We just pulled new numbers from MLS and found that housing inventory grows most in the higher price ranges since March.
Overall single-family home market inventory in Lee County grew to a 1.18 month’s supply, up from .82 month’s in March. Where we see the most differential between the two graphs is in the $300k price and up. Housing inventory grew the most as the prices go higher. The spread in each subsequent price range grew higher.
This explains why we are seeing price reductions again in the housing market. Some sellers got a little ahead of the market, and that was OK while the market was rising rapidly. Today, the market is price sensitive again. Sellers must be priced correctly in this market. Competition from other sellers is coming as more listed properties hit the market each day.
It is still an excellent time to sell your home, but you must be competitive in the market. Overpricing your home in this market may not accomplish what you want. We are not saying prices are headed down. That would depend on how many more sellers choose to list compared to how far and fast interest rates rise and how that affects demand.
Marketing and Pricing Crucial
What we are saying is marketing your home extensively and pricing it correctly are critical. Gone are the days you can just list it in MLS and post on some portal websites and it will sell. To receive Top Dollar, it takes marketing and correct pricing. especially when housing inventory grows most in higher price ranges..
If you follow this advice, we think you will be happy with the result. Sellers that do not do this will not receive top dollar for their home, and worse, might miss the market altogether.
The Ellis Team has been through changing markets many times in our career. If and when the market does change, there will be some sellers that look back on 2022 and kick themselves because they missed one of the greatest opportunities in their lifetime.
Maybe the market isn’t as hot as it was 6 weeks ago, but it is still excellent. Throughout the history of real estate markets most sellers would kill to have a 1.18 month supply of homes on the market as competition. This is an opportunity for current sellers, and perhaps those wondering when the market would top.
We cannot say for certain if the market has topped and where it will go from here. Rising inventory levels and price reductions tell us it has at least paused, which markets sometimes do. Markets don’t always go up or down. Sometimes they meander awaiting direction from buyers and sellers.
We have so many factors pulling and tugging at this market, and it will be interesting to see which forces win out. Rising rates usually cools the market, as does fear of recession. However, Florida is still a popular destination that many would like to relocate to.
Thinking of Selling?
If you are thinking of selling your home, please reach out to Brett or Sande Ellis 239-310-6500. We can guide you through the market and help you explore your options. We can even help you find your next home which is easier not that inventory is rising. Or visit www.SWFLhomevalues.com for a Free instant home valuation online.
If you are looking to buy, our buyer specialists are here to help guide you as well. Just call 239-489-4042 or visit www.LeeCountyOnline.com to begin searching the MLS like a pro.
Good luck and Happy Selling!
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See Listing Inventory Rose 40% Since February published just a few weeks ago. Since that article, inventory has now risen 64% since February.
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