2023 was the third best dollar volume year on record in Lee County. Dollar volume measures the total health of the market in a way few other statistics can. In a year where real estate agents are getting out of the business in droves, these statistics place a new way to look at the market.
Don’t Know How
The reason why agents are getting out of the business is because they don’t know how to sell in a shifting market. It feels like home sales fell off a cliff, especially in the 4th quarter of 2023 and into 2024. This is exactly why we don’t go by how the market feels, but rather what it is.
Third Best Dollar Volume
The dollar volume of the market measures both the number of home sales and prices. When you multiply the number of sales by the averages sales price you get the total dollar volume. You could just add up all the single-family home sales in Lee County and you’d get the same number.
Prices could go up with home sales going down and you could get a higher or lower total dollar volume depending on how much in each category the numbers changed. Last year we saw prices falling and home sales dropping, so we knew the dollar volume was going to drop in 2023.
What seems like disaster to many real estate agents really isn’t. 2023 was the third best dollar volume year on record in Lee County, it just doesn’t feel that way because sales are slowing, and prices have fallen.
Feelings
Maybe agents don’t care about actual statistics. If feelings are all we’re going after, all we’d have to do is track the direction of the market. Are home sales going up or down each month? Did prices rise or fall last month? The problem with that line of thinking is we have seasonal months, and measuring one month against the last doesn’t tell the whole story. It also gives you no clue about where the market is or where it may be headed. When you get down to feelings, even that isn’t so accurate. One agent could have a good month compared to a similar agent who just had a bad month of sales. One would say the market is on fire while the next would say the market stinks.
This is why we track. We take the feelings out of it. The market is exactly what it is, and we don’t need to put a spin on it. If we want to change something, it might be how we market properties in a shifting market.
Seasoned agents know how to sell a home in shifting markets. It may not be easy, and it may take more time and counseling buyers and sellers, but it can be done, if the agent knows how to do it.
Listing a Home Today
If you’re listing a home today, it pays to hire an agent with experience. 85% of the agents in business today have not worked through a shift like this. I get a kick out of sellers interviewing 4 agents for the job of selling their home. It’s never a bad idea to interview more than one. What is important is that you interview those with experience. Your questions should be focused on what will the agent do that’s different to market my home? Questions today should not be focused on who will list it for the least commission, or at your preferred price. That’s not going to sell your home in today’s market. Those days are gone! You need a Realtor who knows how to sell in today’s market and will spend the extra marketing dollars to reach a broader audience.
Buyers are less motivated than they were two years ago, so you must spend more to reach enough motivated buyers.
If you have a home to sell, Always Call the Ellis Team at Keller Williams Realty 239-310-6500 or 239-540-9070 at our Cape Coral office. Or visit www.SWFLhomevalues.com to get an instant free online estimate of your home’s value.
Good luck and Happy Selling!