Monthly Archives: April 2018

Southwest Florida Housing Supply Declines Since February

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In February we reported that the housing supply in Southwest Florida stood at 5.48 months.  We are happy to report the Southwest Florida housing supply declines since February, down to 5.28 months.  This occurred for two reasons.

Active inventory fell from 5,705 homes for sale in February down to 5,552 in late April.  Closed sales in last 365 days back in February were 12,487.  Today that number rose to 12,612.  Both statistics helped reduce the months’ supply of inventory in SW Florida.

Southwest Florida housing supply declines

Sometimes sales are low because of rising prices, and sometimes they’re low simply because there isn’t enough inventory.  Inventory has grown in the last few years a bit.  Closed sales fell 2.7% in March from previous year. Closed sales in February were up 10.7%, and its possible closed sales in April are up too which affects that number.  We won’t have official closed sales numbers for April until late May.

In almost all price ranges housing supply fell except for the $200-$250k price range, which actually grew from 3.72 months’ supply to 3.85 months’ supply.

These numbers tell us our market is balanced and healthy.  Most experts agree that a balanced market is around 5.5 months supply. At 5.28 months we’re right there.

Of course, markets vary by neighborhood amenities, location, price range, and more.  The chart shows you how each price range is faring right now. Obviously, it you have a $1 Million plus home, it will take longer to sell on average than lower priced homes.  There just aren’t as many buyers as there are sellers.  The Ellis Team just sold a $1.1 Million condo in Gulf Harbour in 122 days.  It takes aggressive marketing and proper pricing to make that happen.  Currently there are 6 active listings in this building and no pending sales.

We’ve had a great season so far. Our sales have doubled over last year even though the Board of Realtors membership has only increased 4.3%.  I’ve spoken with a few other top agents who are also having a banner year. This tells us that experienced agents who spend money advertising and have been through up, down, and sideways markets are getting it done.  Experienced agents have the knowledge to navigate their sellers though any kind of market.

Listing your home with a family friend, neighbor, or relative can cost you thousands on your sale, and might cost you a relationship as well.  We don’t have the burden of trying to get the number you want or need.  We can objectively investigate what the market is paying for your home.  Then we target buyers online and through our networks to find that buyer.  The days of sticking a sign out front or placing it in MLS and hoping someone will sell it are gone.  To get Top Dollar you must go out and find the buyer.

If you’re a buyer, you want to know how prices are performing in a community, how fiscally solid the homeowners association is, and other factors that may be influencing the market.  Working with a skilled, full-time, knowledgeable Realtor is key.  You won’t realize how much it costs you to hire an inexperienced agent until you run into issues, and then it will be too late.

We’re keeping our eyes on interest rates in the coming weeks.  If they rise it will put pressure on buyers to make a move this summer.  They’ve already risen, and we believe there is room to rise much more over the next few years.  Waiting to buy or sell will cost buyers and homeowners with higher rates and will put pressure on affordability.

We encourage you to check out www.LeeCountyOnline.com where you can search for all the homes on MLS.  Or, you can call us at 239-489-4042.  Ask for Sande or Brett Ellis if you’re thinking of selling.

Good luck and Happy House Hunting!

Ellis Team Weekend Open Houses

Whiskey Creek Open Saturday 1-3 PM

1455 Claret Ct

Reflection Lakes Open House Sunday 1-3 PM

13994 Reflection Lakes Dr

South Pointe South Open Sunday 1-3 PM

9721 Deerfoot Dr 3 Bed 2 Bath Home

9721 Deerfoot Dr

 

How to Sell Your Florida Home Out of Season

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We’re hearing from a lot of sellers who are concerned that their home has been on the market awhile and it didn’t sell this season.  They’re calling asking how we market homes and what they can do to get their home sold before their listing expires.  This article includes tips on how to sell your Florida home out of season.

How to Sell Your Florida Home Out of Season
Win the Beauty Contest

We get it.  Sellers who weren’t successful are frustrated.  The sellers who listed and sold are happy, and the ones who listed and sat are not.  Putting your home on the market is a lot like entering a beauty contest.  Even though your home is beautiful, it may get skipped over by other beautiful homes that compete more favorably.  The other contestants take the prize.  Two weeks pass by and another bevy of beauties hit the market before you get the chance to reduce your price.  Your beautiful home never really got the chance to be the new beauty on the market.

Sometimes a new beauty comes on the market and it attracts multiple offers.  Before you know it, it sells for full price, maybe even more. It’s frustrating to watch other homes take the crown while yours is left standing on stage.  The good news I guess is that there’s a new beauty contest upcoming, but you’ve got to make some changes, or you’ll suffer the same fate as the last contest.  After awhile they’ll start asking what’s wrong with you, why are you still here?

