SW Florida housing demand strengthens to July 12, 2022 levels. Back in July we had 1,858 total pending sales compared to 1,840 today. The difference is back then we only had 2,863 single family homes on the market compared to 3,366 this week.
Additionally, more homes tend to go pending in season, so we cannot say the market is back to last year’s blowout numbers. What we can say is increased pending sales are an encouraging sign. The market is not dead. We still have a robust market if homes are priced appropriately.
Current Market Index
Today we have an Ellis Team Current Market Index of 1.829. Back in July, we had 1.541, so the market isn’t as robust moving forward as 6 months ago. However, the index is down 5 consecutive weeks which means the market has been picking up.
If you’ll recall, the Ellis Team Current Market Index has been instrumental in predicting forward direction of the market. Our proprietary algorithm tracks key market indicators and gives us a better read on the current market and possible future changes to the market. Because of the index we’re not surprised that housing demand strengthens to July 2022 levels.
7-Day Market Watch
The 7-day Market Watch from MLS confirms buyers are back. Single family pending sales outpaced new listings, so buyers have responded. Sellers have responded too because we saw more price reductions than new listings, This is evidence the market is rebalancing itself. We believe official sales for January will show price increases over last year, so the market held on to some gains from last year. The market will have to pick up even more to match prices going into April, but that usually happens as we go through season.
We like the upward trend the market is showing us. Interest rates are down about 1% from their highs and buyers are responding. It could very well be that interest rates may drive the future direction of the market.
Some are anticipating long term rates could still decline even if the Fed keeps raising short term rates. Gas prices have been on the rise again, and many are predicting the economy to cool off. Earnings season has begun for corporations, and so far, earnings have been a disappointment. The stock market can’t decide if it wants it take off on hints the Fed may stop raising soon or pull back due to lower earnings forecasts.
Both the stock market and the real estate market could be in a trading range. Until the economy and interest rates show their cards, the price of stocks and real estate may hold steady. A breakout may occur once solid information shows up, and that could be latter half of 2023 or 2024.
Home prices have already adjusted downward, and we believe that will show up in the year over year numbers in April or May. From here on out it may be steady as she goes until the market gives us some signs.
Your Home’s Value
If you’re interested in your home’s value, we have an online tool that values your house it minutes. It’s free, and its fairly accurate, at least as far as computers go. It can be found at www.SWFLhomevalues.com
If you’re thinking of selling, we have a home selling system so good it’s been patented. Our system is designed to get your home sold in 8 days and for Top Dollar. Simply give us a call us 239-310-6500 and Brett or Sande will be glad to show you how it’s different than selling the traditional way.
If you need us, we’re here to help. Good luck, and Happy Selling!