Monthly Archives: January 2018

Buyers Flock to Beat 2018 Interest Rate Increases

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Rising interest rates costs buyers money when purchasing a home.  It either increases their payment, or it decreases the amount of purchase to maintain the same payment.  Buyers have been warned for some time that rates would go up, and now they’re listening. Buyers flock to beat 2018 interest rate increases in 2018.

If you want to see where rates are headed, one indicator we look at is oil prices.  As the economy improves, countries consume more oil.  As oil consumption increases, it raises the cost of oil.  Simple supply and demand.   As oil prices increase, it raises the cost of inflation because so many things are tied to oil.  Transportation costs increase, so not only does it cost you more to fill up your car with gas, it also costs companies more to move their product.

Lumber goes up because there is more demand for building plus it costs more to cut it and move it due to oil.  Food prices go up because it costs more to plow the fields, and transport groceries to warehouses and eventually the stores.  Postage goes up as Fed Ex, UPS, and the USPS pay more to deliver mail and packages.  Oil influences a lot of things.

Buyers Flock to Beat 2018 Interest Rate Increases

As you can see from the graph, oil futures have been increasing since June of 2017.  The 10 yr treasury yield has been increasing since September 2017.  Oil price and interest rates are closely tied as they feed off each other.  Oil signifies inflation may rise, and inflation rises, so typically does interest rates.

Mortgages are most closely associated with the 10 Yr treasury yield.  Perhaps this is because not all mortgages remain for 15 years or 30 years.  The average homeowner typically sells and purchases another home before their mortgage is paid off.

Buyers Flock to Beat 2018 Interest Rate Increases

If you’re on the fence about when to purchase, the recent rise in interest rates may make you move sooner rather than waiting.  Even if you own a home, it may be a good time to sell and purchase that next home.

If you sell now, you have more available buyers for your home.  As rates rise, you will lose buyers to the increased costs.  And, you’ll save when you buy your next home too.  Not only will you qualify for more home today than when rates rise, you’ll also pay less when rates are lower.

Presumably you’ll get a higher sale now with more qualified buyers than you might with less qualified buyers later, and you’ll save money on the next mortgage.  It’s a double win-win for a seller contemplating a move.  Sure, home prices may still go higher, so it’s not automatic you’ll get more for your home today.  We’re just saying there will be less competition from other sellers now and more demand from buyers now than when rates rise.  It’s always more fun to sell when you’re holding more of the cards.

Rates have already begun to rise, so sellers aren’t holding all the cards they were 6 months ago.  We are seeing more inventory, which in a way is good thing because now sellers have more options when they decide to move.  Many sellers wouldn’t sell because they had no idea on where they’d go.  That’s opened up just a bit, which helps.

Always work with an experienced agent who knows the market.  If you’d like to search the MLS for Free like a pro, go to www.LeeCountyOnline.com  It has all the listings and is updated instantly. No more wasting your time on properties that sold months ago.  And you’ll see all the new listings instantly too.

Or Call Sande or Brett at 239-489-4042 Ext 4 to sell your home.  We have a team of experienced agent partners who can help you buy your next home too.

Always Call the Ellis Team at Keller Williams Realty!  We’re here to help!

Ellis Team Weekend Open Houses

Open House Saturday 11 AM – 1 PM

9793 Deerfoot Dr

South Pointe South Lakefront Home
Lakefront Home in South Pointe South

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9825 Wildginger Dr

Ellis Team Weekend Open House South Pointe South
South Pointe South Maplewood Floor Plan

 

Open House Saturday 1-3 PM

14381 Hickory Fairway Ct

$410,000

Buyers Flock to Beat 2018 Interest Rate Increases

 

9071 Old Hickory Cir

$375,000

$375,000 on Golf Course

Brookshire Condo

Open Saturday 1-3 PM

13235 Whitehaven Ln #1004

$131,000

2 Bed 2 Bath Brookshire Condo

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16804 Colony Lakes Blvd

4 Bed, 4 Bath, 3 Car Garage Pool Home in Colony Lakes

$390,000

4 Bed, 4 Baths, 3 Car Garage Pool Home

Open Sunday 1-4 PM

Cypress Lake Country Club Villa

14401 Patty Berg Dr #101

Cypress Lake Country Club Villa with Attached Garage

Local Housing Inventory Rises Heading Into Season

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As predicted local housing inventory rises heading into season in 2018.  This cycle repeats each year.  One of the things we are tracking is the moment buyers turn on and start gobbling up these properties.  Each year we tell people it takes until about January 15th or so for buyers to turn on.

Local Housing Inventory Rises Heading Into Season
Oct 2, 2017 Market Watch

So far, we haven’t seen it yet.  We just pulled fresh numbers as of January 15th and compared them to October 2nd, another data point we have saved.  We have some from earlier in year as well, and they look similar to October 2nd, so there is nothing magical about that date.