We’d like to help you avoid this madness.  Before we begin, let’s just state that we too have some homes that occasionally don’t sell.  When sellers take our advice, their home sells.  You have to want to be the winner.  Here’s our formula to win the next beauty contest.

  1. Hire the right Realtor.  Not all Realtors are the same.  They don’t advertise the same, have the same number of leads, or have the experience necessary to lead you through the process.  You’ve seen very talented teams lose the big game due to coaching mistakes.  Hiring the right coach can make all the difference.
  2. Price your home correctly. If the market doesn’t respond, adjust.  The market doesn’t stand still, and neither does your competition.  New homes enter the market, and existing homes make price adjustments. If you list a home and never change, you may get left on stage.
  3. Make sure your home looks as good as it can. You don’t have to remodel.  Simple things can make a big difference.  Talk to us and discover how certain minor changes, can make a big difference in the judge’s eyes.
  4. Listen to your Realtor. If you did the research and hired the best Realtor, it’s crazy not to take their advice.  If you’re not going to listen to your Realtor, I guess it doesn’t matter who you hire.
  5. Listen to the market. The market speaks to you.  If you’re getting lots of showing but no offers, a small price adjustment may be necessary.  If you’re not getting showings at all, you either have a large adjustment to make, or something is off with the marketing.  Perhaps there is a field wrong in MLS.  Is your home being advertised in the paper, online, and to other Realtors?  Perhaps a highly advertised open house may be necessary.
  6. Don’t be afraid to make a change. Sometimes owners list with a friend or relative.  This is dangerous because they often want to please you.  They may be afraid to tell you the market has shifted, or they may miss it because of their love for you.  Listing with a friend or relative can destroy your relationship.  If that is your situation, give us a call.  We have a way of handling this for you and getting your home sold without offending your friend.

If you have a home to sell, we’d love to help you.  Simply go to www.SWFLhomevalues.com and enter your address.  We’ll provide you with a free online market evaluation.  If you’d like to go to the next step, we can schedule a time to meet your and view your home.  Or, you can always call Sande or Brett Ellis at 239-489-4042 Ext 4.  Always Call the Ellis Team!  We’ll get your home Sold!

Ellis Team Weekend Open Houses

Reflection Lakes – Open Sunday 1-4 PM

13994 Reflection Lakes Dr

14016 Shimmering Lakes Ct

Colony Lakes – Open Sunday 1-3 PM

16804 Colony Lakes Blvd

Social Media Marketing Privacy Concerns

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Lately you’ve probably heard a lot of news and buzz surrounding Facebook and other online companies and their use of private data.  Specifically, your private data.  Let’s talk about your online digital footprint and how social media marketing privacy concerns affects you.

Social Media Marketing Privacy Concerns

When a person goes online they are tracked, both by what they search for on sites like Google and Bing along with what they do on other sites.  You’ve probably shopped online for an item and later seen ads for that product.  Recently I did a search for hotels in Key West.  Not long after I started seeing hotel ads for Key West online, and one caught my eye and made me check it out.  This is called search targeting and re-search targeting.  I didn’t mind because it was something I was interested in.

The Ellis Team uses targeted marketing online for two reasons.  It provides a better experience for consumers and serves up ads you’re interested in.  If they must serve up ads, I’d at least like them to be about things I’m interested in.  Secondly, it helps us target potential buyers for our listings.  The buyers love it because they sign up on our website www.LeeCountyOnline.com  It is a voluntary choice and they choose to do so.  This tells us they appreciated the online ad and it was timely for them and pertinent.

What is not OK is what happened with 3rd party companies at Facebook.  They allowed 3rd party companies to take information from your profile, like your birth date, hometown, age, etc.  Later on we may find that some companies received your email address, phone number, etc.  As a consumer, I don’t mind if they serve up relevant ads I’m interested in.  But please don’t sell my private information to 3rd party companies who could use that to track much more.

The Ellis Team uses Google, Bing, Facebook, and others to serve up ads of interest.  We do not receive any information on these people.  Facebook for instance creates audiences.  We can target specific audiences.  For instance, if we list a home on a golf course community with mandatory golf fees, we can target golfers.  Now if Facebook sold us users names, phone numbers, email addresses, etc. that to me would be an invasion of privacy.  I’m guessing 99% of what Facebook did was for legitimate purposes.

It’s that 1% we’re hearing about that concerns us all.  Be careful about which 3<sup>rd</sup> part apps you use online.  Be careful about the apps you install on your phone.  Make sure these 3rd party apps are trusted, and you know what they’re doing with your data.  Like it or not, we are all tracked online.  We just want it to be on the up and up.  Data must be used in a responsible way.  Everyone wants our data.  Most times it’s for good use.  Imagine what private data could mean for scammers, foreign countries, politicians, terrorists, etc.

