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.
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
Reflection Lakes Open House Sunday 1-3 PM
South Pointe South Open Sunday 1-3 PM