June housing inventory levels remained at 3 weeks of inventory compared to April. We did see some movements in the markets the past few months. Let’s look at which price ranges changed since April.
We have a little more inventory today in the $300k-$600k price range. The $300-400k range grew by 42 homes and the $400-600k range grew by 50 homes. Overall inventory grew by 91 homes. We saw an increase of 38 homes on the market in the $250-300k range. All price ranges saw increases in inventory except for $250,000 and below which all saw decreases in inventory. What offset the increase in inventory was steep closed sales in the $300k+ market.
While $300k plus market did very well, the $600k+ market is booming. June housing inventory levels are declining in the $600k+ market while it is increasing in the $250k-600k market.
The 365-day moving average number of homes sold has increased since April which indicates the market is gobbling up any increased inventory. The numbers tell us we have a robust housing market despite rising interest rates.
In April we saw a 160.2% increase in the number of cash sales over 2020. Closed sales were up 63.3% in April, so this tells us more buyers are paying cash. In fact, 35.5% of all deals in April were cash.
If closed sales were up 63% in April, why are agents talking about a slowdown? We may see a slowdown in sales, but it will not be because of lack of demand. Supply plays a role too. New builders may turn out less product in the second half of 2020 and it will not be due to lack of buyers. Many builders have cut off sales to keep their backlog manageable.
We will keep our eyes on the market to see if certain price ranges begin to accumulate inventory. So far we are not seeing it in any meaningful way, and in fact many ranges are still decreasing.
New Listings We are Working On
Our team has been working on several nice listings we will be bringing to the market soon. What is different now than in years past is it seems to take sellers longer to make their decision to sell. Many factors go into a decision to sell and sometimes a lot of things need to happen first. We work with sellers to help with these details.
We have a new program for sellers that allows them to purchase a home first then sell their existing property with no interest or payments for 6 months on their existing home. With the correct marketing plan sellers receive Top Dollar in this market. The biggest mistake we see sellers make is believing the market is hot, so they will automatically receive top dollar. There is a difference between selling for a number you would settle for versus selling for the top end of what the market will pay. Sometimes that difference can be tens of thousands of dollars or more.
To find out what your home is worth, go to www.SWFLhomevalues.com This is a starting point. Often, we are selling homes above appraised value. You can speak with Brett or Sande Ellis at 239-310-6500 and we can discuss how much we could really sell your home for, where you would go, and help with those details that impact whether it is a good time to sell now or not. Believe it or not, it is not usually the price that matters to sellers. Working out the details of how a sale would work is usually the biggest obstacle. Many people would like to sell if only they had someone to help them with all the details.
This is where the Ellis Team comes in. We look forward to working with you to manage all those details and get you Top Dollar.
Good luck, and Happy House Hunting!
To mimic the success home sellers are having through their Realtor, several home builders have instituted a highest and best offer format on their homes. Basically, it works like this. The buyer makes a binding offer on a lot. There is typically a stated priced however the buyer can offer highest and best. The winning bidder chooses the home they want built and they go to contract.