  While not all pending sales close, we can generally track future closings by the level of pendings.

Pending inventory is down 5%, so it’s logical to believe that we won’t see a major increase in future closings unless many more homes go pending at the end of March.

SW Florida Home Sales Flat This Season Summary

Inventory levels have risen 6.1% from last year and month’s supply of inventory has risen 11.1%  While SW Florida is a large and diverse market, overall this tells us the market has cooled a bit as inventory is growing with fewer pending home sales.

We can’t judge a book by its cover.  The cover may say we have a healthy, slightly cooling market, and that’s OK.  This book however has many chapters, and each chapter tells a different story.  Collectively all the chapters combined give us the overall figures.

Homes priced below $300,000 are on fire, and even many homes priced higher are receiving multiple offers.  We have a good market and demand from buyers.  Prices have risen steadily in recent years and there is a cap to this.

Home sellers many times price ahead of the market.  In a rising market, each new seller prices just higher than the last sold and it seems to work, until one day it doesn’t.  This tells us either the market is taking a pause, or the market has capped relative to the income typical buyers have to qualify for that bracket of home.

Rising rates also influence home affordability and can cap prices.  We’ve seen a few rate hikes by the Fed with more coming.  On balance, we have a healthy market and I like where we’re sitting.

SW Florida Home Sales Flat This Season

As in any market, it’s imperative to price your home where the buyers are.  In a shifting market advertising and marketing plays a larger role as well.  Full market exposure brings the highest possible price, so don’t settle for inexpensive or non-existent advertising.

If the agent you interview tells you advertising doesn’t sell homes, it’s probably because they don’t advertise homes much.  Perhaps they prefer to advertise their public image, or perhaps they just don’t have the budget to market listings.  In any event, it pays to interview agents that do advertise so you get full market exposure.

We’d be happy to sit down with you and cover all the ways we advertise homes.  You’d probably be surprised at the difference, and this might explain why certain agent’s homes sell faster and for more money than others.

If you’re a buyer, we can help too.  Our market knowledge and monthly market statistics help you make the best decision possible.  When competing in multiple offer situations you need an agent that knows how to help your offer compete.  If the chapter you’re looking in happens to be a cooling market, you don’t need to stretch too much and overpay.  Let a seasoned professional from the Ellis Team help you.

You can search the MLS like a pro.  Our database is updated every 5 minutes and contains the latest listings, price changes, and information you need to compete.  If you’re a seller, you should check it out too.

Always Call the Ellis Team at 239-489-4042 and ask how we can make your dreams become reality.  It pays to work with professionals that know the market.  If you think working with a professional is expensive, just wait until you hire an amateur.

Good luck and Happy House Hunting!

Ellis Team Open House

Open House Saturday 1-4 PM

15047 Balmoral Loop

Gated Community

3 Bed 2 Bath Pool Home

$317,000

Official January 2016 real estate sales numbers are in for SW Florida and as expected single family home sales fell 5.5% Condo sales were down 7% from last year.

January 2016 Real Estate Sales Numbers Are In Home Prices SW Florida

Median sales prices were up 22.6% over last year; however they were only up .87% over last month.  We did see a big jump in mean average sale prices in January, going from $280,186 in 2015 to $427,536 in January 2016.  That’s a 52.6% jump.  One reason we don’t use the mean average is because one large sale can skew the numbers.

Pending inventory fell 13.6%.  Some say it is because we have fewer inventories to sell while others suggest the market may be taking a breather and leveling off.  Now that the stock market has recovered some and oil has rebounded off its lows, maybe we’ll have a sense of stability going forward.

January 2016 Real Estate Sales Numbers Are In Singe Family Homes Sold

Of course we have that election thing hanging out there and I think everyone can agree this election cycle is like nothing we’ve ever seen before.  If uncertainty creates confusion, we’ve got it in this election process.

Within the next few months perhaps the economy’s future will come into focus and people can start planning where they want to go with their real estate desires.  So many in SW Florida have options now that their mortgage has paid down and prices have risen.  Many feel like they’re no longer in jail and are free to explore their options.

We’ve seen an increase in local homeowners considering a move.  They need to properly value the current home they have and see what improvements or repairs are needed to make it most sellable.  They also want to know what they can buy if they do sell.

Our website www.LeeCountyOnline.com is great for both because you can search all the listings available for sell, as well as see sold and pending data in your neighborhood via the Market Reports section on our site.  There is even a button to receive an online computerized valuation of your home.

Deciding whether to sell a home and buy another home is like putting together a puzzle.  All the pieces have to fit, and when they do you have to decide if you like the finished puzzle.  There is no substitute for meeting with a professional Realtor who understands this process.  However, if you just want to turn all the pieces over and begin putting the corners and edges together first, our website is an excellent place to start.

If you’d like advice from a professional, give us a call.  239-489-4042 We’re friendly and never pushy.  We simply present you with your options and let you decide what’s best for you.  If you do decide to make a move, you’re not going it alone as you have someone by your side advising you and helping you with the process.  We turn a complicated process into a smooth transition for you and your family.

And we help you avoid some costly mistakes.  Please call, we’d love to help you.  We’re the name you know and the people you trust.  Always call the Ellis Team at RE/MAX Realty Group. 239-489-4042

Open House This Weekend Sat 1-4 PM

Ellis Team Open House
Large pool home in Cape Coral-Open House Sat 1-4 PM

2110 SW 13th St Cape Coral