Lee County housing inventory trend line is on the rise. Local inventory has grown above the trend line for 6 straight weeks. Housing inventory has risen for 17 straight weeks.
This tells us the top of the frenzy probably occurred back in February. Agents across the county are noticing less offers on their listings, and the upward pricing pressure has abated. We will still see higher prices year over year as the numbers come in, but we may not see substantial price increase month over month going forward.
The housing inventory trend line is a leading indicator for the local real estate market. Inventory levels tells us about the relationship between supply and demand. With inventory rising, supply is outpacing demand at these prices. Therefore, we are seeing so many price reductions in our market.
Sellers Pay Attention
Home sellers may have missed the peak of the market, but it is still a great time to sell. Housing inventory currently stands at 1.43 months supply which is still fantastic. We just do not have the upward pricing pressure fueling large price gains like we used to.
The best indicator we have is the Ellis Team Current Market Index. While we are no longer publishing this live data to the public, we can tell you that it almost doubled since April 26th, which was just 6 short weeks ago. Ellis Team clients get access to this data which is crucial in making proper pricing decisions in a changing market.
Focus on Marketing
Today sellers are hiring agents with a focus on marketing. The past two years we noticed sellers were interviewing agents and sometimes selecting the lowest cost agent. Perhaps they felt any agent could sell a home in the heated market, and that was true. Not all could get Top Dollar, but they could sell the home for full price. There is a big difference in the two.
Today marketing matters again. Sellers are not looking for the cheapest way to sell but rather the agent who can fully market the home and get Top Dollar. When the buyers fall off, marketing becomes more important to sellers. As inventory grows sellers know they must make their home stand out. It used to be that buyers were in competition with other buyers for the best homes. Now buyers have more choices, and we are heading towards sellers being in competition with other sellers for the best buyers.
Home prices have exploded in recent years and sellers do not want to jeopardize cashing in at these prices by hiring an agent that simply puts their home in MLS. When inventory grows, buyers shop online, and homes begin to look alike. Each home has its unique features, and you’ve got to create ways for that home to be seen by buyers who want those features.
Target Marketing
This is why we target market. Placing a home on Zillow or Realtor.com is not going to sell the home when inventory grows. We take our listings and place them in interested buyer’s inbox, social feed, and search online. Our marketing contains various target sets depending on which listing we are advertising.
We can reach buyers in out-of-town markets who want to buy here. Why advertise to only local buyers when you can target out of state buyers too?
This is the difference between selling a home to just one buyer or reaching many buyers from all over. Do you think you would get more money if you had one buyer interested or dozens of buyers interested?
If you are thinking of selling and want Top Dollar in today’s market, we should talk. Call Sande or Brett Ellis 239-310-6500 We’ll be happy to discuss your situation and show you how our marketing can give you an advantage. Real Estate agents aren’t cheap, so why not hire the best? A great agent can actually put more money in your pocket at closing!
Good luck, and Happy Selling!