The Lee County housing supply demand gap widens to its highest point in years. Supply is rising while demand is falling. This is a sign of a slowly shifting market.
Housing Supply Demand Gap Widens
The Fed raised interest rates at the fastest pace ever in the past year, so it’s no wonder demand has fallen off. In fact, people are wondering how it’s held up so well. The data suggests it only looks like it’s held up so well.
We’ve had such low inventory numbers it masked falling demand. The whole thing worked because, so few sellers had put their home on the market. It appeared that demand exceeded supply, but we know that changed last summer because we track the numbers.
Looking back at the charts, inventory levels still are not bad. Inventory levels are now back to about May 2020 levels but heading higher. The SW Florida real estate market appears to have entered a balanced market. This is normal as markets rarely stay at the exact same place for long. Markets are always moving, and when you apply pressure to them it can begin the move. In this case, the pressure is rising rates, companies calling workers back to the office, and a slowing economy.
Where do home prices go from here? It’s hard to imagine prices rising substantially in the wake of rising inventory and slowing demand. At some point the mask comes off. Perhaps this is why we are seeing so many price reductions in MLS. This past week 423 single family home sellers in Lee County reduced their price. Sellers are not reducing their price because they want to. They are reducing their price because the market has spoken and rejected their current price. They can sit where they are and fall further behind or adjust to the shifting market.
The other thing that can most benefit home sellers is an active marketing campaign. Listing it on the MLS is not enough in a shifting market, but unfortunately 85% of Realtors in the market today have never been in a balanced or buyer’s market. This requires more advertising. Many agents didn’t get into the business to spend their own money, they got into it because it looked easy and could make them money.
Folks, this is a normal market, and it is going to require agents to spend money marketing a property. The easy days of listing a property and selling it within 4 hours with 16 offers are gone. Experience matters now. The housing supply demand gap is widening. The agent’s pocketbook matters now. Handling buyer objections once the inspection is completed matters now, because buyers are anxious. To the buyer, everything has gone up. Interest rates, insurance, prices, etc. They feel like they are paying for it all and they want a house with no troubles.
We have a formula that helps buyers understand the inspection and repair process. It makes it logical for sellers to come to an agreement over inspection issues. This formula helps reduce things buyers and sellers fight over and keeps more deals together.
If you’re thinking of selling your home, please call Brett and Sande Ellis at 239-310-6500. We have the marketing muscle to get your home sold, and the experience to keep deals together when possible. We also have a program that speeds up the home selling process along with a video that explains how we could do such a thing. If you’d like your home sold for Top Dollar, and quickly, simply email Brett@topagent.com request the video and I’ll email it to you.
Sande and Brett Ellis are here to help. Good luck and Happy Selling!
Be sure to read our “Advanced Home Neogtiationg Techniques” article on how to better sell your home in today’s market, or watch our video below.