SW Florida housing inventory supply falls to 3.85 months, down from 4.20 months supply back in March.  We do not have official April sales numbers, but a quick search of single-family homes in our MLS shows 1,116 closed sales in 2020 versus 1,361 in 2019.  That is a 18% decline in sales in our MLS.  So how did the months of supply go down?

Housing Inventory Supply Falls in May

Housing Inventory Supply Falls in May

Heading into the Coronavirus crisis inventory was light to begin with.  Sales picked up in the $300-$600k category and declined in all others.  Inventory increased in the under $100k category and declined in all others.  Keep in mind, these numbers are from previous 365 days from each point in time.  365-day sales were down 1.96% while 365-day inventory was down 10.16%

We can determine that months supply of inventory is down because there are fewer home sellers.  It is also possible that we have less home sales because there is less inventory, which means there is less opportunity for buyers to choose from.

We have seen more sellers step up and decide to place their home on the market, and yet the listing numbers are still down.  This tells us it is an absolute perfect time to sell because there is less competition from other sellers and buyer demand is still good.

Speaking of buyer demand, we see several key factors in play and right now one is winning out.  Locally, we are seeing layoffs and business closures.  This was to be expected due to shut down. Some businesses just could not survive this.  The other thing locally we have found is many people who still have their job but were renting have decided they want to buy.  They were shut in on quarantine in a place that wasn’t their own, and they did not love.  Many want a larger space and moving forward we’re not sure the virus is going away anytime soon.

Northern Buyers Heading to Florida

Secondly, many people up North do not agree with shutdown orders of their businesses and lifestyle and they are deciding to purchase in Florida.  They may not like the fact they live in a high tax state, and now with onerous restrictions, they have had enough.  Florida is one of the places they want to be now.

At least three factors are in play, and two are winning out favoring real estate sales in Florida.  Our team has been advertising in markets up North and we are generating a lot of buyers looking to relocate to Florida.  Some of them are Now buyers, meaning they are not waiting until they retire.  They want to purchase now, and covid-19 and the reactions to it is the impetus for their immediacy.

If sales declined 18% in April, our team’s sales did not. This suggests some agents are being aggressive  finding buyers for properties while others may be sitting home wondering what they can do.  Brett and Sande have been involved in real estate in SW Florida through many shifts.  The reason for this shift is different, and yet all shifts are alike.  They tend to come suddenly, and how you act and market in a shift matters more then when times are great.

Aggressive Agents Have Strong Sales Right Now

A great market hides a lot of imperfections because sales seem to find the agent.  Not all agents survive in a shift, as many are exposed as order takers instead of marketers.  High tide lifts all boats, and often masks other issues.  Low tide reveals who has the grit, knowledge, and determination to get the job done.  You must survive to thrive.  Surviving means performing, and performing means serving your clients at a high level and educating them.

If you enjoy reading this column and you’re thinking of buying or selling in SW Florida, please reach out to Brett or Sande 239-489-4042 Ext 4 or visit www.SWFLhomevalues.com  to get an instant value on your home.  You can search homes there too.

Sande and Brett are here to give you advice on if now a good time for you to make a move and talk about how the process would work.  If you’re a buyer and do not have a property to sell, visit www.LeeCountyOnline.com We look forward to helping you!

See last week’s article “If You Could Work From Anywhere Where Would You Want to Be?

2 thoughts on “Housing Inventory Supply Falls in May

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