Innocuous, unidentifiable audiences or people who search on specific items are fair game for targeting and re-targeting.  I’m glad this debate is happening now.

If you’re thinking of selling, call the Ellis Team and find out how we can use today’s advanced and legitimate techniques to reach the right people at the right time for your home.  Marketing can be the difference between selling for Top Dollar and below market.  Marketing also helps you sell your home faster.

If you’re a buyer, please check out our website too.  LeeCountyOnline.com is updated constantly, so you’re assured of finding the latest listing and price reductions instantly.  No more calling on homes that aren’t on the market, or missing homes that are.

Your Privacy Matters to Us

The Ellis Team never sells your data.  Your phone number, email address, etc. stays with us.  That’s not true with companies like Zillow, Trulia, realtor.com, etc.  They sell your info to agents and mortgage companies.  Be sure to read their privacy statements.  Rest assured, we will not sell your data to anyone!

Feel free to call us at 239-489-4042  Good luck, and happy house hunting!

Lock Interest Rates Now Before Big Rate Increases Later in April

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Experts have been predicating interest rate increases in 2018 and 2019 and already we’re seeing rates on the move.  Last time we checked 30-year mortgage rates are up to 4.625%.  The Fed has signaled they expect to raise rates two more times this year and three times next year.  We’re telling our customers to purchase, and lock interest rates now before big rate increases later in April.

 

Lock Interest Rates Now Before Big Rate Increases

I just watched Barry Habib, one of the financial experts we listen to lay out three reasons rates could tick higher at the end of the month.

  1. The Fed is ramping up its QT (Quantitative Tightening) policy.  In other words, the Fed is buying less mortgage bonds and treasuries.  This puts pressure on the bond market and causes rates to rise.  Combine this with raising interest rates the Fed controls, and you’ve got a double whammy for the market.
  2. Watch the stock market, particularly the S&P 500. The S&P has taken a hit and just passed it’s 200 day moving average and appears to be in position to bounce higher. When stocks do well it usually hurts bond prices which cause rates to rise.  So watch stocks and see how they do from this point forward.
  3. Watch inflation. If inflation rises, it erodes the value of bonds.  Bond prices have an inverse relationship with interest rates.  As bond prices sink, rates go up.  March inflation numbers should be reported near the end of April.  One of the components of inflation the Fed uses is the PCE (Personal Consumption Expenditure).  At the end of April this number will come out for March 2018.  They report the last 12 months, so March 2017 will fall off.  The March 2017 PCE was an abnormally low number and will be replaced by a much higher number this year.  It will push inflation to at or above 2%.  It will push the core rate of inflation close to or at 2%.  The Fed’s target is 2%.  The bond market will freak out because they’re used to PCE being 1.5% and now it’s 2%.  This will raise inflation fears and put additional pressure on bonds.  Voila, you’ve got an interest rate storm in the making, and it’s all set to unfold later this month.

What can you do to protect yourself?  Propertyowners looking to refinance, do it now!  If you’re looking to buy a home, do it now!  If you’ve got a home to sell first, call us immediately.  Not only will your next mortgage cost you more, but higher rates will affect your buyer too.  The sooner we get your home on the market the better off you’ll be.  Imagine a pool of buyers for your home.  Let’s say with heavy marketing there are 100 potential buyers right now for your home.  Keep in mind, there may be 130 homes on the market for this same pool of buyers, so not every home will be bought.  When rates go up, that same pool dwindles to 89.  Now there are 89 buyers for 130 homes.  The math just changed, and it doesn’t favor you on the sale.

Because there are fewer buyers, you potentially take less.  Maybe not if you sell now, but if you wait, eventually the over supply wears on sellers and there could be price corrections.  By waiting you have a lower down payment for the next home.  Your payment is higher because rates have gone up.  Through no fault of your own, waiting has cost you money on your sale, and a higher payment on your next home.

Higher interest rates are coming.  Call us to do something about it.  They won’t stop either.  We expect them to go up throughout 2018 and 2019.  The sooner you act the more you’ll save.  Call us at 239-489-4042 Ext 4 and ask for Brett or Sande, or visit www.LeeCountyOnline.com to search the market.  It is updated instantly, so you’ll beat other buyers to hot new properties.  It’s great for sellers too.

Ellis Team Weekend Open Houses

Open Saturday 1-3 PM

Colonial Country Club

Colonial Country Club Open House Saturday 1-3 PM

9611 Hemingway Ln Unit 3909

Open Sunday 1-4 PM

Paseo

Paseo Open House Sunday 1-4 PM

11204 Adora Ct

Open Sunday 1-3 PM

18 NE 17th Ave Cape Coral

Cape Coral Open House Sunday 1-3 PM