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.
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.
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!
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