Most people tend to believe the lower end is always the strongest segment of the real estate market. If you looked at the October Months’ Supply of Inventory you would agree. The months’ supply graph is a snapshot in time, so we added a little something to it this month. Upper end homes leading the SW Florida real estate market.
What if you looked at the change in direction from our previous snapshot in July? Would that change your opinion? Static data paints a picture and changes in direction tells a story. The changes are not huge numbers. For instance, the $Million+ went from 15.66 months in July down to 14.62 months in October.
Each price point above $300,000 saw a reduction. Each price point below $300,000 saw an increase in months’ supply. Many times, we see a price range here and there flip, so it stood out to us when we saw such a shift up to a point certain.
Upper End Homes Leading the SW Florida Real Estate Market
So, what does all this tell us? Perhaps a lot, and perhaps not much. It tells us we should keep an eye on it more so for the change in direction than for the change in numbers themselves. You see, the number change isn’t particularly significant.
We did have a disruption in the market in September. Could it be that lower end homes were hit harder than upper end homes? Possibly, but if it were true that closed sales were disrupted you would also think that current inventory would be disrupted too. Could it be that prices have risen to a point where first-time buyers and below $300,000 buyers are tapped out and can’t afford more increases?
If the latter were true we’ll see that going forward. Keep in mind, as season approaches we’ll have more listings coming to the market and more buyers from up North buying homes too. That can skew local buyers’ affordability issues until after season.
My intuition tells me numbers going forward will be strong. While we’ll track these numbers going forward they may just be a blip. I would have expected the lower end to have done better simply because we see lower end homes being gobbled up in days if not minutes.
Data Speaks For Itself
We like to report the numbers as we see them. We don’t use the numbers to prove what we think is happening in the market. The numbers tell us what actually is happening. From there we can interpret what we think it means, but it does no good to try to use numbers to prove a point just to be right.
Throw in a hurricane for good measure and numbers can state about anything you want them to say. We’ll report September housing numbers for Southwest Florida soon. As you would imagine, our market was disrupted, and the numbers bear that out. We may even see a rise in October numbers due to sales that were postponed from September.
Our team is bringing several homes to market. We’ve got some good values and more coming. If you’d like to search the MLS like a pro, visit www.LeeCountyOnline.com Customers love it because the data is updated instantly. This past week a customer asked me why a home shows one price online but a different price on our website. I explained that our website has an instant feed, so when any agent in MLS changes a price or adds a new listing, it shows up right away on our site.
Accurate, Speedy Data Wins
This is particularly important when you’re looking to find the right home. Speed wins, and beating out other buyers to hot new properties can be the difference between owning that home and watching someone else buy it. The same is true with price changes. Imaging having your eye on a property and seeing it sell because it was reduced. But you didn’t see the reduction because the site you use never displayed it. It was sold before they could display it. That doesn’t happen with our website.
If you have a property to sell, the Ellis Team can sell it fast and for Top Dollar. Call Brett or Sande 239-489-4042. We can help you buy that dream home too. Always Call the Ellis Team at Keller Williams Realty!
Ellis Team Featured Property of the Week
New Listing in Reflection Lakes