Today we’d like to update you on Lee County single family homes months supply by price range. Lee County Florida currently has 3.81 months supply, which is up from 3.55 months supply on June 1st This isn’t surprising because we know inventory has been rising all year.
Million Dollar Surprise
What is surprising is that $1 million plus homes have less month’s supply today than it did on June 1st. This is primarily because there are less homes listed. Million dollar plus closed sales fell in the last 365 days to 1,107. That is down from 1,128 back in June. However, the number of homes on the market fell to 635, down from 674 in June. The decrease in homes for sale more than compensated for the decrease is closed sales, thus we saw a drop in monthly supply.
$300,000-$400,000 supply rose from 2.7 to 2.81 months supply. The $400-$600,000 range saw the biggest jump, going from 3.79 months to 4.46 months supply. All other price ranges were relatively stable.
Expired Listings
On August 1 we saw 62 single family expired listings. This helped bring inventory down to just below end of June numbers. Pending sales fell too in the last month, so we will be watching supply numbers going into August.
Price Reductions
Price reductions stood at 10.22% of the overall single-family market this past week in Lee County. This is down from 10.92% last week, and off from the high of 11.43% back in June. We track price reductions to test motivation of sellers after they list their home, and it doesn’t sell. When we had an increase in pricing sellers were less motivated. Because prices have fallen since last year and sellers see increasing inventory, they have become more motivated. We will continue to track this metric, along with listing inventory and sales velocity.
Attract More Buyers
Knowing the current sales market on a weekly basis allows sellers to attract more buyers for their home. When a home is overpriced, less buyers see the home in person and online because it is not on their radar. Pricing a home on the buyer’s radar is critical to getting the most offers, which leads to a better sales price. Decisions need to be made at the time of listing, and the best way to do that is studying the daily and weekly statistics.
Time on Market
Time on the market is acid to a seller’s final sales price. The longer a home sits the more buyers lose urgency to offer. The less offers, the less a seller nets at closing. The best time to create urgency for buyers is early in the process, before the market rejects the home’s price. People are afraid to miss out on something they perceive as new and fresh, and a value. When a home sits, buyers feel like other buyers rejected it, so why should I buy it?
Months Supply by Price Range
One thing that is helpful is to compare your list price to the months supply by price range graph. If you see a large supply of homes in your price range, you know you need to price it competitively. Obvioulsy the best value homes in each price range stand out to the buyers, and those are the homes they choose. This graph will help you determine what your competition looks like when selling.
Program to Fix This Problem
The Ellis Team has a program to fix the time on the market problem. Sellers that utilize this program see their home sell faster and between 8.4% to 12% higher than the MLS average. This has been verified by 6 independent studies. If you are considering selling your home, call the Ellis Team at Keller Williams 239-310-6500. We’ll preview your home and show you how this program is better than what the traditional agent can offer. It doesn’t cost anything to meet with us, but not using us could cost you thousands. Why sell the traditional way when there is a better way that nets you more money and saves you from having your home on the market for months?
Compare this months supply by price range to April 2023 months supply by price range.
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