Local Housing Inventory Rises Heading Into Season January 2018
January 15, 2018 Market Watch Data

In each data point, sold and new pending sales are similar to new active listings.  What’s different about now is new listings have been outpacing sold properties about 3 to 1 and new pending sales 1.6 to 1.  At any other time, this would be alarming to see a sudden trend like this.

Because we know the New Year often starts off like this, we’re not sounding alarm bells, or false missile alerts.  We have enough of those lately.  We are telling sellers that have had their home on the market awhile that new listings are coming, so if their home failed to sell before the run-up in new listings, it may face difficult headwinds now. When selling a home, it’s always important to gauge the headwinds, and as we write this the buyers haven’t turned on just yet.

As the season goes, so goes the rest of the year many times.  The fundamentals for Florida are strong as an improving economy, new hiring, pay raises, and lower taxes is a good recipe for the housing market.  Add in the fact that Florida looks good compared to other states with the new tax code and we could see more net migration from other high tax states going forward.

When there are few homes for sale, pricing it correctly and getting it out on the market can sometimes be enough.  When listing inventory begins to rise, pricing becomes more crucial as does marketing.

It’s not enough to just list it on MLS and hope other agents show it.  You must reach the buyer.  The buyer has more choices, and often the buyer tells their Realtor which homes they’d like to see.  This takes increased advertising.

When we target buyers, we use several media.  We use traditional print like the newspaper, yellow pages and mail-outs as they still work.  We also use advanced online techniques to reach buyers.  Online we can identify buyers from up North that are looking to purchase down here in SW Florida.  We can also identify people in Southwest Florida that are interested in purchasing, then serve up ads likely to meet their criteria.

If you only market one way you’re not reaching all the buyers.  Of course, you must have a hefty budget as well to reach as many as possible.  We had a Realtor from Baltimore call us this past week wondering where we got our database of buyers.  He thought perhaps the state of Florida had one we bought into.  I told him no, it’s a large database the Ellis Team has garnered from extensive online and print advertising.

They say if a politician wants to win, they must speak directly to the people.  In real estate, if you really want to sell your home, you must market directly to the buyers.  That’s what our marketing does.

If you’re thinking of selling your home, you should call us and see for yourself.  Once you see it, you realize there is no better way to reach your buyer.

If you’re a buyer, you should call us too.  We have access to All the listings, not just the ones you see on certain websites.  You can reach us at 239-489-4042 or visit www.LeeCountyOnline.com to see All the listings.

Good luck and Happy House Hunting!

Ellis Team Weekend Open Houses

Open Saturday 1-3 PM

1465 Argyle Dr

1465 Argyle Dr

 

Open Sunday 1-3 PM

13408 Marquette Blvd

Riverfront Home

Keller Williams #1 in Fort Myers

Keller Williams Realty Fort Myers & the Islands announces that Keller Williams has attained #1 market share in 2017 for Fort Myers and Fort Myers Beach.  Both units and $ volume.

Keller Williams #1 Units 2017

 

 Ellis Team Seller’s Club January 2018 Update

Only One Real Estate Season in Southwest Florida

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You’ve probably heard the word “Season” and associated it with the traditional 4 seasons.  here is only one  real estate Season in Southwest Florida and we’re in it now.  People down here don’t think about the changing of the seasons as our weather is nice all 12 months of the year.  High season here runs January through April, depending on when Easter is.  Some people go home before taxes are due the middle of April.

Each year we know January will be a slower month for closings, and it builds until about June.  This makes sense because many June closings happened in April.  We expect showing to increase starting mid-January.  I just checked showing statistics for our MLS and the average home is receiving 2.2 showings the first 8 days of January in the $200-$450k price range in Fort Myers.  Other price ranges vary.  Last year showing stood at 2.4 showings the first 8 days.

Only One Real Estate Season in Southwest Florida

We have more showings this year because there is more inventory, but it’s down slightly per home.  I wouldn’t read too much into 8 days of data.  As you can see from the graph, February closings should be slightly higher than January.  March is when you’ll really start to see the increase, if 2018 is anything like past years.

If you’re a buyer, you probably want to get your bids in before other buyers start buying all the listings.  If you’re a seller, now is the time to get your home on the market, as the rush is coming.

If your home is on the market and not receiving offers, you’ll want to make sure you’re priced correctly by February.  Your best chance will be February and March, so you don’t want to miss that market.  Even though we have a rush of buyers here in Season, over-pricing is a sure-fire way to make it not sell.  Buyers will purchase, but nobody likes to overpay.

Sellers want to make sure their home is properly exposed.  We have more buyers here in Season, but if they don’t see or know about your home, it won’t stand out.  We take extra measures to make sure our listings stand out.  For instance, a sign is not enough to expose a home.  We use advanced digital marketing techniques, as well as traditional print marketing like the newspaper and yellow pages.

