We’ve got good news for sellers and for buyers. The Lee County real estate market is setting records and you might be wondering how this is good news for buyers.
First off, the total dollar volume of sales increased 45.5% to a whopping $553.5 Million in August sales, a new high for the year. Three things are spurring these sales. Low interest rates, people moving to Florida, and more inventory coming to market. Median prices rose 16.5% in August over last year, and closed sales were up 16.5% as well. Both positive numbers added to the rise in dollar volume.
When inventory is falling like it has, you cannot have increased sales forever. Eventually you’ll run out of inventory to sell. What saved the day is a 32.3% rise in new listings over last year. This is the good news for buyers. Before we get too carried away, we’d like to point out one fact.
It is true listings were up 32.3%. August new listings were 1,547. New pending sales was 1,796. This means 249 more homes went under contract than came to the market. We know some of those deals will fall out over inspection issues, appraisal, etc. Still, more homes are going pending than coming to market, so that is not a sign of increasing inventory. The silver lining is more new listings came up than last year. Without those new listings, dollar volume would not be as high.
We are starting to receive more calls from sellers wondering if now might be a good time to cash out of their property. Their property has served them well, and they know inventory is low and sellers are in the driver’s seat. Some sellers are looking to upgrade or downsize, and they feel now is a good time to sell, and they are correct.
We believe more of those conversations will be happening this year. Will it be enough to cover the buyer demand we have right now? Nobody knows that answer. We do not know who will win the election, or even when it will be decided. A vaccine isn’t approved yet, although tests look promising. With so many unknowns, nobody can guarantee where the Lee County real estate market will be next year.
What we do know is buyers love Florida and they are moving here. Sellers sit in a good position, and the sellers choosing to sell right now are doing well. Agents who use technology and marketing at a high level are doing well, and others are struggling.
The real estate business is changing rapidly right now, and many agents won’t be in the business a year from now. Some companies are also closing due to pressures of lead acquisition and market conditions. Who you work with now is more important than ever.
Keep in mind, markets can swing, and little variations in the data can affect sellers. Staying on top of the data can help sellers make quicker and better decisions. When the market is on the move, you must pay attention.
The Ellis Team at Keller Williams Realty studies the market and the data. Did you know you can see years’ worth of data on our blog? Subscribe to blog.topagent.com and you’ll receive timely trends as we publish them.
If you’d like to talk to Sande or Brett Ellis, give us a call 239-489-4042 Ext 4 We can discuss your situation and see if this hot market is right for you to make a move. Having facts helps you make better decisions. Brett and Sande are here to help.
Good luck and happy selling!
See last week’s article “Rising Florida Home Prices Caused by Low Inventory”