Good news for home buyers. SW Florida listing inventory rose 11.24% in the past month. Buyers cannot rejoice as listing inventory is still low. In fact, currently we have 1,336 listings in Lee County. Last year we had 3,044, and that number was low.
We track the number of listings as well as the 365-day rolling number of homes closed. Homes closed in the last year were up 2.14% versus last month. It may take a little while for closings to catch up to the new inventory coming to the market.
It is too soon to know if rising inventory will become a trend. We have a serious backlog of buyers, and it would take quite a few new homes on the market to meet that backlog. We are hearing from the Northern markets that inventory is building, and homes are taking longer to sell.
Florida May Buck National Trend
The resurgence of Covid could also affect the market. We are not sure how. We have seen interest rates fall in the past few days because of speculation Covid could slow down global markets.
If real estate markets slow down up North, could that trickle down to the Florida market? It could, but then again, Florida is attracting buyers from other markets. It is only natural that one day those markets will lose residents who sell and do not replace in their state. Many are replacing in their home and moving to Florida.
The U.S. economy generally affects the real estate market, but all bets are off now because the markets have not been behaving in a normal way with so many relocating to Florida. Reasons vary by buyer. Some choose Florida because it is a low tax state. Others choose Florida because it did not lockdown like other states. Still others appreciate the relaxed mask standards implemented last year.
Whatever the reasons, Florida seems to be an attractive place that may drive buyers here for years. Not all buyers can simply pack up and move. Sometimes it takes years of planning. Family could be involved as well as a business. Once a decision is made, it can take a while.
Has Market Peaked?
Many sellers ask us when will the market peak? We believe when June’s official numbers are released, we will see big numbers. The same holds true for July. Are there as many buyers bidding on each property? Maybe not, but each property we list attracts many buyers. Because inventory is still light, it will be interesting to see what happens next season.
The economy will not hold at this pace either. Economic numbers released today are compared to last year’s Covid economic numbers. So of course, they will be great. Economic numbers are expected to taper off as we get into the 1st quarter of 2022.
We see a good housing market in Florida continuing for the next several years. We should not see rising prices like we have seen recently, but they should still rise. Inflation will bring about higher costs to build. Inflation could also eat into buyers spending money, so it is possible interest rates may stay low unless we see runaway inflation.
Nobody wants to see runaway inflation. Inflation is like a hidden tax. We will be watching inflation numbers through the 4th quarter of 2021 to get a read on whether it is transitory or real.
Now May be Good Time to Sell
If you are a seller, now might be the time to have a conversation with us about how much we can sell your home for. While home prices may rise further, we believe we have seen the brunt of the increases. Call Brett or Sande Ellis 239-310-6500 or visit www.SWFLhomevaules.com to get a quick estimate of your home’s value.
Now might be a good time to capitalize on this market while prices are still going up and before additional inventory hits the market. It is always fun to sell to multiple buyers than waiting around for a buyer to make an offer.
Good luck and Happy Home Buying and Selling! Always call the Ellis Team at Keller Williams Realty!