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.

Real Estate Inventory Supply SW Florida

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!

The month’s supply of SW Florida real estate inventory supply declined in July from April levels.  There are many reasons for this which we’ll go into detail.

Sellers are listening.  Buyers’ motivation topped out about 9 months ago and sales suffered.  We’ve seen instances in the past where buyers were at one level, and sellers were at another level, and there was a standstill.  The longer the standstill, the longer homes sit on the market and inventory grows.

SW Florida Real Estate Inventory Supply Declined in July

This time around, word got out and sellers didn’t want to be caught holding the bag.  They made the adjustments quicker, and it’s paid off.  Sure, nobody is happy to reduce their asking price.  Without movement, nothing would happen.  If a seller’s true desire is to sell, then you’ve got to find that price point where price equals value in the market’s eye.  It looks like sellers have been doing that.

For the most part, inventory has declined, and sales have increased.  Inventory declined in all price ranges in Lee County Florida.  Closed sales increased in all price ranges except the less than $100k and $100-150k ranges.  This decline could simply be a matter of not as much inventory to sell, therefore not as many closed sales.  With months supply of 1.25 months or less, it’s hardly worth mentioning except to be factual.

Buyers should take note.  You’re no longer in the driver’s seat.  With 4.57 months’ supply of overall inventory we’re back to a seller’s market, statistically speaking.  Sellers, don’t get too excited either.  It really depends on which price range your home is located.  Once your home crosses that $300,000 threshold you enter neutral to buyers’ market territory.  If you’ve got a home that’s been on the market awhile, it’s probably time to adjust to where the buyers are.

If you’re a seller priced under $300k and your home is not selling, there is a problem.  An immediate adjustment may be in order.  If it is priced correctly, it should be getting action.  We tell sellers we should be getting offers about every 4-5 showings.  If we’re getting showings and no offers, the marketing is working.  The price or condition isn’t.  If a seller isn’t getting showings, it’s either the price or the marketing.  It could be both.

As a seller, you’re really in charge of two things.  Setting the correct price and selecting the best agent.  Mistakes in the MLS, bad photos, or lack of marketing muscle can be a turnoff to buyers or make your listing invisible.  We’ve seen lack of good marketing cost sellers a sale, or thousands in their pocket at closing because they didn’t attract the highest and best buyers for their home.

If your home is overpriced, you’re just adding to the marketing time and kidding yourself.  Typically, in the end you’ll end up taking a lower price than you otherwise would have had you priced it correctly upfront.  If your agent recommends taking action on price, listen.  If you aren’t having that conversation with your agent, perhaps it’s time to be proactive.  Perhaps your agent recommended a lower price at tie of listing, but you were stubborn or convinced it should be higher.  Perhaps your agent has recommended price adjustments and you’ve declined.  Whatever the case, ultimately, it’s on you as the seller.

If you decline your doctor’s advice, the results are on you as the patient.  If you decline your attorney’s advice, the results are on you as the client.  The same is true in real estate.  It’s your home.  If you’re OK with owning it and not selling, then that’s fine.  If you’re not OK and would like to move on, it’s time to adjust.  It’s either the marketing or the price.

If your home has expired, or if you’re considering putting your home on the market, perhaps it’s time to get a 2nd opinion.  Always Call the Ellis Team.  We specialize in getting homes sold the 1st time.  We’d be happy to look at your home and figure out what we can do to sell it.  239-489-4042 Ext 4 or www.LeeCountyOnline.com  Ask for Sande or Brett Ellis.

Ellis Team Weekend Open Houses

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