You might laugh and say traditional doesn’t work, but we have sold some properties directly off these old and proven mediums.  As for digital, this encompasses everything on the Internet to email to mobile advertising.  We have an advanced way to target buyers looking for exactly what you must sell.

For instance, Google, Bing, Facebook, and others know if you’re shopping for back to school clothes or for curtains for your home.  They’ll serve up ads to you because they know that’s what you’re currently looking for.  The same is true for housing.  We know how to reach waterfront buyers, golf course buyers, condo buyers, first-time home buyers, 55+ buyers, and on and on.  Whatever you’ve got to sell, we know how to reach the buyer.

It is quite advanced, and it really works, as long as your home is priced correctly.  We can send all the interested buyers your way, but if the home is over-priced it still won’t sell.  If you’re shopping for an item online and it’s $85 on one site and the same or similar item is $65 on another, people will purchase the better value.  Sellers must turn their focus off what features and upgrades cost and more on the overall value.  You must think like a buyer.  What would you do if you were the buyer?

We can help you price your home correctly.  We offer advanced marketing for your home too, so we can get your home sold for top dollar and faster than the average Realtor.  All Realtors are not the same.  Call Sande or Brett 239-489-4042 Ext 4 to list your home, or speak with one of our friendly and knowledgeable buyer agents to purchase your next home.  Visit www.LeeCountyOnline.com to search the MLS like a pro for Free!

Ellis Team Weekend Open Houses

Open Saturday 1-4 PM

Cape Coral Lakefront Pool Home

.68 Acres   Gated Community

 

Open House Saturday 1-4 PM

Waterfront Condo With Marina

Thinking of Selling?

Find Out What Your Home is Worth for Free!

 

January 2018 Southwest Florida Real Estate Market Update

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Welcome to the New Year.  Let’s look at some things we’re watching this New Year in our January 2018 Southwest Florida real estate market update.

Many agents we talk to are focusing on the fact that sales are down 12.4% in November.  Others notice that total dollar volume was down 10.5% in November.  Those are two data points we also look to gauge the overall health of the market, but it must be done in context.

January 2018 Southwest Florida Real Estate Market Update

January 2018 Southwest Florida Real Estate Market Update

We’re choosing to look at other data points right now and we’ll explain why. New pending sales are up 8.1%.  That bodes well for closed sales heading into season. New listings rose 9.8% in November over last year.  One could argue that sales have been riding even or ahead of last year, but down from 2016 levels is the fact that inventory has been low.  We’ve had a low inventory market for the past few years.  It is slightly rising now and that may be a good sign.

This gives home buyers more choices.  It also signals home sellers that have failed to sell that it’s time to re-evaluate their price.  If the market hasn’t responded to your price in 2017, it may not in 2018 either if inventory rises.  A new year is always a good time to re-evaluate and make changes.

While new listings increased in November, total available inventory fell.  Pending inventory increased which took out some available inventory.  Declining dollar volume in November makes agents feel like the market has slowed, but it’s a now indicator.  That now is a direct result of the hurricane.  The future indicators tell us the market could be picking up steam.  Therefore, it’s dangerous to evaluate the market by a sole month or single data points.  They must be evaluated in their entirety, and even then, it’s difficult to predict the future with certainty.

We always tell people season begins to pickup around January 12-15th, and it builds from there.  Very soon the 2018 season will come into focus.  We see some good signs moving forward.  As always, proper pricing matters.

Proper Pricing Critical For Home Sellers

No matter if it’s an up, down, or sideways market it’s critical to price your home to today’s standards.  Overpricing will get you in trouble regardless of how you perceive the market.  We do not have a runaway market to the upside.  We do not have a falling market.  The 2018 Southwest Florida real estate market is holding its own.  We have buyers and sellers, and that’s a good thing.  Buyers want to pay a fair price and sellers want to sell at a fair price.

As an agent, buyer, or seller, you can’t ask for anything better than that.  The difference between success and failure could well be determined by the agent you select.  Proper pricing and presentation to the market are critical.  Not every agent has the same skills or background to properly present your home to the market.

A great website to check out prices in your neighborhood is www.LeeCountyOnline.com You can be alerted when new properties come on the market in your neighborhood.  You can even get an online evaluation of your home for free.

Buyers love this website too because it is updated instantly directly from the MLS.  It has all the properties, so you don’t miss out on new properties hitting the market or outdated data.

Always Call the Ellis Team

If you’re looking to buy or sell, you should call the Ellis Team at Keller Williams Realty 239-489-4042.  We make sure our buyers and sellers understand the market.  Buying and selling real estate is easy when you have a pro backed with data that can help you make the best decision for your family.  It’s scary when you’re not confident you’re making the right choice.  An experienced agent backed by years of research can really help.  We’re not here to sell you anything.  The Ellis Team is focused on accomplishing your goals.

Call us if we can help, or research yourself at www.LeeCountyOnline.com  Good luck and happy New Year!