Southwest Florida listing inventory rose 40% since mid-February as interest rates have also been rising. Are the two numbers correlated? We’re not sure, but they could play a factor.
We do know that many builder homes that have been under contract for a while are coming back on the market because buyers no longer qualify for the home they purchased many months ago. Home buyers are scooping them up, but that also means those buyers are not buying a resale they might have otherwise purchased.
Local Buyers Feeling the Pinch
Some local buyers have been squeezed out by out of state buyers and institutions buying property in SW Florida at a rapid pace. Not only are interest rates rising, but so are home prices and insurance. All combined it is pricing many out of the market. Many Realtors are noticing homes taking a little longer to sell and not quite so many offers on each property.
Another thing Realtors are noticing is the quality of offers has changed. A few months ago a property might receive 20 offers of which 7 were cash. Today that same property might receive less offers and none or few are cash.
Some properties are still in high demand and generate cash offers while others not so much. Overall listing inventory is still very low, but it is climbing a bit. Back in 2019 we had over 7,000 homes on the market. Today we are at 1,503. Back in February we were at 1,071.
There is a difference between official numbers and MLS numbers we pull. I am pulling inventory every Tuesday compared to the official numbers pulled the last day of the month. We believe we will spot trends before the official numbers are released 3 weeks later. In essence, we won’t receive official April numbers until about May 22nd or so. Because we pull those numbers internally every week, we can report to you before the media does.
Ellis Team clients always have the latest information, and News Press readers of this article are not far behind. Opportunity is best realized when markets make a move and being the first to spot emerging trends maximizes our client’s ability to capitalize on that opportunity.
We are not saying the market Is changing today. The best characterization would be slight shifts in the market, but still very strong. I remember several times over the last 34 years we have seen a major shift coming and we were able to advice our buyers and sellers accordingly. By being the first to spot the trends we were able to save our clients a lot of money and change their lives.
Not every client comes to us before the market changes. People must buy and sell at various times, and they are just in the market we are given at that time. In that case, we bring our considerable marketing and expertise to bear to bring them the best outcome for them. Best outcomes come from experience, wisdom, and marketing muscle given the circumstances. Rest assured, as the market changes, we will always put our clients in the best possible situation for them.
50 Basis Point Rise Expected
As we write this article the Fed has not announced their decision yet. We expect 50 or75 basis point change to rates, and mortgage rates have already baked that in to current rates. We will be looking at the outlook for future hikes in June and how the market reacts to the Fed decision and inflation.
All these factors affect home affordability, and eventually it can affect home prices here in SW Florida. You can always speak to Brett or Sande Ellis at 239-310-6500 and we can discuss your situation. Or visit www.SWFLhomevalues.com to get an instant analysis on your home and track future direction of prices.
If you are thinking of making a move in SW Florida, call the area’s top team in real estate. We’ve sold over 5,000 homes locally and we study the market like nobody else. Listing your home with someone else could cost you thousands, and it could cost you a sale altogether. You don’t want to miss this market, because it’s the best one we’ve seen in our career.
Good luck, and Happy Selling!
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