Last week we reported early signs point to a Southwest Florida real estate market shift.  The article went on to state that we’re noticing changes in the market, but nothing alarming.  It’s not alarming because real estate markets are constantly in a state of change. Southwest Florida real estate inventory rises in January.

7 Day Market Watch 2-1-19 Southwest Florida Real Estate Inventory Rises in January

One definition of a balanced market is 5.5 months’ supply of inventory.  We’ve seen others that state 6-7 months is the standard.  If we go with the Florida Realtors standard of 5.5 months, then officially we just transitioned over to a buyer’s market, but just barely.  Last month in December we had a 5.43-month supply.  In January it stands at 5.98 months.

Southwest Florida Real Estate Inventory Rises in January Months Supply of Inventory

Lee County available listings shot up to 6,542 in January, up from 6,004 in December.  That’s a 9% rise in just one month.  That’s typical in January as more people put their homes on the market in January than December.  The difference this year is that more people than usual also put their home on the market in November and December.

Home sales are picking back up again.  This past week the Ellis Team put 4 of our homes under contract in one day.  In fact, 314 homes went under contract this past week in the MLS.  We tell people sales usually pick up after the middle of January, and they have.

If 5.5 months supply of homes is the cut-off between a buyer’s market and a seller’s market, we’d say we’re fairly balanced at 5.98 months.  However, the market is moving and if you’re selling a home you need to know the trend.  This trend could change back again by end of season as homes start flying off the shelves and new listings taper off.

In any event, hiring a real estate professional who understands the market, and brings significant experience in all kinds of markets is critical.  You don’t want to hire an agent to sell your home who has never experienced a shifting market.  This is the quickest way to becoming an expired listing, and the process isn’t quick.  Why wait to sell your home when you could have just sold it correctly the first time?

We don’t have a bubble market like we did back in 2006.  If we did though, you sure wouldn’t want to hire the wrong agent and get caught chasing the market down.  There’s an old adage that says, “If you don’t have the time to do it right the first time, when in the world are you going to find the time to do it right the next time?”

There’s another adage that says, “If you think hiring a professional is expensive, just wait until you hire an amateur!”   Most people want to hire the least expensive agent they think they can get away with.  The thinking goes, if I pay less, I’ll probably net more in my pocket at closing.  That stands to reason, except for the fact that it isn’t true.  Sometimes you get what you pay for, and in some cases, you get much more than you pay for.

The Ellis Team at Keller Williams Realty has a history of selling homes faster and for More Money! The agent you select really makes a difference.  We hope you find our market updates informative. We believe knowing the market is helpful to make the best financial decisions for you and your family.  Knowing that your agent cares about you, knows what’s important to you, and knows how to get you there is key as well.

If you’d like to chat about selling your home, always call Brett or Sande Ellis 239-489-4042 Ext 4 Get your home’s value for Free at www.SWFLhomevalues.com If you’re looking to buy, you can call us too, or feel free to search the MLS like a pro at www.LeeCountyOnline.com

Good luck and Happy Selling!

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Ellis Team Featured Property of the Week

Low Inventory Leads to Quick Home Sales in SW Florida

If you price it right, they will come.  We’ve been saying this for years, and it’s true.  Perhaps you’ve read recent headlines that shows home sales are down.  This would also be true but not for the negative reason the headline implies.

Simply put, home sales are down only because we don’t have much to sell.  We have greater demand than supply.

Low Inventory Leads to Quick Home Sales in SW Florida

If you look at the inventory chart for single family homes in SW Florida you’ll find that inventory levels are at their lowest level in years.  Inventory levels usually begin to rise in October through season, so we’ll have to keep our eye on that.

Buyers aren’t really prepared for the competition for new listings.  Their agent tells them it’s a good market and multiple offers are more often the rule rather than the exception, but it doesn’t sink in until they experience it for themselves.  There’s nothing quite like losing out on your first and second choice home.  It begins a powerful soul search and buyers have to ask themselves a hard question.  How bad do I want a home?

Most want one.  Some think about it and fear takes over so they do nothing.  They try again next year after feeding the rent monster and can’t believe how much waiting has cost them.  And the process begins all over, until the fear of remaining the same is greater than the fear of change and they take action.

