Lee County sales prices hit pause in July, backing down from June’s numbers. The median sales price in Lee County was $360,000 in July, down from $365,000 in June. The average sales price was $469,072 in July, down from $505,976 in June.
Sales prices are up year over year. Median sales price is up 27.2% in July and the average sales price is up 23%. We saw big price increases start last September and October, so we expect to see large double-digit year over year numbers for several months to come. Once December and January roll around, we do not expect those numbers to be as large unless prices continue escalating.
We are still experiencing multiple offers on many properties, and many properties are going well over asking price. Since school started, we are not seeing the hyperactivity we were though. There are too many headwinds that should prevent the market from double digit gains we have seen in the past.
It appears overall sales prices hit pause recently. This does not mean all homes have hit pause. The market rarely speaks in unison, although this past year it pretty much did.
When interest rates rise, and they inevitably will, it will put pressure on upward movement of prices. Once prices hit full market value rising rates could lead to a decline in home prices. The question is, what is full market value?
I don’t know who has the answer, but my suspicion is we are somewhere in the neighborhood. Full market value is relative. We seem so high priced compared to where we were, but then again, I always felt we were undervalued locally. We are still a bargain compared to other parts of the country. For what SW Florida offers, we may still be a bargain.
It is natural that markets take a breather and assess the situation. Stock markets do it all the time, and so do real estate markets. Most agents I know wouldn’t complain if this market took a breather. Agents have never worked harder, and many could use a vacation.
If prices do take a breather, it can be a wonderful thing. Prices are at all-time highs, so sellers get the benefit of that. They also get the benefit of low inventory, although it has been rising slightly in recent months. It is always more fun to sell in a low inventory environment when prices are high.
If prices do level out for a bit, sellers will need to be more accommodative to buyers. Right now, sellers hold all the cards, but one day the buyers will hold some cards too. Buyers may not have to give delayed possession or their first-born son like they do now. The playing field would be more level.
Then again, maybe our market will continue climbing. We may hit a soft-landing spot for us all to look around, take a breath, and decide to go higher. Or, after careful assessment, the market could top out and drift a bit lower.
Nobody knows what the market will do. Whatever the market does, we will report it to you fairly and honestly.
Sellers, if you were waiting for the perfect moment to sell but holding out for more, now may be the time to act. You might get more in the future, but then again you might now. Most sellers wait too long and regret not selling sooner. If you have a property you do not love or need, give Brett or Sande Ellis a call 239-310-6500.
We have a website that gives instant online estimates of your home. www.SWFLHomevalues.com The best part it, it will show you the direction of your home price every month. Even if it is off slightly on your value, you can use it to track the direction of your home price.
Good luck, and Happy Home Selling!