What a difference a month makes. A little over a month ago we were reporting rising inventory and median price increases of .8%. Since then, inventory fell by almost 100 homes and Southwest Florida median home prices rose 8.2% in July from last year. They rose 2% from June numbers alone. The average price increase in July was 15.8% over last year and was about steady from the previous month. One of the reasons we use the median price is it’s more stable and is not subject to wild fluctuations like the average is.
In any event, both indicators are healthy gains. All we see or hear in the media is how the water crisis is taking a toll on business and real estate sales. Perhaps it is affecting waterfront real estate sales, however statistically we can’t say it’s hurting the overall market. You must be careful not to buy into negative news.
At the Ellis Team, we’re all for reporting the news accurately. It usually tells a story, but not always the story you think. We like to look at the numbers and see if there is a cause and effect. Sometimes there is, and sometimes there isn’t. What is a problem for some becomes an opportunity for others, and we’re not just talking about the water crisis.
If you let outside influences affect your outlook, it can become your reality. If you’re a real estate agent and you believe the market is down, you’ll sell as if the market is down. When you believe the market is good, you’ll sell that way too. You’ve heard the sayings, “Anything the mind can conceive, it will achieve”, and “Perception is reality”. This is 100% true.
We’re not saying agents should pump themselves up by saying the market is something it isn’t! The sooner you identify and tackle reality the sooner you are on your way solving an issue. We are saying that agents and the public should seek first to understand before making broad assumptions.
If you were a military planner, you wouldn’t attack New Zealand because Syria was acting up. You’d look at the whole situation and determine if force was even necessary to begin with, and if so, where. The same is true in real estate. Salt water waterfront may be affected while fresh water and non-waterfront might be on fire.
I haven’t gone in and done an in-depth analysis of salt water sales, so I can’t even tell you if it’s being harmed nor by how much. I’ve seen agents on TV telling us how bad it’s affected their sales. While I don’t doubt that, you must ask the question. Is that their perception making their reality come true, or is it fact? It could very well be fact, and perhaps one of these days we’ll research that and report to you what we find.
If you’re a buyer, or seller, it pays to know which segments of the market are hot, and which are not. It affects how soon you must place your offer when you find a nice home, and how close to asking price you should offer. The Ellis Team are experts at counseling buyers and sellers. Sande and Brett each have over 30 years’ experience, and we have a team of agents we meet with every week and discuss market conditions.
Last week one of our agents identified a hot buy alert on a property in Cape Coral. One of our other agents on the team sold it. When you have a small army who knows the market and works in it every day, it helps all your clients.
If you’re looking to purchase, call us at 239-489-4042 or check out www.LeeCountyOnline.com It has some of the area’s best buys, and it’s updated instantly. If you’re thinking of selling, check out www.SWFLhomevalues.com, or call Sande or Brett Ellis 239-489-4042 Ext 4.
We’ll be happy to give you great advice we give all our clients. The value isn’t in the agent showing you homes, it’s in the knowledge behind the research. The Ellis Team has the knowledge and the research.