New SW Florida Pending Sales October 2014

Look at the new pending sales chart.  This chart measures only new pending sales during the month.  It is not cumulative pending sales.  You’ll see new pending sales are rising over previous years at a time when inventory is falling.

This is why average sale prices are up 14.8% while median prices are up 3.9% from last year.  Combine that with a temporary drop in interest rates and you can see why we have a buying frenzy in SW Florida.  Other parts of the country aren’t experiencing what we’re seeing here, but then again they didn’t go through the tough times we did for 6-7 years either.

Builders didn’t build here for years.  Now that companies are hiring and moving here, we have a shortage, but thank goodness inventory is coming online.  It’s hard for a buyer to know where the inventory is, however an experienced agent who is active in the market knows and can help you.

The Ellis Team will be conducting home buyer seminars in November to help buyers.  We’ll educate you on how to get the best financing and what the lenders are looking for when you apply.  We’ll teach you how we get our offers accepted by sellers.  You have a limit to what you can afford, so we structure your offer to stand out.  We’ll show you where the new and existing inventory is that other buyers might not know about.

We teach you about flood insurance, homeowners insurance, the inspection process, and more.  You’re not in competition with the seller.  You’re in competition with other buyers who want the same homes you do.  We’ll educate you so you’re more informed.  Knowledge is power, and you can use that power to get in your home now before rates and prices price you out of the market.

Call our office to signup for one of our November seminars. 239-489-4042  Or you can email me at Brett@topagent.com  Feel free to search the MLS on our website www.Topagent.com If you can’t wait for our seminars this month, call us and one of our buyer specialists can meet with you one on one and get you a head start.

The market is Hot.  Sellers are doing well.  We’d like to help buyers take advantage and get in now before it goes higher.

Good luck and Happy House Hunting!

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By Brett Ellis

RE/MAX Realty Group – Ellis Team

Fort Myers Real Estate Agent

7910 Summerlin Lakes Dr

Fort Myers, FL 33907

239-489-4042

 

Like clockwork closed sales are on the rise starting in August. Last year we closed 896 single family home sales and in August 2013 we closed 1,069 for a 19.31% gain. This is especially interesting considering inventory levels are low. Closings on the Rise in SW Florida.

Closings on the Rise in SW Florida

Higher closed sales and lower inventory levels led to an increase in prices again. Median prices in August 2013 were $165,000 which was up 26.9% over last year’s $130,000 level, and average home prices were up 26.4%.

Single family home listing inventory in SW Florida Fort Myers Cape Coral real estate market

We also like to look at month over month prices and median sale prices increased 1.23% from $163,000 in July to $165,000 in August. Average price gains were only .28% but a gain nonetheless.

As we write this article the government is still shut down and it’s impossible to tell what effect this will have on the economy, financing of mortgages, both conventional and government mortgages, and closings in general.

The consensus is that a prolonged shutdown will affect the economy as we’re taking hundreds of thousands of paychecks out of the economy. The larger affects could be to the confidence of the consumer, so suffice it to say Congress and the President should be talking instead of blaming each other.

Should Washington get its act together we could be in for another good season. 2014 is shaping up to be a better year in many regards and the last thing we need is government getting in the way.

Next week our MLS systems are supposed to merge. I’ve heard Oct 12 is the date and Oct 21. In any event, after the glitches are worked out, using the MLS and gathering data should be much easier for Realtors and consumers. Our website Topagent.com lets you search the entire MLS. Soon the data feeds should contain listings from Naples to Cape Coral. Sanibel and Captiva will be the only area not included in the new MLS although many of the listings end up in the common database anyway as island agents want the extra exposure.

After the MLS merger there will be increased pressure on small MLS’s like Sanibel and Captiva to join. Typically Sanibel and Captiva have resisted as they’ve wanted the island to themselves and have tried to shut out Realtors from off the island, but in this day of technology that may be increasingly harder to do as buyers and sellers with multi-million dollar properties demand more from their agents.

If Naples can join a common database so too can Sanibel and Captiva.

If you’re a seller, now is the time to gear up your home sale for season. Give us a call at 239-489-4042 and find out how we sell our homes fast and for more money. We’ve got a marketing system that works and we’ll be happy to share with you how we do it.

Good luck and happy house hunting!
To search the MLS for properties go to www.TopAgent.com or give us a call at 239-489-4042     Good luck and Happy House Hunting!!!

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