Real estate sales prices rose over 20% since last November in Lee County. The median sales price last year was $262,500. This year it was $319,150 for a 21.6% gain. Average real estate sales prices last year were $335,357. This year it stands at $422,452. That is a whopping 26.0% gain.
October year over year numbers saw similar gains, so it was not a one-time anomaly. If you read our articles regularly you know that we have talked ad nauseum about the reasons the Florida real estate market is on fire.
How Long Will it Last?
The real question everyone wonders is how long it will continue. We believe there is good reason for this market to continue for a while. Interest rates are low, and we expect them to stay low. Oil could rise with new energy policies by a new administration. Typically, when oil rises it is inflationary and interest rates rise as well, but that may not happen for a few years.
Rising oil prices could eat into consumers wallets which might limit how much they can spend on things like housing. This could tamper the positive effects of low interest rates, but only to a degree. Florida still stands to win big because companies are seeking low tax states. Companies and residents are fleeing states like New York, New Jersey, Illinois, and California in droves.
Making matters worse, as residents flee, these states are raising taxes on the residents who are left to make up the shortfall. It is a vicious cycle, and at some point, it is game, set, and match. Florida sits in an exceptionally good position going forward. You have seen the benefits the last 4 years and it is possible this may accelerate the next four years.
How to Win in Fast Paced Market
So how do buyers and sellers win in such a fast-paced market? Experience! Simply put, you must work with an experienced agent who has been through up and down markets. Experienced buyer agents know where to find inventory, even when it is not on MLS. Sometimes there is hidden inventory that is sold before ever hitting the market.
Other times it is having relationships with builders who call the top teams when a deal falls out, or when a new inventory home is about to become available. Lastly, in a world where speed wins, technology can play a crucial role. Having all the listings on a website updated in real-time is crucial. Ours does. www.LeeCountyOnline.com Many buyers are surprised to learn that the big portals do not have all the listings, and sometimes the data is old.
Sellers Benefit Too
Sellers benefit from experience too. Multiple offers are good, but taking the wrong offer is not. Experienced listing agents help weed out the good offers from the mediocre. The highest price is great but evaluating the most likely to close is a skill onto itself. Every offer is a gamble, but you can have the odds in your favor with some knowledge, skill, and investigation.
For instance, we call the loan officer if we have any question at all about the buyer’s ability to close. We also look for the way items are worded in the contract which can yield clues. Sometimes contracts are craftly worded to disguise a hidden contingency. The contingency is not revealed because they feel it would hurt their chances of getting their offer accepted. This is exactly why sellers need the sharpest agent they can hire.
If you are looking to buy or sell in SW Florida, always call the Ellis Team at Keller Williams Realty. We have experienced buyer agents on our team ready to put our skills to work for you. Sande and Brett Ellis handle the listings on our team, and nobody is more experienced than we are. We would love to help you sell your home and get you to your next destination. You can reach Sande and Brett at 239-489-4042 Ext 4.
Good luck and Happy New Year!